In Thailand's mutual fund market, China-themed funds have long been dominated by Western asset managers. Coupled with growing investor demand for China exposure, this dynamic is creating an opening for Chinese asset managers to accelerate their market entry. As market participants continue to broaden their China-themed product offerings in Thailand, this segment is entering a more sophisticated stage of development.

Mutual funds are a cornerstone of Thailand's capital markets and a central pillar of wealth management across Southeast Asia. As of April 2026, Thailand's mutual fund industry had total assets under management of approximately THB 6.6 trillion (approximately RMB 1.38 trillion). By asset class, fixed income funds continue to account for roughly half of total AUM, while equity funds represent approximately 30%. Within the equity segment, however, China-themed funds account for less than 8% of AUM — suggesting significant room for further penetration.

China-themed funds in Thailand are predominantly structured as fund-of-funds (FOFs), providing indirect exposure to Chinese markets. Approximately 40% invest through broad-based indices, while the remainder gain exposure via Thai feeder funds investing into offshore master funds. In terms of underlying manager composition, Western asset managers hold a commanding market position, underpinned by their early-mover advantage and established brand recognition. By contrast, Chinese and Thai managers account for only 8% and 4% of the market, respectively.

This structural imbalance has effectively constrained investor choice in China-themed assets, and existing products have largely struggled to meet investors' return expectations. According to the latest Morningstar data, nearly 80% of China-themed funds available in Thailand — excluding those tracking broad-based indices — have underperformed their respective benchmarks. Even the largest, most recognised products managed by prominent Western firms have generally failed to deliver consistent, sustainable alpha.

Change on the supply side is already underway. Over the past year, several Chinese asset managers have moved to establish a presence in Thailand. China Asset Management (ChinaAMC) partnered with First Plus Thailand to launch an actively managed fund, while E Fund Management collaborated with a local Thai asset manager to offer an FOF structure. The market is becoming increasingly diverse in both participants and product formats. In parallel, driven by the growing prominence of quantitative investing in China's domestic market, First Plus Thailand, in collaboration with First Plus Singapore, is set to launch Thailand's first public fund focused on A-shares using a fundamental quantitative strategy. Taken together, these developments signal a broadening of China-themed product coverage in Thailand and the beginning of a more nuanced phase for the segment.

Demand dynamics are shifting as well. As financial market connectivity between China and Thailand deepens and global central banks embark on an easing cycle, Southeast Asian investors are increasingly seeking to build exposure to Chinese assets. Their focus has evolved beyond valuation-driven or single-market allocation considerations, toward high-conviction thematic areas including artificial intelligence, advanced manufacturing, and biopharmaceuticals — sectors underpinned by China's "new quality productive forces" agenda and the long-term structural upgrade of its industrial supply chains. Over the medium to long term, the implementation of incremental macroeconomic policy support, the recovery in corporate earnings, and the deepening of market capitalisation management reforms are collectively strengthening the fundamental case for A-shares, further enhancing their appeal to Southeast Asian investors.

At the intersection of these supply and demand tailwinds, First Plus Thailand is well-positioned to capture the opportunity. The firm holds two highly differentiated and rare financial licences, making it one of the few institutions in Thailand with dual-licensed capabilities spanning both domestic asset management and cross-border investment:

• A Type C Asset Management Licence issued by the Thai Ministry of Finance, covering public funds, private funds, and provident fund management — held by only 23 institutions in Thailand; and
• A Qualified Foreign Institutional Investor (QFII) licence issued by the China Securities Regulatory Commission (CSRC) — held by only 9 institutions in Thailand, a group that primarily comprises major state-affiliated financial institutions such as Thai commercial banks and the Government Pension Fund.

Underpinned by deep local market expertise and cross-border investment capabilities, First Plus Thailand is committed to building a comprehensive suite of quality China-themed products — empowering investors to unlock the full breadth of value that Chinese markets have to offer.