112 funds end fundraising early, primarily equity funds

Author: Fang Lingling

On March 24, three funds—Fuguo Yinghe Stable 6-Month Holding Hybrid (FOF), Huabao CSI All-Index Household Appliances ETF, and Chuangjin Hexin Hongda Bond—announced the early termination of their fundraising. The original closing dates for these funds were March 27, 2026, March 27, 2026, and April 30, 2026, respectively. They are now all closing early, with revised deadlines of March 25, March 23, and March 25.

So far this year, 112 public funds have announced early termination of fundraising. According to Wind Information data, among these 112 funds, there are 46 equity funds, 25 hybrid funds, 23 FOFs (funds of funds), 15 bond funds, and 3 QDII (Qualified Domestic Institutional Investor) funds.

“The relatively high number of funds ending fundraising early this year is the result of multiple factors such as market environment, capital structure, and institutional strategies,” said Zeng Fangfang, head of public product operations at Qianhai Paimaiwang Fund Sales Co., Ltd., in an interview with Securities Daily. In a low-interest-rate environment, the motivation for residents to shift savings into the capital market has increased, bringing incremental funds to equity funds and ‘fixed income +’ products. As the attractiveness of equity assets rises, investor subscriptions to equity products are also quite active. Additionally, public fund institutions have optimized their product issuance strategies, with more precise positioning and market-driven innovation. For example, increasing the issuance of tools like FOFs and ETFs to meet different investor allocation needs; in marketing, public fund institutions actively seize market opportunities by strengthening promotion through banks, internet platforms, and other channels, effectively improving fundraising efficiency.

Further breakdown shows that these five major fund categories cover 12 subtypes. Among them, passive index funds (a type of equity fund) are the most numerous, with 37 funds; FOFs (a type of FOF) and partial stock hybrid funds (a type of hybrid fund) each number 23; and secondary bond funds (a type of bond fund) total 12.

In terms of quantity, equity funds play a significant role among the funds that ended fundraising early this year. According to interviewees, although recent equity market volatility has been notable, the investment value of equity assets remains prominent.

Hu Qicong, manager of Hang Seng Qianhai Xing Tai Hybrid Fund, told Securities Daily that from the current perspective, there is limited room for the market to decline sharply further. After significant adjustments, A-shares have long-term allocation value.

Regarding allocation directions, Hu Qicong remains optimistic about structural opportunities in technology growth sectors. “We continue to favor technological innovation sectors represented by domestic computing power, robotics, and commercial aerospace. Meanwhile, under ongoing policy support, investment opportunities in related cyclical sectors driven by domestic demand are also worth attention. Currently, these sectors are undervalued and under the market’s attention, and may see a reversal later. Additionally, from a medium- to long-term perspective, in the context of declining risk-free rates, dividend assets still hold long-term allocation value,” Hu Qicong said.

Zeng Fangfang believes that external factors have caused recent significant volatility in the equity markets, but China’s economy continues to develop steadily, and corporate profits are expected to improve, providing important support for the equity market. Meanwhile, after recent adjustments, valuations in some industries are at historical lows, highlighting their medium- to long-term allocation value. Furthermore, in a low-interest-rate environment, the long-term return expectations for equity assets are generally higher than those for bonds, making current equity investments highly cost-effective.

“Given the market volatility, investors can adopt a ‘core + satellite’ strategy. The core should include sectors with high performance certainty and reasonable valuations; the satellite portion can focus on structural trading opportunities, especially in growth sectors. Additionally, as part of asset allocation, equity investments can be combined with bonds, gold, cash, and other assets to reduce overall portfolio volatility and help investors better seize medium- and long-term investment opportunities,” suggested Zeng Fangfang.

(Edited by Xu Nannan)

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