February private placement new product filings increased by 1.5 times year-on-year, with stock strategies accounting for over 60%

Reporter Fang Lingchen

In February, the number of private equity securities products filed for registration increased significantly, and market issuance enthusiasm rapidly heated up. According to the latest statistics from Private Equity PaoPao.com, in February, a total of 722 private fund institutions registered 1,366 private securities products (including independently issued and advisory products), a year-on-year increase of 151.57% and a month-on-month increase of 100.88%.

Against the backdrop of reduced working days due to the Spring Festival holiday, why did the number of private securities product filings see a substantial increase both year-on-year and month-on-month in February? Li Chunyu, FOF fund manager at Shenzhen Rongzhi Private Securities Investment Fund Management Co., Ltd., told Securities Daily: “As market confidence continues to recover and structural opportunities gradually emerge, private fund institutions are optimistic about future opportunities, accelerating product issuance and filing. Meanwhile, the filing mechanism continues to be optimized, significantly improving process efficiency, with some products able to complete registration on the same day. Additionally, investor demand for equity asset allocation has increased, bringing incremental funds to the industry and laying a foundation for private fund institutions to expand product issuance.”

Looking at the distribution of filing strategies, stock strategies dominate and have become the core focus of private fund institutions. In February, 900 stock strategy products were filed, accounting for 65.89% of total filings, far exceeding other strategies; multi-asset strategies ranked second with 200 filings, accounting for 14.64%; futures and derivatives strategies had 154 filings, accounting for 11.27%; and combined funds, bond strategies, and other strategies had relatively fewer filings, with 45, 35, and 32 respectively.

Regarding private fund filings by different sizes of institutions, numerous small private fund institutions are the main force in the private securities product filing market, but larger private fund institutions are more active in filing. The most numerous are small private funds with management scale below 1 billion yuan, totaling 456, with 582 products filed, accounting for 42.61% of total filings, but averaging only 1.28 filings per institution. Medium-sized private funds with management scales between 1 billion and 5 billion yuan number 161, with 290 products filed, accounting for 21.23%, averaging 1.8 per institution. Large private funds with management scales over 5 billion yuan total 105, with 494 products filed, accounting for 36.16%, averaging 4.7 per institution.

Among the private fund institutions with the highest number of filings, those with a management scale of over 100 billion yuan are more common. In February, 46 private funds filed at least 5 products, including 27 with a scale of over 100 billion yuan. Among these, Ming Sun Investment, with 33 products filed, ranked first; Hei Wing Assets and Shanghai Lingren Private Fund, each with 23 products, followed closely. Other private funds with over 100 billion yuan in management, such as Niyan Assets, Chengqi Private Fund, Ming Stone Fund, Evolutionary Assets, Longqi Technology, and Liangpai Investment, each filed 10 or more products.

“The current private fund filing situation reflects the industry’s development trend of ‘top-tier concentration, diversified ecology, and healthy differentiation,’” Liu Youhua, Director of Research at Qianhai PaoPao.com Fund Sales Co., Ltd., told Securities Daily. Under the regulatory guidance of ‘supporting the excellent and limiting the inferior,’ industry resources continue to concentrate on compliant and prudent institutions. Private funds with over 100 billion yuan in management leverage comprehensive advantages in research, fundraising, compliance management, and filing efficiency, making their filing capacity more prominent. Small and medium-sized private funds actively seize structural market opportunities and accelerate their filing pace. Overall, the private fund industry is shifting from a phase of pure scale expansion to a stage of high-quality development supported by core capabilities such as compliance and research, gradually forming a tiered competitive and healthy industry pattern among institutions of different sizes.

(Edited by: Wen Jing)

Keywords: Private Equity Fund