Recently, the A-share market has exhibited a "rally followed by a pullback" trend. After the Shanghai and Shenzhen indexes broke key levels, a correction ensued. On October 9, the Shanghai Composite Index surpassed the 3900 point mark for the first time in ten years, recording a new high for the period, but market sentiment quickly turned cautious, leading to a continued decline on October 10, with the ChiNext index dropping by 4.6% on that day.
As of October 17, the Shanghai Composite Index fell by 1.95% in a single day, while the Shenzhen Component Index's decline extended to 3.04%. Notably, the ability of fund managers to generate returns during a bull market is one performance metric, but their defensive capability is equally vital when the market faces corrections or risks.
Recently, I found that Zhou Ziguang, a fund manager at China Securities, has delivered subpar performance with his products, not only failing to make profits during the bull market but also experiencing significant declines faster than others during market setbacks.
01 Zhou Ziguang's Subpar Performance Funds Down 48.98% Since Inception
According to data from Tiantian Fund, Zhou Ziguang has worked as a researcher at Jianghai Securities, Ping An Securities, and Founder Securities. He joined China Securities in March 2016, serving in various roles including researcher in the investment research department and currently as head of the research department and fund manager.
Since May 2017, he has managed the China Securities Zhixin IoT Flexible Allocation Mixed Securities Investment Fund, from August 2020 to August 2021 managed the China Securities Juliyi Mixed Securities Investment Fund, and from November 2020 is the fund manager for the China Securities Zhixin Lifestyle Mixed Securities Investment Fund, as well as the China Securities Low Carbon Growth Mixed Securities Investment Fund since December 2021.
(Data Source: Tiantian Fund, as of October 17)
He previously managed the China Securities Technology Theme 6-Month Holding Mixed Securities Investment Fund and the China Securities Beijing Stock Exchange Selected Two-Year Period Open Mixed Securities Investment Fund. Currently, he has a cumulative tenure of 8 years and 147 days, managing a scale of 0.887 billion yuan, with the best fund tenure return at 20.23%. However, I found that the returns of the China Securities Low Carbon Growth Mixed A/C Fund were at -48.98% and -49.75%, respectively, and the returns for the China Securities Zhixin Lifestyle Mixed A/C were -37.48% and -38.71%.
(Data Source: Tiantian Fund, as of October 17)
I observed that the performance of the China Securities Low Carbon Growth Mixed A Fund was disappointing, declining even in a bull market. According to Tiantian Fund, this fund was established on December 13, 2021, with a fund scale of 207 million yuan. As of October 17, the fund's net value per unit was 0.5102, yielding -48.98% since inception, -0.08% for the year, -7.81% over one month, 12.08% over three months, -6.49% over the last year, -19.08% over two years, and -58.15% over three years.
(Data Source: Tiantian Fund, as of October 17)
With declining fund performance, investors naturally expressed their dissatisfaction. However, it is noteworthy that some investors are calling for phone complaints, believing that collective action could help change the manager, making recovery more promising. Some investors have stated, "Battery stocks are up! Photovoltaic stocks are up! New energy vehicles are up! Yet you remain stagnant!" Others voiced that the management team is underperforming, asserting, "It’s not just a slight drop; losses of two-thirds over three to four years are unacceptable." Some suggested that being able to lose so much in this market is impressive and recommended switching to a different fund. One investor even commented, "Zhou Ziguang, your stock picking ability is too poor. While the index is nearing 3900 points, I'm still down nearly 30%. You need to put in more effort to reduce our losses!"
I found that during the first quarter of 2022, the fund purchased 580,000 shares of JA Solar Technology (002459), increased holdings to 700,000 shares in the second quarter, held 2,399,900 shares in the third quarter, and raised positions to 2,500,000 shares in the fourth quarter. By the first quarter of 2023, they maintained 2,599,900 shares, increased to 3,600,000 shares in the second quarter, and held steady through the third and fourth quarters. In the first quarter of 2024, they held 5,000,000 shares, followed by 1,800,000 shares in the second quarter and 3,900,000 shares in the third quarter, finally dropping to 4,400,000 shares in the fourth quarter. However, by the first quarter of 2025, they no longer held these shares. During the holding period, the stock price fell by 74% from January 3, 2022, to March 31, 2025.
I noted that the fund had maintained significant positions in JA Solar Technology. What was the reason for such large positions? Was it due to strong performance? JA Solar Technology reported a revenue of 70.12 billion yuan in its 2024 annual report, a decline of 14.0% year-on-year; the net loss attributable to shareholders was 4.66 billion yuan, a decrease of 166.1% year-on-year; the net profit excluding non-recurring items was a loss of 4.27 billion yuan, down by 159.8%.
I found that during the first quarter of 2022, the fund bought 600,000 shares of LONGi Green Energy, raised to 900,000 shares in the second quarter, held 3,000,000 shares in the third quarter, and increased to 3,100,000 shares in the fourth quarter. However, by the first quarter of 2023, their holdings were gone. During the holding period, the stock price fell by 53% from January 4, 2022, to June 30, 2023. They purchased an additional 800,000 shares in the fourth quarter of 2023, but by the first quarter of 2024, their shares were sold off. During the holding period, the stock price dropped by 29% from October 8, 2023, to March 29, 2024.
I also found that during the first quarter of 2022, they bought 60,000 shares of GoodWe, holding 168,000 shares in the second quarter, continuing to 330,000 shares in the third quarter, and 380,000 shares in the fourth quarter. By the first quarter of 2023, they held 420,000 shares and increased to 600,000 shares in the second quarter, holding steady through the third and fourth quarters. By the first quarter of 2024, all purchased shares were sold. During the holding period, the stock price fell by 57% from January 3, 2022, to March 29, 2024. Additional purchases of 210,000 shares were made in the second quarter of 2024, but by the third quarter, the shares were again gone. During the holding period, the stock price experienced a drop of 15% from April 1, 2024, to September 30, 2024.
I noted that the fund bought 3 million shares of Tongrun Equipment in the first quarter of 2024, holding 2,156,100 shares in the second quarter, but by the third quarter, all shares were sold. The stock price dropped by 13% from January 3, 2024, to September 30, 2024.
I observed that during the second quarter of 2023, they bought 500,000 shares of Junda Co., holding 600,000 shares in the third and fourth quarters, maintaining this level through the first quarter of 2024. They sold off their shares by the second quarter of 2024. During the holding period, the stock price plummeted by 62% from April 3, 2023, to June 28, 2024. They made a second purchase of 919,900 shares in the fourth quarter of 2024, before again selling all shares by the first quarter of 2025. During the holding period, the stock price dropped by 18% from October 9, 2024, to June 30, 2025.
(Data Source: Tiantian Fund, as of October 17)
With declining fund performance, the fund size has also shrunk. The China Securities Low Carbon Growth Mixed A Fund was initially raised at 484 million yuan, reaching a size of 760 million yuan in the third quarter of 2022, but afterward, the size reduced significantly. As of June 30, 2025, the net asset value of the China Securities Low Carbon Growth Mixed A was 207 million yuan, a decrease of 6.42% from the previous period.
02 Thrice Bought Ningde Times High Holdings in Liquor Stocks Causing Losses?
(Data Source: Tiantian Fund, as of October 17)
I found that, apart from the previously mentioned fund dropping over 40%, the performance of the China Securities Zhixin Lifestyle Mixed A Fund is also lackluster. This fund was established on November 4, 2020, with a scale of 36 million yuan. As of October 17, its net unit value was 0.6252, with a -37.48% return since inception, -15% for the year, -3.05% over the last three months, -16.29% over the last year, -23.20% over the last two years, and -47.45% over the last three years.
I discovered that this fund has consistently been managed solely by Zhou Ziguang, with a tenure of 4 years and 350 days yielding -37.48% returns.
I found that the fund bought 60,000 shares of Wuliangye in the fourth quarter of 2022, holding 70,000 shares in the first quarter of 2023, increased to 90,000 shares in the second quarter, decreased to 36,000 shares in the third quarter, and had sold off all shares by the fourth quarter. During the holding period, the stock price fell by 15% from October 9, 2022, to December 30, 2023.
I found that in the third quarter of 2021, they bought 12,000 shares of Ningde Times, holding 20,000 shares in the fourth quarter, then 40,000 shares in the first quarter of 2022, reducing to 28,000 shares in the second quarter, and maintained 50,000 shares in the third quarter, before selling off all shares in the fourth quarter. During this holding period, the stock price dropped by 24% from July 1, 2021, to March 31, 2023. They made a second purchase of 36,000 shares in the second quarter of 2023, holding 39,000 shares in the third quarter, but sold them off by the fourth. The stock price fell by 28% from April 3, 2023, to December 29, 2023. A third purchase of 8,000 shares was made in the fourth quarter of 2024, but all shares were sold by the first quarter of 2025. During this last holding period, the stock price only increased by 1%.
I found that in the fourth quarter of 2021, they bought 210,000 shares of JA Solar Technology, maintaining 240,000 shares in the first quarter of 2022, increasing to 252,000 shares in the second quarter, and growing to 350,000 by the third quarter. They held 360,000 shares in the fourth quarter of 2022 but then sold off all purchases by the first quarter of 2025. During that holding period, the stock price plummeted by 64% from October 9, 2021, to March 31, 2025.
In the fourth quarter of 2021, they bought 100,000 shares of LONGi Green Energy, holding 120,000 in the first quarter of 2022, increasing to 280,000 in the second quarter, then maintaining 380,000 in the third and fourth quarters of 2022 before selling all. The stock price fell by 31% from October 9, 2021, to March 31, 2023. They bought another 100,000 shares in the third quarter of 2024 but sold again by the fourth quarter. During this last holding period, the stock price went up 13% from July 1, 2024, to December 31, 2024.
I found that the fund acquired 180,000 shares of Juewei Food in the fourth quarter of 2022, holding 300,000 shares in the first and second quarters of 2023, but sold off all in the third quarter. During the holding period, the stock price dropped by 24% from October 9, 2022, to September 28, 2023.
I found that in the fourth quarter of 2022, they bought 6,600 shares of Kweichow Moutai, maintaining small holdings through the subsequent quarters until selling all by the second quarter of 2024. The stock price fell by 17% from October 8, 2022, to June 28, 2024.
I found that in the first quarter of 2025, they bought 174,100 shares of Zongshen Power, which they held in the second quarter of 2025, but data for the third quarter 2025 is currently unavailable. During the holding period, the stock price fell by 5% from January 3, 2025, to October 18, 2025.
I also discovered that they bought 158,900 shares of China CITIC Marine Engineering in the first quarter of 2025, maintaining this position through the second quarter of 2025, but data for the third quarter 2025 is yet to be published. The stock price dropped by 18% during this period. From the first half of 2025 financial report, the company's performance seems decent. On August 25, China CITIC Marine Engineering released its semi-annual performance report stating that for the first half of 2025, revenue was about 1.038 billion yuan, a year-on-year increase of 7.9%; the net profit attributable to shareholders was about 153 million yuan, up by 15.86%.
(Data Source: Tiantian Fund, as of October 17)
As fund performance declines, the fund scale has also shrunk. The China Securities Zhixin Lifestyle Mixed A Fund was initially raised at 342 million yuan, but since inception, the fund scale has decreased continuously. As of June 30, 2025, its net asset value was 36 million yuan, down by 4.12% compared to the previous period.
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