BOC Fund Management Co., Ltd., a public fund managing 700 billion yuan, has appointed a new chairman. On December 11, the company announced that Liu Xinqun would assume the roles of chairman and legal representative, effective December 10. With this appointment, executive president Zhang Jiawen has ceased his interim duties as acting chairman and legal representative, ending a six-month period of dual responsibilities.
Traditionally, BOC Fund’s chairman is appointed by its major shareholder, Bank of China (601988.SH). Liu Xinqun, whose career has been within the Bank of China system, previously served as president of the bank’s Shenzhen branch. Executive president Zhang Jiawen had a long tenure at the Suzhou branch before joining BOC Fund.
BOC Fund’s assets under management (AUM) have continued to grow, reaching 703.088 billion yuan by the end of Q3 2025, ranking 20th in the public fund industry. Despite the industry-wide fee reduction trend, the company has demonstrated strong profitability, with net profits maintaining growth. Like other bank-affiliated fund managers, BOC Fund exhibits a "bond-heavy, equity-light" portfolio, with money market and bond funds accounting for 94.62% of its total AUM.
This year, BOC Fund has actively issued index funds, with 10 out of 14 newly launched funds being index-based. Its non-monetary ETF AUM grew from 513 million yuan at the beginning of the year to 5.329 billion yuan, though the overall scale remains modest.
**Bank of China Veteran Takes Helm** The leadership transition traces back to June when former chairwoman Zhang Yan stepped down due to work adjustments after nearly eight years in the role. Zhang Yan, who holds a master’s degree in public finance policy from the London School of Economics, rose through the ranks at Bank of China, holding key positions in global markets and investment banking.
Following her departure, executive president Zhang Jiawen temporarily assumed the chairman’s duties. Zhang Jiawen joined BOC Fund in 2013 and has over 12 years of experience in the public fund industry. Prior to this, he spent many years at Bank of China’s Suzhou branch.
Liu Xinqun’s appointment was anticipated since October 27, when market rumors surfaced. His career has been entirely within Bank of China, including leadership roles in Shenzhen and Hong Kong. BOC Fund, established in 2004 and headquartered in Shanghai, is 83.5% owned by Bank of China and 16.5% by BlackRock Investment Management (UK). The bank has consistently supplied directors and executives to the fund.
Currently, BOC Fund’s board includes five non-independent directors, three of whom are from Bank of China. Among its eight senior executives, three deputy executive presidents also hail from the bank.
Wang Zhaojiang, a fund manager at Hainan Zongfan Private Fund, noted that such "group-style" appointments help align with shareholder strategy and enhance risk control but may dampen market-driven innovation. Balancing group directives with industry demands is a key challenge.
**AUM Surpasses 700 Billion Yuan, but Active Equity Stagnates** BOC Fund’s AUM first exceeded 400 billion yuan in Q1 2018, ranking 8th in the industry. However, growth stalled until 2023, when it regained momentum, surpassing 500 billion yuan in Q1 2024 and 600 billion yuan by Q4. By Q3 2025, AUM reached 703.088 billion yuan, ranking 20th.
Recent growth has been driven by money market and bond funds, with money market funds nearly doubling in two years to 376.712 billion yuan. BOC Fund’s six money market funds include two exceeding 130 billion yuan each. Bank-affiliated funds typically leverage their parent banks’ distribution networks to attract low-risk clients.
Bond funds remain BOC Fund’s stronghold, with AUM of 288.541 billion yuan in Q3, ranking 10th. However, growth has plateaued since surpassing 200 billion yuan in Q3 2019.
Equity funds, however, have shrunk. Mixed funds peaked at 62.101 billion yuan in Q1 2021 but have since declined, dropping below 30 billion yuan two years ago and standing at 22.774 billion yuan in Q3 2025—a 60% drop from the peak. The post-2020 market volatility and underperformance of some mixed funds led to investor redemptions. BOC Fund’s mixed funds have underperformed peers, with a three-year return of 11.33% versus the industry average of 14.19%.
Notably, BOC Fund’s largest equity funds focus on healthcare, with one delivering a 74.98% return this year. However, others, like its financial real estate fund, have seen sharp declines, with AUM down 88.48% from its 2020 peak. Another mixed fund has underperformed, with a 9.28% return this year versus the industry average of 31.26%.
BOC Fund also has 26 "mini funds" with AUM below 50 million yuan, mostly mixed and index funds.
**Focus on Index Funds, Net Profits Rebound** Amid market volatility, investors have shifted toward index funds for their transparency and stability. This year, 10 of BOC Fund’s 14 new funds were index-based. While ETF AUM grew 30-fold year-over-year to 5.329 billion yuan, it remains small compared to peers like ICBC Credit Suisse Fund, which manages 89.383 billion yuan in non-monetary ETFs.
BOC Fund’s net profits peaked at 1.054 billion yuan in 2020 and 1.026 billion yuan in 2021 but fell to around 700 million yuan in 2022–2023 due to market downturns. Despite the 2023 fee cuts, the company showed resilience, with 2024 net profit up 12.54% to 790 million yuan and H1 2025 net profit rising 16.99% to 420 million yuan. This reflects stable contributions from fixed-income and passive products, as well as cost controls.
However, long-term success requires strengthening active equity capabilities. Fee reforms are pushing the industry toward skill-based competition. Over-reliance on low-fee, homogeneous passive products may stabilize short-term profits but weaken differentiation and brand value. Active equity funds remain crucial for demonstrating investment prowess and serving the real economy.
For new chairman Liu Xinqun, balancing passive and active strategies while maintaining growth and capability will be a key test.
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