Prominent fund manager Xie Zhiyu has disclosed his first-quarter portfolio holdings. Taking the Xingquan Herun Mixed Fund as an example, Xie executed a clear sector rotation strategy during the period. The most concentrated area of increased allocation was the chemical sector, with Zhejiang Juhua Co., Ltd., Shandong Hualu-Hengsheng Chemical Co., Ltd., and Inner Mongolia Berun Chemical Company Limited all appearing among the top ten holdings. In the quarterly report, Xie explicitly stated that certain leading chemical companies, "having undergone a reshuffle and differentiation in the competitive landscape, are set to re-enter an upward trajectory." Furthermore, Ningbo Deye Technology Company Limited in the energy storage sector and Hwatsing Technology Co., Ltd. in the semiconductor equipment space also received significant additions.
Regarding performance, as of the end of the reporting period, the net asset value per unit for the Xingquan Herun Mixed A fund was RMB 2.0882, with a growth rate of 0.38% for the period, compared to a benchmark return of -2.94%. The net asset value per unit for the Xingquan Herun Mixed C fund was RMB 2.0765, with a growth rate of 0.23% for the period, against the same benchmark return of -2.94%.
Specifically, the top ten holdings of the Xingquan Herun Mixed fund were: Zhejiang Juhua Co., Ltd. (600160.SH), Amlogic (Shanghai) Co., Ltd. (688099.SH), Zhongji Innolight Co., Ltd. (300308.SZ), Contemporary Amperex Technology Co., Limited (300750.SZ), Hwatsing Technology Co., Ltd. (688120.SH), Ningbo Deye Technology Company Limited (605117.SH), Montage Technology Co., Ltd. (688008.SH), Shandong Hualu-Hengsheng Chemical Co., Ltd. (600426.SH), Inner Mongolia Berun Chemical Company Limited (000683.SZ), and Han's Laser Technology Industry Group Co., Ltd. (002008.SZ).
Compared to the fourth-quarter report of the previous year, the top ten holdings of the Xingquan Herun Mixed fund showed significant changes. Zhejiang Juhua Co., Ltd. jumped to become the largest holding, with the number of shares held increasing from approximately 46.46 million to about 55.11 million, accounting for 9.68% of the fund's net asset value. Hwatsing Technology Co., Ltd. rose from the tenth position to the fifth (4.11% weighting), with holdings surging from around 2.84 million shares to approximately 4.59 million shares. Additionally, Amlogic (Shanghai) Co., Ltd. received a slight increase in holdings.
On the reduction side, the holding in Zhongji Innolight Co., Ltd. was cut significantly from about 3.44 million shares to roughly 2.13 million shares. The stake in Contemporary Amperex Technology Co., Limited was nearly halved, decreasing from approximately 4.45 million shares to about 2.52 million shares. Montage Technology Co., Ltd. also faced a reduction. Furthermore, four stocks—Luxshare Precision, BIWIN Storage, Dongshan Precision, and Topanga Technology—exited the list of top ten holdings entirely.
Performance data for the Xingquan Heyi Mixed fund showed that as of the end of the reporting period, the net asset value per unit for the A share class was RMB 1.9281, with a growth rate of -0.39% for the period, compared to a benchmark return of -2.90%. The net asset value per unit for the C share class was RMB 1.8589, with a growth rate of -0.54% for the period, against the same benchmark.
The top ten holdings of the Xingquan Heyi Mixed fund were: INNOVENT BIO (01801), Zhejiang Juhua Co., Ltd., BEKE-W (02423), Amlogic (Shanghai) Co., Ltd., INNOCARE (09969), Zhongji Innolight Co., Ltd., Contemporary Amperex Technology Co., Limited, Hwatsing Technology Co., Ltd., BABA-W (09988), and Ningbo Deye Technology Company Limited.
Xie Zhiyu noted in the report that the market initially continued the investment style from the second half of the previous year in the first quarter, with numerous opportunities centered around the AI theme in tech stocks. Entering March, localized conflicts in the Middle East led to significant volatility in commodity prices, causing a notable decline in market risk appetite. Unlike during the Russia-Ukraine conflict in 2022, which occurred amid a global economic downturn, the current period is characterized by the wave of technological revolution and supportive industrial policies. While precise predictions regarding the resolution of conflicts or the reopening of the Strait of Hormuz are challenging, he views geopolitical "black swan" events primarily as short-term trading disruptions. For the full year, the rapid development of AI and the stabilization and recovery of the macroeconomy are expected to be the main themes, with the market likely to gradually become desensitized to conflict-related news.
Xie highlighted that major Cloud Service Providers are actively embracing the AI wave, with record-high capital expenditures fueling a super cycle in AI hardware investment. Overseas issues like power shortages and memory supply constraints are becoming persistent. Within industries such as optical modules, memory, energy storage, and gas turbines, leading companies capable of providing stable supply are expected to command significant premiums, with supply-demand gaps potentially lasting long-term. In the technology sector, a cohort of high-quality Chinese companies with global competitiveness is anticipated to emerge, particularly domestic memory manufacturers poised for significant opportunities in 2026, while the domestic semiconductor equipment sector also presents compelling prospects.
The fund focused its allocations in the first quarter on overseas computing power, semiconductor equipment, energy storage, and the chemical sector, believing that leading chemical companies are repositioning for growth after industry consolidation. The fund maintained a high portfolio allocation during the reporting period and plans to continue long-term tracking of core corporate competencies, seeking investment opportunities arising from non-linear growth driven by accelerating technological change and reversals in sub-sector景气度.
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