Report: The total size of public funds continued to increase in the first half of the year, with significant growth in the size of bond funds.

The Shanghai Securities Fund Evaluation Research Center released a research report stating that in the first half of the year, the total size of public funds continued to increase, with a significant growth in bond fund size and a clear aggregation effect of fund companies' management scale. As of the first half of 2024, the total size of public funds was 30.71 trillion yuan, an increase of 3.47 trillion yuan compared to the second half of 2023 when it was 27.24 trillion yuan. The sizes of money market, stock, mixed, bond, and QDII funds were 13.19 trillion, 2.83 trillion, 3.34 trillion, 10.60 trillion, and 0.44 trillion respectively. The sizes of money market, stock, bond, and QDII funds increased, with the money market fund experiencing the largest growth in shares, increasing by 1.91 trillion yuan. The sizes of mixed and FOF funds decreased, with the mixed fund seeing the largest decrease in total size by 0.39 trillion yuan. Looking at the management scale of fund companies, as of the end of the first half of 2024, there were 22 fund companies with total scale above 500 billion, 36 with 1,000-5,000 billion, and 78 with 100-1,000 billion. The scale of top companies accounts for a large proportion of the market's total scale, with the total scale of the top 30 companies accounting for 74.73%, showing a significant aggregation effect. Summary Market overview in the first half of 2024: Market Performance: In the first half of 2024, except for the Shanghai and Shenzhen 300 indexes and the Hang Seng Index, the major indexes were still in a downward trend, with the Shanghai Composite Index falling by 0.25%, the Shenzhen Component Index falling by 7.10%, and the ChiNext Index falling by 10.99%. Overall, the banking, coal, petroleum and petrochemical, household appliances, electricity, and public utilities sectors saw significant gains. Market Fund Flows: Most sectors experienced negative net inflows of active funds, with Northbound funds focusing on the banking sector. The top three sectors for Northbound fund inflows were banking, electronics, and non-ferrous metals. Public Fund Size: The total size of public funds continued to increase, with a significant growth in bond fund size and a clear aggregation effect of fund companies' management scale. As of the first half of 2024, the total size of public funds was 30.71 trillion yuan, an increase of 3.47 trillion yuan compared to the second half of 2023 when it was 27.24 trillion yuan. The sizes of money market, stock, mixed, bond, and QDII funds were 13.19 trillion, 2.83 trillion, 3.34 trillion, 10.60 trillion, and 0.44 trillion respectively. Money market, stock, bond, and QDII fund sizes increased, with the money market fund experiencing the largest growth in shares. The sizes of mixed and FOF funds decreased, with the mixed fund seeing the largest decrease in total size. In terms of fund company management scale, as of the end of the first half of 2024, there were 22 companies with a total scale above 500 billion, 36 companies with 1,000-5,000 billion, and 78 companies with 100-1,000 billion. The top companies' scale accounts for a large proportion of the market's total scale, with the total scale of the top 30 companies accounting for 74.73%, showing a significant aggregation effect. Active Equity Funds: Performance: In the first half of 2024, all types of active equity funds had negative average returns, with ordinary stock funds, equity-oriented mixed funds, and flexible allocation mixed funds all experiencing declines. The declines were 5.98%, 5.32%, and 2.23% respectively. The decline in performance was smaller compared to the second half of 2023. Portfolio Changes: In the first half of 2024, the positions of ordinary stock funds, equity-oriented mixed funds, and flexible allocation mixed funds all slightly decreased compared to the second half of 2023. Industry Distribution: In the first half of 2024, the top three industries held by active equity funds in terms of market value ratio were electronics, food and beverage, and electrical equipment and new energy. Compared to the second half of 2023, the top three industries held had increased their market value ratios. Passive Equity Funds: Overall Performance: In the first half of 2024, the average return of index funds was -5.32%, showing a smaller decline compared to the second half of 2023. Text: Market Overview 1.1 Market Performance Review In the first half of 2024, except for the Hang Seng Index and the Shanghai and Shenzhen 300 indexes, the major index continued to trend downwards. The Shanghai Composite Index fell by 0.25%, the Shenzhen Component Index fell by 7.10%, and the ChiNext Index fell by 10.99%. In the first half of 2024, the majority of the CSI industry indexes experienced declines. The banking, coal, petroleum and petrochemical, household appliances, electricity, and public utilities sectors saw significant gains, while sectors such as integrated, consumer services, computers, retail, and media saw significant declines. 1.2 Market Fund Flows In the first half of 2024, most sectors had negative net inflows of active funds, with banking and coal sectors seeing net inflows of 77.21 billion yuan and 62.02 billion yuan respectively. The machinery, computer, and electronics sectors had the most outflows, with outflows of 310.51 billion yuan, 297.79 billion yuan, and 289.97 billion yuan respectively. In the first half of 2024, Northbound funds focused on the banking sector. The top three sectors for Northbound fund inflows were banking, electronics, and non-ferrous metals, with inflows of 33.21 billion yuan, 24.78 billion yuan, and 13.52 billion yuan respectively. The top three sectors for Northbound fund outflows were media, medicine, and computers, with outflows of 154.00 billion yuan, 94.77 billion yuan, and 78.14 billion yuan respectively. 1.3 Public Fund Size As of the first half of 2024, the total size of public funds was 30.71 trillion yuan, an increase of 3.47 trillion yuan compared to the second half of 2023 when it was 27.24 trillion yuan. The sizes of money market, stock, mixed, bond, and QDII funds were 13.19 trillion, 2.83 trillion, 3.34 trillion, 10.60 trillion, and 0.44 trillion respectively. Money market, stock, bond, and QDII fund sizes increased, with the money market fund experiencing the largest growth in shares. The sizes of mixed and FOF funds decreased, with the mixed fund seeing the largest decrease in total size. In terms of fund company management scale, as of the end of the first half of 2024, there were 22 companies with a total scale above 500 billion, 36 companies with 1,000-5,000 billion, and 78 companies with 100-1,000 billion. The top companies' scale accounts for a large proportion of the market's total scale, with the total scale of the top 30 companies accounting for 74.73%, showing a significant aggregation effect. Active Equity Funds: Performance: In the first half of 2024, all types of active equity funds had negative average returns, with ordinary stock funds, equity-oriented mixed funds, and flexible allocation mixed funds all experiencing declines. The declines were 5.98%, 5.32%, and 2.23% respectively. The decline in performance was smaller compared to the second half of 2023. Portfolio Changes: In the first half of 2024, the positions of ordinary stock funds, equity-oriented mixed funds, and flexible allocation mixed funds all slightly decreased compared to the second half of 2023. Industry Distribution: In the first half of 2024, the top three industries held by active equity funds in terms of market value ratio were electronics, food and beverage, and electrical equipment and new energy. Compared to the second half of 2023, the top three industries held had increased their market value ratios. Passive Equity Funds: Overall Performance: In the first half of 2024, the average return of index funds was -5.32%, showing a smaller decline compared to the second half of 2023.The scale of bond and QDII funds are respectively 13.19 trillion, 2.83 trillion, 3.34 trillion, 10.60 trillion, and 0.44 trillion. The scale of the money market, stocks, bonds, and QDII funds have all increased. The money market fund had the largest increase in share, growing by 1.91 trillion yuan. The scale of mixed and FOF funds decreased, with the mixed fund experiencing the largest overall decrease of 0.39 trillion yuan.As of the end of the first half of 2024, there were 22 fund companies with a total size of over 500 billion, 36 companies with a size of 1000-500 billion, and 78 companies with a size of 100-1000 billion. The top companies hold a large share of the market total size, with the top 30 companies accounting for 74.73% of the total size, showing a noticeable aggregation effect. 2. Active Equity Funds 2.1 Performance In the first half of 2024, the average returns of various types of active equity funds were negative. Ordinary stock funds, equity mixed funds, and flexible allocation mixed funds all experienced retreats, with average returns dropping by 5.98%, 5.32%, and 2.23% respectively. The retreat was smaller compared to the second half of 2023. The active equity funds with better and weaker returns in the first half of 2024 are shown in the following chart. 2.2 Position Changes As of the first half of 2024, the positions of ordinary stock funds, equity mixed funds, and flexible allocation mixed funds all slightly decreased compared to the second half of 2023. 2.3 Industry Distribution As of the first half of 2024, the top three industries in terms of market value holdings in the active equity funds were electronics, food and beverage, and electrical equipment and new energy, accounting for 15.99%, 14.65%, and 12.16% respectively. Compared to the second half of 2023, the top three industries with increased holdings were computers, food and beverage, and electronics, with increases of 6.26%, 3.96%, and 3.58% respectively. The top three industries with decreased holdings were home appliances, telecommunications, and non-ferrous metals, with decreases of 2.76%, 2.00%, and 1.42% respectively. 3. Passive Equity Funds The average return of index funds in the first half of 2024 was -5.32%, with a narrower retreat compared to the second half of 2023. The passive equity funds with better and weaker returns in the first half of 2024 are shown in the following chart.