Xinyuan Fund does not have "Great Effort Creates Miracles"

Source: Zi Shi Hui

In recent years, the company has made major efforts to allocate to equity-based products, but the talent shortfall is obvious.

Author | Zi Shi Fen Zi

The Xin Yuan Consumption Selection, which ranked last in 2025 returns, didn’t make it past 3 years.

According to a notice by the Xin Yuan Fund, as of the end of the day on March 24, the asset size of the Xin Yuan Consumption Selection was below 200 million yuan, triggering the termination clause. Starting March 25, the fund entered the liquidation process for fund property.

This is exactly 3 years after the Xin Yuan Consumption Selection was established. The fund also experienced a double blow to both size and performance.

As of the end of the fourth quarter of 2025, the fund’s assets under management (calculated by combining shares) were 39 million yuan, far from the 200 million yuan “passing line.” The latest net asset value per unit was 0.4446 yuan.

This is a snapshot of Xin Yuan Fund’s unfavorable situation in the area of equity investments.

As a “bank-affiliated” public offering fund manager with a trillion-yuan scale, Xin Yuan Fund has failed to avoid the problem of an unbalanced “stocks vs. bonds” development focus. At the same time, in recent years, newly launched equity funds also have not been recognized by the market and investors due to their lack of excellent performance.

01

Frequent switching of top holdings

The Xin Yuan Consumption Selection was established on March 24, 2023. It is a starter fund. Its initial fundraising scale was 10.3094 million yuan. Of that, the company’s own funds subscribed 10 million shares on March 15, 2023 through direct subscription, holding for no less than 3 years. Company staff subscribed 210.02 shares. This means that at the time of initial fundraising, external investors subscribed a total of only 307,400 shares.

The liquidation fate was already decided in advance. To protect the interests of holders, on February 12, Xin Yuan Fund paused investors’ subscriptions, regular fixed-amount investments, and conversions into the Xin Yuan Consumption Selection, but it did not affect the normal handling of other business such as investor redemptions.

The immediate reason for the liquidation of the Xin Yuan Consumption Selection is that during the three-year “big exam,” the product’s scale was insufficient to reach 200 million yuan.

Before liquidation, the fund had already become a “four-jiao fund.”

Wind data shows that as of March 24, the Xin Yuan Consumption Selection A’s returns since the beginning of the year, over the past one year, over the past two years, and over the past three years were -12.19%, -29.86%, -44.49%, and -55.54%, respectively, underperforming the performance benchmark by 7.26, 22.41, 42.23, and 46.79 percentage points, respectively.

The fund also has a characteristic of high drawdowns. As of March 24, the maximum drawdown over the past three years was -56.37%, far higher than the average -34.28% of comparable products.

By looking at the heavy-holding stocks, it can be seen that the fund favored an aggressive, bet-on approach.

In 2023, the top ten heavy-holding stocks of the Xin Yuan Consumption Selection were concentrated in pharmaceutical stocks. By the end of the second quarter to the end of the fourth quarter, the number of pharmaceutical targets was 6, 9, and 8, respectively.

In 2024, the industries in which the Xin Yuan Consumption Selection was allocated entered a state of high switching. At the end of the first quarter, the fund’s top ten heavy-holding stocks were still mainly traditional Chinese medicine targets, with 9 positions. In the second quarter, it made a major reallocation, and automotive stocks became the “main character,” with 6 positions. By the end of the third quarter, the heavy-holding stocks were not concentrated in a single industry and showed diversification; by the end of the fourth quarter, it shifted to media stocks, with 6 positions.

In 2025, the Xin Yuan Consumption Selection also maintained a high-frequency strategy of replacing its top holdings. As of the end of the first quarter of 2025, among its top ten heavy-holding stocks, only 天马科技 was the same as at the end of 2024. At the end of the first quarter and the second quarter of 2025, the fund favored technology stocks; by the end of the third quarter and the fourth quarter, it favored gaming stocks.

With frantic switching, it often ends up becoming the “bag-holder,” failing to accurately capture market opportunities. For example, for the medical and biological sector that was held from April 1, 2023 to March 31, 2024, the sector’s decline during that period was 19.77%.

Poor product performance drives institutional investors to exit quickly.

From the first half of 2023 to the end of 2024, the proportion of institutional investors holding Xin Yuan Consumption Selection A was over 95%, at 99.36%, 97.8%, 98.64%, and 96.72%, respectively. However, in the first half of 2025, this proportion fell to 42.94%.

02

3 fund managers in 3 years

Perhaps to improve the current situation of poor performance, the Xin Yuan Consumption Selection, after being established for 3 years, went through 3 fund managers.

From March 24, 2023 to April 18, 2024, Liu Junwen managed the Xin Yuan Consumption Selection A, with a tenure return of -25.85%. Wang Chong and Liu Junwen jointly managed the fund for nearly half a year. After Liu Junwen left, Wang Chong took sole charge, with a tenure return (from October 27, 2023 to August 26, 2025) of -27.05%. The current fund manager Yao Qirui took charge in early July 2025. As of liquidation, his tenure return was -20%.

“Zi Shi Hui” noted that Yao Qirui is a “newcomer.” The Xin Yuan Consumption Selection is the first public offering fund he managed.

In July 2022, Yao Qirui joined Xin Yuan Fund. Before that, he had served as an analyst in the research department of Fubon Securities, an analyst in the food and beverage group of Huaan Securities Research Institute, and a co-chief analyst of the food and beverage group at Minsheng Securities’ research institute.

With the liquidation of the Xin Yuan Consumption Selection, Yao Qirui currently manages only one fund: Xin Yuan Consumption Rui Xuan (established on July 14, 2025), which is also a starter fund in the consumption sector.

As of March 25, the tenure return of Xin Yuan Consumption Rui Xuan A was -4.42%, underperforming the performance benchmark.

From Wind data, Yao Qirui’s overall investment capability is weak. As of March 25, his investment manager index returns since this year, over the past six months, and since inception were -10.37%, -22.96%, and -15.73%, respectively—all of which underperformed the performance benchmark.

Each fund manager has their own understanding and preferences when selecting heavy-holding stocks. The frequent replacement of fund managers has also resulted in a lack of consistency in the investment strategy of the Xin Yuan Consumption Selection.

If frequently changing fund managers is an effort by Xin Yuan Fund to “wrap the shell” for the Xin Yuan Consumption Selection, then judging from the results, the effect is not good.

In addition, on January 18, 2025, the Xin Yuan Healthy Industry, which had been operating for three years, was terminated because its fund management scale was only 130 million yuan, far below the 200 million yuan “passing line.”

The Xin Yuan Healthy Industry A also had poor performance. As of January 18, 2025, the fund’s returns since the beginning of the year and over the past one year, two years, and three years were -5.39%, -15.96%, -29.07%, and -22.45%, respectively. Before liquidation, the fund had already become a “seven-jiao fund.”

From its establishment to liquidation, Xin Yuan Healthy Industry A also went through 3 fund managers. Among them, only Lin Qijiang’s tenure return (from January 18, 2022 to January 5, 2023) recorded positive performance, at 5.22%.

03

Strengthening equity-based products

Product liquidation does not affect Xin Yuan Fund’s enthusiasm for rolling out products.

Since its establishment, Xin Yuan Fund has had a heavy “fixed income vs. light equity” positioning. As of the end of the fourth quarter of 2025, the company’s public offering funds under management totaled 247.325 billion yuan. Among them, the scale of equity funds and fixed-income funds was 7.989 billion yuan and 238.89 billion yuan, respectively.

Xin Yuan Fund’s long-term capability in equity investments is not strong.

Wind data shows that as of March 25, the average returns of the company’s stock funds over the past three years and past five years were 4.53% and -3.97%, respectively, both far below the averages of comparable products by 24.61% and 14.7%; the mixed funds’ average returns over the past three years and past five years were -2.64% and -3.43%, also far below comparable products’ averages by 19.79% and 12.38%.

In recent years, as regulators have strongly promoted equity development and the equity market has warmed up, investor enthusiasm for entering the market has surged, leading to a rebound in the issuance of public offering products.

Since 2025, Xin Yuan Fund has successively established 25 new funds. Among them, there are 18 equity funds (stock funds and mixed funds). Of these 18 funds, there are 8 starter funds, covering industries such as 科创板 artificial intelligence, 创业板 artificial intelligence, pharmaceuticals, consumption, and emerging industries, among others.

But besides starter funds, only one product has an initial fundraising scale exceeding 500 million yuan—Xin Yuan CSI 800 Free Cash Flow Index Fund—while most equity products have only crossed the 200 million yuan threshold.

There are many newly established equity funds, but in terms of initial fundraising scale, Xin Yuan Fund still has significant room for improvement.

Xin Yuan Fund’s new fund filings are also dominated by equity funds, and starter funds account for around half of the share.

Since 2025, the company has filed for 37 funds in sequence. Equity funds are also heavily concentrated, with 33 of them. Among the equity funds, there are 16 starter funds. In addition to already launched products, the company currently has 14 equity products pending approval, and 2 funds have been approved and are waiting to be issued.

Why the preference for starter funds?

First, the threshold for starter funds is low. They are not constrained by the “200 million yuan scale” and “200 holders” eligibility conditions, enabling the company to complete fundraising quickly. Actually, this reflects the alignment of interests between fund managers and holders, and risk sharing, which strengthens investor confidence.

This also shows that Xin Yuan Fund wants to seize opportunities for market development and grow its equity-based business using a low-cost trial-and-error approach.

04

Obvious talent shortfalls

From the perspective of fund managers, Xin Yuan Fund currently has 24 fund managers. Among them, there are 13 equity fund managers. There are 5 fund managers with over 5 years of experience in the industry—but even they are not well-known.

“Zi Shi Hui” found that among the 5 equity fund managers mentioned above, 4—Mo Zhi gang, Zhang Han yi, Wang Li jun, Chen Li, and others—were hired from outside. They have served as fund managers for the company for less than 2 years, and Li Biao is an internally trained talent.

Most are “young” fund managers.

Among the 13 equity fund managers, 5 have less than 3 years of experience as public offering fund managers. The tenures of Xiao Han, Zhang Zhengqing, Bai Yibei, and Yao Qirui are still under 1 year.

Xin Yuan Fund, whose equity investment strength was not solid to begin with, has also experienced talent loss in recent years.

According to Wind data, from 2021 to now, Xin Yuan Fund has had 12 fund managers depart, including 6 equity-related managers, accounting for 50%.

By management scale, Li Biao is the equity “top dog” at Xin Yuan Fund. He currently manages 8 funds. The product categories include active equity funds, debt-biased hybrid funds, and hybrid bond-type secondary funds. The total size of funds under management is 3.743 billion yuan.

Among the 8 funds managed by Li Biao, for 6 products, the returns over the past three years and the performance benchmark can be calculated, and all underperformed the benchmark. As of March 25, the returns over the past three years for Xin Yuan Xin Xiang A, Xin Yuan An Xin Hui Bao A, Xin Yuan Xin Dong Li A, Xin Yuan Yangtze River Delta Regional Theme A, Xin Yuan Xin Yue A, and Xin Yuan Tian Xin Hui Bao 6-month Holding A were 8.35%, 14.26%, 1.4%, -5.22%, -0.21%, and 12.32%, respectively, all underperforming the performance benchmark by 5.7, 0.36, 16.11, 27.28, 16.86, and 3.38 percentage points, respectively.

As of March 25, among the 8 products Li Biao manages, 2 have “green” tenure returns, namely Xin Yuan Xin Dong Li A and Xin Yuan Xin Yue A. Their tenure returns were -8.86% and -4.74%, respectively, underperforming the performance benchmark by 6.33 and 20.66 percentage points, respectively.

Xin Yuan Xin Xiang, managed by Li Biao, is also the company’s largest active equity fund by scale. As of the end of the fourth quarter of 2025, its management scale was 974 million yuan. As of March 25, the fund’s return since the beginning of the year was -8.36%, ranking mid-to-late among 2,347 flexible allocation funds.

Among Xin Yuan Xin Xiang A’s top ten heavy-holding stocks, 6 positions were switched by the end of the fourth quarter of 2025 compared with the end of the third quarter. Many stocks, including 巨人网络, 华泰证券, 若羽臣, 贵州茅台, and others, were bought near their relative price highs.

Based on fund manager industry tenure, Chen Li has the longest tenure among equity managers, exceeding 10 years.

Public information shows that Chen Li joined Xin Yuan Fund in March 2024 and serves as Xin Yuan Fund’s Chief Equity Investment Officer. He now manages 6 funds, including 2 mixed bond-type secondary funds and 4 active equity funds. The total scale he manages is 821 million yuan. Previously, he worked at 银华基金, 金鹰基金, and 粤民投 private placement.

As of the end of the fourth quarter of 2025, the scale of the 4 active equity funds managed by Chen Li is all under 100 million yuan. Among them, Xin Yuan Xin Ling Hang A (tenure start date: April 22, 2025) and Xin Yuan Industry Opportunities A (tenure start date: September 22, 2025) both have negative tenure returns, of -3.17% and -9.12%, respectively.

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Editor: Shi Xiuzhen SF183