As we enter 2026, the A-share market has kicked off with a strong start, with the Shanghai Composite Index climbing consecutively to break through the 4,100-point mark. Trading activity has been vigorous, with turnover exceeding 3 trillion yuan for four straight trading sessions. Has the spring rally already begun? What trajectory will the A-share market follow this year? Zhang Mingxin, General Manager of the Equity Investment Department at Huashang Fund and Portfolio Manager of the Huashang Balanced Growth Hybrid Fund, recently shared his insights in an interview. He stated that the overall upward trend of the market in 2026 remains intact, although volatility may intensify. Structural opportunities are expected to be quite pronounced, with the artificial intelligence (AI) industry chain, robotics, innovative drugs, solid-state batteries, and new consumption sectors warranting particular attention.
Zhang Mingxin, who currently holds the positions of General Manager of the Equity Investment Department at Huashang Fund and Portfolio Manager of the Huashang Balanced Growth Hybrid Fund, brings over a decade of experience in the securities industry. His previous roles include Senior Equity Investment Manager and Director of Equity Investment at Yingda Insurance Asset Management. As of the end of last year, the Huashang Balanced Growth Hybrid Fund ranked third in its peer group for its one-year performance and fifth for its three-year performance. The A-share market has delivered a impressive performance since the start of the year, with the Shanghai Composite Index surging past 4,100 points, although it experienced some adjustments on Tuesday and Wednesday of this week. How should we view the market's future performance? Looking at the full year, can the A-share market sustain the rebound trend seen in 2025? In Zhang Mingxin's view, 2026 marks the beginning of the "15th Five-Year Plan" period. The macro-environment, characterized by proactive aggregate policy support, is expected to foster a relatively accommodative liquidity environment in the first quarter. These factors are conducive to a strong start for the A-share market. "Market expectations for a bullish outlook are currently quite unified," Zhang Mingxin noted. "Against a backdrop of limited downside risks, various types of capital are clearly front-running, which explains the strong performance since the New Year's Day holiday." He added, "The persistence of various themes is strong, and the pronounced赚钱效应 (money-making effect) has further reinforced the market trend. We anticipate the market will maintain its活跃态势 (active posture) in the near term, with structural opportunities emerging one after another."
Looking ahead to 2026, Zhang Mingxin believes the dual-support framework of "policy backing + industrial drivers" remains robust. "The domestic economy is advancing steadily with high-quality development," he stated. "Policies continue to nurture the capital markets, fostering a further restoration of market confidence. External pressures are being transformed into momentum for comprehensive and deepening reforms, which is crucial for the healthy, high-quality development of the capital market." Zhang Mingxin expressed, "Market volatility in 2026 may increase, but the overall upward trajectory remains unchanged, with structural opportunities still being significant. Regarding investment direction, we will continue to base our decisions on industrial development trends, systematically跟踪比较 (tracking and comparing) sectors to identify those with improving or explosive景气 (prosperity)."
For investments in 2026, Zhang Mingxin advises investors to broaden their视野 (perspective) and not confine themselves to any single specific direction. "Operationally, we will延续 (continue) our consistent approach: systematically tracking and evaluating the景气变化 (changes in prosperity) across various industries and sectors, and identifying the most promising directions based on systematic inter-industry comparisons." Zhang Mingxin candidly remarked, "Investment should not be driven by固执 (stubborn convictions). All investment decisions should be based on assessments of future industry trends and横向的比较判断 (lateral comparative judgments). Past holdings and profits or losses are sunk costs and should not form the core of investment decisions. Investors should maintain optimism but avoid盲目追高 (blindly chasing highs); they should trust in常识 (common sense)."
AI hardware performed strongly in 2025, and since the start of 2026, AI application sectors such as AI software and AI healthcare have seen significant gains. What is the outlook for investment opportunities in the AI sector this year? Overseas computing power sectors soared in 2025 but have recently experienced some adjustments. Regarding this, Zhang Mingxin believes that although high-growth sectors like overseas computing power saw substantial gains in 2025, they remain among the segments where valuation, growth rates, and the degree of earnings realization are most aligned. They will not be absent from the broader narrative of the AI industry. "As AI large models, both domestically and internationally, continue to enhance their capabilities, cost reduction and efficiency gains are already being implemented in numerous industry scenarios," Zhang Mingxin stated frankly. "AI is genuinely reshaping our world with unprecedented depth and breadth. The景气 (prosperity) of the AI industry continues to strengthen and is spreading to more growth areas such as storage, AI at the edge, and power storage. The AI field will remain a core investment direction for the foreseeable future. The AI industry, both in China and abroad, is still developing and progressing, and we will continuously挖掘 (excavate)细分景气方向 (segmented prosperous directions) within it."
Beyond the AI industry chain, which other sectors are worth watching? Zhang Mingxin pointed out, "In addition to the AI industry chain, we are also continuously tracking areas such as robotics, innovative drugs, and solid-state batteries." Zhang Mingxin indicated that the robotics field is still in an early-stage (0-1) investment phase. The primary focus is on whether robots within the Tesla supply chain can enter large-scale mass production, while also paying attention to the current valuation levels of related companies. For the innovative drug sector, the main focus lies on policy support and encouragement. Its future market size and profit potential are expected to see significant turning points, warranting continuous monitoring of the研发 (R&D) and出海 (overseas expansion) progress of innovative pharmaceutical companies. Solid-state batteries are on the eve of commercial application; once genuine technological breakthroughs occur, there will be sustained investment opportunities. Furthermore, in the new consumption sector, elasticity is expected to be significant as a sharp, focused direction once the macro-economy stabilizes, making it another key area of focus.
Regarding sector allocation, Zhang Mingxin admitted candidly, "Truly significant investment opportunities must align with the background of the era and conform to the most prominent current socio-economic development directions—this is the so-called主线 of the times (main theme of the era). Over the past decade or so, waves of change such as the mobile internet浪潮 (tide), consumption upgrading, the new energy revolution, and the current AI浪潮 (tide), which we have either experienced or are experiencing, have profoundly altered our lives. Countless enterprises have embraced these tides of the era, growing from small entities into well-known, prominent companies. As participants in the secondary market, identifying and immersing ourselves in these industrial waves, and participating in the process of value creation within them, is the way to持续享受 (continuously enjoy) the different红利 (dividends) offered by each successive era."
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