As the third quarter of the year progresses, the landscape of the Chinese stock market has been anything but stableWith a notable downturn in A-shares, active equity funds are navigating a turbulent sea where many have seen their valuations take a hitHowever, amidst the sea of losses and fund withdrawals, some active equity funds have managed to resurge, gaining substantial scale and capturing investor interest.

The current year has been marked by significant volatility within the A-share market, with a prominent acceleration in declines during the third quarterEquity funds have not only faltered in performance but have also witnessed a considerable shrinkage in overall scale, primarily due to drastic declines in net asset values and substantial redemptions by investors

It's estimated that overall equity fund scales dropped by 2333.86 billion yuan, with actively managed funds taking the brunt, losing 4168.56 billion yuanConversely, index funds showed resilience, marking an increase in scale by 1834.7 billion yuan.

Despite these challenges, a total of 14 active equity funds reported growth exceeding 1 billion yuan during the turbulent third quarterNotably, some of these funds, particularly quant funds, have proven to be effective tools for attracting investmentsFor instance, the Guojin Quantitative Multi-Factor Fund recorded an impressive growth of nearly 6 billion yuan.

14 active equity funds managed to increase their scales by over 1 billion yuan, showing that some strategies resonate well with the market even in declining conditions.

Recent data from Wind indicated that these 14 funds not only survived but thrived, with Guojin’s quantitative offerings leading the way

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The Guojin Quantitative Multi-Factor Fund alone accounted for a remarkable increase of 5.969 billion yuan, while the Guojin Quantitative Multi-Strategy and Guojin Quantitative Selected Funds saw increments of 3.215 billion yuan and 3.17 billion yuan, respectivelyAll of these funds are public quantitative products that seemingly acted as "attraction magnets" for capital amidst a struggling market.

Another shared characteristic among these flourishing funds is their diversified portfoliosOf the top 14, 11 funds had their top ten holdings account for less than 30% of their total assetsRepresenting active quantitative strategies, the Jinyuan Shun'an Quality Selected Fund has seen an astronomical rise in scale from 0.085 billion yuan at the start of the second quarter to 1.752 billion yuan by the end of the third quarter, an astounding increase nearing 20-fold.

In its third-quarter report, the Guojin Quantitative Multi-Factor Strategy outlined the dynamics of the market during that period: an initial continuation of style followed by a rapid style shift and increased volatility in the latter half

The overall activity level in the market has noticeably declined, reflecting a historical average drop or falling to the lowest percentage seen in the past three yearsInterestingly, smaller market cap stocks performed relatively well, while sectors like coal, non-banking financials, and petrochemicals experienced gains over 10%. In contrast, other fields such as media, computers, and renewable energies have seen substantial declines, with some falling more than 14%.

Examining the management scale through the lens of fund managers reveals an impressive increase for funds under the helm of certain managers during the third quarter.

Specifically, the managers of the Guojin Quantitative Multi-Factor Fund, Multi-Strategy Fund, and Selected Fund, Ma Fang, saw a staggering increase in managed assets by 15.588 billion yuan, bringing the total assets under management close to 30 billion yuan by the end of the third quarter

Furthermore, other managers like Yao Jiahong also reflect positive growth, having increased their managed scales by nearly 9.184 billion yuan, achieving a total nearing 17.497 billion yuan in assets.

Additionally, various other fund managers including Qiao Qian from Xingsheng Global Fund, Fan Kun from Rongtong Fund, and Xu Yan from Dacheng Fund also reported increases exceeding 2 billion yuan in management scale during the third quarter.

Interestingly, some fund managers exhibited a more aggressive strategy throughout the third quarterFor instance, Fan Kun from Rongtong Fund discussed the phases of market excitement that spanned from June to early July, which transitioned into a more cautious stance, indicating a waiting period to assess the effectiveness of implemented policies

He emphasized a proactive selection of stocksThe focus remained on combining value with growth, exploring sectors like pharmaceuticals and electronics where individual stock logic supported increased positions.

Further long-term outlook suggests that many firms have entered a realm of potential value acquisition.

Looking ahead, several fund managers are expressing optimistic sentiments for the future market.

Qiao Qian from Xingsheng Global Fund pointed out that the overall market environment during the third quarter presented a complex pictureOn one hand, the Chinese government has ramped up efforts to bolster the economy and invigorate the capital market, with a string of positive policies pertaining to real estate and financial sectors introduced since August, reflecting signs of stabilization in major macroeconomic indicators

On the other hand, geopolitical instability abroad, rising inflation, and surging prices of upstream raw materials like oil and coal create unsettling currents in the marketInvestors remained wary about the economic outlook as factors like economic fundamentals, valuation metrics, and sentiments entered a phase of rebalancing, suggesting that the overall economic context and industry inventories are predominantly at the lowest levels, paving the way for a gradual recoveryThis recovery could prompt a reasonable upward trend in price levels and demand across various sectors in the long term, with many companies likely reaching value acquisition zones.

Fu Pengbo from Ruiyuan Fund shared a perspective on the fourth quarter, implying that rates overseas might be peaking, and earnings potential for China during the third quarter is likely stabilizing, suggesting the emergence of positive factors such as liquidity and corporate profits.

Qiu Dongrong from Zhonggeng Fund remarked on the pronounced decline and stagnation in the overall market, highlighting how visually apparent the clearance in stock prices has been