E Fund's Zheng Xi raises daily subscription cap for two A-share funds to 500,000 yuan
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E Fund management Co., Ltd. has raised the daily subscription limit for two A-share funds managed by star fund manager Zheng Xi from 10,000 yuan to 500,000 yuan, effective September 22. The funds, E Fund Information Industry and E Fund Information Industry Select, had previously tightened limits in June amid a tech stock rally. This move comes as China's tech-heavy indices, including the ChiNext and STAR 50, have fallen over 20% since July. Industry insiders cited in the article attribute the reopening to a strategy of 'reverse selling,' allowing fund managers to deploy capital during market downturns and improve investor experience. The article notes that several other fund managers, including Zhang Mingxin of Huashang Fund and Chen Wenkai of Huatai-PineBridge, have similarly relaxed subscription limits since July. Zheng Xi, who manages 578.88 billion yuan as of mid-2026, has seen his funds deliver over 250% returns in the past three years despite the recent tech correction. The article frames the trend as a response to regulatory pressure to prioritize investor returns over chasing hot products.
Source report
Major Funds Lift Large-Purchase Caps as Market Cools
Following a global tech stock downturn, China's A-share market has experienced a sharp cooldown since July, with the STAR 50 Index and the ChiNext Index both falling by over 20%.
In response, several public funds have begun easing large-purchase restrictions, encouraging investors to enter the market during the downturn. The latest to join this trend is Zheng Xi, a star fund manager at E Fund Management.
According to recent announcements, two of Zheng Xi's A-share-focused funds—E Fund Information Industry Fund and E Fund Information Industry Select Fund—have raised their daily large-purchase limits from RMB 10,000 to RMB 500,000. This marks the first increase in purchase caps for these funds since they were lowered in June.
Industry Perspective: A Strategic Move
Industry insiders note that since July, several actively managed equity funds have reopened large subscriptions. This serves two purposes:
- Replenishing fund ammunition: Allowing fund managers to deploy capital during market downturns, mitigating the impact of redemptions on fund performance.
- Signaling long-term confidence: Demonstrating a bullish outlook on A-shares' medium- to long-term trajectory and guiding retail investors toward rational investing.
Details of Zheng Xi's Fund Adjustments
As the tech sector has recently pulled back, growth-style fund managers who had previously tightened purchase limits are now reopening their doors.
On September 22, E Fund announced adjustments to large-purchase and conversion restrictions for two funds managed by Zheng Xi. Effective that day, individual investors are limited to a maximum of RMB 500,000 per day across all sales channels for Class A or Class C shares of these funds (including regular investments and conversions).
However, due to limited QDII quotas, Zheng Xi's E Fund Global Growth Select QDII Fund remains suspended for subscriptions.
Timeline of Restrictions
Earlier this year, as the tech rally intensified, both A-share funds had tightened purchase caps twice:
- E Fund Information Industry Fund: Set a daily cap of RMB 100,000 on May 11, then lowered it to RMB 10,000 on June 25.
- E Fund Information Industry Select Fund: Set a daily cap of RMB 500,000 on June 2, then lowered it to RMB 10,000 on June 25.
The recent increase is the first relaxation since June 25.
Strong Long-Term Performance
Zheng Xi currently serves as Deputy General Manager of E Fund's Equity Investment Management Department and manages the largest total assets among active equity fund managers. As of the end of the second quarter of 2026, his total fund size reached RMB 57.888 billion, surpassing Zhang Kun to become the new "No. 1 Public Fund Manager."
Despite the recent tech correction, as of September 21:
- Both E Fund Information Industry Fund and E Fund Information Industry Select Fund have posted year-to-date returns exceeding 50% (adjusted for dividends).
- Over the past three years, the E Fund Information Industry Select Fund has achieved a cumulative return of over 257%, while the E Fund Information Industry Fund has returned nearly 300%.
Broader Trend: Equity Funds Reopening at Key Junctures
Zheng Xi is not alone. Since July, several other equity funds have also relaxed purchase restrictions:
- HuaShang Fund Manager Zhang Mingxin:
- HuaShang Advantage Industry Fund: Raised its cap from RMB 1,000 to RMB 100,000 on July 16, then removed the limit entirely on July 21.
- HuaShang Balanced Growth Fund and HuaShang Zhiyuan Return Fund: Raised caps from RMB 1,000 to RMB 100,000, then further to RMB 2 million in late July.
- Huatai-PineBridge Fund Manager Chen Wenkai:
- Huatai-PineBridge Quality Growth Fund and Huatai-PineBridge Quality Select Fund: Raised caps from RMB 10,000 to RMB 1 million on July 22.
- Guojin Fund Manager Ma Fang:
- Guojin Quantitative Multi-Factor Equity Fund: Raised its cap from RMB 500 to RMB 1 million on August 20.
Industry Insight: Reversing the Cycle
According to industry insiders, there has long been a paradox in public fund management: while fund net values rise over the long term, investor returns often lag. This is largely due to retail investors buying at market peaks and selling during downturns.
By imposing purchase limits during overheated markets and relaxing them during corrections, fund companies aim to guide investors toward counter-cyclical allocation. Regulators have increasingly emphasized improving investor experience, incorporating metrics like investor profitability into the evaluation of fund companies and managers.
As one fund company representative noted:
"Fund management requires balancing scale and performance. During market rallies, large inflows can dilute returns for existing investors. During downturns, funds face the dual pressure of falling net values and redemptions. Easing purchase restrictions at such times can bring in fresh capital, stabilize fund size, and provide ammunition for managers to deploy capital against the trend."
(Source: China Fund News)
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中国基金报Eastern