Recently, another wave of fund liquidation has occurred. Choice data shows that since 2026, a total of 151 funds in the entire market have announced liquidation, an increase of 40% compared to the same period last year. In addition, in May alone, 68 funds have issued warnings of liquidation risk, indicating that these funds may also go towards liquidation in the future. This wave of liquidation contrasts with the warming market conditions and the increasing willingness of investors to subscribe, drawing industry attention. The main reason for the liquidation of funds in this round is the failure to meet the required scale. Most regular funds trigger the liquidation criteria due to their asset scale being consistently below 50 million yuan, while some three-year launch funds also face liquidation for failing to pass the three-year assessment. The phenomenon of FOF liquidation is also worth noting. The FOF market has been booming this year, with many popular products, but some existing products are facing survival pressure. There have been 17 FOFs issuing liquidation notices this year, mainly focusing on retirement target FOFs. Industry insiders point out that early retirement FOFs have long lock-in periods, limiting their attractiveness to investors. At the same time, many launch funds are also facing a survival test, with over ten launching funds issuing liquidation warnings since May. When the fund issuance market was less heated, many public funds strategically positioned themselves through launch funds, but many of these products are now facing the dilemma of "easy to establish but difficult to grow". This phenomenon is forcing public fund institutions to carefully plan their product layout. Industry insiders point out that launch funds require fund companies to subscribe with their own funds and lock in for three years, which not only incurs capital occupation costs but also consumes research and distribution resources. Therefore, careful planning is needed to avoid wasting resources. 151 funds liquidated this year, a year-on-year increase of 40% Choice data shows that as of May 25, since 2026, a total of 151 funds in the entire market have announced termination of fund contracts and entered the process of asset liquidation, a 40% increase compared to the same period last year. In addition to the funds that have already announced liquidation, many funds have recently issued warnings of liquidation, indicating their imminent liquidation. Choice data shows that 68 funds have issued liquidation risk warnings since May. The fund market has significantly warmed over the past year, and investor subscription willingness has also increased. Against this backdrop, public funds have faced a wave of intensive liquidations, a phenomenon that has attracted widespread industry attention. Scale pressure is the main reason for fund liquidation or the issuance of liquidation warnings. Some funds trigger liquidation conditions due to their scale consistently being below 50 million yuan. Launch funds face liquidation if their scale is below 200 million yuan after three years. It is also worth noting that the FOF market has been booming this year, with many popular products being issued, but the development of existing products has been highly differentiated, with some FOFs failing to attract investors. Specifically, 17 FOF funds, mainly retirement target FOF products, including Caitong Asset Management Bohong actively managing a mixed launch FOF for 6 months and Zhong Ou Yixiang balanced retirement target three-year holding mixed launch FOF, have issued liquidation notices. A senior channel person at a large public fund in Beijing told reporters, "If FOF products can enter the core channels of major banks and receive key promotions, the scale can often grow rapidly. However, products lacking quality channel resources find it difficult to make a breakthrough. Furthermore, many early retirement FOF products have holding periods of three to five years, which are not in line with current investor preferences and therefore find it challenging to attract more investors. In addition, many new FOF products launched in the past year have shortened their holding periods to six months or even three months. In comparison, existing products with holding periods of three or five years find it even more difficult to attract funds." The liquidation situation of launch funds is also worth paying attention to in this recent wave of liquidations. In the past month alone, 14 launch funds have issued liquidation warnings intensively. Launch funds are a special type of product, where fund companies need to subscribe with their own funds of not less than 10 million yuan at the time of establishment, and lock in for three years. These funds have low establishment thresholds but strict survival thresholds. After three years of contract effectiveness, if the net asset value is less than 20 million yuan, they will be forced to liquidate. Industry insiders point out that in 2023, when the market had not yet warmed up and new fund issuance was difficult, many fund companies issued launch funds to strategically position themselves against the trend. However, some products failed to seize the opportunity for market recovery due to lackluster performance and insufficient channel resources. Now, these products established intensively three years ago are facing the three-year test, with some undersized products on the brink of liquidation. The situation where launch funds are easy to establish but difficult to grow has aroused the attention of industry insiders, compelling fund companies to reassess their product layout strategy. Many public fund institutions previously took advantage of the low threshold of launch funds to deploy multiple tracks in a broad net, hoping that some tracks would drive product scale growth when market conditions improved. However, the 10 million yuan capital occupation for many small and medium-sized fund companies is a considerable resource consumption. Blindly issuing launch products could incur capital occupation costs and also dilute the company's research, distribution, and operational resources. If the subsequent development of the product does not meet expectations, it will lead to a certain resource consumption. Another senior channel person told reporters, "Although everyone wants to learn from the success of Win-Win Fund, many small and medium-sized public funds issuing launch funds are also more cautious and spend money wisely. If five launch products are issued, it will result in a 50 million yuan capital occupation, which would cause a significant resource consumption for medium-sized public funds." This article is reproduced from Caishijie, edited by GMTEight: Chen Wenfang.