A notable shift is unfolding in the world of fund issuance, particularly as we step into 2025. Industry experts suggest that a new trend is emerging, with equity-based products becoming increasingly dominantWithin this framework, passive index funds are gaining traction among investors, reflecting a shift in sentiment and strategy in the financial marketsThe data indicates a diversification of bond funds, contributing to an evolving landscape where passive index funds command significant interest, particularly those related to broad-based, technology, and dividend-focused attributes.

As we look into the strategies of various fund companies, it is evident that they are reevaluating their approach to launching new funds based on their unique circumstancesSome firms are adopting a balanced strategy, seeking both offensive and defensive positions in their offerings, while others are shifting focus from actively managed equity funds to multi-asset products, particularly aiming at bond funds

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This reflects an overarching trend towards index products as a focal point for strategy.

To illustrate this enthusiasm, data shows that as of January 6, 2025, there are 146 funds currently in circulationNotably, 62 of these funds commenced subscriptions as of January 1. This represents a significant spike compared to the months from July to December 2024, during which issuances fluctuated between 66 and 103 funds each monthThis contrast highlights a vigorous beginning to the year's fund-issuing activities.

Furthermore, recent statistics reveal that, within three months up to January 6, a total of 266 public fund products were approved, with 50 currently being issued, alongside 113 awaiting issuance, and 103 reaching successful issuanceThis indicates that the momentum is strong in the current market, with 14 new products from an additional 10 fund managers waiting for approval.

According to wealth researcher Bu Yili from Private Fund Pingpai Network, three key factors contribute to the heightened enthusiasm for fund subscriptions in 2025. Firstly, there is an observable increase in investor confidence, which translates into a willingness to invest in funds due to positive expectations regarding the performance of A-shares in the market

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Secondly, the “opening red” phenomenon has established itself as a new window for fund companies to launch their offerings at the start of the year, prompting many to capitalize on this timingLastly, the rise of index funds has sparked wide investor attention, compelling fund companies to issue a plethora of related products to capture market share.

Moreover, a conspicuous trend has emerged since the start of the year, indicating a marked preference for equity funds among new offeringsYang Delong, chief economist at Qianhai Kaiyuan Fund, reflects this perspectiveHe notes that January, commonly seen as a time of strong fund issuance, saw numerous new funds launched by various companies and banking channelsThis surge coincides with a significant uptick in stock market performance following the "924 policy," leading to an uptick in equity fund issuancesYang observes that applications for equity funds are processed relatively quickly, whereas applications for bond and money market funds encounter slower approval rates

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This signals a potential encouragement for the market to boost equity fund issuances in support of a strengthening capital market.

In detail, by January 6, 2025, out of the 62 newly issued funds based on subscription start dates, 31 were stock funds, 13 were bond funds, 11 mixed funds, 5 funds of funds (FOF), and 2 real estate investment trusts (REITs). This variety showcases a broad interest across different asset classesAnalyst Jiang Rui from Gesha Fund emphasizes that as market sentiments improve, there is a substantial rise in equity fund issuance, although bond funds likewise maintain a steady presence, including bond ETFs, bond indices, and mixed asset funds with an inclination towards bonds.

Interestingly, the increased issuance of equity funds in 2025 ties into a broader pattern of preferential treatment for passive index funds, particularly in the recent offerings

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Data from Gesha Fund underscores this, indicating that passive index funds have become the backbone of new fund issuances this year, with a notable portion of the 62 newly issued funds being passive index and enhanced index funds, accounting for 38.71% and 9.68%, respectively, of total fund sharesThis trend reflects a competitive market environment where active fund managers are challenged by the decreasing prevalence of alpha opportunities, leading to a shift towards passive investment strategies.

A key player in this market shift highlights that 2025 may be a significant year for technology-focused investments, especially with the anticipated rollout of many AI applicationsThe outlook on dividend stocks is also cautiously optimistic, as policy dynamics shift, creating a favorable environment for potentially lucrative dividend options moving forward.

As part of the market's evolution, fund companies are adeptly adjusting their issuance strategies

One representative from a Southern fund company elucidated their dual strategy in 2025: it includes building brand recognition around successful equity fund managers while also ensuring their product line is sufficiently comprehensive to cater to diverse investor needsThis illustrates a commitment to developing innovative products across various asset classes, including stock index funds and bond-focused strategies.

In contrast, a Shanghai-based fund company is focusing predominantly on the issuance of index and bond funds, underscoring the growing appeal of targeted strategies, such as ETFs and linkage productsAnother representative from a significant equity firm admitted that although equity funds had struggled for investor interest, the recent bullish trends in bonds have revitalized this avenue, prompting the company to amplify its focus on multi-asset strategies.

Jiang Rui proposes that fund companies will continue to enhance their focus on index funds, staying attuned to the shift towards low-fee, high-transparency investment options