Yinhua Fund disclosed its first-quarter report for 2026 on April 21. The report for the Yinhua Xinyi Flexible Allocation Fund, jointly managed by renowned fund managers Li Xiaoxing and Zhang Ping, shows that as of the end of Q1 2026, the fund’s top ten holdings were: Contemporary Amperex Technology (300750.SZ), Tencent Holdings (00700), Alibaba-W (09988), Hygon Information Technology Co.,Ltd. (688041.SH), SMIC (00981), Kingsoft Cloud (03896), Hengrui Pharmaceuticals (600276.SH), Hua Hong Semiconductor (01347), Industrial Fulian (601138.SH), and Kweichow Moutai (600519.SH). Compared with the end of Q4 2025, Contemporary Amperex Technology, Hygon Information Technology Co.,Ltd., Kingsoft Cloud, Hengrui Pharmaceuticals, Hua Hong Semiconductor, Industrial Fulian, and Kweichow Moutai were newly added to the fund’s top ten holdings, while Focus Media, Shenzhou International, Yili Group, Luzhou Laojiao, and Wuliangye exited the list. In terms of positioning, the fund’s equity allocation stood at 93.98% at the end of Q1 2026, an increase of 5.43 percentage points from the end of Q4 2025. Regarding performance, the net asset value per share of the Yinhua Xinyi Flexible Allocation Mixed A Fund was 2.6790 yuan at the end of the quarter, with a reported NAV growth rate of -11.31% during the period. The net asset value per share of the Yinhua Xinyi Flexible Allocation Mixed C Fund was 2.6121 yuan, with a NAV growth rate of -11.44%. The benchmark return for the same period was -2.22%. Li Xiaoxing noted in the quarterly report that at current levels, overall market risks are limited, and several high-growth sectors offer substantial investment opportunities. The fund will maintain a relatively high equity allocation and selectively invest in reasonably valued stocks. AI remains the dominant theme in global technological innovation. Investment in AI computing power in North America continues to accelerate, with major companies projecting strong certainty in computing infrastructure development for this year and the next. Leading large-scale models are undergoing continuous iteration on the training side, while demand from the inference end, represented by agents, is driving a sharp increase in token usage. Global demand for computing power shows no signs of peaking. Currently, computing power is in short supply, and the fund favors bottleneck segments within the supply chain that demonstrate strong performance delivery. This year marks a qualitative leap in the capabilities of domestic large-scale models. Although domestic investment in computing power lags behind that of overseas markets, the computing power gap continues to widen. The fund is optimistic about investment opportunities in domestic computing chips, servers, and related infrastructure, driven by the trend toward super-node development in China. Li Xiaoxing also indicated that capital expenditures by domestic internet companies are growing rapidly. He expects steady performance growth from major domestic internet firms, with AI-driven revenue and profit contributions gradually increasing, potentially leading to improvements in both earnings and valuations. Current valuations remain reasonable, and Hong Kong-listed tech giants may benefit from the convergence of industry trends and fundamental improvements. In emerging sectors, the fund maintains a long-term positive outlook on robotics, commercial spaceflight, solid-state batteries, low-altitude economy, and controlled nuclear fusion. However, given relatively high stock price levels, the fund will focus on fundamentally sound companies and enter at relatively low price points. Li Xiaoxing believes that the consumer sector has shown a weak recovery this year. After several years of industry adjustments, many companies have gradually improved through internal restructuring, demonstrating strong alpha potential. The fund’s strategy will shift from emphasizing sector beta to focusing more on company-specific alpha. Looking ahead to 2026, the fund’s approach to consumer investments will become more diversified, reducing reliance on macroeconomic recovery. It will continue to deepen its exploration of growth-oriented areas such as travel, overseas expansion, innovative drugs, AI integration, cost-effective products, and emotional consumption, supplemented by dividend and cyclical stocks as core holdings.
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