Abstract

Fund size: the scale of public offering funds has reached a new high, and the popularity of active equity product issuance continues to decline.

The scale of public offering funds has reached a new high.The total size of public offering funds was 26.1 trillion yuan in the second quarter, up 4.0 per cent from the previous quarter. The main contribution to the scale growth came from bond products, which increased by 9.3% to 7.7 trillion yuan. The size of equity funds also grew rapidly, rising 7.4 per cent to 2.2 trillion yuan. Taking ordinary stock type, partial stock mixed type, balanced mixed type and flexible allocation fund as the statistical caliber of active equity products, there are 3896 active equity products at present, with a total scale of 5.2 trillion yuan. Among them, the active equity funds of Yi Fangda, CEIBS and Guangfa Fund are among the top three, and the top 10 companies account for 45.4% of the market share.

The popularity of active equity product issuance continues to decline.In the second quarter, 75 new active equity products were issued, raising 22.49 billion yuan. After a sharp month-on-month decline in issuance in the fourth quarter of 2021, issuance continued to cool, falling by another 75.9 per cent compared with the previous quarter, which was the lowest since 2019. In the second quarter, the scale of active equity products raised by China Europe funds ranked first among all public fund companies, raising 1.8 billion yuan, followed by Dacheng and Huaan funds.

Performance: active equity products led the rise, consumption and cyclical themes increased the most

Active equity products led the rise in the second quarter.The overall A-share market showed a "V-shaped" trend in the second quarter, and the performance of public equity products also fluctuated. As a result, all kinds of active equity products recorded positive income as a whole. Among them, partial stock mixed and common stock funds rose the most, with median returns of 7.96% and 7.34% respectively, higher than the CSI 800 index in the same period. International (QDII) alternative investment funds and REITs, which were among the top performers in the last quarter, lost the most.

Consumption and cyclical theme funds rose sharply.In the second quarter, all sub-category theme funds recorded positive returns, of which consumer and cyclical theme funds rose the most, with an average increase of 12.4% and 11.3% respectively, while pharmaceutical theme funds rose the smallest on average, up 2.1% as a whole. The leading products in the second quarter are Xinao New Energy selection under the cyclical theme (+ 33.4%), Huitian Fuyingxin flexible configuration A (+ 32.7%) and Jinxin transformation innovation growth (+ 28.9%) under the theme of high position balance.

Asset allocation: increased allocation of new energy and consumption, enhanced huddling effect

Positions rose slightly to a historically high quartile.The median position of active equity public offerings in the second quarter was 89.0%, up 2.5% from the end of the previous quarter and the highest quantile since 2010 (94.0%). The balance of high positions, consumption and cyclical theme funds are leading the way in month-on-month growth.

Chong Cang Dianxin, food and beverage and medicine, take the initiative to increase the consumption and new energy.Active equity products in the second quarter Chong Cang Dianxin, food and beverage and pharmaceutical industry. In the second quarter of this year, active equity products, on the one hand, took the initiative to add new energy industry chain related industries such as cars, non-ferrous metals and power equipment and new energy, on the other hand, they actively increased their positions in consumer industries such as food and beverages and consumer services. Among them, the increase in the food and beverage industry is the most prominent, and the proportion of active allocation has increased by 1.08%. The industries with the largest active reduction are electronics, banking, agriculture, forestry, animal husbandry and fishing. The market capitalization of Hong Kong stocks in active stock-biased funds has also rebounded, rising to 6.60 per cent from 5.50 per cent in the previous quarter.

Significantly increased holdings of liquor stocks, the pharmaceutical industry stocks reduced significantly.The top three stocks with market capitalization of active equity products in the second quarter are Guizhou Moutai, Ningde era and Longji Green Energy. With the exception of Ningde era and Wuxi Apptec, the top ten stocks have taken the initiative to increase their positions in the previous quarter. Among the top 10 stocks by market capitalization, China Merchants Bank and Ziguang Guowei quit, and Meituan entered the ranks of the top 10 stocks. The three stocks with the largest increase in active equity products are Guizhou Moutai, Longji Green Energy and Wuliangye, while the three stocks with the largest reduction are Kailiying, Shengbang shares and Boteng shares, and four of the top ten stocks are in the pharmaceutical industry.

The clumping effect was significantly enhanced.In the second quarter, the fund's heavy stock market rebounded significantly, mainly focusing on the top 20 stocks, with CR10 and CR20 rising 1.84% and 2.8% respectively compared with the previous month. At the same time, the rebound in industry concentration (the Herfindahl Index) in recent quarters is mainly due to concentrated shareholdings in the top two major industries.

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Fund size: the scale of public offering funds has reached a new high, and the popularity of active equity product issuance continues to decline.

Product Survival: the scale of Public offering Fund reaches a new high

The scale of public offering funds has reached a new high.The second quarterly report of public offering funds for 2022 has been disclosed, and according to the latest data, the size of public offering funds has increased slightly compared with the previous quarter, with a total 2022Q2 of 26.1 trillion yuan, up 4.0 per cent from the previous quarter. The main contribution to the scale growth came from bond products, which increased by 9.3% to 7.7 trillion yuan. The biggest increase was in QDII products, which grew by more than 10 per cent. The size of equity funds also grew rapidly, rising 7.4 per cent to 2.2 trillion yuan. We take common stock type, partial stock mixed type, balanced mixed type and flexible allocation fund as the statistical caliber of active equity products.[1]Currently, there are 3954 active equity products, with a total scale of 5.5 trillion yuan.

Manager dimensionYi Fangda, China Europe Fund and Guangdong Development Fund are among the top three active equity funds, with management scales of 383.1 billion yuan, 317.3 billion yuan and 312.9 billion yuan respectively, with the top 10 companies accounting for 45.4% of the market share.

Figure 1: historical scale of public offering funds

Figure 2: 2022Q2 active equity product scale

Chart 3: ranking of active equity product management scale of fund companies (100 million yuan)

Chart 4: the proportion of the top 20 fund companies with active equity product management scale

New situation: the popularity of active equity funds continued to decline in the second quarter.

The popularity of active equity product issuance continues to decline.In the second quarter, 75 new active equity products were issued, raising 22.49 billion yuan. After a sharp month-on-month decline in issuance in the fourth quarter of 2021, issuance continued to cool, falling by another 75.9 per cent compared with the previous quarter, which was the lowest since 2019. In the second quarter, China Europe Fund active equity products ranked first among all public fund companies, issuing a total of 2 products, raising 1.8 billion yuan, followed by Dacheng Fund and Hua'an Fund.

Figure 5: quarterly issuance quantity and scale of active equity products

Figure 6: monthly issuance quantity and scale of active equity products

Figure 7: distribution of 2022Q2 active equity product issuance

Figure 8: distribution of 2022Q2 active equity product issuance size

Performance: active equity products led the rise, consumption and cyclical themes increased the most

Active equity products led the rise in the second quarter.In the second quarter, the A-share market as a whole showed a "V-shaped" trend of falling first and then rising, and the performance of public equity products also fluctuated. From the results, all kinds of active equity products recorded positive income as a whole, and relatively better than other types of public offering products. Among them, partial stock mixed and common stock funds rose the most, with a median income of 7.96% and 7.34% respectively, higher than that of the CSI 800 index in the same period. International (QDII) alternative investment funds and REITs, the top performers in the last quarter, suffered the most losses, with median gains of-2.06 per cent and-1.58 per cent, respectively.

All kinds of theme funds closed higher in the second quarter, while consumption and cyclical theme funds rose significantly.In the second quarter, all sub-category theme funds recorded positive returns, of which consumer and cyclical theme funds rose the most, with an average increase of 12.4% and 11.3% respectively, while pharmaceutical theme funds rose the smallest on average, up 2.1% as a whole. The leading products in the second quarter are Xinao New Energy selection under the cyclical theme (+ 33.4%), Huitian Fuyingxin flexible configuration A (+ 32.7%) and Jinxin transformation innovation growth (+ 28.9%) under the theme of high position balance.

Chart 9: performance of various types of 2022Q2 public offerings (%)

Figure 10: performance distribution of 2022Q2 active equity products

Chart 11: performance distribution of active equity products so far this year

Figure 12: top five net worth performance of thematic fund subcategories so far this year

Chart 13: top five performance of 2022Q2 net worth of subcategories of thematic funds

Figure 14: distribution of 2022Q2 returns of theme funds

Figure 15: income distribution of theme funds so far this year

Asset allocation: increased allocation of new energy and consumption, enhanced huddling effect

Position change: position rose slightly in the second quarter, at a historically high quartile

The position of active equity products has increased slightly and is currently at a historically high quartile (> 90%).The median position of active equity public offerings in the second quarter was 89.0%, up 2.5% from the end of the previous quarter and the highest quantile since 2010 (94.0%). Specifically, the positions of all kinds of active equity funds increased slightly compared with the end of the last quarter, among which common stock, partial stock hybrid and flexible allocation funds are still in the historically high quantile (> 80%). The balanced mixed fund position is in the historically low quartile (34.0%). In the second quarter, the concentration of heavy stocks in the head of the fund rebounded significantly, with holdings mainly concentrated in the head of 20 stocks, with CR10 and CR20 rising 1.84% and 2.8% respectively compared with the previous month.

The proportion of high-position balanced funds increased.In the second quarter, there were 2400 high-position balanced funds, with a total size of 3.37152 trillion yuan, an increase of 9.4% compared with the end of the last quarter. Theme funds in various industries also increased to varying degrees due to the upside scale of the market, of which consumption and cyclical theme funds accounted for the largest increase, up 15.8% and 13.5% respectively.

Figure 16: median position of active equity products

Figure 17: share distribution of active equity products

Figure 18: number and size of 2022Q2 funds for each theme

Figure 19: distribution of the number and size of 2022Q2 thematic funds

Figure 20: changes in the proportion of historical funds by theme

Figure 21: changes in the proportion of historical size of thematic funds

Industry and Hong Kong stock allocation: additional new energy and consumption, reduced electronics and banking

Quarterly report shows active equity products are heavily stocked with electrical equipment and new energy, food and beverage and pharmaceutical industriesThe market capitalization of shareholdings is 410.791 billion yuan, 394.49 billion yuan and 291.61 billion yuan respectively, accounting for 15.5%, 14.8% and 11.0% of the market capitalization of all heavy stocks.

Compared with the end of last quarter, food and beverage, power equipment, new energy and automobile industry were added.In the second quarter, with the gradual recovery of consumption brought about by the relief of the local epidemic, the relevant sectors ushered in valuation repair. Specific to the position, the market value of the food and beverage industry represented by liquor led the growth, increasing by 103.34 billion yuan from the previous month, and 2.76% higher than that of the heavy stock market. In the same period, the new energy industry chain with high magnificence still maintained a good performance. the representative power equipment, new energy and automobile industry increased by 70.66 billion yuan and 40.21 billion yuan respectively, up 1.34% and 1.28% respectively compared with the heavy stock market. The electronics industry reduced the most allocation, and the market value of the allocation decreased by 35.83 billion yuan compared with the previous month, but it was still slightly over-matched compared with the CSI 3000.The next industries with more reductions were banking and agriculture, forestry, animal husbandry and fishery, with the market value of the allocation reduced by 25.33 billion yuan and 12.45 billion yuan respectively.

Take the initiative to increase consumption and new energy.The market value excluding the increase in the industry index is used to measure the proportion of active allocation in the heavy stock industry. In the second quarter of this year, active equity products, on the one hand, take the initiative to add new energy industry chain-related industries such as cars, non-ferrous metals and power equipment, and new energy; on the other hand, take the initiative to increase positions in consumer industries such as food and beverage and consumer services. Among them, the increase in the food and beverage industry is the most prominent, and the proportion of active allocation has increased by 1.08%. The industries with the largest active reduction were electronics, banking, agriculture, forestry, animal husbandry and fishing, with the proportion of active allocation reduced by 1.94%, 1.06% and 0.5%.

Industry concentration rebounded.We use the Herfindahl index to measure industry concentration, which rebounded in the second quarter of this year after three consecutive quarters of decline, mainly due to concentrated shareholdings in the first two major industries, power equipment and new energy and food and beverage industries.

The allocation ratio of Hong Kong stocks has rebounded.Although Hong Kong stocks rebounded in the second quarter of this year, they are still at relatively low historical valuations. The market capitalization of Hong Kong stocks in active stock-biased funds has also rebounded, rising to 6.60 per cent from 5.50 per cent in the previous quarter.

Figure 22: market capitalization and allocation ratio of shares held by active equity products industry

Figure 23: industry concentration continues to pick up

Figure 24: the allocation ratio of Hong Kong stocks has rebounded significantly

Distribution of individual stocks: substantial increase in liquor stocks, significant reduction in pharmaceutical industry stocks

Meituan has become one of the top ten new stocks.Among the heavy stocks disclosed by 2022Q2 active equity products, the top five stocks with market capitalization are Guizhou Moutai, Ningde era, Longji Green Energy, Wuliangye and Luzhou laojiao, with a market capitalization of 133.52 billion yuan, 112.11 billion yuan, 64.47 billion yuan, 56.3 billion yuan and 52.17 billion yuan respectively. Among the top ten heavy stocks, except Ningde Times and Wuxi Apptec, other stocks have taken the initiative to increase their positions in the previous quarter. Among the top 10 stocks by market capitalization, China Merchants Bank and Ziguang Guowei withdrew, and Meituan entered the ranks of the top 10 stocks. The top 10 Hong Kong stocks by market capitalization include Meituan, Tencent and Li Ning Co. Ltd., all of which also took the initiative to increase their holdings in that quarter.

The three stocks with the largest increase in active equity products are Guizhou Moutai, Longji Green Energy and Wuliangye.The market value of the increase is 27.58 billion yuan, 25 billion yuan and 22.35 billion yuan respectively. The top ten stocks mainly include food and beverage, power equipment and new energy industry. Hong Kong stock Meituan also received a substantial increase in its holdings, with a market value of 18.6 billion yuan. The three major stocks with the largest reduction of active equity products are Kailiying, Shengbang shares and Boteng shares, respectively, with a market value of 2.7 billion yuan, 2.44 billion yuan and 1.22 billion yuan respectively.The top 10 stocks mainly include pharmaceuticals, banking, power equipment and new energy industries.

According to the statistics on the Jiancang situation of the newly issued products in the second quarter, the stock with the largest market capitalization of the newly issued active equity products was Midea, and the total Jiancang bought 91 million yuan. The second to third places are power equipment and new energy, the Ningde era and Longji Green Energy, which bought 91 million yuan and 88 million yuan respectively.

Chart 25: top 20 stocks of 2022Q2 active equity products

Chart 26: 2022Q2 active equity products are among the top 10 Hong Kong stocks

Chart 27: 2022Q2 active equity products increase the holdings of the top 10 stocks

Chart 28: 2022Q2 active equity products reduce the top 10 stocks

Chart 29: top 10 stocks of newly issued active equity products of 2022Q2