While markets fluctuate and search for direction amidst divergence, Zhang Mingxin, General Manager of the Equity Investment Department at HuaShang Fund and Portfolio Manager of the HuaShang Balanced Growth Mixed Fund, remains exceptionally resolute. In his view, only by anchoring to the essence of value and grasping the main themes of the era can one navigate market cycles and achieve sustainable long-term returns.
Performance serves as the most compelling evidence. As of March 31, 2026, the net asset value growth rate of the HuaShang Balanced Growth Mixed Fund A, managed by Zhang Mingxin, reached 190.83% over the past year, significantly outperforming its benchmark return of 21.02% and delivering 169 percentage points of excess return. Furthermore, data from fund performance evaluators indicates the fund's performance ranked second among 1,920 peer funds over the past year. This outstanding performance is underpinned by a long-tested investment methodology that resonates with the times.
Zhang Mingxin's core investment philosophy is "prosperity investing based on industrial trends." Against a backdrop of significant impact and transformation in market environments and investment paradigms, he continuously reflects and adapts. Zhang acknowledges that investing is an art, not a precise science, with the difficulty lying in the absence of a universally applicable model across all market conditions; linear extrapolation is a common investor mistake. Long-term, he believes the most robust and certain paradigms are mean reversion in deep value and growth value creation driven by industrial breakthroughs. He steadfastly adheres to "industry trend investing driven by value," systematically comparing sectors to identify the era's main themes and capture its benefits. For him, every investment must have a core logic, and the stability, trackability, and predictability of this logic constitute his primary risk control method.
Under the new market paradigm, he strives for deeper research, closer to the source of industry changes, focusing on trading genuine, industry-driven value trend shifts with value at the core. He believes the core principles of his methodology are relatively fixed, but the investment vehicles and key sectors dynamically evolve with the times. Investing requires flexibility; all decisions should be based on assessments of future industry trends and comparative judgments, as historical holdings and profits/losses are sunk costs and should not dictate future choices.
Reflecting on 2025 in the recently disclosed fund annual report, Zhang noted that despite A-share market volatility, the trend was upward and strong, supported by economic transformation and technological innovation. He attributed market fears to uncertainty. Since September 2024, firm policy support for the economy and meticulous capital market regulation have established clear expectations and a baseline mindset. Despite geopolitical shocks like trade frictions, the risk of a major economic or market downturn was contained, bolstering investor confidence. Overseas, the AI industry began forming a commercial closed loop in May, signaling an inflection point. These three factors combined to mitigate geopolitical impacts and spark an industry bull market centered on AI innovation.
Zhang began managing the HuaShang Balanced Growth Mixed Fund on March 4, 2025, coinciding with the onset of Sino-US trade friction. Amid market volatility, he consistently applied his "value-driven industry trend investing" philosophy. Facing significant geopolitical uncertainty, he maintained his focus, trusted fundamental principles, systematically tracked all industries, and sought out definitive upward trends to counter an uncertain environment. Notably, from his appointment until March 31, 2026, HuaShang Balanced Growth Mixed Fund A surged 176.58%, vastly outperforming its benchmark return of 20.36%.
Recalling his 2025 strategy, Zhang highlighted that tracking revealed an explosion in overseas inference token demand and surging AI revenues by May, leading him to conclude the AI industry had completed its "0 to 1" transformation. He decisively increased holdings in the overseas computing power sector against the trend, a key move for the year's excess returns.
After a rapid third-quarter surge, debates about an "AI infrastructure bubble" emerged domestically and internationally. During this period, Zhang and the HuaShang investment team conducted extensive research, closely evaluated the AI industry trend, established a benchmark model for global AI revenue and computing power investment, identified core drivers, and monitored changes closely. Their overall assessment was that the AI trend continued to deepen, with accelerating investment globally. However, the sustainability and predictability of capital expenditure from major overseas companies began to diverge. Notably, Google's Gemini 3 model showed significant progress with clear application scenarios, positioning it as a new leader. Consequently, Zhang increased allocations to Google's supply chain and to specific technologies benefiting from the "scale-up" trend, such as optical components within data centers.
Throughout 2025, he maintained an optimistic market outlook, focusing on identifying investment opportunities. With the AI trend strengthening, his strategy centered on overseas computing power, while continuously exploring niche high-growth areas within the broader AI trend, such as optical chips, Google's supply chain, energy storage, and robotics, ultimately delivering strong returns for investors.
Looking ahead to 2026, Zhang believes the dual support structure of "policy support + industry drivers" remains solid. The domestic economy advances steadily with high-quality development, policies continue to nurture capital markets, and societal confidence is recovering further. He anticipates overall market volatility may increase, but structural opportunities will remain significant.
The depth and breadth of the AI industry continue to expand, outlining a new industrial revolution cycle. Past revolutions involved machinery replacing manual labor; this one involves AI supplanting intellectual labor. While the ultimate form of AI and the endpoint of this transformation remain unclear, society will undoubtedly undergo intense value creation, restructuring, and even destruction. With major AI models advancing further and applications like Agents deeply reshaping various industries, 2026 marks the true beginning of AI transforming our world. Core elements of an industrial revolution include labor, technology, resources, and energy. As the industry progresses and demand surges, supply chain bottlenecks emerge sequentially—from chips and optical modules to PCBs, copper, storage, power, and fiber optics. Investments will continue to follow this major upward industry trend while seeking the next niche growth areas.
Undoubtedly, the new wave of technological innovation, represented by AI, is the defining theme of our time. As secondary market participants, identifying and participating in this industrial wave and its value creation process is essential for continuously benefiting from the current era.
Zhang emphasizes that the investment perspective for 2026 must be broader, not limited to a single direction. While industries advance rapidly, the path is not smooth; technological progress is never linear. A good company does not necessarily equate to a good stock, and optimism about an industry's development should not imply blind faith. He will deeply assess probabilities and risk-reward ratios, evaluate the relationship between stock prices and industry cycle positions, and adjust holdings based on value changes. Beyond the AI supply chain, he continues to monitor opportunities in autonomous driving, solid-state batteries, robotics, innovative drugs, and new consumption sectors.
Concurrently, for industry professionals, he notes that active equity management faces challenges in 2026. Firstly, new technologies like social media and AI are deepening their application in investing, largely achieving "information parity" and "cognitive parity," significantly increasing market efficiency and eroding the moat built by institutional research systems, making active alpha generation more difficult. Secondly, following last year's gains, many sectors and stocks have accumulated substantial increases, with some elevated prices carrying inherent risks.
Zhang affirms he will continue relying on his long-honed methodology, maintaining composure amidst market changes, and continuously evolving within the era's industrial waves to strive for long-term, stable, sustainable excess returns for investors. He advises investors to remain optimistic but avoid blindly chasing highs, trust fundamental principles, and let professionals handle specialized tasks.
When value meets trend and expertise embraces the era, the path to long-term returns becomes clearer. As Zhang firmly believes, anchoring to the essence of value within industrial waves and grasping industry trends amidst epochal changes enables the creation of sustainable returns for investors through the capital market's ebbs and flows.
Data indicates that as of March 31, 2026, fund manager Zhang Mingxin has 10.5 years of securities industry experience, comprising 5.3 years in research and 5.2 years in investment. His currently managed funds include: HuaShang Balanced Growth Mixed (since March 4, 2025); HuaShang Advantage Sector Flexible Allocation Mixed A (since March 12, 2025); HuaShang Advantage Sector Flexible Allocation Mixed C (since August 29, 2025); and HuaShang致远回报混合 (since July 15, 2025). Views and investment concepts are derived from fund periodic reports; detailed investment strategies are available in fund legal documents.
Fund performance data is sourced from HuaShang Fund, verified by the custodian bank. Benchmark data is from Wind Information. The HuaShang Balanced Growth Mixed C fund achieved a net value growth rate of 189.12% over the past year (April 1, 2025, to March 31, 2026) and 174.82% since Zhang's appointment (March 4, 2025, to March 31, 2026). Fund performance evaluation data is from China Galaxy Securities, published April 2026, data as of March 31, 2026. Fund A and C shares are classified as equity funds (stock allocation 60%-95%). The HuaShang Balanced Growth Mixed C fund ranked 2/1524 over one year and 2/1029 over three years. The HuaShang Balanced Growth Mixed A fund ranked 2/1507 over three years.
The HuaShang Balanced Growth Mixed Fund was established on April 8, 2021. Its performance benchmark is: CSI 800 Relative Growth Index Return * 80% + ChinaBond Composite Total Value Index Return * 20%. The fund's A-share annual net value growth rates from 2021 to 2025 were 29.60% (Apr 8-Dec 31, 2021), -32.04%, -9.33%, 3.99%, and 137.15% respectively. C-share growth rates for the same periods were 29.03% (Apr 8-Dec 31, 2021), -32.45%, -9.88%, 3.37%, and 135.75%. Corresponding benchmark returns were 2.55% (Apr 8-Dec 31, 2021), -21.29%, -12.99%, 5.92%, and 25.78%. Fund manager changes during this period: Liang Hao (Apr 8, 2021 - Jun 20, 2022), Tong Li (May 19, 2022 - Mar 4, 2025), Zhang Mingxin (Mar 4, 2025 - present).
The HuaShang Advantage Sector Flexible Allocation Mixed Fund was established on December 11, 2013, and modified its investment scope on December 28, 2020, to include depositary receipts. Its benchmark is the CSI 300 Index Return * 55% + SSE Government Bond Index Return * 45%. The A-share annual performance from 2021 to 2025 was 15.57%, 8.97%, 3.13%, 6.14%, and 105.40% respectively, compared to benchmark returns of -0.66%, -10.69%, -4.64%, 12.26%, and 10.14%. C-share classes were added on August 29, 2025. Fund manager changes: Zhou Haidong (Aug 5, 2016 - Mar 12, 2025), Zhang Mingxin (Mar 12, 2025 - present).
The HuaShang致远回报混合 Fund was established on July 15, 2025. Its benchmark is the CSI A500 Index Return * 65% + CSI Hong Kong Stock Connect Composite Index (RMB) Return * 15% + ChinaBond Composite Index Return * 20%. Full-year performance data is not yet available. Fund manager Zhang Mingxin has managed the fund since inception.
Fund net value growth rates and benchmark returns for 2021-2025 are from fund periodic reports. The latest net asset value per share is available on the HuaShang Fund website.
For the HuaShang Balanced Growth Mixed Fund A shares, subscription fees vary by amount. For non-pension clients: below 500,000 yuan is 1.50%; 500,000 to 2 million yuan is 1.20%; 2 million to 5 million yuan is 0.80%; 5 million yuan and above incurs a flat fee of 1,000 yuan per transaction. C shares have no subscription fee. Redemption fees for A shares are based on holding period: less than 7 days is 1.50%; 7 to 30 days is 0.75%; 30 days to 1 year is 0.50%; 1 to 2 years is 0.25%; 2 years and above is 0%. For C shares: less than 7 days is 1.50%; 7 to 30 days is 0.50%; 30 days and above is 0%. Sales service fees are 0% for A shares and 0.6% annually for C shares. Different subscription fee rates apply for pension clients investing in A shares through the fund manager's direct sales center; details are in the fund's prospectus.
Risk Disclosure: The fund manager is committed to managing fund assets with honesty, diligence, and prudence but does not guarantee fund profitability or a minimum return. Past performance and net asset value do not indicate future results. The performance of other funds managed by the fund manager does not guarantee this fund's performance. Investors should carefully read the fund contract, prospectus, and product summary before investing. Specific investment strategies are detailed in fund legal documents. This content does not constitute investment advice. Markets involve risks; fund investment requires caution. Investors should choose products matching their risk tolerance and investment objectives.
Comments