--- title: "The Dilemmas and Transformations of Small and Medium-sized Fund Companies" type: "Topics" locale: "zh-HK" url: "https://longbridge.com/zh-HK/topics/38979317.md" description: "Introduction: As the public fund industry enters a period of deep reshuffling in 2026, some are charging ahead with great strides, while others are quietly exiting. The start of the year has seen a tale of two extremes in public funds: while the total scale of public funds continues to hit new highs, small fund companies have begun to be cleared out. Right at the beginning of 2026, a fund company, after over a decade of operation, is about to face its endgame. On January 26, Huachen Future Fund announced it would convene a fund unit holders' meeting to change the manager of its sole remaining bond fund to Fullgoal Fund. As the fund unit holders' meeting concluded on February 25..." datetime: "2026-03-02T04:11:09.000Z" locales: - [en](https://longbridge.com/en/topics/38979317.md) - [zh-CN](https://longbridge.com/zh-CN/topics/38979317.md) - [zh-HK](https://longbridge.com/zh-HK/topics/38979317.md) author: "[阿尔法工场](https://longbridge.com/zh-HK/profiles/5044766.md)" --- > 支持的語言: [English](https://longbridge.com/en/topics/38979317.md) | [简体中文](https://longbridge.com/zh-CN/topics/38979317.md) # The Dilemmas and Transformations of Small and Medium-sized Fund Companies Introduction: As the public fund industry enters a deep reshuffling period in 2026, some are charging ahead with great momentum, while others are quietly exiting the stage. The public fund market started the year with a stark contrast: while the total scale of public funds continues to hit new highs, small fund companies are beginning to be cleared out. Right at the beginning of 2026, a fund company, after more than a decade of operation, is about to face its final chapter. On January 26, Huachen Future Fund announced it would convene a fund unit holder meeting to change the manager of its only remaining bond fund to Fullgoal Fund. Following the conclusion of the fund unit holder meeting on February 25, the process entered the vote counting stage. The manager change is a minor adjustment with a major impact, and the voting result is unlikely to hold any surprises. After Fullgoal Fund takes over, the fund will be renamed "Fullgoal Fengtai Bond" and officially come under Fullgoal Fund's management. Compared to the direct liquidation of public funds in the past, achieving product line transfer through "manager change" is also a sound strategy. This may become a "standard template" for more struggling small public funds to exit in the future. **01 The Warning from Huachen Future** Huachen Future Fund's exit is not a sudden event but a "slow decline" that lasted for two years. Although the company has been established for over a decade, its brand recognition has remained weak, and its scale has consistently failed to achieve a significant breakthrough. In 2023, it was ordered by regulators to rectify due to net assets falling below 50 million yuan and had its public fund product registration applications suspended. Operating income deteriorated in 2024, with a net loss reaching 20.0114 million yuan; by the end of Q3 2025, the company's owner's equity was -3.8863 million yuan, already in a state of insolvency. Even possessing a highly sought-after public fund license, continuous losses coupled with past regulatory penalties have severely damaged the commercial value of its public fund license. Over the years, the major shareholder, Huachen Trust, had planned to inject capital and expand shares to save the company, but specific measures never materialized. It eventually gave up the struggle, listing its 40% stake (corresponding to 80 million shares) for transfer twice. The transfer price was lowered from 17.2 million yuan to 4.8 million yuan but still failed, surprising the market. **02 The Industry Dilemma for Small and Medium-Sized Fund Companies** Huachen Future is not an isolated case; it might be the vanguard of small and medium-sized public funds being forced out under the dual pressures of scale and profitability in the future. Public funds is an industry with significant economies of scale. Under the pressure of declining fee rates and channel access thresholds, a certain scale is necessary to reach a sustainable operation safety line. Although the overall public fund scale has repeatedly hit new highs in recent years, the distribution is extremely uneven. According to public data, by the end of 2025, the scale of the top 50 public funds by size accounted for nearly 90% of the total public fund scale, while the remaining 100 fund companies accounted for less than 10% of the total scale. There are 35 public funds with a scale below 10 billion yuan; a total of 58 have a scale below 30 billion yuan. Excluding **Huachen Future, there are currently** 14 public funds with a scale below 1 billion yuan. Small-scale fund companies have been struggling to survive in a narrow space. Meager management fee income makes it difficult to cover custody fees, operational costs, and compliance and risk control expenses, trapping them in a vicious cycle of "smaller scale—higher unit cost—more severe losses." **03 The Breakthrough Battle for Small and Medium-Sized Fund Companies** What has changed is that in recent years, newly established and small/medium-sized fund companies have begun to directly shift their focus to equity/hybrid funds and index funds. For example, Peng'an Fund and Caixin Fund, established in 2024, and Huibaichuan Fund, Allianz Fund, and Suxin Fund, established in 2023, all launched equity/hybrid funds right from their inception. Alternatively, some public funds established a bit earlier have directly adopted a breakthrough path of single-point breakthroughs, extreme focus, and hit-driven strategies. Through differentiated product design or leveraging their own channel resources, they have rapidly climbed the scale rankings. For instance, Huaxi Fund successfully broke through the 3-billion-yuan management scale with a hit bond index fund. Its management scale was only 369 million yuan in 2024 but grew to 3.904 billion yuan by February 26, 2026, a growth rate of 9.58 times over the past two years, the fastest in the industry. Huayin Fund achieved a scale leap by leveraging "bank channels + institutional customization," breaking the 25-billion-yuan scale in 2026. Formerly known as Beixin Ruifeng Fund, it officially changed its name in November 2025. Its scale was only 3.619 billion yuan at the end of 2024 but reached 27.736 billion yuan in February 2026, a growth rate of 7.64 times over the past two years. The core of its growth was concentrated institutional fund subscriptions in Q3 2025. In the current context of intensifying industry and market competition, the key for small and medium-sized fund companies to achieve a successful breakthrough lies in leveraging their unique advantages, continuously innovating and refining products. They must first establish recognition through performance and distinctive product types, then rely on hit products to achieve a breakthrough from 0 to 1. Only by effectively combining the three major advantages of shareholders, team, and sector can they rise with the trend in the public fund industry and achieve an effective breakthrough.