Special Topic: 2025 Fund Q4 Report Preview: AI Applications, Commercial Spaceflight, Nuclear Fusion – Who Will Lead the 2026 Investment Theme? The 2025 fourth-quarter reports of public funds are being disclosed sequentially. The Q4 reports for two products managed by Tongtai Fund manager Chen Zongchao—Tongtai Digital Economy A and Tongtai New Energy Preferred 1-Year Holding A—have been released ahead of others. Currently, Chen Zongchao's assets under management amount to 518 million yuan. Judging from the Tongtai Digital Economy A Q4 report, this fund, named "Digital Economy," has evolved into a dedicated "AI computing hardware fund." Compared to the third quarter, its portfolio underwent a significant and focused adjustment. Holdings data reveals that its top ten holdings at the end of Q4 collectively accounted for a substantial 66.51% of the fund's net asset value. Among these, four core computing stocks—Zhongji Innolight, Hygon Information, Sunwave, and Cambricon—occupied the top four positions, with a combined weighting exceeding 34%. Analyzing the portfolio adjustment path, Chen Zongchao exited positions in broad tech hardware stocks like Foxconn Industrial Internet and Wus Printed Circuit, while making structural adjustments to core holdings. Despite partially reducing the stake in Zhongji Innolight, which had seen significant gains during the period, he substantially increased holdings in Hygon Information (share count rising from 69,000 to 117,200 shares) and Sunwave, thereby further strengthening the allocation to the domestic AI computing supply chain. Furthermore, the addition of new names such as Jereh Group and XPeng Inc. indicates an extension of his investment focus towards AI-empowered high-end manufacturing and intelligent driving. These changes in holdings align perfectly with Chen Zongchao's extensive, nearly thousand-word discussion in the quarterly report. He states unequivocally at the outset that "the global future lies in technology, and the future of technology lies in China," asserting that artificial intelligence has initiated a new Kondratiev wave cycle, with the main battlefield shifting from the West back to China. Reflecting on the market fluctuations of 2025, Chen Zongchao observed that tech stocks, led by AI computing, "continued to rise amidst various doubts." Each time stock prices fell due to widely circulated negative "logics," it ultimately presented a favorable buying opportunity in hindsight. He summarizes that the primary investment theme for the year was AI computing, where "blue-chip stocks with continuously releasing earnings were the main thread throughout the year, while technological or customer breakthroughs in certain segments became periodic dark horses." Behind this market performance lies a key inflection point he identified: the open-source breakthrough by Chinese company DeepSeek in early 2025, which for the first time convinced global investors of China's capability to rapidly catch up and even achieve partial overtaking in the AI field. Simultaneously, growth in paid user numbers and computing power consumption by overseas AI companies signaled that the industry had "finally formed a commercial closed-loop from capital expenditure to revenue generation," completely dispelling market concerns about AI being a money-burning endeavor without profitability. Based on this, Chen Zongchao expressed firm conviction regarding future investment directions. He places China's semiconductor industry and the domestic AI computing supply chain at the core, believing the sector is currently in a state where "everything is ready except for the east wind," with strong national industrial support policies acting as that long-awaited catalyst. Consequently, he explicitly states that "tech stocks focused on AI hardware and the localization of AI computing power will be the primary investment theme for the next 3-5 years." Looking ahead to the approaching year of 2026, Chen Zongchao believes that "industry transformation driven by artificial intelligence will remain the core theme of structural opportunities in the market," and he outlines four key directions: First, the arms race in AI large models and computing power demand will persist, with both inference and training jointly driving global investment in computing power; self-developed AI computing chips by major internet companies will become a new growth point. Second, the adaptability and high-end production capacity of domestic computing chips will achieve a breakthrough from 1 to N. Third, China's semiconductor manufacturing will enter a capacity expansion cycle across multiple domains. Fourth, with rapid advancements in domestic large models and a significant decline in inference costs, AI applications may truly experience an explosive breakout year in 2026. As the global center for consumer electronics manufacturing and the core location of numerous industrial chains, China possesses the most application scenarios, positioning it to fully benefit from this industry trend. "Prosperity in life depends on the Kondratiev wave; artificial intelligence has initiated a new Kondratiev wave cycle. This time, the main battlefield for AI will shift from the West back to China!" Chen Zongchao concluded.
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