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Like an elephant in a china shop, the increasingly large passive funds are making more and more noise in the market.

Statistics show that passive fund holdings have quietly occupied half of the heavily-weighted stocks of equity funds. Passive investment funds using passive funds as tools play an important role in the market and show an aggressive posture.

Correspondingly, the power of active investment has been lost. Although passive funds only passively track the underlying index, the imbalance between passive funds and active funds reveals the dilemma of active investment: passive tracking tools have overshadowed active mining strategies, and who will have the pricing power in the market? The passive side cannot actively set prices, and the active side's active pricing is ineffective, and there is no anchor for institutional pricing.

Some people in the industry believe that as passive funds continue to grow, the market style will become more and more solidified, and even closer to the US stock market, that is, the market value of some leading companies will continue to dominate. "We are still in the process of change, and any definite conclusion is questionable. What is certain is that the market's staged pricing has indeed lost its way," said a public fund investment director. (China Securities Journal)