Chinese Multi-Asset Funds Dominate Global Rankings with Tech-Heavy Strategy
Chinese multi-asset funds dominated global rankings in 2025, capturing 13 of the top 20 positions among funds managing over $500 million, with seven delivering returns exceeding 100%. These funds achieved success through concentrated investments in domestic AI and technology stocks, particularly Eoptolink Technology Inc., which surged over 400% and appeared in all 13 leading funds. Government initiatives requiring increased equity holdings by mutual funds and insurers supported the market rally, contributing to the MSCI China Index's 28% gain, its best performance since 2017.
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Chinese multi-asset funds achieved remarkable success in 2025, demonstrating how concentrated bets on artificial intelligence and technology stocks can generate exceptional returns. The funds dominated global rankings through a focused investment approach that prioritized domestic equity markets over traditional cross-asset diversification.
Market Dominance and Performance
Chinese funds secured an overwhelming presence in the global rankings of successful cross-asset mutual funds. The performance data reveals the extent of their dominance:
| Achievement | Details |
|---|---|
| Global Rankings | 13 of top 20 positions |
| Fund Size Threshold | Managing over $500 million |
| High-Return Funds | 7 funds with over 100% returns |
| Market Index Performance | MSCI China Index up 28% |
The funds' success stemmed from their strategic focus on China's domestic stock market, particularly companies benefiting from the artificial intelligence boom. Despite being labeled as multi-asset funds, these vehicles concentrated their investments heavily in local equities.
Investment Strategy and Holdings
The leading Chinese funds demonstrated remarkable consistency in their stock selection, often investing in identical companies. Optical communications firm Eoptolink Technology Inc. emerged as the standout performer, appearing as a top holding across all 13 leading funds after jumping more than 400% during the year. Similarly, shares of competitor Zhongji Innolight Co. were held by 12 of the top-performing funds.
Two funds exemplified the exceptional returns achieved through this strategy:
| Fund Details | Performance |
|---|---|
| Maxwealth Science and Technology Fund | 231% total returns |
| Fund Assets | 11.50 billion yuan ($1.60 billion) |
| Tebon Fund Management Vehicle | 129% returns |
| Tebon Fund Size | 9.00 billion yuan |
The Tebon fund's performance was particularly boosted by a 583% rise in shares of circuit board manufacturer Victory Giant Technologies Guizhou Co.
Government Support and Market Recovery
Beijing's efforts to channel long-term capital into the stock market provided crucial support for the rally. The government implemented several key initiatives:
- Mutual Fund Requirements: Funds must increase local equities holdings by at least 10% annually for three years
- Insurance Investment Mandates: Large state-owned insurers directed to invest 30% of new policy premiums from 2025
- Foreign Investment Access: Two-year strategy unveiled in October to facilitate qualified foreign institutional investor entry
These measures contributed to a significant turnaround in China's stock market, which had experienced a prolonged slump due to Covid-19 impacts and economic growth concerns. The market's recovery marked two consecutive years of gains, with 2025 representing the best annual performance since 2017.
Global Context and Analysis
The success of Chinese multi-asset funds occurred against a backdrop of global market volatility, with Trump's trade policies creating uncertainty throughout the year. However, artificial intelligence remained the dominant investment theme, overshadowing geopolitical concerns by year-end.
George Boubouras, head of research at K2 Asset Management Ltd in Melbourne, noted the dramatic shift: "Multi-asset fund performance in 2025 with exposure to China and particularly China tech has been stellar given the severe underperformance from 2021 through to late 2024."
While Chinese funds dominated the rankings, other regions also produced notable performers. Turkey contributed two funds to the top of the global list, while precious metals funds from Greece, France, and Japan achieved strong returns as gold and silver reached record highs.
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