AI · Index Funds: How Will They Become the Core Growth Driver for 2025 Sales Institutions?

Hundreds of trillions of dollars are seeking allocation opportunities.

Author | Market Value Trends Fund Research Department

Editor | Xiao Bai

By the end of 2025, the total public fund size continued to rise, surpassing 37 trillion yuan for the first time. In this rising market environment, the landscape of fund distribution is undergoing new changes.

Recently, the China Securities Investment Fund Industry Association disclosed the top 100 fund distributors as of the end of 2025. Through this data, Fengyun observes that industry competition is entering a heated stage.

The Head Effect Intensifies: Trillion-Level Distributors Emerge

The overall market activity has driven a broad increase in distribution scale. By the end of 2025, the combined scale of non-money market funds held by the top 100 fund distributors reached 11.7 trillion yuan, a 14.7% increase from mid-2025; equity fund holdings totaled 6 trillion yuan, up 16.7% from mid-2025.

Behind this growth, the Matthew effect is becoming more evident. By the end of 2025, Ant Fund’s equity holdings reached 1.0178 trillion yuan, a 23.7% increase from the first half of 2025’s 822.9 billion yuan, making it the industry’s first distributor to surpass the 1 trillion yuan mark in equity holdings.

The second and third positions are held by China Merchants Bank with 610.5 billion yuan and Tiantian Fund with 400.2 billion yuan.

From semi-annual growth data, the siphon effect of leading institutions is more apparent. By the end of 2025, Ant Fund’s semi-annual increase in equity holdings was as high as 194.9 billion yuan; China Merchants Bank’s increase reached 118.5 billion yuan. Other institutions like Tiantian Fund, China Life, and Industrial and Commercial Bank of China maintained semi-annual growth around 40 billion yuan.

In terms of total non-money market fund holdings, only Ant Fund (1.8 trillion yuan) and China Merchants Bank (1.25 trillion yuan) have crossed the trillion-yuan threshold, widening the gap with lower-ranked institutions.

Expansion of Index Funds: A Key Battleground for Various Channels

If equity funds are the foundation of wealth management, then index funds are the core growth source in the second half of 2025. By the end of 2025, the combined holdings of stock index funds among the top 100 institutions reached 2.42 trillion yuan, a significant 23.7% increase from mid-2025, leading all product categories.

This area is a traditional stronghold for securities firms. Data shows that many securities firms’ stock index fund holdings account for over half of their equity fund scale. As of the end of 2025, CITIC Securities’ ratio was as high as 91%, Huatai Securities 96%, and Guotai Haitong Securities 98%. Notably, Guotai Haitong’s index product holdings in the second half of 2025 surpassed 118.8 billion yuan, a 56.94% increase quarter-over-quarter.

Facing the natural barriers of on-market ETFs for securities firms, banks and third-party independent institutions are accelerating their countermeasures. By the end of 2025, China Merchants Bank’s stock index fund holdings reached 88.6 billion yuan, up 15.1 billion from mid-2025, with targeted upgrades to the “Index Pass” module in their apps.

Ant Fund’s stock index fund holdings reached 482.5 billion yuan at the end of 2025, a 91.5 billion increase from mid-2025, and they launched the integrated “Index+” service combining fund selection and tools.

A Tripartite Reshuffle: Securities Firms Strengthen, Banks Diverge

The top 100 list at the end of 2025 includes 57 securities firms, 25 banks, 17 independent fund sales agencies, and 1 insurance company. The influence of these three types of institutions is being redefined.

Securities firms hold 57 seats, dominating half the list. In the second half of 2025, Open Source Securities, Dongguan Bank, and Bohai Securities entered the top 100, while Lide Fund, Tianfeng Securities, and Guodu Securities dropped out. Under regulatory guidance emphasizing the growth of equity fund holdings, securities firms leverage their advantage in index funds to steadily increase their market share.

Traditional bank channels face certain challenges. Although banks still hold the largest share in non-money market funds and equity funds—41.66% and 40.2% respectively—they have declined by 1.44% and 1.59% compared to mid-2025.

Within banks, there is clear differentiation. State-owned giants like ICBC and CCB maintain stable scales thanks to their strong foundations, while China Merchants Bank has increased its scale through excellent retail customer operations.

Some small and medium-sized banks are falling behind due to weaknesses in investment research and customer conversion, such as Industrial Bank, which saw a decline in non-money market fund holdings in the second half of 2025.

Third-party independent platforms perform strongly in active equity products, reaching 12.137 trillion yuan at the end of 2025, a 24.2% increase quarter-over-quarter. These platforms rely on entry traffic and fee discounts, maintaining high conversion efficiency.

Amid the resurgence of public fund issuance, high-quality development plans, and the full implementation of the three-stage fee reform, the competition logic among distributors has changed. The era of simply competing on initial sales volume is passing; transforming into a client-centered, sustainable operation model has become industry consensus.

As domestic capital costs continue to decline, hot money is seeking new allocation opportunities. Those who can provide more professional investment advisory services and more efficient tools will be able to accumulate assets in this 11 trillion yuan distribution landscape.

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