The public fund industry experienced a notable wave of liquidations in the first half of 2026, with 145 funds ceasing operations, the highest number recorded since 2019. According to Wind data, as of July 8, 2026, the total number of funds that have been liquidated this year has reached 155.

Among the liquidated funds, mixed funds accounted for the largest share, with 59 funds shutting down. This was followed by bond funds with 44 closures, fund of funds (FOF) with 25, and stock funds with 22. The trend indicates a significant shift in the public fund landscape, with a rapid turnover in products.

Interestingly, while many funds were liquidated, the first half of the year also saw a surge in new fund establishments. A total of 863 new funds were launched, representing a year-on-year increase of 31.4% in the number of new funds and a 22% increase in the total capital raised, amounting to 659.83 billion yuan. This indicates a robust demand for new investment vehicles, despite the high number of liquidations.

Industry experts suggest that the liquidations may be attributed to various factors, including market volatility and the need to avoid diluting returns for existing investors. Many funds that set upper limits on their capital quickly reached their fundraising targets, while those without limits opted for early closures to protect their investors' interests.

In addition, the emergence of new investment trends, such as the popularity of passive index funds, has led to a shift in investor preferences, further impacting the viability of certain funds. The rise of 'daylight funds', which are quickly sold out upon launch, highlights the changing dynamics in the market.

As the market continues to evolve, the public fund sector is likely to see further changes in the types of funds available and the strategies employed by fund managers. The ongoing adjustments reflect the industry's response to both investor demands and market conditions.