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

Open-ended fund product 2025 annual reports have wrapped up, revealing the asset allocation structure.

Benefiting from the steady development of China’s capital markets in 2025, the net asset values of open-ended fund assets continued to climb, with equity funds’ net asset values growing rapidly. Data show that, as of the end of 2025, open-ended funds held various stocks with a market value 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’ asset allocation to the A-share market shows a clearly strengthening trend, 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 expansion of open-ended funds’ asset allocation scale to A-shares reflects growing confidence in the valuation repair of China’s capital markets.

In the bond fund space, data show that, as of the end of 2025, open-ended funds’ total bond market value was 21.11 trillion yuan, accounting for 53.44% of total assets; compared with 18.87 trillion yuan at the end of 2024, this increased by 2.24 trillion yuan, a growth rate of 11.87%. Bonds received additional allocation, reflecting that under an environment of falling interest rates and a convergence in market risk appetite, the role of bond assets as a “stabilizer” has been further strengthened.

Judging from the asset allocation disclosed in open-ended fund 2025 annual reports, open-ended funds have increased their efforts to deploy in equity markets and are seizing structural opportunities.

At the same time, looking at changes in the scale of equity funds, index funds are becoming investors’ “top pick.” Data show that ETFs (exchange-traded open-ended index funds) dominated by index-fund exposure had a total scale increase of 2.29 trillion yuan throughout 2025, up 61.29%; by the end of last year, their total scale exceeded 6 trillion yuan. During the year, 350 products were issued, bringing the total number above 1,400.

In addition, from the asset allocation structure of open-ended funds, manufacturing remains a core area of allocation. Data show that, as of the end of last year, open-ended funds’ market value of stock holdings in manufacturing accounted for 55% of total market value, reaching nearly 5 trillion yuan. As an economic pillar industry, manufacturing’s business momentum has continued to rise, earning long-term allocations from open-ended funds. Meanwhile, some fund managers’ investment strategies tend to choose sectors with steady growth to meet investors’ demand for stable returns. Capital flows also reflect recognition of manufacturing’s resilience.

Overall, in 2025, open-ended funds continued to increase their allocation to stock assets, especially by leveraging index funds to accelerate market entry, reflecting their long-term optimism regarding China’s economic recovery and industry development.

Multiple fund annual reports state that in 2026, China’s economy will continue to improve, and sectors with improving earnings expectations will remain the main investment line over a longer cycle.

The annual report for the Jiming Wan (嘉实) SSE STAR Market Chip ETF feeder connection fund says that, in 2026, China’s equity market is expected to sustain a structural trend amid the resonance of multiple positive factors. The core driving force is expected to shift from valuation repair to earnings improvement. Macroeconomic policy is expected to remain accommodative, providing support for the market. At the same time, global monetary policy is moving toward easing and expectations for the U.S. dollar are weakening, which could improve liquidity in emerging markets and attract global capital to increase allocations to Chinese assets. The migration of domestic residents’ assets to the equity market, along with the entry of long-term capital such as insurance funds, will also provide important incremental liquidity.

(Editor: Xu Nannan)

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