Industrial Securities: Q1 2026 Mutual Fund Hong Kong Stock Holdings Drop Quarter-over-Quarter; Energy, Healthcare, and Real Estate Allocations Rise Significantly

Stock News04-29 07:24

Industrial Securities Co., Ltd. released a research report stating that as of the first quarter of 2026, the total market value of Hong Kong stock holdings by public funds was 1,121.06 billion yuan, a quarter-over-quarter decrease of 8.9%. The gap in Hong Kong stock investment value between passive and active mutual funds widened further. In terms of sector allocation, the top three heavily weighted sectors for active mutual funds were Information Technology, Non-essential Consumption, and Healthcare, with the concentration of top holdings decreasing compared to the previous quarter. During the quarter, funds significantly increased their holdings in petroleum and petrochemicals, communications, and pharmaceuticals. Allocations to the Energy, Healthcare, and Real Estate & Construction sectors saw notable quarter-over-quarter increases. The main views of Industrial Securities are as follows:

1. Q1 2026 public fund Hong Kong stock holdings declined quarter-over-quarter, and the gap between passive and active fund investment values widened further. As of Q1 2026, the total market value of Hong Kong stock holdings by public funds was 1,121.06 billion yuan, down 8.9% from the previous quarter. By type, passive and active public fund holdings in Hong Kong stocks were 679.23 billion yuan and 441.84 billion yuan, respectively, representing decreases of 5.1% and 14.2% quarter-over-quarter. The value of Hong Kong stock holdings in passive funds exceeded that of active funds by 237.39 billion yuan, with the gap widening by 36.73 billion yuan compared to Q4 2025.

2. Hong Kong stock allocation of active public funds decreased. The Hong Kong stock allocation of active public funds declined quarter-over-quarter in Q1 2026. The market value of Hong Kong stock investments by active public funds accounted for 23.7% of their total equity investments, a decrease of 3.5 percentage points from the prior quarter. The proportion of active public funds with Hong Kong stock investment values constituting [0%, 10%), [10%, 20%), and [20%, 30%) of their total equity investment value was the highest.

3. Detailed analysis of sector and top holding configurations for active public funds in Hong Kong stocks. (A) Sector Allocation of Active Public Funds in Hong Kong Stocks 3.1.1 In Q1 2026, allocations to the Energy, Healthcare, and Real Estate & Construction sectors increased significantly quarter-over-quarter. The top three heavily weighted sectors for public funds in Q1 2026 were Information Technology, Non-essential Consumption, and Healthcare. As of Q1 2026, based on CITIC industry classifications, funds significantly increased holdings in petroleum & petrochemicals, communications, and pharmaceuticals, with the proportion of these stocks in top holdings rising by 4.4, 3.8, and 2.6 percentage points quarter-over-quarter, respectively. Active public funds' allocations to Healthcare, Information Technology, and Energy were significantly higher than the Stock Connect benchmark.

3.1.2 The concentration of fund top holdings decreased quarter-over-quarter; Yangtze Optical Fibre and Cable (06869), GEELY AUTO (00175), BEKE-W (02423), CHINA RES LAND (01109), and PETROCHINA (00857) entered the list of top 20 holdings. The concentration of fund top holdings decreased compared to the previous quarter. As of Q1 2026, the market value of the top ten and top twenty holdings of active public funds accounted for 46.8% and 59.1%, respectively, of the total market value of their top holdings. In comparison, as of Q4 2025, these figures were 49.9% and 60.2%, respectively. At the individual stock level: 1) The top ten fund holdings in Q1 2026 were Tencent Holdings (00700), Alibaba-W (09988), CNOOC (00883), Yangtze Optical Fibre and Cable, Sinobiopharma (01801), SMIC (00981), Kelun-BTB Biopharma (06990), Akeso Biopharma (09926), GEELY AUTO, and 3SBio (01530). 2) In Q1 2026, Yangtze Optical Fibre and Cable, CNOOC, and GEELY AUTO saw substantial increases in holdings. 3) Compared to Q4 2025, Yangtze Optical Fibre and Cable, GEELY AUTO, BEKE-W, CHINA RES LAND, and PETROCHINA newly entered the list of top twenty Hong Kong stock holdings for active public funds in Q1 2026.

(B) Sectors and stocks where public funds have relatively high influence. As of Q1 2026, public funds had a relatively high level of influence in the Hong Kong stock Healthcare, Energy, and Materials sectors. Judging by the ratio of the market value of public fund top holdings to the circulating market value of these stocks, the Healthcare sector had the highest ratio, reaching 2.0%. At the individual stock level, as of Q1 2026, Yangtze Optical Fibre and Cable, Anjoy Foods (02648), and BioMap (02315) had the highest ratios of public fund holding value to circulating market value.

Risk warnings: Risks related to major power competition, risks of U.S. monetary policy exceeding expectations, risks of economic growth slowing down more than anticipated.

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