Another bond fund that's "hard to lose money" has emerged, this time with 13 companies submitting applications together.

The much-anticipated second batch of "amortized cost method" bond funds has "appeared " .

According to information disclosed by regulatory authorities as of September 11 , several funds , including Boda Fund , Dongcai Fund , Taixin Fund , Dongfang Alpha, Suxin Fund , Quanguo Fund , Zhonghai Fund , Hengyue Fund , Boyuan Fund, Huiquan Fund, Yimin Fund , Huibaichuan , and Ruida Fund, have recently submitted their respective amortized cost method bond funds applications .

According to relevant regulations, bond funds valued using the amortized cost method can spread coupon income evenly over the holding period across each trading day , typically exhibiting strong profit stability. No new products in this category have been launched since 2021.

13 small and medium-sized public funds have submitted applications.

According to the list of applications disclosed on the official website of the China Securities Regulatory Commission (CSRC), 13 fund companies, namely Boda, Dongcai, Taixin, Dongfang Alpha, Suxin, Quanguo, Zhonghai, Hengyue, Boyuan, Huiquan, Yimin, Huibaichuan, and Ruida, have collectively submitted applications for the second batch of amortized cost method bond funds .

Similar to the first batch of products, this batch of bond funds is uniformly set with a 63-month lock-up period and will terminate upon maturity, with a maximum fundraising scale of no more than 8 billion yuan per fund.

This wave of applications came quickly. On August 14, the first batch of 15 small and medium-sized public funds just resumed their applications . The list included domestic institutions such as Shangzheng, Hongtu Innovation, and Baijia, as well as four foreign public funds: BlackRock, Neuberger Berman, AllianceBernstein, and Allianz .

Just about a month later , the second batch followed. The two batches totaled 28 products, 28 small and medium-sized public funds. This marks the reopening of the market after five years since regulators suspended the acceptance of new applications for this type of product in 2021 .

In addition, on the evening of September 3, the first batch of 10 fund managers submitted applications for off-exchange index funds for science and technology innovation bonds . These multiple measures are seen as a powerful step to support the standardized and healthy development of small and medium-sized fund companies.

Trusteeship arrangements: Industrial Bank may lead, with SPD Bank and CITIC Bank tied.

Judging from the custody arrangements for the second batch of products, joint-stock banks once again dominate.

According to industry insiders, products from six fund companies— Boyuan, Ruida, Zhonghai, Taixin, Bodao, and Huiquan— are expected to be managed by Industrial Bank . Hengyue, Quanguo, Suxin, and Huibaichuan may be managed by Shanghai Pudong Development Bank . Products from Yimin, Dongfang Alpha, and Dongcai Funds are likely to be managed by CITIC Bank, China Merchants Bank, and Jiangsu Bank, respectively.

With the addition of the first batch of funds on the list, Industrial Bank is expected to have a total of 10 amortized cost method bond funds under its custody , leading the industry . Shanghai Pudong Development Bank and CITIC Bank each have 5 funds, possibly tying for second place.

The early actions of joint-stock banks were a key factor in their acquisition of custody qualifications.

As soon as the policy signal was released, the relevant banks quickly contacted several fund companies and finalized their cooperation intentions.

Some banks even have their vice president-level executives personally involved in communication and coordination , rather than sending custody department staff to follow the established procedures. Banks that simultaneously secure custody of multiple funds not only provide custody services but also coordinate with their wealth management subsidiaries and proprietary funds to participate in the subscription, assisting fund companies in completing sales and overcoming the hard constraint that a single investor's concentration cannot exceed 40%.

For small and medium-sized fund companies, the custodian bank's role goes far beyond just " custody " .

Most banks have strict requirements regarding the size and performance of their partner fund companies, making it difficult for small and medium-sized public funds without brand recognition and existing assets to secure such partnerships . Amortized cost bond funds, with their stable net asset value, high maximum size per fund, and natural fit for institutional funds, are readily accepted by banks. The establishment of custody partnerships has opened up opportunities for smaller public funds to collaborate with mainstream channels.

With approvals imminent, the breakthrough for small and medium-sized public funds has only just begun.

The industry is eagerly awaiting the release of these products. According to an industry insider, " We have been closely monitoring the approval date, and will immediately begin distribution once approved . "

Judging from the list, most of the selected companies are small and medium-sized fund companies with good compliance and risk control performance.

According to industry insiders, regulators select compliant institutions with basic operational capabilities for support by setting thresholds such as classification evaluation and capital requirements .

For eligible companies, the management fee income from amortized cost bond funds and science and technology innovation bond index funds is expected to cover operating costs, achieve break-even, or even alleviate financial pressure.

However, receiving product benefits does not mean you can " lie back and relax " .

Many fund company executives emphasized that for small and medium-sized fund companies to truly break through, they still need to rely on continuous innovation capabilities, explore their unique characteristics, and take a differentiated competitive approach. In recent years, there have been many cases of small and medium-sized companies gaining a foothold by focusing on boutique products.

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