Public Funds' Self-Purchases Exceed 1 Billion Yuan This Year, Equity Funds Account for Nearly 90%

Author: Zhao Mingchao

Real gold and silver are optimistic about the future market, and public funds are frequently purchasing their own equity funds. Recently, many fund managers and fund companies announced their own purchases of their funds, pushing the total self-purchase amount for the year over 1 billion yuan.

On March 15, E Fund’s National Certificate Petroleum and Natural Gas ETF disclosed its listing and trading announcement, revealing the top ten fund unit holders. As of March 12, E Fund ranked as the largest holder of this ETF, with holdings worth 34 million yuan.

Not only E Fund is making self-purchases, but several other fund companies have also announced their own purchases of their active equity funds. On March 13, Anxin Fund announced that, based on confidence in the long-term healthy and stable development of China’s capital market, it will invest no less than 8 million yuan, with the proposed fund manager investing at least 2 million yuan, totaling at least 10 million yuan to subscribe to the Anxin Balanced Zhi Yuan Hybrid Fund, with a commitment to hold for at least one year.

Similarly, Huatai-Pinebridge Consumer New Opportunities Hybrid Fund announced that, according to the effective date of the fund contract on March 11, Huatai-Pinebridge Fund subscribed 10 million yuan to this fund. Xin Yuan Fund announced that on March 4, fund manager Liu Junwen purchased 1 million yuan of Xin Yuan Prosperity Select Hybrid Fund.

Choice data shows that since the beginning of the year, as of March 15, public funds’ self-purchase of their own funds has reached 1.007 billion yuan. Among them, Huatai Securities Asset Management and Ruiyuan Fund have each self-purchased 100 million yuan of their funds, while China Merchants Fund, E Fund, GF Fund, and others have each self-purchased over 50 million yuan.

In terms of fund types, equity funds have become the focus of public fund deployment. Statistics show that since the beginning of the year, fund companies have self-purchased 876 million yuan of equity funds, accounting for nearly 90% of the total self-purchase amount this year.

Industry insiders believe that in the future, the amount of self-purchase by fund managers is expected to continue increasing, with equity funds being the key focus.

In addition to public funds, private funds are also taking action. Recently, Heyuan Fund issued a statement saying that, based on optimistic long-term prospects for China’s capital market and confidence in its own investment management capabilities, it plans to use its own funds of 20 million yuan within three months of the announcement to subscribe to funds managed by the company.

“Institutional self-purchase of their own equity funds: on one hand, it can align interests with investors and boost investor confidence; on the other hand, it reflects institutions’ optimistic outlook on the market and their intention to seize opportunities through fund entry,” a person from a South China-based fund company told reporters.

Looking ahead, many institutions believe that the long-term value of equity assets is becoming apparent, and future investments will focus more on fundamentals. Zhu Rui, fund manager of Penghua Fund, stated that the equity market is currently entering a critical period for fundamental validation. In the technology innovation sector, represented by AI, the industry is shifting from initial trend investment to application implementation and exploring mature business models. Meanwhile, traditional industries are also entering a key investment period. Against the backdrop of inventory cycle bottoming out, supply contraction, and cost disturbances, some industry products are expected to see strong upward trends in prices and profitability.

(Edited by Xu Nannan)

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