China’s private fund assets hit record as quant managers surge

Published Sat, May 30, 2026 · 04:30 PM

CHINA’S private fund industry grew to a record 23.5 trillion yuan (S$4.4 trillion) at the end of April, as quantitative managers gained market share and the ranks of large firms expanded rapidly, industry data showed.

The figures point to improving fundraising momentum in China’s private securities-investment fund market, the country’s closest equivalent to hedge funds. Investor interest in artificial intelligence (AI)-linked strategies is accelerating a shift toward quantitative products, even as some discretionary equity managers continue to lose assets.

The Asset Management Association of China said Tuesday (May 26) that 2,348 private funds were registered in April, with combined registered assets of 928.7 billion yuan. Of those, 1,683 were securities-focused private funds, with 644.5 billion yuan in registered assets, while 159 were private equity funds, with 64.05 billion yuan.

Assets are also becoming more concentrated among the industry’s biggest players. Data provider Simuwang.com said the number of private fund managers overseeing more than 10 billion yuan had climbed to 137 by the end of April, the highest level on record. In the first four months of 2026, 24 managers joined that group — roughly one new entrant every five days.

Quantitative managers drove much of the increase. By the end of April, China had 71 securities-focused quant private fund managers with more than 10 billion yuan in assets, including 11 that crossed the threshold during the month. Since February, quant funds have outnumbered non-quant products among newly registered private funds for three consecutive months.

Industry sources told Caixin that advances in AI had created fresh opportunities by improving research efficiency and helping managers search for non-linear sources of excess returns. 

The boom has raised concerns about crowding. One quant investor told Caixin that available data showed excess returns across private quant funds had declined in recent years as strategies became more crowded. A researcher at a quant private fund said the pressure reflected more capital chasing similar factors and trading signals. Managers seeking to sustain returns, the researcher said, generally need to control product size, refine strategies and identify new factors or approaches.

The rise of quant funds contrasts with asset declines at some discretionary equity managers. The association’s latest data showed that Shanghai Banxia Investment Management Center LP had fallen below 5 billion yuan in assets, after dropping out of the 10-billion-yuan club early last year. According to Simuwang.com, five of Banxia’s private fund products had disclosed net asset values as of May 22. The four that disclosed returns were all down this year, with losses ranging from 3 per cent to 7 per cent.

A private fund researcher told Caixin that many investors redeemed after net asset values recovered in 2025, and that Banxia’s investment style had missed the recent technology rally. According to Banxia’s official WeChat account, founder Li Bei has repeatedly expressed a bullish view on real estate and said a once-in-a-decade turning point in the property market had basically been confirmed.

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Several private fund industry participants told Caixin that weaker performance following rapid asset growth is common in the sector. For discretionary private funds, asset expansion often comes as markets rise and net asset values improve, drawing investors in near performance peaks. As a result, funds may post strong headline returns, while many investors who bought at elevated levels fail to capture comparable gains. CAIXIN GLOBAL