FINANCE

China’s Revived Bond Funds Draw Strong Institutional Demand

Published: Sep. 25, 2026 12:46 p.m. GMT+8

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Three Chinese bond funds using an accounting method designed to smooth returns closed their fundraising early this week. Photo: VCG

Three Chinese bond funds using an accounting method designed to smooth returns closed their fundraising early this week, underscoring strong institutional demand after regulators reopened the product category for the first time in five years.

Neuberger Berman Fund Management (China) Co. Ltd. announced on Thursday that its 63-month closed-end bond fund had ended fundraising ahead of schedule. A day earlier, similar funds managed by BlackRock Inc. and Hotland Innovation Asset Management Co. Ltd. also announced early closures. All three funds only began taking orders on Monday.

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Three amortized-cost bond funds (Neuberger Berman, BlackRock, Hotland) closed fundraising early this week after strong institutional demand.
CSRC reopened this product type in August after five years; 15 initial funds with 63-month lockups, 7 launched, 13 more filed.
Smooth net-asset values attract banks/wealth managers; move supports smaller fund companies.

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Who’s Who

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What Happened When

Q4 2024：: Bank wealth-management products held 11.7 billion yuan of amortized-cost periodically open bond funds, marking a more than sevenfold increase from Q1 2026.

Q1 2026：: Bank wealth-management products held 85.5 billion yuan ($12.7 billion) of amortized-cost periodically open bond funds.

June 2026：: At a financial forum in Shanghai, CSRC Chairman Wu Qing said regulators would introduce measures to support the 'healthy and standardized development' of small and midsize fund companies.

August 2026：: The China Securities Regulatory Commission (CSRC) reopened approvals for amortized-cost bond funds, which had been largely absent from the market for five years. The CSRC disclosed applications for an initial batch of 15 such funds, all with 63-month lockup periods.

During the week of 2026：: Three Chinese bond funds using amortized-cost accounting closed their fundraising early. Monday: All three funds began taking orders. Wednesday: BlackRock Inc. and Hotland Innovation Asset Management Co. Ltd. announced early closures of their similar funds. Thursday: Neuberger Berman Fund Management (China) Co. Ltd. announced that its 63-month closed-end bond fund had ended fundraising ahead of schedule.