Public funds will significantly increase their allocation of A-shares assets by 2025.

Public offering fund products have wrapped up the disclosure of their 2025 annual reports, revealing their asset allocation structure.

Benefiting from the steady development of China’s capital markets in 2025, the net asset value of public offering funds continued to climb, with rapid growth in the net asset values of equity funds. Data shows that as of the end of 2025, public offering funds held stock market values of 9.03 trillion yuan. Compared with 6.77 trillion yuan at the end of 2024, this increased by 2.26 trillion yuan, a growth rate of 33.38%. Among them, equity funds showed a clear upward trend in allocating assets to the A-share market, rising from 5.89 trillion yuan at the end of 2024 to 7.48 trillion yuan at the end of 2025, an increase of 26.99%. The further increase in the scale of public offering funds’ asset allocation to the A-share market reflects a strengthening of confidence in China’s capital market valuation recovery.

For bond funds, data shows that as of the end of 2025, the total bond market value held by public offering funds was 21.11 trillion yuan, accounting for 53.44% of total assets. This increased by 2.24 trillion yuan from 18.87 trillion yuan at the end of 2024, a growth rate of 11.87%. Increasing allocation to bond-type assets reflects that in an environment where interest rates are falling and market risk appetite is converging, the role of bond assets as a “stabilizer” has been further strengthened.

Judging from the asset allocation disclosed in public offering funds’ 2025 annual reports, public offering funds have increased their efforts to position in equity-type markets and seized structural opportunities.

At the same time, looking at changes in the scale of equity funds, index funds are becoming investors’ “top choice.” Data shows that ETF products (exchange-traded open-ended index funds) in which index funds hold a dominant position increased their total scale by 2.29 trillion yuan in 2025, a growth rate of 61.29%. As of the end of last year, their total scale exceeded 6 trillion yuan. In 2025, 350 products were issued, and the total number of products surpassed 1,400.

In addition, from the asset allocation structure of public offering funds, manufacturing remains the core allocation area. Data shows that as of the end of last year, the market value of public offering funds’ stock holdings in the manufacturing sector accounted for 55% of total market value, reaching nearly 5 trillion yuan. As an economic pillar industry, the manufacturing sector’s business sentiment has continued to rise, and it has received long-term allocation from public offering funds. Meanwhile, some fund managers’ investment strategies tend to choose sectors with steady growth to match investors’ demand for stable returns. The flow of capital also reflects recognition of the resilience of the manufacturing sector.

Overall, in 2025, public offering funds continued to increase their allocation to stock assets, especially by using index funds to accelerate entry into the market, reflecting their long-term optimism about China’s economic recovery and sector development.

Multiple fund annual reports state that in 2026, China’s economy will continue to improve, and sectors with improved earnings expectations will remain the main investment line for a relatively long future cycle.

The annual report of the JASMI (嘉实) Shanghai-Lianke (上证科创板) Chip ETF-Linked Fund states that in 2026, China’s equity market is expected to continue a structural trend amid the convergence of multiple positive factors. The core driving force is expected to shift from valuation recovery to earnings improvement. Macroeconomic policies are expected to remain accommodative, providing support for the market. At the same time, global monetary policy is trending toward easing and expectations for the U.S. dollar are weakening, which is expected to improve liquidity in emerging markets, attract global capital to increase allocations to China assets, and provide additional incremental liquidity. The transfer of domestic residents’ assets toward the equity market, as well as the entry of long-term capital such as insurance funds, will also provide important incremental liquidity.

(Editor: Xu Nannan)

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