On one hand, dividend-themed funds are selling well, and on the other, the fifth new fund to fail to raise funds this year has been introduced.

CITIC Global Dividend Mixed Fund's contract came into effect, with a first issuance amount of 1.398 billion, making it the largest actively-managed equity fund to be issued this year.

Yuanxin Yongfeng Fund announced that as of June 17th, the subscription period for Yuanxin Yongfeng Xingsheng Mixed Fund has expired, and the fund contract cannot come into effect as it has failed to meet the regulatory requirements stipulated in the fund contract. This is the fifth new fund to fail to raise funds this year, including two FOFs and two equity funds.

Besides QDII and dividend themes, bond funds have also been the most popular funds this year.

As of June 18th, the total scale of newly-issued funds on the market exceeded 570 billion yuan, of which the first-issued scale of bond funds was 468.1 billion yuan, accounting for as much as 82% and becoming the main force in the public fund issuing market.Among the newly issued funds this year, there were as many as 26 products that raised over 7 billion yuan in their first offering, making them popular products in the new, sluggish fund market.

Benefiting from the decline in yields in the bond market this year, the domestic bond fund industry has seen double growth in both performance and scale.

In terms of scale, the bond fund scale has reached 9.62 trillion yuan, approaching the 10 trillion yuan milestone, and the proportion of new issuance scale of bond funds in the total market is over 80%.

Among them, the net assets of bond ETFs have exceeded 100 billion yuan. Data shows that by May 31st, 2024, the size of bond ETFs had reached 104.726 billion yuan, breaking the 100 billion yuan threshold. As of June 17th, the net assets of bond ETFs had reached 108.227 billion yuan, a year-on-year increase of 53.013 billion yuan, or 96.01%.

Overall, the capital trend of bond ETFs this year is highly correlated with the market trend of bonds. During Q1 of 2024, due to the rapid decline in long-term bond yields, the scale of long-term bond ETFs expanded while that of short-term bond ETFs contracted. The three bond ETFs with the highest growth in scale were the Rich State-Owned 7-10 Year Policy Financial Bonds ETF, the Boshi SSE 30-Year Treasury Bond ETF (with a new establishment), and the Haifutong SSE Chengtou Bond ETF.

During the period from March 31st to May 31st, 2024, the bond market was more volatile and the downward trend in long-term yields was blocked. As a result, funds were no longer pouring into long-term rate bond ETFs and instead turned to credit bond strategies in order to obtain thicker interest income in volatile markets. In addition, funds were also used in some products with unique and advantageous positions for long-term liquidity dispersion. Among them, the Haifutong CSI Short-term Financing ETF, Ping An Chinabond Medium-high Grade Corporate Bonds Spread Factor ETF, and Haifutong SSE Chengtou Bond ETF were ranked at the top in terms of growth rate.

In terms of yield, many bond ETFs have experienced significant increases in yield this year, such as the 30-year Treasury bond ETF rising 8.54%, the 10-year local government bond ETF rising 5.51%, and the Shanghai Convertible Bond index ETF rising 4.63%. As of June 19th, all 20 bond ETFs have achieved positive returns, and the average annual yield of bond ETFs is around 3%.

Looking at the index of bond funds outside the market, the Wind Bond Fund Index has risen by 2% this year, with more than 400 bond funds achieving a yield of over 3% this year.

According to data as of June 18th, more than 5 billion yuan of net funds have flowed into rich State-Owned Fund Policy Financial Bond ETFs, Haifutong Fund Short-term Financing ETFs, Haifutong Fund Chengtou Bond ETFs, and Ping An Fund Company Bond ETFs this year.

Looking at the holding structure of bond ETFs, statistics from Huabao Securities show that institutional investors such as brokerages, private equity firms, insurance companies, and banks are the main investors in domestic bond ETFs, with individual investors accounting for a distinctly lower proportion.

Regarding bonds, CITIC Securities believes that the significant decline in long-term government bond yields and the obvious contraction of credit spreads have reflected the increasingly crowded bond market trading in the last few days. As long-term government bonds have a long duration and high interest rate risk, they are prone to negative feedback adjustment. The guidance of long-term interest rates by the central bank will help avoid negative feedback adjustments in the bond market, similar to those seen at the end of 2022.