A new face has emerged as the top holding in actively managed equity mutual funds. Latest institutional statistics show that as of the end of the fourth quarter of 2025, Zhongji Innolight replaced CATL to become the largest holding of actively managed equity funds (including active stock funds, partial equity hybrid funds, and flexible allocation funds).
As of the market close on January 23, Zhongji Innolight's stock price was 585 yuan, with a total market capitalization of 650 billion yuan.
Simultaneously, the rankings of the second to tenth largest holdings of actively managed equity funds all changed compared to the previous quarter. For instance, Sunic replaced Tencent Holdings to become the fund's second-largest holding, Zijin Mining Group advanced from the eighth to the fifth largest holding, and Cambricon-U rose to become the seventh largest holding. Meanwhile, CATL and Tencent Holdings fell to the third and fourth largest holdings respectively, and SMIC dropped out of the top ten holdings list.
Furthermore, actively managed equity funds also made adjustments at the sector allocation level. According to institutional statistics, in the fourth quarter of 2025, sectors that saw significant increases in allocation by these funds included non-ferrous metals, communications, non-bank financials, chemicals, and machinery. Major reductions were seen in electronics, pharmaceuticals and biotechnology, media, computers, and power equipment.
"From a macro perspective, market capital is seeking a balance between pursuing short-term returns and long-term strategic allocation. Comprehensive considerations regarding industry development prospects and the policy environment have led to these adjustments in capital flow," an interviewee pointed out.
The rankings of the top holdings have been updated. As of January 22, 2026, the quarterly reports of public offering funds for the fourth quarter of 2025 have been largely disclosed, leading to an update of the top ten holdings list for actively managed equity funds.
In terms of the absolute market value of shares held, statistics from the Financial Engineering Group of Guosen Securities Economic Research Institute show that as of the end of Q4 2025, the top ten individual stocks held by actively managed equity funds, ranked by market value, were: Zhongji Innolight, Sunic, CATL, Tencent Holdings, Zijin Mining Group, Alibaba-W, Cambricon-U, Luxshare Precision, Kweichow Moutai, and Dongshan Precision.
The total market value of these ten stocks held by actively managed equity funds was 76.8 billion yuan, 63.8 billion yuan, 63 billion yuan, 57.4 billion yuan, 36.8 billion yuan, 31 billion yuan, 29.1 billion yuan, 28 billion yuan, 25.8 billion yuan, and 24.4 billion yuan, respectively.
Among these, the proportion of total shares held by actively managed equity funds relative to the tradable shares of Dongshan Precision, Sunic, and Zhongji Innolight was relatively high, at 20.11%, 16.16%, and 10.99% respectively.
Compared to the end of the third quarter of 2025, the top ten holdings of actively managed equity funds have seen significant changes: for example, Zhongji Innolight rose from the fourth to the first largest holding, Sunic advanced from the third to the second largest holding, Zijin Mining Group climbed from the eighth to the fifth largest holding, and Cambricon-U rose to become the seventh largest holding. Conversely, CATL and Tencent Holdings fell from their positions as the first and second largest holdings to the third and fourth, respectively, while SMIC exited the top ten holdings list.
Chen Xingwen, Chief Strategy Officer of Heiqi Capital, analyzed that the changes in the top holdings of actively managed equity funds reflect a shift in market hotspots, indicating a high level of market focus on the technology sector, particularly the communications industry.
Chen Xingwen pointed out that with the rapid development of the domestic digital economy and artificial intelligence, the strategic importance of fields such as communication infrastructure and chip manufacturing has become increasingly prominent. Policy-level efforts to promote industrial upgrading have brought new growth opportunities to the communications industry, making related companies more attractive to capital.
From the perspective of additions and reductions, the repositioning actions of public offering funds were quite active. According to Guosen Securities statistics, in the fourth quarter of 2025, the stocks that fund managers actively added to their positions (stripping out passive weight changes due to stock price fluctuations) were, in order: Ping An of China, Dongshan Precision, Tianhua New Energy, Yunnan Aluminium, Maxell, Shengyi Technology, Biwin Storage, Sieyuan Electric, Cambricon-U, and Zangge Mining.
It is worth noting that in the fourth quarter of 2025, the total number of individual stocks held by fund managers was 2,467, a significant increase from the previous quarter. "This implies an increase in the differentiation of stocks held in fund managers' portfolios," Guosen Securities analysts Zhang Xinwei and Yang Xinyu stated in a research report.
While actively adjusting their portfolios, the equity allocation of actively managed funds showed a declining trend. Statistical data from the Research and Development Department of China Securities Co., Ltd. shows that in the fourth quarter of 2025, the equity allocation of actively managed equity funds was 84.4%, down 1.4 percentage points quarter-on-quarter, standing at the 92nd historical percentile level since 2010. Among this, the allocation to Hong Kong stocks reached 12.1%, down 2.1 percentage points quarter-on-quarter, at the 93rd historical percentile level since 2015.
Separate statistics from Guosen Securities indicate that in the fourth quarter of 2025, the median equity allocation of general equity funds (active stock funds) was 91.51%, and the median allocation of partial equity hybrid funds was 90.42%, both slightly lower compared to the previous quarter. The average Hong Kong stock allocation for general equity funds and partial equity hybrid funds was 11.89% and 14.56% respectively, both significantly lower than the previous quarter.
In terms of sector allocation, based on consolidated institutional statistics, in the fourth quarter of 2025, actively managed equity funds increased their allocation to the ChiNext board quarter-on-quarter, while slightly reducing their allocation to the STAR Market. Compared to the third quarter of 2025, these funds significantly increased their allocation to cyclical style sectors, while substantially reducing allocations to growth and consumer styles.
Regarding industry allocation, according to Guosen Securities statistics, based on the holdings disclosed in the Q4 2025 reports, the three industries that saw the largest active increases in allocation by actively managed equity funds were non-ferrous metals, basic chemicals, and non-bank financials, with increases of 1.22%, 1.13%, and 0.81% respectively. The three industries with the largest active decreases in allocation were computers, media, and defense military industry, with reductions of 1.34%, 0.98%, and 0.75% respectively.
Furthermore, a research report from China Securities Co., Ltd. shows that in the fourth quarter of 2025, other industries that saw increased allocation by actively managed equity funds included communications and machinery, while sectors that saw significant reductions also included electronics, pharmaceuticals and biotechnology, and power equipment.
In the view of Liu Youhua, Research Director at Paipai Network Wealth, the logic behind the industry allocation increases by actively managed equity funds in Q4 2025 can be summarized into three categories: First, cyclical recovery, where non-ferrous metals and chemicals benefit from supply constraints and recovering demand from downstream sectors like new energy and AI, coupled with expectations at the start of the Five-Year Plan, leading to strong certainty in profit recovery. Second, technological structural optimization, where communications (computing power, satellites) benefit from AI infrastructure construction, and machinery focuses on new productive forces like robotics and high-end equipment. Third, non-bank financials (brokerages, insurance) benefit from increased market activity and expectations for a strong start, with valuations at low levels offering room for recovery.
Additionally, Chen Xingwen mentioned that from an international perspective, the recovery in global manufacturing and the advancement of infrastructure construction have also boosted overall demand for the non-ferrous metals industry. The increased allocation to the communications industry is closely related to the deepening application of 5G technology and the R&D advancement of 6G technology.
Analyzing the reduction actions of actively managed equity funds, Liu Youhua stated that electronics and computers faced profit-taking due to previous significant gains and high valuations, coupled with some AI-themed stocks failing to meet performance expectations. Pharmaceuticals and biotechnology, along with power equipment, were pressured by factors like centralized procurement and overcapacity, leading to weak short-term景气度. The media sector suffered from content regulation and slower-than-expected commercialization progress, resulting in insufficient growth certainty and reduced allocation attractiveness.
"From a macro perspective, market capital is seeking a balance between pursuing short-term returns and long-term strategic allocation. Comprehensive considerations regarding industry development prospects and the policy environment have led to these adjustments in capital flow," Chen Xingwen commented.
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