Mutual funds reshuffle in private placement: fewer players but 90% more capital, totaling 51.9 billion yuan
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According to a report by 财联社 (Cailianshe) on September 27, Chinese mutual funds have invested a total of 518.79 billion yuan in listed company private placements (定增) so far this year, a sharp increase of 86.74% compared to the same period last year. However, the number of participating fund firms dropped from 32 to 26, indicating market consolidation. The top three firms—Caitong Fund, Nord Fund, and E Fund—accounted for over 80% of the total investment, with Caitong and Nord alone taking over 60%. An industry insider noted that private placements are not a universal business, requiring capital scale, pricing ability, project access, and research coverage as four entry barriers. The report also highlights a shift toward a 'allocation-based' strategy, where funds use discounts as a safety cushion, diversify across projects, and employ ETFs and closed-end products to manage liquidity. Notable fund managers including Zhu Shaoxing, Jin Zicai, and Zhang Qinghua have actively participated. The article provides detailed performance data for Caitong Fund's 87 projects, showing a 39-48 split between profitable and loss-making positions, with a 5x difference between the best and worst performers.
Source report
By Caixin Reporter Feng Qijuan | September 27
A notable shift is underway in China's public fund participation in private placements (fixed-income offerings) this year: the number of participating funds has shrunk, but the total subscription amount has surged.
Compared to the same period last year, six fewer public funds have participated in private placements, yet total subscription value has risen by nearly 90%. This increase is not driven by new entrants but by existing players significantly scaling up their allocations.
Industry insiders describe this not as a "recovery" but as a "reshuffling," with market share concentrating toward a "duopoly" of Caitong Fund and Nord Fund, alongside a rapidly growing E Fund.
Key Data: Fewer Funds, Larger Bets
As of September 27, based on issuance dates:
- 26 public funds have participated in listed company private placements year-to-date, with total subscriptions of RMB 51.879 billion.
- In the same period last year, 32 funds subscribed a total of RMB 27.781 billion.
- This represents a decline of 6 funds but an increase of RMB 24.098 billion (up 86.74% ) in total subscription value.
Dominant Players: The "Big Three"
- Caitong Fund and Nord Fund participated in 88 and 87 projects respectively, subscribing RMB 17.359 billion and RMB 14.697 billion. Together, they account for over 60% of total public fund subscriptions.
- E Fund subscribed RMB 10.366 billion, a 286.79% increase from RMB 2.68 billion last year.
Subscription Rankings (by total amount)
| Fund | Subscription Amount (RMB) | |------|---------------------------| | Caitong Fund | 17.359 billion | | Nord Fund | 14.697 billion | | E Fund | 10.366 billion | | AEGON-Industrial Fund | 1.975 billion | | Yimi Fund | 1.545 billion | | Guotai Fund | 1.153 billion | | Harvest Fund | 1.021 billion |
Other funds each subscribed less than RMB 1 billion.
Participation Frequency (by number of projects)
- Caitong Fund: 88 projects
- Nord Fund: 87 projects
- Harvest Fund: 22 projects (up from 4 last year)
- Yimi Fund: 19 projects
- E Fund: 15 projects
- AEGON-Industrial Fund: 12 projects
All other funds participated in 5 or fewer projects.
Notable Absences and New Entrants
- Absent this year: Ruijing Fund, Rosefinch Fund, Quanguo Fund, Zhonggeng Fund.
- New entrants: First State Cinda Fund, China Southern Fund, Huatai-PineBridge Fund, Baoying Fund, Wanjia Fund — collectively subscribing less than RMB 1 billion, insufficient to challenge the top players.
Caitong Fund: 87 Projects, 40% Profit, 60% Loss
Of Caitong's 87 listed private placement projects, as of the latest close:
- 39 projects are in profit (floating gain)
- 48 projects are in loss (floating loss)
- The gap between the best and worst performer exceeds 5x.
Top Gainers
| Stock | Floating Gain | |-------|---------------| | Honghe Technology | 280.05% | | Opmei | 98.49% | | Bright Power Semiconductor | 84.46% | | Huaci Co. | 66.67% |
Among profitable projects, 9 are in the computer, communication, and other electronic equipment manufacturing sector, including Jiangfeng Electronics (34.59%), Lingyunguang (21.33%), and Anlu Technology (20.56%).
Five pharmaceutical stocks also delivered gains: Beilu Pharma (17.19%), Jinhe Bio (16.52%), Haisco Pharma (4.08%), Guangshengtang (2.59%), and Shutai Shen (1.57%).
Biggest Losers
| Stock | Floating Loss | |-------|---------------| | JAC Motors | -54.03% | | BAIC BluePark | -38.1% | | Zhengyu Industry | -22.97% |
Among loss-making projects, 15 are in the computer/communication/electronics sector, including Jiangbo Long (-40.76%), Guangha Communication (-22.77%), and Shanghai Hanxun (-20.77%).
Star Managers Flood the Private Placement Market
A wide range of fund managers — from active equity, fixed income, quantitative, and ETF strategies — have participated in private placements this year.
"Specialist" Managers in Private Placements
- Zhu Haidong (Caitong Fund, Quantitative Investment): His Caitong Dingxin Quantitative Stock Selection 18-Month Closed-End Fund has subscribed to shares of Yuegui Co., New Hope, Fengli Intelligent, Anshuo Information, Hunan Development, Jiangbo Long, Shanghai Hanxun, Huafeng Technology, Dian Tou Shui Dian, and Shutai Shen.
- Zhang Chengyuan (China Asset Management): His ChinaAMC Panyi One-Year Closed-End Fund has subscribed to Shunwei Co., Huhua Co., Fengli Intelligent, Anshuo Information, and Keli.
- Xu Yizun (Harvest Fund, Index & Quantitative): His CSI 300 and CSI 500 index enhancement funds have subscribed to Jingzhida, Shunwei Co., Huhua Co., Fengli Intelligent, Anpeilong, Tengya Precision, Shanghai Hanxun, and Dian Tou Shui Dian.
Active Equity Stars
- Xie Zhiyu and Qiao Qian (AEGON-Industrial Fund): Subscribed to Tongfu Microelectronics, Changchuan Technology, and Shutai Shen.
- Zhu Shaoxing (Fullgoal Fund): His Fullgoal Tianhui Select Growth Hybrid Fund subscribed to Haisco Pharma.
- Zhang Wei (Harvest Fund): Her Harvest Innovation Medical Theme Fund also subscribed to Haisco Pharma.
Fixed Income Veterans
- Zhang Qinghua and Wang Xiaochen (E Fund): Subscribed to Jingzhida, Tuojing Technology, New Hope, Jian Tou Energy, Songfa Co., and Shutai Shen.
ETF "Top Players"
- Rong Ying and Zhao Zongting (ChinaAMC), Luo Wenjie (China Southern): Subscribed to Jiangbo Long.
- Liu Jun, Tan Hongxiang, Li Muyang (Huatai-PineBridge): Subscribed to Tuojing Technology.
- Lyu Fang, Nie Qiwen (E Fund): Subscribed to New Hope.
Industry Insight: Private Placements Becoming a "Standardized Return Module"
A public fund professional noted that private placements are not a universal business. They require four barriers to entry:
- Capital scale
- Pricing capability
- Project sourcing channels
- Breadth of research coverage
The same source added that private placements are evolving into a "allocation-driven" strategy:
- On the funding side: Participation has expanded from pure active equity to a mix of active, quantitative index-enhanced, and passive ETF strategies.
- On the return logic side: The focus has shifted from betting on individual stock price movements to a diversified, yield-oriented approach where:
- Discounts provide a safety cushion
- Index funds offer liquidity
- Closed-end products match lock-up periods
Together, these elements transform private placements into a standardized return module within a multi-asset framework.
Source
财联社Eastern
Part of this Story
Chinese mutual funds invest 51.8 billion yuan in private placements, top three firms take 80%