Against a backdrop of market volatility, the Hua Shang New Quantitative Flexible Allocation Mixed Fund managed by Dr. Deng Mo, General Manager of the Quantitative Investment Department at Hua Shang Fund, has demonstrated considerable resilience.
As of September 30, 2026, according to fund evaluation agency data, the A-class shares of the fund ranked in the top 15% of peers for both the past 1-year and 3-year performance periods, and in the top quarter of peers over the past 7 years, illustrating the distinctive value of active quantitative investing through medium- to long-term performance.
Dr. Deng Mo: Letting Models Dialogue with Fundamentals
Dr. Deng Mo, General Manager of the Quantitative Investment Department at Hua Shang Fund and fund manager of the Hua Shang New Quantitative Flexible Allocation Mixed Fund, holds a doctorate in mathematics. He joined Hua Shang Fund in 2011 and currently serves as General Manager of the Quantitative Investment Department. With over 15 years of investment research experience, of which 11 years are in securities investment, he has gradually built a unique active quantitative investment system.
This system centers on quantitative models, fully leveraging the objective and rational advantages of quantitative data while integrating Hua Shang Fund's active investment deep-research methodology. It adopts an analytical framework combining quantitative and qualitative approaches, adapting differentiated stock selection logic to various market price scenarios, and deeply uncovering quality assets in high-prosperity industries.
Currently, with the rapid development of AI technology, the efficiency of quantitative strategy research and development has increased substantially, further enhancing the market adaptability and responsiveness of quantitative investment models. Dr. Deng Mo stated: "AI runs through our business processes including data processing, strategy development, and risk control, significantly shortening strategy iteration cycles and helping quantitative strategies respond more quickly to market style shifts and industry rotations."
Facing the current reality of accelerating prosperity rotation and rising crowding in sectors, the AI-empowered active quantitative model is highly likely to capture high-prosperity opportunities while dynamically identifying and constraining industry crowding risks. In the process of unearthing quality growth assets, it balances return elasticity with risk control, striving to achieve more stable investment returns in a complex and ever-changing structural market.
Focusing on Third-Quarter Earnings Clues to Select Reasonably Valued Targets
Reviewing this year's market, Dr. Deng Mo noted that in the first half, the technology sector was the direction with the strongest institutional consensus and most concentrated holdings. Entering the third quarter, the technology sector began to pull back. Along with strengthened Federal Reserve rate hike expectations and recurring Middle East tensions, uncertainty over monetary policy paths increased, capital market risk appetite came under pressure, and overseas markets entered a tug-of-war between high oil prices and monetary policy fighting inflation.
The domestic economic environment remained relatively stable. In September this year, the manufacturing PMI rebounded by 0.3 percentage points to 50.1%. The expansion of capital expenditure by technology companies is expected to sustain the improvement in high-end manufacturing prosperity. However, after the main A-share sectors retreated, short-term profit-making effects were insufficient, and Federal Reserve rate hike expectations drove capital to the sidelines, causing broad-based indices to decline on reduced volume, with existing capital rotating into defensive assets.
In the process of pricing in pessimistic expectations, the technology industry has not actually experienced systemic risks. From a valuation perspective, the current CSI 300 trailing PE has fallen back into a reasonable range, and overall market downside is relatively limited.
Regarding portfolio operations, Dr. Deng Mo stated that in the first half of 2026, A-shares showed明显的 K-shaped divergence. Based on judgments of the macroeconomic environment and market style, the Hua Shang New Quantitative Flexible Allocation Mixed Fund portfolio maintained a large-cap growth style, precisely anchoring to the hard tech prosperity mainline. The technology sector stocks that were key holdings contributed considerable returns to the product, effectively capturing the structural market dividend.
In the third quarter, the portfolio structure was slightly optimized. Facing market declines, the previously significantly overweight technology sector was moderately reduced. Meanwhile, as the third-quarter earnings disclosure period for listed companies approaches, stock selection has placed greater emphasis on the matching between earnings certainty and valuation.
Looking ahead, Dr. Deng Mo emphasized that the restoration of market confidence still requires third-quarter earnings to confirm. After a period of decline, if third-quarter earnings previews can provide verification, targets with strong earnings delivery capability are expected to recover first. Once risk appetite rebounds, capital may still flow toward the technology sector with higher earnings certainty, and market liquidity is also expected to gradually stabilize and improve.
For technology assets at high valuations, further earnings verification is still needed. At the same time, some low-position value assets may also present investment opportunities worth exploring during the earnings disclosure period. Data shows that infrastructure investment has shown signs of marginal recovery, and the proportion of new special bonds allocated to logistics, new infrastructure, and other areas has increased. Therefore, attention will also be paid to investment opportunities in some pro-cyclical industries with improving prosperity. Around third-quarter earnings clues, investment opportunities at reasonable current valuation levels will be screened.
Over the medium to long term, hard tech and resource commodities will remain the main allocation directions for the portfolio, with strict risk control in operations, striving to create long-term, stable excess returns for holders.
Dr. Deng Mo has weathered multiple market cycles and possesses a profound understanding of the essence of quantitative investing—quantitative investing is not a cold numbers game, but a long-term practice of using mathematical language to describe investment logic and systematic frameworks to constrain human weaknesses. As the AI wave sweeps through the asset management industry, this active quantitative practitioner, combining mathematical rigor with investment research depth, is striving to seek stable returns in complex markets for holders with a more mature system and broader vision.
Data note: Fund peer performance ranking data was published by fund evaluation agency Galaxy Securities in October 2026, with data as of September 30, 2026. The fund classification is flexible allocation funds (benchmark equity proportion 60%-100%) (Class A)/(Non-Class A). Funds participating in performance rankings for each time dimension need to deduct a 3-month positioning period. Ratings or single-indicator rankings shall not be conducted for funds with fewer than 10 funds in the same classification. Hua Shang New Quantitative Flexible Allocation Mixed A's 7-year, 3-year, and 1-year performance rankings are 139/585, 98/656, and 90/661 respectively; Hua Shang New Quantitative Flexible Allocation Mixed C was established on July 7, 2022, with 3-year and 1-year performance rankings of 53/377 and 58/461 respectively. The information in this article is solely the fund manager's investment philosophy; the fund's investment strategy is detailed in the fund's legal documents. The market views in this article come from the fund's 2026 interim report and third-quarter report, and are solely the fund manager's judgments for the reporting period; please refer to the fund's periodic reports. Other views in this article are solely judgments about the current market; the above views do not constitute guarantees for future investment and do not represent investment advice. As of September 30, 2026, Deng Mo has 15.3 years of securities industry experience, including 4.3 years of securities research experience and 11.0 years of securities investment experience. Deng Mo's fund management history: Hua Shang Large Cap Quantitative Selection Flexible Allocation Mixed Securities Investment Fund (20150909-20170426), Hua Shang Quantitative Aggressive Flexible Allocation Mixed Securities Investment Fund (20150909 to present), Hua Shang New Quantitative Flexible Allocation Mixed Securities Investment Fund (20150909 to present), Hua Shang Dynamic Alpha Flexible Allocation Mixed Securities Investment Fund (20180223 to present), Hua Shang Dividend Preferred Flexible Allocation Mixed Securities Investment Fund (20190308 to present), Hua Shang Electronics Industry Quantitative Equity Initiating Securities Investment Fund (20190917-20201215), Hua Shang Computer Industry Quantitative Equity Initiating Securities Investment Fund (20191030-20201215), Hua Shang Quantitative Quality Selection Mixed Securities Investment Fund (20201028-20240123), Hua Shang Quality Wisdom Selection Mixed Securities Investment Fund (20220308 to present), Hua Shang CSI A500 Index Enhanced Securities Investment Fund (20241101 to present), Hua Shang CSI 500 Index Enhanced Securities Investment Fund (20250617-20260812), Hua Shang CSI 800 Index Enhanced Securities Investment Fund (20250805 to present), Hua Shang CSI 300 Index Enhanced Securities Investment Fund (20250819 to present). Hua Shang New Quantitative Flexible Allocation Mixed Securities Investment Fund: The subscription fee rate for this fund is divided into different standards based on subscription amount (M): Class A subscription fee rate for 0 yuan ≤ M < 500,000 yuan is 1.5%, 500,000 yuan ≤ M < 1,000,000 yuan is 1.2%, 1,000,000 yuan ≤ M < 3,000,000 yuan is 0.8%, 3,000,000 yuan ≤ M is 1,000 yuan per transaction; Class C does not charge subscription fees. Redemption fee rates are divided based on holding time (N): Class A redemption fee, 0 days ≤ N < 7 days is 1.5%, 7 days ≤ N < 30 days is 0.75%, 30 days ≤ N < 1 year is 0.5%, 1 year ≤ N < 2 years is 0.25%, 2 years ≤ N is 0%; Class C redemption fee, N < 7 days is 1.5%, 7 days ≤ N < 30 days is 0.5%, 30 days ≤ N is 0%. Sales service fee is not charged for Class A, and 0.6% per year for Class C. Please refer to the fund's prospectus and related announcements for details. Risk disclosure: The fund manager undertakes to manage and operate fund assets with honesty, integrity, diligence, and prudence, but does not guarantee that the fund will definitely profit or guarantee minimum returns. When purchasing funds, investors should carefully read the fund contract, prospectus, and other fund legal documents. Investors are advised to choose products that match their risk tolerance and investment objectives. The above views are solely judgments about the current market, do not constitute guarantees for future investment, and do not represent investment advice. Markets carry risks, and fund investment requires caution. MACD golden cross signals have formed, and these stocks are rising well!
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