Asset Retention Scales Keep Recovering as Third-Party Channels Take the Lead in Non-Money Fund Retention

Western Securities has released a research note indicating that recent data from the Asset Management Association of China on fund distribution retention for the first half of 2026 shows a continued recovery. The top 100 distributors recorded non-money fund retention of RMB 13.79 trillion, up 17.9% from the second half of 2025, with the CR5 and CR10 concentration ratios for equity funds both improving sequentially. Against the backdrop of sustained household capital allocation into equities and a recovering market environment, leading wealth management institutions with comprehensive product offerings and strong advisory capabilities are well-positioned to drive continued growth in distribution scale. Attention should be paid to top third-party platforms such as Ant and Tiantian, as well as leading brokers with advantages in ETFs and wealth management.

Where to Focus

Market recovery has driven retention scales across all product categories to trend upward, with index products growing faster than active equity funds. Non-money fund retention among the top 100 distributors reached RMB 13.79 trillion in 26H1, up 17.9% from 25H2. Equity fund retention rose 17.8% sequentially to RMB 7.06 trillion, of which stock index funds climbed 21.9% to RMB 2.94 trillion. Active equity fund scale increased by 15.1% quarter-on-quarter to RMB 4.12 trillion. Deducting equity funds from non-money funds, bond fund retention among the top 100 distributors stood at RMB 6.73 trillion, up 18% from 25H2, reflecting growing demand for fixed-income and fixed-income-plus products. In terms of market share, banks, brokers, and third-party platforms held equity fund shares of 27.7%, 19.3%, and 25.6% respectively (based on average market scale at period start and end), up 1.15, 1.37, and 4.07 percentage points sequentially. For non-money funds, the respective shares were 22.8%, 13.1%, and 23.1%, up 0.07, 0.97, and 3.37 percentage points. Equity retention concentration ratios for both CR5 and CR10 improved on a sequential basis.

Third-Party and Others: Non-Money Fund Retention Now Ranks First by Channel

In 26H1, third-party and other institutions saw equity and non-money retention grow by 27.4% and 27.7% respectively from 25H2, outpacing other channels and demonstrating strong platform and traffic advantages. Ant Fund equity retention rose 30.1% sequentially to RMB 1.3246 trillion, with stock index fund retention up 30.8% to RMB 631.3 billion, cementing its leading industry position. Tiantian Fund recorded equity and non-money retention growth of 12.7% and 22.0%, reaching RMB 450.9 billion and RMB 883.5 billion respectively.

Brokers: Headquarter Concentration Remains Pronounced with Clear Index Product Edge

In 26H1, brokers saw equity and non-money retention grow by 15.3% and 17.8% from 25H2. Stock index fund retention at brokers reached RMB 1.5337 trillion, up 16.6% sequentially, with the broker channel accounting for over half of the market's total stock index fund retention thanks to ETF sales strengths. Bond fund retention through broker channels rose 27.5% sequentially to RMB 1.95 trillion. In 26H1, listed brokers generated faster revenue growth from distribution than from trading commissions, signaling continued deepening of the wealth management transition. Combined with regulatory classification ratings that award extra points to brokers with the largest incremental equity fund sales and retention, leading brokers with comprehensive capabilities are still expected to gain wealth management market share.

Banks: Stock Index Retention Keeps Climbing but Share and Growth Advantages Narrow Notably

In 26H1, banks posted equity and non-money retention growth of 11.8% and 9.4% from 25H2, reaching RMB 2.69 trillion and RMB 5.33 trillion. Stock index retention rose 29.7% to RMB 464.2 billion, driven by a low prior-year base and the ongoing shift in household asset allocation toward equities. Bond fund retention through bank channels increased 18.5% sequentially to RMB 2.4 trillion. China Merchants Bank led within the banking segment with equity and non-money retention up 22.3% and 26.6% to RMB 746.5 billion and RMB 1.5808 trillion respectively.

Risk warnings: fund redemption risk, market volatility risk, and policy risk.