As we step into the year 2025,the market for new mutual fund launches in China is off to a promising start,showcasing a robust appetite among investors.Data indicates that by January 20,more than 50 new funds have been established,amassing nearly 40 billion yuan in total issuance.Furthermore,over 90 additional funds are currently in the issuance process.Notably,around 20 funds have already announced early closures of their fundraising efforts,with several others implementing proportional distribution due to overwhelming interest.

The rapid pace at which these new funds have been closing their fundraising periods is remarkable.For instance,on the evening of January 16,GF Fund Management officially declared an early end to the fundraising for their Shenzhen Benchmark Market Making Credit Bond ETF.Initially set to last from January 7 to January 17,the period was truncated to January 16 to prioritize investor interests.Similarly,the South Fund’s product,the South Enjoy Steady Bond Fund,also advanced its fundraising deadline from February 28 to January 21,2025,and ceased accepting subscription applications from January 22 onward.

Earlier,on January 14,China Merchant Funds revealed that the China Merchant Li’an Emerging Asia Select ETF,which began fundraising on January 13,had its closing date shifted from January 17 to the same day—resulting in just one day for subscriptions.Other funds,including ETFs and mixed-index funds,also announced their premature closures on this date.A preliminary tally shows that there have been 17 funds that opted for early fundraising closures,encompassing a variety of categories including equity,bond,and QDII funds.

Interestingly,some funds have opted for proportional allocations owing to soaring initial demand.On January 17,Huaxia Fund Management indicated that their Huaxia Jinju Smart Factory REIT had received subscription figures surpassing its initial public offering limits.As a result,the fund management firm decided to conclude fundraising early and confirmed applications based on a “full proportional allocation” strategy.Similarly,China Merchant Fund announced a partial confirmation of subscription applications for their emerging Asia ETF,with a verification ratio of 48.6% due to demand exceeding the 1 billion yuan cap.

In this context,the early closure of fundraising periods is seen as a positive sign of market vitality.Analysts suggest that the feverish launch of new mutual funds indicates a healthy inflow of capital eager to seize investment opportunities in a revitalized market.Many fund companies are choosing to close fundraising sooner to efficiently deploy capital,allowing for an expedited entry into the market while capitalizing on bullish trends.

To date in January,the number of new mutual funds has reached 51,with total shares issued amounting to approximately 394.63 billion.A breakdown reveals that equity funds,mixed funds,and bond funds represent 30.42%,2.15%,and 58.62% of the total issuance respectively.Notably,the share of equity fund issuance has seen a significant increase compared to just 18% in December 2024.

Among the specific funds attracting substantial attention are the passive index bond ETFs from various leading fund corporations,including Boshi,Southern,Huaxia,Hai Futong,and E Fund.Each of these diversified bond funds has seen their issuance scale hover around 30 billion yuan.

Additionally,there are currently 93 funds in the process of being issued,spanning types such as equity index funds,bond index funds,mixed funds,and Fund of Funds (FOF).Several institutions,including Fuguo Fund,Invesco Great Wall Fund,and Huaan Fund,have at least three products each that are actively in the issuance process.

Moreover,the pace at which new products are being reported by fund companies remains brisk,with 70 new funds submitted for approval in the early days of 2025.Significant interest is focused on products linked to the STAR Market (Science and Technology Innovation Board),with firms such as E Fund,Fuguo Fund,and Tianhong Fund clustering their applications for related ETFs.

The continuing enthusiasm for “A series” products is also noteworthy,with various index enhancement funds and ETFs seeing heavy reporting during this period.Such robust activity underscores a significant and strategic inclination towards future-focused investments that exhibit promise for strong growth.

Looking ahead to 2025,public funds anticipate a wave of new investment opportunities arising from policy support and economic stabilization.With the fundamentals of the domestic economy appearing more solid,analysts expect that A-shares will return to a reasonable valuation range.The technology growth sectors characterized by AI,robotics,and autonomous driving are set to capture market attention.

Reflections on 2024 indicated that the A-share market exhibited a 'W' shape recovery,driven by economic fundamentals and pro-growth policies.With the recovery trajectory becoming evident,it is suggested that the market may veer back towards larger,value-oriented growth.It is believed that a blend of domestic demand and innovation in production capability—especially tied to AI technology—will catalyze a bullish trend in these emerging sectors.

Penghua Fund believes that under the influence of incremental policies,a stabilization of the domestic economy is likely,and after the adjustments earlier in the year,A-shares are again positioned within a reasonable valuation range.Crucially,April is anticipated to be a milestone for validating shifts in market performance based on earnings.

From an evaluative standpoint,Xundao Global Fund notes that mainstream index valuations are currently below historical medians.For instance,the Growth Enterprise Market (GEM) index is noted to be at just 16% of its 10-year historical valuation percentile,an indication that current valuations are relatively low.With ongoing structural optimization of the market and inflow of long-term capital,a transformation in the capital market's ecology is underway.

In detailing specific areas for investment,Qiao Peitao from Founder Securities highlights three key domains: overseas expansion,burgeoning technology,and cost-effective consumer markets.He identifies five burgeoning avenues within the tech sector—AI,robotics,autonomous driving,low-altitude economy,and satellite internet—each presenting unique investment prospects.AI specifically is recognized as a catalyst for innovation,while conventional sectors including new energy and pharmaceuticals are also poised to benefit from advancements.

Guo Chen,head of Morgan Asset Management's China Growth Equity Team,aligns with this outlook,stressing that technology will remain an essential investment thread over the coming years.Within this landscape,semiconductor,new energy,and information technology domains are particularly promising,with a key focus on AI innovations.Guo emphasizes that domestic capabilities in computing are critical at this juncture,with immense potential for growth through realigning AI strategy across different applications.Additionally,within the new energy realm,there is favorable sentiment towards battery-related enterprises and upstream raw material producers.