Due to poor stock market conditions, the size of China's public equity market in 2023 was 27.60 trillion yuan, and the average daily stock fund trading volume was RMB 991.7 billion, down 3.10% from the previous year.

At the same time, the public equity industry is embarking on a new wave of fee cuts, and the industry is officially laying out supply-side reforms. What impact will this have on the profits of domestic public fund companies?

Entering March, with the disclosure of the annual reports of listed companies one after another, the 2023 results of many fund companies such as Huaxia Fund, China Merchants Fund, Changsheng Fund, Guohai Franklin Fund, Fangzheng Fubon Fund, and South China Fund surfaced

Huaxia Fund's net profit reached 2,013 billion yuan

On March 26, CITIC Securities disclosed its 2023 annual report. The company holds 62.20% of Huaxia Fund's shares. As of the end of the reporting period, Huaxia Fund had total assets of RMB 18.794.3 billion and net assets of RMB 13.152 billion. Currently, it has 1,718 employees;

As of the end of 2023, Huaxia Fund headquarters managed assets of RMB 1823.564 billion. Among them, the management scale of public funds was RMB 1317.644 billion; the scale of institutional and international business asset management was RMB 505.92 billion.

In 2023, Huaxia Fund achieved operating income of 7.327 billion yuan, compared to 7.475 billion yuan in 2022; total profit was 2,674.83 billion yuan, net profit was 2,013 billion yuan, compared to 2.163 billion yuan for the same period in 2022.

CITIC Securities said in its annual report that looking back at 2023, Huaxia Fund maintained the industry's lead in terms of number of products established, ETF scale, and growth; equity funds ranked among the highest in the industry in terms of mid-term investment performance, and had excellent social security investment performance; the size of the IMF achieved rapid growth, actively promoted the three pillars of the pension business, led the development of the consumer REITs business, and was officially granted an equity investment subsidiary license.

Looking ahead to 2024, it said that Huaxia Fund will continue to improve product layout, continuously improve core investment and research capabilities and asset allocation capabilities, consolidate traditional business advantages, lead innovative business development, expand institutional and international business layout; accelerate the company's digital transformation, strengthen human resources system construction, and maintain the overall competitiveness of the industry.

China Merchants Fund achieved net profit of 1,753 billion yuan

On March 25, China Merchants Bank announced its 2023 annual report. Its subsidiary China Merchants Fund achieved net profit of 1,753 billion yuan in 2023; by the end of the reporting period, China Merchants Fund had total assets of 14.151 billion yuan and net assets of 9.325 billion yuan.

The China Merchants Fund was established in 2002 with a registered capital of 1.31 billion yuan. As of the end of the reporting period, China Merchants Bank and China Merchants Securities Co., Ltd. held 55% and 45% of the shares in China Merchants Fund, respectively. The business scope of the China Merchants Fund includes initiating the establishment of funds, fund management services, and other businesses approved by the China Securities Regulatory Commission.

CMB stated in its annual report that during the reporting period, China Merchants Fund focused on the “high-quality development” requirements of public funds, insisted on stabilizing performance, expanding growth, improving capacity, and keeping the bottom line, and achieved steady progress in operating performance under the challenge of the cold fund market. At the end of the period, the size of non-monetary public funds reached 575.568 billion yuan, an increase of 2.62% over the end of the previous year. In addition, China Merchants Fund's asset management business was 1.55 trillion yuan, an increase of 4.73% over the end of the previous year.

Changsheng Fund's net profit in 2023 was 577.563 million yuan

The annual report issued by Guoyuan Securities also shows that Changsheng Fund, which holds 41% of its shares, achieved operating income of 462 million yuan in 2023, an increase of 1.28%; incurred operating expenses of 386 million yuan, an increase of 6.29% over the previous year; and realized net profit of 577.563 million yuan, a year-on-year decrease of 18.46%.

As of December 31, 2023, Changsheng Fund had total assets of 1,666 billion yuan and net assets of 1,291 billion yuan.

During the reporting period, Changsheng Fund's asset management scale was 119.871 billion yuan, up 20.4% year on year, of which the public fund size was 80,002 billion yuan, up 33.6% year on year, and the industry growth rate was 6.09%; the non-monetary management scale increased to 56.4 billion yuan, an increase of 35.9%, an increase of 4.4% over the same period; the non-monetary management scale ranking was 65, up 4 places from the previous year.

Guohai Franklin Fund's net profit last year was 176 million yuan

According to the annual report released by Guohai Securities, the Guohai Franklin Fund, which holds 51% of the company's shares, achieved operating income of 611 million yuan and net profit of 176 million yuan in 2023.

As of the end of the reporting period, Guohai Franklin managed a total of 44 public fund products and 4 specific customer asset management plans. The total domestic public offering and special account asset management scale was 75.571 billion yuan, of which the public fund asset management scale was 74.778 billion yuan.

Looking ahead to 2024, Guohai Franklin will first give full play to its equity business advantages, continue to track the market, increase research efforts, strive to maintain stable investment performance in the company's fund products, and strive to bring long-term stable returns to investors and enhance brand effects; second, take the opportunity to lay out new products, further enrich the product line, and promote continuous marketing and expansion of old products with excellent performance in due course

Scale; the third is to continue to lay out the fund investment business, continuously develop cooperative institutions and enrich its investment strategy portfolio to increase the scale of investment; the fourth is to give full play to and utilize shareholder advantages to comprehensively promote international business development and expand new business growth points.

Fangzheng Fubon Fund's net profit in 2023 surged 63.66% year on year

On the evening of March 19, the annual report released by Fangzheng Securities showed that Fangzheng Fubon Fund, which holds 66.70% of the company's shares, achieved operating income of 272 million yuan, an increase of 6.41% over the previous year, and achieved net profit of 44.595 million yuan, an increase of 63.66% over the previous year.

By the end of the reporting period, Fangzheng Fubon Fund managed public funds had assets of 61,167 billion yuan, an increase of 11.182 billion yuan over the previous year, or 22.37%.

The fund company has created and managed 46 publicly raised securities investment funds during the period, including 10 equity securities investment funds, 20 hybrid securities investment funds, 14 bond securities investment funds, and 2 money market funds; the management fund share was 62,038 billion shares, an increase of 11.119 billion shares over the previous year, an increase of 21.84 percent.

In addition, the 2023 annual report published by Nanhua Futures also shows that its wholly-owned fund company, Nanhua Fund, achieved operating income of 71.4712 million yuan and net profit of 1.1941 million yuan in 2023; by the end of the period, the total assets of Nanhua Fund were 161 million yuan and net assets were 149 million yuan.