The fourth quarter of 2025 saw increased market volatility, with both A-shares and Hong Kong stocks closing amidst fluctuations, as structural market trends reached an extreme. According to Wind data, the Shanghai Composite Index rose 2.22% in the last quarter, while the CSI 300 Index fell 0.23% and the ChiNext Index declined 1.08%. Furthermore, the Hang Seng Index dropped 4.56%, and the Hang Seng China Enterprises Index fell 6.72%.
While major indices showed muted performance, internal sector divergences were stark. Technology growth sectors, represented by AI computing power and semiconductors, advanced strongly; sectors like petroleum & petrochemicals, defense & military industry, and non-ferrous metals performed relatively well. In contrast, real estate, pharmaceuticals, and computer-related industries faced significant pressure.
With the completion of mutual fund fourth-quarter 2025 report disclosures, the positioning and market outlooks of star fund managers such as Fu Pengbo, Zhu Shaoxing, Zhang Kun, Ge Lan, Xie Zhiyu, Li Xiaoxing, and Liu Yanchun have come to light. This extreme market style vividly reflects their distinctly different investment paths, which are directly manifested in their net value performance curves.
Wind data indicates that funds anchored in the technology theme captured significant excess returns both in Q4 2025 and for the full year. Fu Pengbo's Ruiyuan Growth Value and Li Xiaoxing's Yinhua Small and Mid-Cap Selected Strategy both surged over 60% for the full year 2025, with the former skyrocketing 64.7%, substantially outperforming their respective benchmarks. A common characteristic of both funds was heavy allocation to the year's main themes like AI computing power and semiconductors.
Funds employing balanced allocation strategies also demonstrated robust performance. Zhu Shaoxing's Fullgoal Tianhui Selected Growth A achieved a full-year gain exceeding 20%; its diversified holdings across financials, consumer staples, manufacturing, and other sectors provided effective risk mitigation during the volatile market.
Conversely, funds steadfastly holding traditional value sectors like consumer and pharmaceuticals generally endured substantial net asset value pressure. In Q4 2025, Liu Yanchun's Invesco Great Wall Emerging Growth A lost 5.85%, Zhang Kun's E Fund Blue Chip Selected lost 8.93%, and Ge Lan's China Europe Medical Health A suffered a more severe loss of 14.81%. These funds' heavily weighted sectors—consumer, pharmaceuticals, and Hong Kong-listed internet stocks—continued their adjustment throughout the quarter.
The portfolio managed by Xie Zhiyu, Investec Allianz China Equity A, has clearly pivoted towards technology growth, helping the fund achieve over 35% returns for full-year 2025. However, some semiconductor-heavy stocks that rallied strongly in Q3, such as Allwinner Technology and Montage Technology, experienced corrections in Q4, partially eroding earlier gains and leading to a 3.81% decline in the fund's net value for Q4 2025.
The allocation emphasis on technology growth intensified in Q4 2025, rewarding funds focused on this theme, including those managed by Fu Pengbo, Xie Zhiyu, and Li Xiaoxing. Fu Pengbo's Ruiyuan Growth Value increased its allocation to companies related to data center liquid cooling, storage capacity, and computing power. The fund's top ten holdings concentration further rose to 70.38%, with the top three being Sunovision, Shenghong Technology, and CATL.
Fu Pengbo noted a significant change: mobile operator stocks exited the top ten, replaced by standout performers from Q4 in photovoltaic and high-end semiconductor equipment manufacturing. Wind data shows China Mobile, previously a top-ten holding for 19 consecutive quarters, was removed; newly added photovoltaic equipment company Mayer Holdings saw its stock price double in Q4.
The top ten holdings of Xie Zhiyu's Investec Allianz China Equity A in Q4 2025 exhibited distinct technological characteristics. The top two holdings were Zhongji Innolight and Juhua Group, with the top ten also including five semiconductor companies, such as Allwinner Technology and Biwin Storage, three of which were new additions.
He specifically highlighted that domestic supply chain leaders in optical modules and PCBs have gained greater influence internationally, while domestic leaders in liquid cooling and power supplies are achieving historic breakthroughs. Additionally, he expressed optimism about allocation opportunities in semiconductor equipment and materials driven by domestic computing power demand.
Li Xiaoxing explicitly stated in the Yinhua Small and Mid-Cap Selected Strategy quarterly report that "AI remains the main theme of global technological innovation," focusing on investment opportunities related to AI hardware innovation and AI applications. Among the fund's top ten holdings in Q4 2025, seven were semiconductor companies, including Hygon Information and GigaDevice, with their allocation weights further increased compared to Q3. He stated that semiconductor self-sufficiency is entering a deeper phase, expressing optimism for opportunities in advanced process foundry, advanced packaging, and domestic computing power chips driven by breakthroughs in domestic advanced processes.
Simultaneously, Li Xiaoxing remains bullish on the high growth prospects of the defense and military industry. Aligning with the proposals of the "15th Five-Year Plan," he indicated continued focus on investment opportunities in new productive forces like commercial aerospace, low-altitude economy, and deep-sea technology under civil-military integration.
Overall, sectors like AI computing power and semiconductors remain key allocation areas for fund managers. However, as these sectors have rallied broadly, internal differentiation within the technology growth theme is likely. Companies with core technological advantages and high earnings realization may continue to be favored, while pure concept-driven stocks could face adjustment pressure. Concurrently, fund managers' stock-picking abilities will face greater tests.
Fund managers represented by Zhang Kun, Liu Yanchun, and Ge Lan have chosen to steadfastly hold traditional assets like consumer and pharmaceuticals. Zhang Kun's E Fund Blue Chip Selected maintained a stable equity allocation in Q4, only adjusting the structure within sectors like pharmaceuticals, consumer, and technology. Tencent Holdings, Kweichow Moutai, and Wuliangye—representing baijiu and internet giants—remained core holdings, with the Hong Kong stock allocation staying high at 46.06%.
His quarterly report devoted significant space to elaborating long-term confidence in China's consumer market and economic prospects from macro perspectives like per capita GDP growth targets and the potential for asset price stabilization. Furthermore, he emphasized the reinforcing effect of a strong domestic market on technological innovation, citing how models like GPT and Gemini generate stable enterprise revenue through C-end subscriptions, illustrating how healthy consumption capacity can feed back into R&D, forming a virtuous cycle of "demand-revenue-R&D."
Ge Lan's China Europe Medical Health A saw all its top ten holdings deliver positive returns in Q3 2025, with WuXi AppTec surging over 60%. However, in Q4, all top ten holdings posted negative returns, with four stocks declining around 20%. Despite net value pressure in Q4, the fund maintained its positioning discipline. Its top three holdings remained WuXi AppTec (10.11%), Hengrui Pharmaceuticals (10.08%), and Pharmaron (7.64%), while Tigermed Consulting (6.54%), held for 32 consecutive quarters, rose to become the fourth-largest holding.
In the quarterly report, Ge Lan analyzed positive developments in the pharmaceutical industry: First, an optimized policy environment, evidenced by the increasing proportion of innovative drugs in the dynamic adjustment of the National Reimbursement Drug List and the inclusion of 19 drugs in the first commercial health insurance innovative drug catalog, reflecting continuous improvement in the multi-level payment security system. Volume-based procurement policies have normalized, with rules generally stable, and their impact on the industry is marginally weakening. Second, the realization of innovation capability, with domestic innovative drugs frequently gaining recognition at top international academic conferences, active out-licensing deals for前沿 technologies like ADCs, small nucleic acids, and nuclear medicine, and a gradual recovery in CXO industry chain景气度 benefiting from improved biopharmaceutical investment financing environment. Third, breakthroughs in industrial fields, such as accelerated domestic substitution and technology transformation via the priority approval catalog for medical devices, and landmark progress in innovative areas like brain-computer interfaces, surgical robots, and AI healthcare. The consumer healthcare sector also shows signs of structural recovery, with integrated development of DTC channels, new retail, and telemedicine accelerating market "consumerization."
In Ge Lan's view, future opportunities may primarily revolve around three directions: the出海 and technological iteration of the innovative drug industry chain, the domestic substitution process in the medical device sector, and demand recovery and turnaround opportunities in consumer healthcare.
Liu Yanchun's Invesco Great Wall Emerging Growth continued坚守 the consumer and pharmaceutical阵地, enduring net value pressure from market style deviation. The fund's A-share class fell 5.85% in Q4 2025, ending the full year with a negative return of 2.4%, significantly deviating from its benchmark's +37.19% return. In Q4, the fund primarily rebalanced holding weights, such as increasing China Tourism Group Duty Free's allocation. Its top ten holdings still included four baijiu companies (e.g., Kweichow Moutai, Shanxi Xinghuacun Fen Wine Factory) and pharmaceutical leaders like Mindray Medical and WuXi AppTec, with M&G Stationery entering as a new top holding.
Liu Yanchun analyzed in the Q4 2025 report that "in the equity market, capital continues chasing a few high-growth sectors... investors' emphasis on company quality and valuation levels has decreased, which is consistent with market characteristics seen in past periods when the economy was near the end of adjustment and liquidity was relatively abundant." The strategy坚持 by Invesco Great Wall Emerging Growth brought significant returns during the consumer sector's upcycle in 2019 and 2020 but has resulted in sustained performance pressure during the recent structural downturn. Wind data shows the fund achieved impressive returns of 72% and 85% in 2019 and 2020 respectively. However, from 2021 to 2025, it ended with negative returns for five consecutive years. As of January 27, 2026, this fund managed by Liu Yanchun has lost nearly 50% over the past five years, ranking near the bottom among its peers.
In contrast to坚守 traditional value sectors, veteran managers employing industry-balanced allocation strategies demonstrated stronger adaptability during Q4 2025's volatile market. Zhu Shaoxing's Fullgoal Tianhui Growth remained heavily weighted in the banking sector while maintaining diversified exposure across machinery equipment, food & beverage, non-ferrous metals (new addition Zijin Mining Group), electronics, and other sectors. This strategy of not betting heavily on a single theme effectively buffered market volatility, enabling the fund to achieve a 1.12% net value increase in Q4 2025, with its A-share class accumulating a 20% return for the full year.
Zhu Shaoxing analyzed in the quarterly report that "market opportunities have somewhat broadened," noting that while overall A-share valuations have risen considerably, they remain within a reasonable range in the long-term cycle, and equity assets still hold relative attractiveness, suggesting investors "should maintain positions in equities." He particularly emphasized that after the index center has lifted, "bottom-up stock-specific alpha selection is more important than before." Regarding stock selection, he stated a "preference for investing in companies with sound corporate基因, excellent governance structures, and outstanding management, believing that sharing the benefits of corporate growth through capital markets is the best way for growth funds to achieve returns." In Q3 2025, three equipment stocks heavily held by Fullgoal Tianhui Growth—CATL, Jereh Group, and ZC Tech—all saw stock price increases of nearly 60%, while heavily weighted consumer electronics company Luxshare Precision surged over 87%.
Despite divergent investment directions and views among these star fund managers, their Q4 2025 reports reveal some consensus超越 specific styles and themes. First, the policy direction of "anti-involution" has become a key variable affecting corporate fundamentals. Li Xiaoxing wrote in the Yinhua Small and Mid-Cap Selected Strategy report that "anti-involution" policies are gradually reflecting in the business environment and will continue impacting listed companies' fundamentals. Fu Pengbo similarly mentioned policies "promoting the formation of a market order characterized by优质优价 and良性竞争." Even Liu Yanchun, focused on consumer sectors, partly attributes expectations for improved corporate profitability to the "continuous advancement of 'anti-involution' policies." Fund managers generally believe policy guidance is shifting from demand-side stimulus更多 towards supply-side optimization, aiming to improve business environments and industry competition ecology, which will be an important macro variable affecting the sustainability of leading companies' profitability.
Second, against the backdrop of structural "asset shortage," equity assets still possess significant allocation value. Even after the market rebound and valuations no longer being at absolute lows, several managers still consider equity assets relatively attractive. Zhu Shaoxing explicitly wrote, "equity assets currently exhibit significant relative attractiveness among all major asset classes." This judgment isn't based on expectations of a full bull market but rather recognition of high-quality listed company equity as scarce income-generating assets following the transformation of traditional high-yield channels like real estate and non-standard assets.
Third, in极端 market conditions, the importance of stock-picking ability has been elevated to an unprecedented level. When market capital is highly concentrated and sector-specific beta returns become extreme, managers universally emphasize that deep research and individual stock selection are the根源 of long-term returns. Although Xie Zhiyu's Investec Allianz China Equity A is heavily weighted in technology, its holdings are meticulously selected core advantageous companies within the industry chain. This implies that even in the strongest trend sectors like technology, the era of simply "lying flat" for sector-wide gains may be over, with consensus forming around selecting leading companies possessing technological, cost, or market share advantages. Meanwhile, in underperforming value sectors, identifying真正的 "immortal" companies capable of weathering cycles becomes the core competency.
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