Public funds have splurged over 36.4 billion yuan in "red envelopes" this year

Our reporter Chang Xiaoyu

The warmth of the Year of the Horse New Year is not only overflowing on the streets but also quietly seeping into the accounts of public fund investors. According to Wind Information data, during the two trading days after the Spring Festival holiday (February 24 to February 25), 37 public fund products (calculated separately by different share classes) distributed “red envelopes” intensively, with a total dividend payout of 302 million yuan.

Looking at the timeline, this dividend boom has been heating up since the beginning of the year. Wind Information data shows that as of February 25, the date of this report, 829 public funds have paid dividends this year, with a total amount exceeding 36.4 billion yuan. Behind this tangible reward reflects the increasing emphasis of the public fund industry on investor returns.

Unlike previous years when bond funds dominated, this year equity funds contributed over half of the dividend amount. This change is the result of the A-share market warming in 2025, which has laid a solid profit foundation for equity funds, and also reflects that under the guidance of regulatory authorities to promote high-quality industry development, fund managers are paying more attention to enhancing investors’ sense of gain through dividends.

In this wave of dividend distribution, large-scale broad-based ETFs (Exchange-Traded Funds) are particularly “generous.” Among them, Huatai-PineBridge CSI 300 ETF led with over 9.8 billion yuan in dividends, while E Fund CSI 300 ETF, Southern CSI 500 ETF, and other products also paid out more than 1 billion yuan each. These core broad-based index funds, with their large scale and stable operation mechanisms, have become the “main players” in this round of dividend boom.

Actively managed funds also performed actively, demonstrating strong dividend intentions. For example, China Europe Dividend Enjoy A, China Europe New Trend A, and several other active equity funds each paid more than 350 million yuan in a single dividend, making them standout on the dividend list. In terms of dividend frequency, some funds have paid dividends multiple times in less than two months. Among them, products like New China Europe Preferred Dividend (A/C) and Western Gain Specialized and Innovative Quantitative Stock Selection (A/C) have paid dividends at least three times this year, showing a relatively proactive and stable dividend strategy.

Meanwhile, dividend-themed funds have also become an important force in dividend distribution. Huatai-PineBridge SSE Dividend ETF, Fortune Zhongzheng Dividend Index Enhanced A, and other products have distributed “red envelopes” intensively around the Spring Festival, with a total dividend payout exceeding 2.8 billion yuan.

“Overall, the public fund industry is shifting from ‘focusing on scale and ranking’ to ‘focusing on returns and holding experience,’” said Li Chunyu, FOF fund manager at Shenzhen Rongzhi Private Securities Investment Fund Management Co., Ltd. Through standardized and proactive dividend behavior, public fund institutions not only allow investors to share investment returns but also help stabilize investor expectations amid market fluctuations.

Looking ahead, some public fund companies that have already paid dividends are optimistic about the market outlook.

Blue Xiaokang, fund manager of China Europe Dividend Enjoy Fund, is optimistic about the A-share and Hong Kong markets. “In terms of direction, I am optimistic about resource commodities, large finance, and other sectors. In 2026, I plan to increase allocations to industries and consumer sectors benefiting from the ‘anti-involution’ policies.”

Wang Litong, senior macro strategy researcher at Great Wall Fund, also believes that the A-share market is expected to stabilize and rebound after the holiday. “Currently, the market has multiple positive factors: first, the decline in risk-free rates and the continuous promotion of capital market reforms provide a friendly liquidity environment for A-shares; second, policies to stimulate domestic demand are fully exerting, and consumption and investment are expected to resonate with policies and fundamentals; third, export prosperity is improving, coupled with breakthroughs in new technology industries and accelerated globalization expansion, jointly driving the upward revision of China’s economic expectations and providing key momentum for A-share growth,” Wang said.

(Edited by: Wen Jing)

Keywords: Dividends Funds