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Macro US Stocks

China FOF Issuance Tops 150 Funds, Nearly RMB 150 Billion This Year

China has launched more than 150 fund-of-funds (FOF) products this year, raising close to RMB 150 billion, with both the number of products and total issuance setting annual records. More than 30 additional FOFs are currently or about to be issued, including 12 on October 12 alone. The minimum fundraising threshold for FOFs may drop from RMB 200 million to RMB 50 million, and FOFs would be allowed to invest in ETF feeder funds.

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AI take

The record FOF pipeline points to institutional allocators consolidating manager selection rather than picking single strategies, which matters for smaller fund houses that could be bypassed as capital pools into fewer, larger vehicles. Allowing FOFs to hold ETF feeder funds would blur the line between active fund selection and passive beta, a structural shift worth watching. Whether the lower RMB 50 million threshold actually takes effect is the open question, since it would widen the field of viable launches well beyond today's large issuers.

Generated by AI for reference only.

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