From "Scale Anxiety" to "Value Cultivation": What Big Moves Does Xinhua Fund Hide in This Transformation?

How AI and state-owned capital involvement reshape the governance structure of Xinhua Fund

Behind personnel changes lies a comprehensive strengthening of Xinhua Fund’s equity structure and capital base.

Produced by | China Visit Network

Reviewed by | Li Xiaoyan

On February 25, Xinhua Fund announced management changes. Veteran executive Xu Duanquan, who had served for 19 years, stepped down from his roles as Vice General Manager and Chief Information Officer due to personal reasons, marking the conclusion of his long career in public funds. As a core leader who has witnessed the company’s growth from inception through multiple rounds of equity restructuring, Xu’s departure drew industry attention. However, this is not a sign of an aging public fund falling behind; rather, it is a strategic move by Xinhua Fund under the guidance of state-owned capital and improved governance to optimize management structure and focus on high-quality development. Standing at a critical juncture of industry deep adjustment, this 21-year-old Southwest’s first public fund company is leveraging personnel renewal to solidify governance, optimize product offerings, and enhance investment research and management capabilities, opening a new development cycle amid challenges.

Xu Duanquan joined Xinhua Fund in 2006, progressing from grassroots positions to become Vice General Manager, with over 15 years in the role. He was responsible for back-office support, information technology, and risk control, leading the company to deploy DeepSeek’s private large model and build an integrated technological system of innovation and intelligence, laying a solid foundation for digital transformation. His 19 years of dedication witnessed Xinhua Fund’s transition from private capital dominance to full state ownership, making him an important participant and builder of the company’s development. His departure for personal reasons reflects normal industry talent flow and creates space for a younger, more professional management team.

In recent years, management adjustments at Xinhua Fund have been driven by the need to adapt to high-quality development and address governance gaps following state ownership. Since 2023, with Financial Street Group becoming the actual controller, the company has gradually restructured its equity and governance, with key positions such as Chairman and General Manager changing to align with strategic positioning under state capital, and to strengthen compliance, risk management, and refined management. The new Vice General Manager, Zhang Peng, with a background in finance and risk control, has worked at Sinochem Group, Southwest Securities, and Great Wall Life Insurance, excelling in financial management and risk governance. His rapid promotion highlights the company’s emphasis on compliant operations, cost control, and capital management—core principles for the regulated and steady development of public funds.

Behind this personnel renewal is a comprehensive solidification of Xinhua Fund’s equity structure and capital strength. As China’s first public fund company in Southwest China, it once experienced strategic swings due to dispersed ownership. Now, it has formed a stable, state-led structure: Heng Tai Securities (Financial Street Securities) holds 52.99%, Beijing Huarong Integrated Investment (a wholly owned subsidiary of Financial Street Group) holds 43.18%, with other state-owned platforms like Chongqing Jiangbei State Investment participating. State-owned capital owns over 95%. By December 2024, the shareholding entities injected about 800 million yuan, increasing registered capital from 218 million to 628 million yuan, significantly boosting capital strength to support investment research, product innovation, and channel expansion. State ownership not only stabilizes the equity structure but also provides standardized governance, diverse industrial resources, and strong credit backing—core advantages for small and medium-sized public funds to break through.

Undeniably, influenced by intensified industry competition and prior strategic adjustments, Xinhua Fund faces phased challenges in scale and performance. By the end of 2025, its management scale was 57.107 billion yuan, down from its peak, with a product structure mainly focused on fixed income and weaker in equities; some products underperformed short-term expectations. However, these are normal during transformation, and the company has actively taken targeted measures to address them. Since December 2025, Xinhua Fund has launched five equity-oriented founding funds covering strategic sectors like technology, low-carbon economy, healthcare innovation, quantitative strategies, and cloud computing—aligning with market hotspots and industry trends, actively improving the over-reliance on fixed income. This product layout reflects confidence in long-term growth and builds a product matrix for future expansion. Although short-term fundraising is limited, this rational market approach and cautious start-up are strategic choices.

Reforming the investment research system is central to Xinhua Fund’s transformation. The company adheres to long-term investment principles, continuously strengthens its equity research team, improves assessment and incentive mechanisms, and focuses on deepening key sectors. Fixed income remains a traditional strength, with stable top-tier performance, serving as the “ballast” of assets under management. Equity strategies are advancing through sector layout, fund manager development, and risk control, with young managers growing rapidly through practice, and research efficiency improving. Since 2026, multiple equity products have seen steady net value growth, with reform results gradually emerging. Meanwhile, the company enhances compliance and risk control systems through digital technology, ensuring transparent and compliant investment operations, safeguarding investors’ assets.

The public fund industry has entered a stage of “strengthening the strong and淘汰 the weak,” emphasizing high-quality development. Small and medium funds can only break through by developing特色化,差异化, and专业化 paths. Xinhua Fund’s transformation aligns precisely with industry trends: leveraging its state-owned background, deepening fixed income advantages, innovating in equities, focusing on sectors like technology, low-carbon, and healthcare supported by national policies, and building a product system of “stable fixed income and refined equities.” It bases governance on optimization, drives talent upgrades, and supports technology empowerment to establish compliant, efficient, and market-oriented operations. Compared to blindly pursuing scale, the company emphasizes performance quality, client profitability, and sustainable development—core confidence for an established public fund to navigate cycles.

The retirement of veteran Xu Duanquan marks the end of a chapter and the beginning of a new journey. The management adjustments, equity optimization, product innovation, and research reforms at Xinhua Fund are not passive responses to difficulties but strategic choices to embrace change and focus on long-term value. The temporary fluctuations in scale and performance are inevitable pains during transformation. Core advantages like state ownership empowerment, improved governance, and clear strategy will continue to drive the company’s breakthroughs.

As a veteran public fund with 21 years of history, Xinhua Fund has weathered industry cycles, accumulating rich operational experience and a solid client base. Under the new leadership, the company will uphold its original mission of “managing others’ assets responsibly,” maintain steady operations, foster innovation, enhance research capabilities, optimize product offerings, and strengthen client service, striving to generate long-term, stable returns for investors. We believe that this evolving public fund will carve out a distinctive development path through state ownership and self-reform, ushering in a new chapter of high-quality growth.

Personal opinion, for reference only.