Stock Funds in 2025: Growth Amidst Challenges

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Since the beginning of this year, equity funds have generally underperformed. However, the total share of funds has shown a slow growth trend, and there are obvious signs of increased positions by large institutions.
As of the end of the second quarter, institutions held equity funds reaching 1.58 trillion yuan, a record high, an increase of more than 500 billion yuan compared to the same period last year.

On September 20, in the late trading session, the A-share market index showed a significant pull-up. The Shanghai Composite Index closed up 0.03%. Judging from the trading volume on that day, in the late collective bidding stage, the market volume increased significantly. Among them, the trading volume of the Shanghai Composite Index reached 8.073 billion yuan, and the trading volume of the Shenzhen Component Index reached 6.

732 billion yuan. ETFs related to the broad market index also showed an increase in volume. According to the statistics of Securities Times·Data Treasure, on September 20, Huatai-Pinebridge CSI 300 ETF and E Fund CSI 300 ETF traded over 7.5 billion yuan and 5.7 billion yuan respectively. Harvest CSI 300 ETF and ChinaAMC CSI 300 ETF traded 3.801 billion yuan and 3.723 billion yuan respectively. The total trading volume of these four ETFs exceeded 20 billion yuan, and the trading volume all hit a new high in nearly two months.

Industry insiders analyze that large funds are more focused on injecting liquidity into the market through broad-based indexes and play a stronger role in supporting the index. Subsequently, we need to continue to pay attention to the clearance effect of some crowded industries on the supply side and the catalysis of the policy of expanding domestic demand on the demand side. At present, the valuation level of A shares has reached a relatively low historical value, and asset prices are relatively cheap. Some slight marginal improvements may also evolve into upward momentum.

In just three trading days after the Mid-Autumn Festival, equity funds continued to receive net inflows of funds. Data shows that last week, the net inflow of funds for equity funds exceeded 23 billion yuan. Six funds had a net inflow of more than 1 billion yuan, namely Huatai-Pinebridge CSI 300 ETF, E Fund CSI 300 ETF, ChinaAMC CSI 300 ETF, E Fund ChiNext ETF, Southern CSI 1000 ETF, and GF CSI 1000 ETF.

These six funds are all heavily held by institutions. At the end of the second quarter, the institutional holding ratios of ChinaAMC CSI 300 ETF, E Fund CSI 300 ETF, GF CSI 1000 ETF, Southern CSI 1000 ETF, and Huatai-Pinebridge CSI 300 ETF all exceeded 80%. In addition, the institutional holding ratio of E Fund ChiNext ETF reached 65.18%. Among them, the institutional holding ratio of ChinaAMC CSI 300 ETF is as high as 97.

41%, and the net asset value held at the end of the period reached 96.661 billion yuan. At the end of the second quarter, Central Huijin, known as the ‘national team’, held a proportion of more than 75% of this fund. Compared with the end of 2023, the holding ratio increased by 1.

More than 8 times the growth. The proportion of stock-type funds held by institutions has broken through 50%. Since 2024, the A-shares market has been sluggish, with overall poor performance of stock-type funds, leading to a reduction in net value for many funds. However, the total shares of funds have shown a gradual growth trend. According to Data Treasure statistics, as of September 22, the total shares of stock-type funds reached 2.

96 trillion, an increase of more than 10% compared to the end of 2023. This indirectly indicates that despite the overall poor market performance, investors maintain a relatively optimistic attitude towards equity assets and are bullish on the long-term investment value of A-shares. The significant increase in fund shares is closely related to the continuous increase in positions by institutional investors.

According to the semi-annual report data disclosed by funds, by the end of the second quarter, the net value of stock-type funds held by institutional investors reached 1.58 trillion yuan, the highest in history, with an increase of more than 500 billion yuan compared to the same period last year. At the same time, the voice of institutions in stock-type funds has significantly increased. By the end of the second quarter, the proportion of stock-type funds held by institutions reached 51.

03%, breaking through 50% for the first time since 2007. In contrast, by the end of the second quarter, the net value of personal investors’ positions shrank by more than 10 billion yuan compared to the same period last year, and their proportion in stock-type funds decreased to 48.97%, a new low since 2007. Institutions hold 17 funds with a net value of more than 10 billion yuan. According to Data Treasure statistics, by the end of the second quarter, there were 17 stock-type funds with a net value of more than 10 billion yuan held by institutions, among which the net value of 4 ETFs related to the CSI 300 Index ranked in the top 4, namely Huatai-Pine CSI 300 ETF, Yifangda CSI 300 ETF, Harvest CSI 300 ETF, and China Asset Management CSI 300 ETF.

Institutions hold more than 100 billion yuan in the Huatai-Pine CSI 300 ETF and Yifangda CSI 300 ETF, with 170.43 billion yuan and 133.64 billion yuan respectively, and the Central Huijin holds nearly 60% of the former. Other high net value funds held by institutions include Huaxia SSE 50 ETF, Southern Zhongzheng 500 ETF, Yifangda ChiNext ETF, Yifangda SSE STAR 50 ETF, and Southern Zhongzheng 1000 ETF, all with a net value of over 20 billion yuan.

How have these heavily weighted funds performed? According to Data Treasure statistics, by the end of the second quarter, there were 158 stock-type funds with a net value held by institutions of more than 1 billion yuan and a holding ratio of more than 50%. The overall return rate of these funds in September was -3.09%, among which 6 funds had a return rate of over 3%, namely Yifangda China Securities Hong Kong Stock Connect Healthcare Comprehensive ETF, Southern Zhongzheng Real Estate ETF, Jing Shun Great Wall China Securities Hong Kong Stock Connect Technology ETF, Harvest Hong Kong Stock Connect New Economy C, ICBC National Securities Hong Kong Stock Connect Technology ETF, and Harvest Frontier Technology A.

Compared with the end of August, among the 158 funds mentioned above, more than 50 funds are in a state of growth in share. Five funds have a share increase of more than 10%. They are Cathay Securities All-Share Home Appliance ETF, Southern CSI 300 ETF, Fullgoal Shanghai Composite Index ETF, Invesco Great Wall CSI Hong Kong Stock Connect Technology ETF, and Cathay Shanghai Composite Index ETF. The share increase of Cathay Securities All-Share Home Appliance ETF is 20.27%, ranking first. The top heavyweight stock of this fund at the end of the second quarter is Midea Group. In addition, it also holds heavy positions in Gree Electric Appliances, Haier Smart Home, Sanhua Intelligent Controls, etc.

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