Navigating the Shake-Up: 20 Fund Management Companies Cut Ties, Signaling Deep Consolidation in China's Fund Distribution Industry

Key Points

A significant shake-up is occurring in China’s fund distribution industry, driven by rapid consolidation.
Twenty fund management companies have recently terminated partnerships with Minshang Fund Distribution (民商基金).
Minshang Fund Distribution (民shang基金) is reportedly undergoing a business transformation, potentially pivoting from public to private equity distribution.
Existing investor holdings with Minshang Fund Distribution (民shang基金) will be transferred to the fund management companies’ direct sales channels.
The industry faces an “80/20” phenomenon, with most business concentrated among large distributors, leading to smaller agencies struggling or exiting the market due to low holdings and stricter compliance.

China’s fund distribution industry is in the midst of a significant overhaul, with a key distributor facing a wave of partnership terminations from major fund management companies.

This isn’t just an isolated event; it’s a clear indicator of a much larger trend: rapid consolidation that’s reshaping how funds are sold and managed in the country.

If you’re an investor, founder, or marketer keeping an eye on Chinese tech and finance, this is a development you’ll want to understand.

Key Fund Management Companies Terminating Partnership with Minshang (May 30th)

Ping An Funds (Ping’An Jijing 平安基金)
Caitong Funds (Caitong Jijing 财通基金)
Golden Eagle Funds (Jinying Jijing 金鹰基金)
Invesco Great Wall Funds (Jingshun Changcheng Jijing 景顺长城基金)

The Big News: Minshang Fund Distribution Sees Mass Partnership Exits

Since May 22nd, a striking 20 fund management companies have publicly announced they are ending their sales business cooperation with Minshang Fund Distribution (Minshang Jijing 民商基金).

Think of it like a sudden breakup, but on a corporate scale, and it’s happening fast.

Here’s a quick rundown of some key players pulling the plug:

Ping An Funds (Ping’An Jijing 平安基金)
Caitong Funds (Caitong Jijing 财通基金)
Golden Eagle Funds (Jinying Jijing 金鹰基金)
Invesco Great Wall Funds (Jingshun Changcheng Jijing 景顺长城基金)

On May 30th alone, these four giants declared they would no longer process sales through Minshang Fund Distribution (Minshang Jijing 民商基金).

Ping An Funds (Ping’An Jijing 平安基金), for instance, cited the move was “to protect investors’ interests” and came after “amicable consultation” with Minshang Fund Distribution (Shanghai) Co., Ltd. (Minshang Jijing Xiaoshou (Shanghai) Youxian Gongsi 民商基金销售（上海）有限公司). Their termination is effective May 30, 2025, though they’ve stopped accepting new business now.

The exodus started earlier in May:

May 22nd – 24th: Debang Funds (Debang Jijing 德邦基金), Everbright Prudential Funds (Guangda Baodexin Jijing 光大保德信基金), and Huatai PineBridge Fund Management (Huatai Bairui Jijing 华泰柏瑞基金) led the charge.
May 27th: Dongwu Funds (Dongwu Jijing 东吴基金), Yinhua Fund Management (Yinhua Jijing 银华基金), and Shanxi Securities Asset Management (Shanzheng Ziguan 山证资管) followed suit.
May 28th: A flood of eight more, including CAS Wotu Funds (Zhongke Wotu Jijing 中科沃土基金), Shenwan Hongyuan Securities Asset Management (Shenwan Lingxin Jijing 申万菱信基金), Essence Funds (Anxin Jijing 安信基金), and Nanhua Funds (Nanhua Jijing 南华基金), cut ties.
May 29th: Hang Seng Qianhai Fund Management (Hengsheng Qianhai Jijing 恒生前海基金) and Tongtai Funds (Tongtai Jijing 同泰基金) also announced their departure.


Dates	Fund Management Companies
May 22-24	Debang Funds, Everbright Prudential Funds, Huatai PineBridge Fund Management
May 27	Dongwu Funds, Yinhua Fund Management, Shanxi Securities Asset Management
May 28	CAS Wotu Funds, Shenwan Hongyuan Securities Asset Management, Essence Funds, Nanhua Funds, etc. (8 companies)
May 29	Hang Seng Qianhai Fund Management, Tongtai Funds
May 30	Ping An Funds, Caitong Funds, Golden Eagle Funds, Invesco Great Wall Funds

A quick scan of announcements on CNINFO (Juchao Zixun Wang 巨潮资讯网) confirms it: 20 public fund management companies are out.

So, What’s Up with Minshang Fund Distribution?

According to a market department representative from one public fund management company, this isn’t necessarily a hostile takeover or a sudden collapse.

Instead, Minshang Fund Distribution (Minshang Jijing 民商基金) is reportedly undergoing a business transformation.

The buzz is they’re planning to step away from public fund distribution and potentially pivot to focus on private equity distribution.

A bit of background on Minshang Fund Distribution (Shanghai) Co., Ltd. (Minshang Jijing Xiaoshou (Shanghai) Youxian Gongsi 民商基金销售（上海）有限公司):

Established: January 29, 2016.
Location: Huangpu District, Shanghai.
License: Obtained its fund distribution license from the CSRC (Zhengjianhui 证监会) in October 2017.
Initiation: Started by banking industry professionals.
Brand: Its wealth management arm operates under the “Zhenhao Wealth” brand, targeting China’s growing affluent class.

This strategic shift by Minshang could be a proactive move to find a more sustainable niche in a fiercely competitive market.

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What Happens to Investors’ Existing Holdings?

Good question. The fund management companies aren’t leaving investors in the lurch.

Announcements indicate that fund units previously held through Minshang Fund Distribution (Minshang Jijing 民商基金) will be transferred to the respective fund management companies’ direct sales channels.

For example, Golden Eagle Funds (Jinying Jijing 金鹰基金) stated that for investors holding their funds via Minshang who didn’t make alternative arrangements by June 4th this year, Golden Eagle Funds would automatically open direct sales accounts for them and move their units over.


Fund Management Company	Notes
Caitong Funds (Caitong Jijing 财通基金)	Reported no units held via Minshang
Ping An Funds (Ping’An Jijing 平安基金)	Reported no units held via Minshang
Hang Seng Qianhai Fund Management (Hengsheng Qianhai Jijing 恒生 Qianhai基金)	Reported no units held via Minshang
Zheshang Funds	Reported no units held via Minshang
Huatai PineBridge Fund Management (Huatai Bairui Jijing 华泰柏瑞基金)	Reported no units held via Minshang

Interestingly, several fund management companies also revealed they no longer had any fund units held through Minshang Fund Distribution even before the official termination.

This includes heavyweights like:

Caitong Funds (Caitong Jijing 财通基金)
Ping An Funds (Ping’An Jijing 平安基金)
Hang Seng Qianhai Fund Management (Hengsheng Qianhai Jijing 恒生 Qianhai基金)
Zheshang Funds
Huatai PineBridge Fund Management (Huatai Bairui Jijing 华泰柏瑞基金)

A market department rep from a medium-sized public fund management company put it bluntly: “Competition in the fund distribution market has been fierce… In a volatile market, selling is difficult, and retaining assets under administration is even harder. It is not uncommon for public fund management companies to have zero holdings with small and medium-sized distribution agencies.”

This underscores the immense pressure these smaller distributors are under.

The Bigger Picture: Fund Distribution Industry Faces a Reckoning

Minshang Fund Distribution (Minshang Jijing 民商基金) isn’t an isolated case. This year has seen other distribution agencies also getting the chop from fund managers.