Buying the Dips, Public and Private Funds Set off a "Wave of Self-Purchasing"

Since July, the A-share market has experienced volatile corrections. In stark contrast to the short-term market trend, private and public fund institutions are intensively carrying out self-purchases and increasing their positions against the market trend.

On July 20, Qianyan Fund, Shuipu Fund, Shanghai Ningyongfu Private Fund, and Tianlang Fund successively issued self-purchase announcements, purchasing their own products with 30 million yuan, 30 million yuan, 10 million yuan, and 2 million yuan respectively. On the same day, Bosera Fund also issued an announcement stating that it will use a total of 50 million yuan of its own funds to invest in its own equity public funds in the near future.

According to statistics from Private Fund PaiPai, a total of 18 private fund institutions have purchased their own products with a total amount of 665 million yuan since the beginning of this year. Among them, the self-purchase amount of private fund institutions since July accounts for 81.95% of the total amount since the beginning of this year.

Behind the surging enthusiasm for self-purchases, public and private fund institutions are taking advantage of the market adjustment window to optimize their position layouts, so as to capture the directions with confirmed market prosperity.

Private Funds Are Setting Off a Self-Purchase Wave

On July 20, Qianyan Fund issued an announcement stating that based on its firm confidence in the long-term allocation value of China's capital market and its own quantitative index enhancement strategy, the company and its shareholders have recently subscribed for more than 30 million yuan of its own index enhancement products in total, and will continue to add their own funds for subsequent subscriptions.

On the same day, Shuipu Fund announced that the company and its core personnel will use 30 million yuan of their own funds within two weeks to participate in the subscription of private fund products managed by Ding Xingle, the investment manager of the company; Ningyongfu Fund announced that the company and its employees have used a total of 10 million yuan of their own funds to subscribe for the company's Xiaoman series products; Tianlang Fund also announced that the company used a total of 2 million yuan of its own funds on the trading week of July 17 to subscribe for the company's fund products.

Previously, on July 19, Lingjun Investment issued the "Announcement of Lingjun Investment on Subscribing for Its Own Private Fund Products", stating that based on its firm confidence in the long-term stable development of China's capital market and the company's active management capabilities, the company and its main core personnel will use 200 million yuan of their own funds within two weeks to participate in the subscription of the company's private equity securities fund products. This is also the largest single private fund self-purchase amount since the beginning of this year.

Data from Private Fund PaiPai shows that as of July 20, 2026, a total of 11 private fund institutions have purchased their own products with a total amount of 545 million yuan since July. Specifically, Zhiyu Zhishan Investment, Shanghai Xiva, Xuanxin Asset, Yanhe Private Fund, Youmeili Investment, Pingfanghe Investment, Lingjun Investment, Shanghai Ningyongfu Private Fund, Tianlang Fund, Qianyan Fund and Shuipu Fund have successively purchased their own products with 30 million yuan, 42 million yuan, 10 million yuan, 30 million yuan, 61.11 million yuan, 100 million yuan, 200 million yuan, 10 million yuan, 2 million yuan, 30 million yuan and 30 million yuan respectively.

In terms of performance, data from Private Fund PaiPai shows that the 18 private fund institutions that have carried out self-purchases since the beginning of this year achieved an average return of 42.91% in the first half of the year. Among them, 10 institutions had returns exceeding 20% in the first half of the year, including 3 institutions with returns exceeding 100%. In the same period, the average return of 1967 private fund managers with publicly displayed performance was 15.36%.

Li Chunyu, fund manager of Rongzhi Investment FOF (Fund of Funds) under the PaiPai Group, said that the active self-purchases of private funds have released the following signals: First, confirm the safety margin of equity assets. Voting with real money shows that the previous release of systemic risks has been largely completed, and market opportunities may significantly outweigh risks, ushering in a good layout window. Second, achieve interest alignment and risk sharing. Enhance confidence, stabilize expectations, reduce irrational redemptions, and maintain the stable operation of products amid market fluctuations. Third, make structural position adjustments based on mid-year report clues. Instead of simply following trends, they are concentrating on sectors with confirmed prosperity, adopting left-side layouts to bet on the subsequent release of policy effects.

Public Funds Are "Buying More as Prices Fall"

On July 20, Bosera Fund issued an announcement, stating that based on its confidence in the long-term healthy and stable development of China's capital market, the company will use a total of 50 million yuan of its own funds to invest in its own equity public funds in the near future.

Previously, Guojin Fund announced on July 14 that based on its firm confidence in the long-term healthy and stable development of China's capital market, the company used its own funds and the own funds of its senior management to invest in the equity funds under the company. The total investment amount of this time is not less than 15 million yuan, and it promises that the holding period of the subscribed fund shares will not be less than 1 year.

In July, China Europe Fund also carried out self-purchases. In the letter to investors issued by China Europe Xinyue Return on July 2, fund manager Lan Xiaokang announced that he would increase his holdings in the products he manages, in order to stand firmly with investors. Lan Xiaokang said that the market trend in the past 3 months is one of the biggest challenges encountered in recent years. Due to the overall position style of the fund portfolio leaning towards low valuation, the current extreme market style has put certain pressure on the portfolio. However, he believes that large-cap traditional industries such as finance and resources are worthy of attention at this stage after going through sufficient adjustments in the early stage.

Li Chunyu also said that the active self-purchases of public and private funds since the beginning of this year are the result of multiple factors: First, forward-looking strategic allocation. Based on the judgment of the long-term improvement of the macro economy and reasonable valuation, they accurately bet on high-prosperity tracks such as AI (artificial intelligence) computing power, hard technology, and high-end manufacturing to obtain long-term excess returns; Second, cope with fluctuations and redemption pressures. Enhance trust, soothe emotions, and stabilize the fund scale through self-purchases.

Regarding the market trend since July, the latest view of Starstone Investment points out that the market adjustment is caused by the combined effect of leveraged funds, momentum effect reversal, and the crowding of technology stocks. In the environment of global technology stock resonance, the fluctuation of A-share technology stocks is also a reasonable phenomenon.

Starstone Investment believes that in the short term, affected by the downward risk appetite of global technology stocks, the game of on-market funds, and the wait-and-see attitude of off-market funds, the overall stock market may show amplified fluctuations, and industry rotation may also remain relatively fast. In the medium term, there are still investment opportunities for balanced allocation in the stock market. On the one hand, the narrative of the AI industry has not reversed, and the prosperity of the technology industry remains relatively high. After short-term stock price adjustments and chip exchanges, those technology stocks with performance realization capabilities still have medium-term investment value, and corporate earnings still have a driving effect on stock prices; On the other hand, the valuation of the stock market continues to diverge, and low-valued traditional sectors whose fundamentals are expected to stabilize have high medium-term investment value. Coupled with the fact that on-market funds are still relatively abundant overall, there is a momentum for style balance within the stock market.

Industrial Fund believes that the current market style has further converged to confirmed performance after the sharp rise of technology assets in the early stage, with significantly reduced crowding and the return of medium and long-term allocation value. From the fundamental perspective, China's economy is highly resilient, the profit recovery rhythm of listed companies is improving, and performance improvement is sustainable; at the policy level, various supporting measures to activate and stabilize the market continue to be implemented, with solid policy support; from the industrial dimension, the global technological innovation cycle resonates upward, and the long-term logic of the technology growth track has not changed.

This article is from the WeChat official account "Economic Observer", author: Chen Shan, published with authorization from 36Kr.