Just now, the latest public offering institution scale was announced, reaching 37.77 trillion, marking ten consecutive months of positive growth.

The latest data on the size of China’s public mutual funds has been released.

According to the Asset Management Association of China, as of the end of January 2026, there are a total of 165 public fund management institutions within the country, including 150 fund management companies and 15 asset management institutions with public offering qualifications. The total net asset value of public funds managed by these institutions is 37.77 trillion yuan.

This marks the tenth consecutive month of positive growth in the net asset value of public funds since April 2025, once again hitting a record high.

Equity funds shrink, hybrid and money market funds expand

Specifically, different categories of funds showed clear divergence in January 2026, with a rare simultaneous shrinkage of stock and bond funds in history.

Stock fund sizes decreased from 6.05 trillion yuan at the end of last year to 5.71 trillion yuan, a reduction of nearly 300 billion yuan. Bond funds fell from 10.94 trillion yuan to 10.53 trillion yuan, shrinking by over 400 billion yuan, with a more noticeable decline.

Meanwhile, hybrid funds increased from 3.68 trillion yuan to 4.01 trillion yuan, fund of funds grew from 244.4 billion yuan to 281.2 billion yuan, and QDII funds rose from 981.6 billion yuan to 1.03 trillion yuan, showing significant growth.

The decline in index fund sizes may be the main reason

Among these, the net decrease of 300 billion yuan in stock funds is particularly noteworthy. This contrasts sharply with the growth in hybrid funds, which are also equity-oriented, raising concerns about the key reasons behind these size changes.

Some industry insiders believe this is closely related to the phased withdrawal of major institutions from broad-based index funds.

Earlier in the year, there was considerable discussion about several major ETFs tracking broad indices experiencing significantly increased trading volumes but a noticeable decrease in on-market shares.

According to analysis and statistics from Honghu Investment (see below), four large Shanghai and Shenzhen 300 ETF index funds saw a clear reduction in on-market size from January 13 to February 2, 2026, with a decrease of over 120 billion shares (calculated based on the figures below).

Additionally, ten other large ETF index funds also experienced a significant combined reduction in size during the same period, estimated to exceed 110 billion shares (based on the figures below).

Looking at this, the overall reduction in mainstream ETF sizes during this period is expected to exceed 300 billion yuan. Excluding the shrinkage of index funds, the active stock funds may actually have experienced positive growth.

Certain institutions are gradually withdrawing

Does this mean that retail investors’ enthusiasm for investing in index funds is significantly waning?

Not necessarily.

As analyzed by Honghu Investment (see above), most of the major holders of the index funds experiencing size reductions are entities like Central Huijin Asset Management Co., Ltd., and China Investment Corporation (collectively “Huijin”).

Based on their share proportions and investment nature, market participants generally speculate that Huijin, which had been continuously entering these funds, redeemed their holdings in January.

In fact, data shows that actively managed funds with smaller Huijin holdings continued to grow in size and share, indicating that market buying sentiment remains intact and investor confidence is relatively stable. The significant decline in stock fund sizes may be temporary.

The liquidity buffer role of money market funds becomes evident

There are also many noteworthy points regarding fund sizes at the end of January.

On one hand, a considerable amount of capital chose money market funds, which saw a net increase of 237.9 billion yuan in their net asset value during the month. This suggests that during market volatility, many investors preferred highly liquid, low-risk money funds as a “safe haven.”

Secondly, QDII funds, an important component among other funds, saw their shareholdings grow, with net asset value surpassing 1 trillion yuan, reflecting sustained investor enthusiasm for overseas asset allocation.

Additionally, fund of funds (FOF) saw both share and net asset value increase by over 10%, with the overall scale steadily expanding. This trend is likely driven by the increasing attention from mainstream channels, especially bank wealth management products, towards fund of funds in recent years.

It is foreseeable that, under the combined efforts of fund companies, distribution channels, and retail investors, the scale of fund of funds may continue to grow.

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Market risks exist; investments should be made cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investment based on this information is at your own risk.