The private fund market is experiencing a strong start to the year: high-quality subjective strategies are showing signs of a rebound, while quantitative strategies maintain their popularity.
As the Shanghai Composite Index broke through the 4100-point mark, private fund issuance kicked off with a "red-hot" opening. It was recently learned from industry sources that Shanghai Fushiang Asset Management, a billion-yuan subjective strategy private fund, saw a 1 billion yuan active equity private fund product issued through a private banking channel sell out within a single day, becoming the first "day-one sellout" hot seller of the year; market rumors even suggest it was fully subscribed in mere seconds.
Interviews with multiple sources reveal that the current private fund issuance and sales landscape is characterized by a "structured boom." Quantitative strategies continue to enjoy high demand, while products from some top-performing subjective strategy managers are also experiencing instant sellouts. Compared to last year, the sales pace has accelerated in 2026, with investor demand for equity assets and quantitative strategies heating up and decision-making processes speeding up. Funding is still primarily driven by existing clients increasing their allocations, while the influx of new clients remains relatively gradual but shows a growing trend.
As 2026 begins, the A-share market continues its strong performance, and positive signals are emerging in the private fund sales arena. The phenomenon of subjective strategy products selling out instantly has sparked market attention regarding a potential rebound for subjective strategies. Research conducted through private fund institutions and third-party channels indicates that the current market recovery displays distinct structural characteristics—high-quality subjective managers with proven long-term track records are regaining attention, while quantitative strategies still dominate the market.
According to Cui Bo, Product Director at Gese Funds, the recent private fund issuance market is experiencing a "structured boom," primarily led by quantitative white-chip institutions and some outstanding subjective private funds, rather than representing a broad-based recovery. Overall, sales of quantitative private funds still outpace those of subjective funds, maintaining their hot streak. The instant sellout phenomenon observed in subjective funds at the start of the year might be isolated to specific channels and products and should not be used to gauge the overall sales situation for subjective long-only strategies. He believes that subjective private funds with strong performance over the past two years are seeing relatively higher sales, although some clients remain cautious about the prospects for subjective products in 2026. Nevertheless, overall, subjective strategy private funds have warmed up compared to the period before 2024.
Sun Shen, Vice President of Shennong Investment, believes that subjective private funds possessing core competitiveness and having endured long-term market tests represent extremely scarce allocatable assets. The private fund industry is fully competitive and market-driven, and managers with outstanding long-term performance records are gaining increasing recognition. "We are very optimistic about the spring market rally in 2026 and have been actively positioning since the fourth quarter of last year," he said.
Liu Youhua, Research Director at PaiPaiWang Wealth, stated that from a strategy classification perspective, quantitative products, macro multi-asset strategies, and some CTA products have recently attracted significant attention, particularly certain high-beta market-neutral enhanced strategies.
Quantitative private funds have been actively filing for new products since the beginning of the year, continuing the strong growth momentum from 2025. Data from Simuwang.com shows that as of January 9, 2026, 238 private securities products had completed filings this year (including self-issued products and those where the firm acts as an investment advisor). Among these, 113 were quantitative products, accounting for 47.48%, while 125 were non-quantitative products, representing 52.52%.
Mengxi Investment indicated that the company's recent sales situation has been steady, aligning with the industry's positive trend. The company has observed a diversification in investor preferences: some investors have shown increased interest in market-neutral and low-volatility strategies during turbulent markets; simultaneously, more investors with confidence in the medium- to long-term prospects of the equity market continue to focus on strategies that are more closely tied to market elasticity, such as index enhancement and quantitative stock selection.
Square Sum Investment mentioned that the issuance of its new products and the ongoing maintenance of existing product holdings are proceeding simultaneously, with a comprehensive layout across strategy lines.
"The overall sales pace this year is much faster compared to last year, driven by both market policies and increased capital activity, leading to greater investor demand for allocation," Cui Bo stated. He added that recently, the proportion of investor demand for equity assets has been relatively large, and decision-making speed has accelerated significantly, with some investors fearing they might "miss the market trend." However, from a sales institution's perspective, it is essential to highlight associated risks and advise investors to choose allocation strategies suitable for their own risk tolerance, rather than overly focusing on short-term performance.
Mengxi Investment has also observed positive changes on the sales side for private funds. Since 2025, with increasing market activity and the emergence of a profit-making effect, channels have shown sustained growth in their attention towards and promotion of quantitative strategies. Investor subscriptions have become more active, with a rational mindset that views market fluctuations as布局 opportunities gaining strength.
It is understood that existing clients remain the core driving force behind current market allocations, while the pace of new client entry remains relatively measured. Several interviewed institutions indicated that subscription capital for private fund products at this stage primarily comes from existing clients continuously increasing their allocations. Tongben Investment stated that new funds mainly originate from existing clients adding to their positions; while inquiries from new clients have increased, actual conversions have been limited.
Cui Bo also mentioned that current new funds primarily come from three sources: existing clients converting product holdings, existing clients allocating additional new capital, and new clients bringing in fresh funds. Allocations of new capital from existing clients constitute a relatively larger portion; new clients initially tend to purchase suitable strategy products, but in absolute terms, their contributions are not as substantial as the additional allocations from existing clients. The market still requires an adaptation period for new clients, but there is a trend of new clients gradually increasing.
In terms of client structure, high-net-worth individual clients remain the main subscribers. Liu Youhua emphasized that the willingness to increase positions is quite noticeable among high-net-worth individuals, particularly ultra-high-net-worth clients. Meanwhile, the sources of funds for some institutions also show characteristics of diversification. Mengxi Investment mentioned that the incoming capital is quite diverse, including both additional allocations from existing clients based on long-term trust, and new clients entering the market who are optimistic about the potential of China's capital markets and quantitative strategies. Square Sum Investment revealed that recent sales have continued the previous trend, with new funds coming partly from ongoing additions by existing clients and partly from subscriptions by clients of new partner channels.
Looking ahead to 2026, Sun Shen stated that the company will adopt a "twin-engine" investment strategy: on one hand, patiently awaiting the fruition of investments in the innovative drug sector; on the other hand, fully embracing the explosive growth opportunities presented by AI applications. As early as 2021, Shennong Investment predicted the trend of "AI hegemony," and further clarified its "all in AI"布局 in 2023. Their assessment is that the computing power bottleneck has been largely resolved, and AI technology is accelerating its penetration into various industries. "AI applications in 2026 are akin to real estate in 2006; the industry is on the eve of an explosion, containing enormous era-specific dividends." Innovative drugs are a core sector that Shennong Investment has long focused on, having completed布局 in several sub-sectors in 2025. Sun Shen expressed that the global competitiveness of Chinese innovative drug companies is becoming prominent, with a surge in out-licensing deal values confirming their R&D strength. They are expected to capture 20% to 30% of the global market share in the next decade, and innovative drugs are currently in a stage of "quietly awaiting the blooming and fruition."
Tongben Investment primarily focuses on two high-growth sectors: new consumption and the AI industry chain, believing that both possess long-term growth logic and short-term performance support, making them key areas for annual布局. On one hand, new consumption is expected to usher in a "golden decade," driven by emotional value and asset value leading consumption upgrades. From the core logic of consumption, product value encompasses three dimensions: functional value, emotional value, and asset value. In the past, consumers emphasized practicality and cost-effectiveness more heavily; in the future, emotional value and asset value will become the core drivers of consumption decisions. "Emotional value-to-price ratio" is expected to gradually replace "cost-performance ratio" as the fundamental underlying logic of the new consumption industry. On the other hand, the firm remains firmly optimistic about the AI industry, focusing particularly on overseas computing power-related opportunities represented by optical modules, while also positioning around internet giants driven by AI development.
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