July 2026 Public FOF Performance Diverges: Equity Average Down 12.81%, Bond Average Up 3.21%
As of July 30, 2026, China's public fund-of-funds (FOF) market comprised 639 products with total net asset value of RMB 348.9 billion, dominated by bond-equity hybrid FOFs (62.78% of scale). July saw sharp performance divergence: equity-oriented FOFs averaged a 12.81% loss, with Jiaoyin Zhixuan Xingguang A falling 25.49% as the worst performer, while bond-oriented FOFs posted average gains, led by Yinhua Duocelue Wenjian Three-Month Holding A up 3.21%. Only 42 FOFs achieved positive monthly returns.
As of July 30, the total number of public FOF products on the market reached 639, with a combined net asset value of approximately RMB 348.9 billion. Among them, bond-equity hybrid products dominated the market, accounting for 62.78% of total scale. In July, the equity market experienced consolidation and adjustment, with the previously leading technology sector undergoing a phased correction. The STAR 50 index fell more than 25% month-to-date, exacerbating performance divergence among public FOFs, with only 42 funds achieving positive monthly returns.
According to Wind data, the performance divergence among the 639 public FOFs was significant in July, with the spread between the highest and lowest interval returns exceeding 22 percentage points. Bond-oriented and bond-equity hybrid FOFs with low-volatility characteristics posted overall positive monthly returns due to their stable base allocations, while equity-oriented and equity-biased FOFs heavily weighted in technology sectors suffered notable net value drawdowns. Some products with high equity allocations experienced monthly declines of more than 25%.
The 332 bond-equity hybrid FOFs recorded an average drawdown of 1.86%, yet 33 still managed to close in positive territory. Among them, Yinhua Duocelue Wenjian Three-Month Holding A led with a 3.21% return, followed by Anxin Wenjian Duo Zichan Youxuan Three-Month Holding A with a monthly return of 1.88%. Huaxia Fuyuan Retirement Target Date 2045 Three-Year Holding A, a target-date retirement FOF, achieved a monthly return of 2.42%, similar to the performance of ordinary bond-equity hybrid FOFs.
All 114 equity-biased hybrid FOFs posted losses, with an average decline of 12.81% and none achieving positive returns. Among them, Jiaoyin Zhixuan Xingguang A recorded the worst monthly performance at -25.49%. Yifangda Youshi Huibao A, which had gained 66.96% in the second quarter, saw a drawdown of 23.30% in July.
In the second quarter, the active equity funds with the largest increase in FOF holdings were mostly Yifangda series products with a technology allocation bias. On the passive index side, FOFs concentrated their increased holdings in technology-themed ETFs such as the SSE STAR Market Chip ETF, Semiconductor Equipment ETF, and Communication Equipment ETF. Overall, FOFs in the second quarter exhibited a characteristic of "strengthened bond base allocation and increased technology allocation." On the equity side, they focused on adding technology growth positions. Technology-themed ETFs such as Jia Shi SSE STAR Market Chip ETF and Guotai CSI All-Share Communication Equipment ETF saw significant increases in FOF holdings. Among active equity funds, technology-style products such as Yifangda Supply Reform and Huashang Balanced Growth had the highest number of FOF holdings. The proportion of bond fund holdings in FOF portfolios rose by 8.53 percentage points to 87.14%, with medium- to long-term pure bond funds increasing their share by 8.96 percentage points to 34.99%.
Over the past month, the top ten worst-performing equity-biased hybrid FOFs each suffered net value losses exceeding 15%, nearly erasing all gains since the second quarter.