Since September, the heat in the fund issuance market has noticeably increased, with a "mini upsurge" in the launch of new funds. According to Wind statistics, there are already 49 fund products "scheduled" to start subscriptions in October, and both the number of newly established funds and the issued shares in September have also increased, with the newly issued fund shares rising by nearly 66% month-on-month. In addition, many existing fund products have chosen to reduce fees to attract more investor attention. In the view of industry insiders, the recovery of fund issuance is closely related to the recent market performance. Looking ahead, the policy effects will gradually emerge, investor risk preferences will continue to improve, and the A-share market is expected to welcome incremental funds.

Fund Issuance Market Warms Up

After the National Day holiday, the fund issuance continues the heat that has been present since late September. On October 15th, Hongli High-End Equipment and Tianhong Value Drive officially started subscriptions. On October 14th, there were 17 fund products that started subscriptions on the same day.

According to Wind data statistics, as of the reporter's deadline, there are currently 49 fund products "scheduled" to be issued after the holiday. In terms of product types, equity products represented by hybrid and equity funds are gradually becoming the mainstream of the issuance market. Among the products announced to start subscriptions after the holiday, there are a total of 18 equity funds and 14 hybrid funds, accounting for about 65%. In addition, there are also 10 bond funds and some REITs and FOF products that will start subscriptions in October.

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In fact, since September, the heat in the fund issuance market has risen, and the launch of new funds has ushered in a wave of "mini upsurge". Wind data shows that there were a total of 66 funds that started subscriptions in September. Looking at the established funds, there were 86 newly established fund products in September, higher than 83 in July and 78 in August. The total issued shares of newly established funds in September were 87.088 billion shares, also far higher than 53.97 billion shares in July and 52.561 billion shares in August. The total newly issued shares increased by more than 30 billion shares, rising by nearly 66% month-on-month.

At the same time, the average issued shares of individual funds have also increased significantly. The average issued shares of newly established funds in September were 1.013 billion shares, higher than 650 million shares in July and 674 million shares in August, highlighting the warming trend of the issuance market.

Looking at the types of new fund issuance in September, there was a noticeable increase in the number and scale of equity funds. In July and August of this year, the number of equity fund issuances was 30 and 23, respectively, with a scale of about 5 billion yuan; in September, the number of newly issued equity funds was 37, with a scale of 25.15 billion yuan. Even in June, when the scale of newly issued funds exceeded 170 billion yuan, the number of equity fund issuances was only 38, with a scale of 10.509 billion yuan. In terms of both quantity and scale, the issuance of equity funds in September has clearly recovered.

It is worth noting that among the newly issued equity funds, passive index-type products account for the vast majority. Among the 86 newly issued funds in September, 33 were passive index-type funds, and 3 were enhanced index-type funds. The total number of ordinary equity funds and equity-biased hybrid funds issued was 21.

Fee Reduction Products Continue to Expand

As the issuance of new funds recovers, many existing fund products have also joined the ranks of fee reduction, hoping to attract more investors by lowering fees.Bosera Fund recently announced that, in order to better meet the investment and financial management needs of a wide range of investors and reduce their financial management costs, the company has decided to lower the fees of Bosera ChiNext ETF and its linked funds starting from October 14th, and revise the corresponding contracts and agreements accordingly.

Specifically, the management fee rate for Bosera ChiNext ETF will be reduced from 0.50% to 0.15%, and the custody fee rate will be adjusted from 0.10% to 0.05%. For the linked fund, the management fee rate for Class A shares will be reduced from 0.50% to 0.15%, the custody fee rate will be adjusted from 0.10% to 0.05%, and the Class C sales service fee will be adjusted from 0.40% to 0.10%.

Previously, on October 9th, Huaxia Fund announced that it plans to reduce the management and custody fee rates for ChiNext 100 ETF Huaxia and its linked funds, and revise the legal documents accordingly, with the management fee rate being reduced from 0.50% to 0.15% and the custody fee rate from 0.10% to 0.05%. On October 8th, Penghua Fund announced a reduction in the fees for its Penghua CSI 300 ETF and Penghua CSI 300 ETF linked funds, with the management fee rate being reduced from 0.5% to 0.15% and the custody fee rate from 0.10% to 0.05%. On September 30th, Guotai Fund also announced that starting from October 8th, it would reduce the fees for its Guotai CSI 300 Enhanced Strategy ETF, lowering the annual management fee rate from 1.00% to 0.50%.

There have also been reductions in fees for actively managed equity funds. On October 8th, Nanfang Fund announced that starting from October 10th, it would reduce the management and custody fee rates for Nanfang Hao Sheng Steady Selection 6-Month Holding Period Mixed Type FOF. The annual management fee rate will be reduced from 0.8% to 0.4%, and the annual custody fee rate will be reduced from 0.15% to 0.05%.

In addition, after the National Day holiday, more than ten public fund institutions, including Guangfa Fund, Yinhua Fund, Nuode Fund, Wanjia Fund, Ping An Fund, Penghua Fund, and Taikang Fund, announced their participation in fee discount activities with securities firms and banks as distribution agencies.

Industry insiders believe that the reduction in fund fees will have a positive impact on the market, helping to attract medium and long-term capital to allocate equity assets and reduce market volatility.

Institutions are actively optimistic about the future market.

Since 2024, affected by market volatility and investor sentiment, the fund issuance market has been in a relatively sluggish state. Wind data shows that so far, the number of new funds established in 2024 is 208, with an issuance share of 55.253 billion, less than 40% of last year's 151.994 billion issuance shares, and far below the 277.068 billion issuance shares in 2022. However, since September, the fund issuance market has gradually shown a trend of recovery.

This trend is closely related to the recent market performance. Since late September, the A-share market has been significantly boosted, with all three major indices showing varying degrees of gains. Many institutions predict that policy effects will gradually emerge, and investor risk preferences will continue to improve.

"Looking forward to the fourth quarter, it is expected that the effects of the relevant policies that have been introduced will gradually emerge, and more incremental fiscal policies are expected to be introduced, especially in the direction of stimulating domestic demand and improving people's livelihoods, which may play a more positive role in improving the economic fundamentals and market risk preferences," said Luo Shifeng, Director of Research at Nuode Fund. Overall, the market for the fourth quarter still maintains a relatively cautious and optimistic attitude, focusing on the following three directions: first, industries that are in line with the new quality of national development and have strong competitive advantages, such as clean energy, artificial intelligence, autonomous driving, automobiles and related parts industries. Second, industries that benefit from the improvement of domestic demand and are related to the cycle, such as food and beverage, medicine, home appliances and other industries. Third, industries that are still in a high prosperity and related to exports."Policies are driving liquidity to add positions in the A-share market, with incremental funds entering and changing market expectations, effectively repairing the sentiment." Galaxy Securities believes that in the medium to long term, the strength of this round of policies is beyond expectations and could become a positive signal indicating a market inflection point. The certainty of the A-share market's long-term upward trend is relatively strong. In terms of allocation structure, first, we are optimistic about consumer and growth stocks that have been oversold and have low valuations. Among them, the consumer sector may also benefit from consumer promotion policies and "trade-in" policies. Secondly, pay attention to the financial real estate sector, which has a lot of favorable policies.

Manulife Fund believes that the market has ushered in incremental funds, and risk appetite has improved significantly. With the subsequent introduction of fiscal policies, the market trend is expected to continue, and the valuation repair of related varieties can be anticipated, while it is also expected that the fluctuation range will significantly increase. Subsequently, it is necessary to track factors such as the strength of domestic economic fundamentals and overseas geopolitical situations to assess the sustainability of the market trend.