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

Public mutual fund product annual reports for 2025 have wrapped up, and the asset allocation structure has been revealed.

Benefiting from the steady development of China’s capital markets in 2025, the net asset values of mutual fund assets continued to rise, with the net asset values of equity funds growing rapidly. Data show that, as of the end of 2025, mutual funds held stock market values of 9.03 trillion yuan. Compared with 6.77 trillion yuan at the end of 2024, this represents an increase of 2.26 trillion yuan, with a growth rate of 33.38%. Among them, equity funds have shown a clearly enhanced trend in asset allocation to A-shares, increasing from 5.89 trillion yuan at the end of 2024 to 7.48 trillion yuan at the end of 2025, a growth rate of 26.99%. The further increase in mutual funds’ allocation scale to A-shares reflects a strengthening confidence in the valuation recovery of China’s capital markets.

In the bond fund category, data show that, as of the end of 2025, the total bond market value held by mutual funds amounted to 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, representing a growth rate of 11.87%. Bond-type assets received additional allocation. This reflects that in an environment where interest rates are falling and market risk appetite is converging, the stabilizing role of bond assets has been further strengthened.

Judging from the asset allocation disclosed in mutual fund annual reports for 2025, mutual funds have increased the intensity of their allocation to equity markets and are seizing structural opportunities.

At the same time, when looking at changes in the scale of equity funds, index funds are becoming investors’ “favorite.” Data show that the ETF products (exchange-traded open-end index funds) in which index funds predominate increased in total size by 2.29 trillion yuan throughout 2025, a growth rate of 61.29%. By the end of last year, total size exceeded 6 trillion yuan; during the year, 350 products were issued, bringing the total number of products to over 1,400.

In addition, from the asset allocation structure of mutual funds, manufacturing remains a core area of allocation. Data show that as of the end of last year, mutual funds’ stock holdings in the manufacturing sector accounted for 55% of total market value, reaching nearly 5 trillion yuan. As an economic pillar industry, manufacturing’s business conditions continued to improve, and it has received long-term allocation from mutual funds. At the same time, some fund managers’ investment strategies tend to favor sectors with stable growth, to meet investors’ demand for steady returns. The direction of fund flows also reflects recognition of manufacturing’s resilience.

Overall, in 2025 mutual funds continued to increase their allocation to stock assets, especially by accelerating market entry through index funds, reflecting their long-term optimism about China’s economic recovery and industry development.

Multiple fund annual reports state that in 2026, China’s economy will continue to move in a favorable direction. Sectors with improving profit expectations remain the investment main line for a relatively long cycle.

The annual report of the Jimu (嘉实) SSE STAR Market Chip ETF fund-of-fund connection (发起联接基金) states that in 2026, China’s equity market is expected to continue a structural market trend under the resonance of multiple positive factors. The core driving force is expected to shift from valuation repair to earnings improvement. Macroeconomic policies are expected to remain accommodative, providing support to the market. Meanwhile, global monetary policies are trending toward looseness and expectations for the U.S. dollar are weakening, which is expected to improve liquidity in emerging markets, attract global capital to increase its allocation to Chinese assets; the shift of domestic residents’ assets toward the equity market, along with long-term capital entering the market such as insurance funds, will also provide important incremental liquidity.

(Editor: Xu Nannan)

Keywords: