Since 2026, AI-led technology growth has become the most widely agreed direction in the A-share market. From computing power infrastructure to the implementation of application scenarios, every deepening of the industrial trend has stirred ripples in the capital market; and volatility in overseas tech assets transmitting to the domestic market has also put this main line through a round of not-so-easy reassessment. Zhang Yongzhi, general manager of the Multi-Asset Investment Department at HuaShang Fund and fund manager of HuaShang Stable Return Enhancement Bond Fund, said in response that after the reassessment of the AI technology industry, the key is not to consider "whether there will still be market gains," but to observe whether its supporting conditions are becoming stronger or weaker. For domestic computing power and other technology growth sectors, further reflection on dimensions such as domestic substitution, earnings realization, institutional reform, and valuation safety can provide investors with four verifiable coordinates. Zhang Yongzhi joined HuaShang Fund in 2007 and is currently general manager of the Multi-Asset Investment Department at HuaShang Fund. He now has more than 20 years of securities industry experience and more than 16 years of securities investment experience. He currently manages products including HuaShang Steady Dual-Income Bond Fund, HuaShang Stable Return Enhancement Bond Fund, and HuaShang Convertible Bond Fund.
Domestic substitution: from "alternative option" to "mainstream supply"
The policy positioning has already been made clear. The April 2026 meeting of the Political Bureau of the CPC Central Committee included the computing power network alongside the water network and the new-type power grid in the "six major networks," and the outline of the 15th Five-Year Plan requires coordinated layout and orderly construction of computing power facilities. The National Development and Reform Commission disclosed that during the 15th Five-Year Plan period, direct investment in computing power network construction will increase by about 4 trillion yuan (based on a five-year measurement basis), and in 2026 investment in the "six major networks" and related fields will total more than 7 trillion yuan. Computing power construction is mainly led by enterprise investment and is more like a capital expenditure cycle driven by commercial demand.
Market share is jumping. IDC data shows that in 2025 China's AI accelerator card shipments were about 4 million units, with domestic deliveries at 1.65 million units and a share of 41.1%; in the first half of 2026, data center AI accelerator shipments were about 2.008 million units, with the domestic share exceeding 60%. TrendForce forecasts that in 2026 overseas manufacturers' share of China's high-end AI chip market will fall to 10%. Going from "40%" to "60%" within a year is an inflection-point redistribution of share.
Substitution is also extending upstream. According to industry estimates, the localization rate of semiconductor equipment rose from 15%-16% in 2024 to about 30% in 2026, and the procurement share for new production lines rose from 25% to 35%, but key links such as lithography and ion implantation remain below 30%. The space is sufficient to accommodate growth. According to industry estimates, the scale of domestic general-purpose GPUs will increase from 1 billion yuan in 2022 to 222.1 billion yuan in 2029, with a compound growth rate of 91.4% from 2025 to 2029; the compound growth rate of inference GPUs will reach 126.9%, far higher than 41.8% for training types. Inference demand spreads with user activity and enterprise adoption, has a longer life cycle, and domestic solutions are first to scale here, then feed back into the ecosystem through scale.
Earnings highlights: from industry prosperity to reported profits
Industrial trends ultimately have to be tested in financial statements. According to quarterly reports disclosed by A-share listed companies, in the first three quarters of 2026, Shanghai and Shenzhen listed companies recorded operating revenue of 56.6 trillion yuan and net profit of 5.1 trillion yuan, up 5.8% and 8.5% year on year, with both scale and growth rates reaching new highs since 2022, and 73% of companies profitable; excluding financials, the net profit attributable to parent companies of all A-share non-financial companies grew 17.4%.
Structure is more informative than aggregate totals. In the first three quarters, net profit attributable to parent companies in electronics grew 183.9%, semiconductors grew about 1.7 times, and communications equipment grew 103.5%; the STAR Market grew 474.6%, and still grew 107.1% after excluding large memory companies newly listed during the year. Profit growth outpaced revenue growth: electronics revenue rose 41.0% while profit rose 183.9%, and semiconductor revenue rose 33.8% while profit rose 169.0%, reflecting the combined effect of product mix upgrading, economies of scale, and rising prices. Earnings quality also improved in tandem. In the third quarter, semiconductor gross margin was 54.5%, up 24.4 percentage points year on year, and net margin was 36.4%, up 24.9 percentage points; the decline in A-share contract liabilities and advance receipts narrowed by 3.2 percentage points compared with the second quarter, showing a marginal recovery in orders. Prosperity is transmitting to the midstream. In 2026, the computing power investment budgets of the three major telecom operators were implemented, giving support to orders in equipment, networks, and IDC.
Institutional reform: continuing to take effect, pricing long-cycle technology assets
HuaShang Fund's Zhang Yongzhi said that another supporting line for domestic substitution comes from the capital market system itself. Technology companies have large R&D investment and long profit cycles, making it difficult for traditional review logic to adapt. Since the new "State Council Nine Measures," the capital market has reformed around "investment and financing coordination," which in essence is about reducing three types of friction: access, exit, and assessment. On the access side, the STAR Market's "1+6" reform has been implemented, and the fifth set of standards has been expanded to AI large models; the ChiNext has added a fourth set of standards and introduced shelf issuance; and the "six mergers and acquisitions measures" have been fully implemented. Wind Information data shows that in the first half of 2026, there were 71 A-share IPOs raising 70.57 billion yuan, up 39.2% and 88.9% year on year. On the funding side, since the start of 2026, medium- and long-term funds such as social security, annuities, and insurance have made net purchases of more than 600 billion yuan, and their holdings of tradable market value increased 12.5% from the end of 2025; since the new "State Council Nine Measures," cumulative net purchases have been about 1.3 trillion yuan, with holdings value up about 85%. On the return side, from January to October 2026, dividend plans totaled nearly 2.4 trillion yuan and buyback plans exceeded 270 billion yuan; since the new "State Council Nine Measures," cumulative dividends and buybacks have exceeded 7 trillion yuan. In the same period (the first half of this year), the Shanghai Stock Exchange added 20.16 million new accounts, up 60%, with average daily turnover of 2.74 trillion yuan, up 96.9%. Reform addresses three issues: who pays for R&D investment, how early-stage capital exits, and how long-term funds are assessed. Without these institutional supplies, domestic substitution might only rely on policy "blood transfusion"; with them, a market-based capital formation mechanism can be obtained.
Valuation coordinate: large-cap blue chips are not expensive, and what that means
Wind Information data shows that as of October 30, 2026, the CSI 300's trailing price-to-earnings ratio was 12.91 times, price-to-book ratio 1.34 times, and dividend yield 2.84%; for the SSE 50, they were 11.09 times, 1.24 times, and 3.20%, respectively. In late October, the Dow Jones trailing price-to-earnings ratio was about 23 times and the S&P 500 about 23 times, meaning A-share blue chips were about half of that. What does inexpensive blue-chip valuation mean for technology growth? HuaShang Fund's Zhang Yongzhi believes, first, it compresses the space for systemic downside in the index; with heavyweight blue chips at low PB and dividend yields above the risk-free rate, the index is more likely to show "support at the bottom and differentiation in structure." Second, it makes technology adjustments more likely to be "internal turnover" rather than "systemic clearing." Third, it provides the basis for a "barbell": blue chips provide safety margin and cash flow, while domestic computing power provides industrial elasticity.
Conclusion: choices under fourfold support
Putting the four clues together: domestic substitution provides industrial certainty, earnings provide micro-level verification, reform provides institutional supply, and low blue-chip valuations provide a safety cushion. The medium-term logic of technology growth has not been broken, but the way returns are obtained has shifted from "broad gains across the sector" to "selection of specific links." HuaShang Fund's Zhang Yongzhi said this is not "indiscriminate bullishness," because "the industrial trend is long, while price fluctuations are fast." Continuously calibrating between the trend and fundamentals is more important than any one directional statement. After the adjustment, the valuation and risk-return ratio of some high-quality technology assets have improved, and the next thing to truly track is the matching of orders, gross margin, cash flow, and capital expenditure, rather than single-quarter revenue growth or theme heat.
Data note: the above views are only judgments about the current market, do not serve as guarantees for future investment, and do not represent investment advice. The information in this article is only the fund manager's investment philosophy, and the investment strategies of the relevant funds are detailed in the fund legal documents. As of September 30, 2026, Zhang Yongzhi had 20.7 years of securities industry experience, including 3.0 years of securities trading experience, 1.6 years of securities research experience, and 16.1 years of securities investment experience. Zhang Yongzhi's fund management history: HuaShang Steady Dual-Income Bond Securities Investment Fund (August 9, 2010 to present), HuaShang Stable Return Enhancement Bond Securities Investment Fund (March 15, 2011 to present), HuaShang Stable Profit Enhancement Bond Securities Investment Fund (February 17, 2015 to March 16, 2020), HuaShang Ruixin Regular Open Bond Securities Investment Fund (August 24, 2016 to present), HuaShang Convertible Bond Securities Investment Fund (December 22, 2017 to present), HuaShang Return No. 1 Mixed Securities Investment Fund (July 27, 2018 to December 15, 2020), HuaShang Income Enhancement Bond Securities Investment Fund (July 27, 2018 to present), HuaShang Double Wing Balanced Mixed Securities Investment Fund (July 27, 2018 to April 26, 2021), HuaShang Double Bond Fengli Bond Securities Investment Fund (July 27, 2018 to March 16, 2020), HuaShang Ruifeng Short-Term Bond Securities Investment Fund (May 24, 2019 to August 23, 2019), HuaShang Convertible Bond Select Bond Securities Investment Fund (September 29, 2020 to April 10, 2026), HuaShang Steady Income Enhancement One-Year Holding Period Mixed Securities Investment Fund (January 11, 2022 to November 4, 2025), HuaShang Steady Huili One-Year Holding Period Mixed Securities Investment Fund (April 19, 2022 to June 19, 2024), and HuaShang Steady Hongli One-Year Holding Period Mixed Securities Investment Fund (May 16, 2023 to June 10, 2026). For more information, please see the fund prospectus and other fund legal documents.
Risk disclosure: the fund manager undertakes to manage and use fund assets with honesty, diligence, prudence, and due care, but does not guarantee that the fund will make a profit or that returns will not fall below the minimum. When investors purchase funds, please carefully read the fund contract, prospectus, and other fund legal documents. Investors are kindly requested to choose products that match their risk tolerance and investment objectives. Markets carry risks, and fund investment must be cautious. A MACD golden cross signal has formed, and these stocks have performed well.
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