Relaxation of purchase restrictions combined with preferential rates to attract post-holiday investment funds into the market

Staff Reporter Peng Yansong

On February 24, 15 fund managers simultaneously announced the resumption of large-scale subscription services for 17 of their products. Public fund institutions such as Huaxia Fund, Yinhua Fund, and China Merchants Fund have all canceled purchase limits on several pre-holiday restricted products.

Wind Information data shows that as of February 24, the number of funds with purchase restrictions in the market decreased from 1,453 before the holiday to 1,340. The average purchase limit increased from 9.24 million yuan to 11.74 million yuan, indicating a clear easing of restrictions. Meanwhile, institutions like China Life Anbao Fund and Changxin Fund, along with their distribution partners, launched fee discount promotions to attract post-holiday investment funds through multiple measures.

Multiple Products Relax Purchase Restrictions

After the Spring Festival, many public fund institutions eased purchase restrictions. For example, on February 24, Huaxia Fund announced that starting from that day, the purchase, regular fixed-amount purchase, and conversion transfer-in limits for Huaxia Dingyuan Bond Securities Investment Fund would be canceled. Before the holiday, the single-day purchase limit for this fund was 50,000 yuan. Several products, including China Merchants Asset Management’s CSI Interbank Certificate of Deposit AAA Index 7-day holding period, Jiutai Daily Gold Money Market A, and Bank of China Income Hybrid A, also canceled single-day purchase limits on the same day, returning to normal redemption and subscription.

Some funds had already announced plans to resume large-scale subscriptions after the holiday. On February 13, Yinhua Fund announced the suspension of large subscriptions for Yinhua Credit Four Seasons Red Bond and disclosed simultaneously: “Starting from February 24, large subscription (including regular fixed-amount investments and transfer-ins) will be resumed without further notice. Investors are advised to pay attention.”

Wind Information data shows that as of February 13 (before the Spring Festival), there were 1,453 funds with purchase restrictions in the market (main codes only). By February 24, this number decreased to 1,340, with the average purchase limit rising from 9.24 million yuan to 11.74 million yuan, reflecting a significant relaxation of liquidity controls.

In terms of product types, this easing mainly involves bond funds, money market funds, and hybrid funds. Sun Heng, Director of Morningstar China Fund Research Center, told Securities Daily that the post-holiday resumption of large subscriptions by many funds is a routine recovery after liquidity controls before the holiday and also reflects institutional confidence in current market valuation, aiming to meet investor demand and attract incremental funds.

Fee Discount Promotions Follow Suit

Alongside the easing of purchase restrictions, fund companies have also launched fee discount promotions with their distribution partners to further reduce investors’ entry costs.

On February 24, China Life Anbao Fund announced that from March 1, two products—China Life Anbao Retirement Target Date 2030 Three-Year Holding Hybrid Fund and Fund of Funds (FOF)—will participate in fee discount activities organized by distributor Beijing Kentree Fund Sales Co., Ltd. On the same day, institutions such as Changxin Fund, Debang Fund, and Caitong Securities Asset Management also announced that some of their products would participate in fee discount programs through distribution channels.

Shenzhen Qianhai Paimai Network Fund Sales Co., Ltd. Operations Manager Zeng Fangfang told Securities Daily that the post-holiday influx of funds is a traditional window for liquidity recovery. The joint efforts of fund companies and distribution channels to offer discounts are not only a policy response to the regulatory push for comprehensive fee reductions but also a proactive choice amid intensified industry competition.

The dual measures of easing purchase restrictions and offering fee discounts send a positive signal to the market. Sun Heng believes that the fee discount activities launched by many public fund institutions after the holiday reflect the industry’s active guidance for long-term capital inflows and the development trend of optimizing product subscription and redemption experience and operational stability.

Several interviewees stated that the series of actions in the fund market after the holiday are concrete manifestations of the industry’s return to a “investor-centered” approach. For ordinary investors, easing purchase restrictions provides a more convenient entry channel, and fee discounts reduce investment costs. However, investors should still consider their risk tolerance, choose suitable product types, and avoid blindly following trends. As incremental funds continue to flow in and market structural opportunities emerge, the activity level of the fund market is expected to further increase. The optimization of liquidity management and investor services by institutions will lay a foundation for the market’s long-term healthy development.