In a recent development, Guangshen Railway Company Limited has announced that E Fund Blue Chip Select Mixed Securities Investment Fund, the largest fund under the management of E Fund manager Zhang Kun, has become the company's fifth-largest shareholder. Based on past disclosures, this marks the first time E Fund Blue Chip Select has purchased this stock and entered its top ten shareholder list.
The fund recently co-appointed Yang Siliang as a fund manager at the end of May. Yang had previously maintained a significant, sustained position in Guangshen Railway while managing other funds. Despite facing performance pressure, E Fund Blue Chip Select has historically made only minor portfolio adjustments. The recent purchase of Guangshen Railway and the addition of a new manager have raised questions about whether a strategic change is imminent.
The New Co-Manager's History with the Stock
A shareholder notice released by Guangshen Railway on June 8th revealed that E Fund Blue Chip Select holds 50 million shares of the company, representing approximately a 0.71% stake. The record date for this shareholding data was June 5th, 2026.
Earlier in May, Guangshen Railway had disclosed its top ten shareholders as of April 29th, 2026, at which time E Fund Blue Chip Select was not listed. Furthermore, neither the fund's full holdings list from its 2025 annual report nor its top ten holdings from its Q1 2026 report included Guangshen Railway.
This indicates that E Fund Blue Chip Select initiated its position in Guangshen Railway in 2026, with the bulk of the purchase occurring between April 30th and June 5th. During the period from January 1st to June 5th, 2026, the stock's price ranged from a high of 3.27 yuan per share to a low of 2.90 yuan per share. Based on the lower price, acquiring 50 million shares would require a minimum investment of 145 million yuan.
This is the fund's first recorded purchase of Guangshen Railway. It also marks the first time the fund has entered the company's top ten shareholder roster.
Guangshen Railway currently has a total market capitalization of around 20 billion yuan. Its share price has remained relatively stable this year, rising approximately 1.32% from January 1st to June 5th, 2026. The question arises: why would a fund named "Blue Chip Select" invest in a mid-to-small-cap stock?
While Zhang Kun himself has not previously invested in Guangshen Railway, his new co-manager has. On May 23rd, Yang Siliang and He Yicheng were appointed as co-managers of E Fund Blue Chip Select alongside Zhang Kun. Yang previously worked at Bosera Asset Management, where the fund he managed, Bosera New Value Mixed Securities Investment Fund, consistently held a significant position in Guangshen Railway from 2023 to 2025, at one point making it the fund's top holding. He also maintained a substantial position in the stock while managing Bosera Quality Select Mixed Securities Investment Fund.
Historically, the top ten holdings of E Fund Blue Chip Select each have a market value exceeding 1 billion yuan. Therefore, the 50 million share, 145 million yuan position in Guangshen Railway would not qualify for the fund's top ten list.
It is likely positioned within the fund's 11th to 20th largest holdings. According to the fund's 2025 annual report, its 15th largest holding was Nongfu Spring with a market value of approximately 8.4614 million yuan. Holdings below that were valued at less than 5 million yuan, some even in the tens of thousands.
Consistent Underperformance Against Benchmark
As of the end of Q1 2026, Zhang Kun's total public fund management scale was approximately 41.672 billion yuan, ranking first among active equity fund managers and maintaining his status as a top industry figure.
E Fund Blue Chip Select was established in September 2018 and has been managed by Zhang Kun since its inception. Its top ten holdings have consistently been leaders in their respective sectors. For example, at the end of Q1 2026, its top holdings were, in order: Kweichow Moutai, Wuliangye Yibin, Luzhou Laojiao, Tencent Holdings, Yum China Holdings, CNOOC, Shanxi Xinghuacun Fen Wine Factory, Alibaba Group Holding, JD Health International Inc., and Focus Media Information Technology. Nine of these companies have market capitalizations above 100 billion yuan, with only Focus Media below that threshold, though its current market cap exceeds 75 billion yuan.
Amidst market sector rotations, some leading fund managers have adjusted their portfolios. However, data from E Fund Blue Chip Select's reports from Q2 2025 to Q1 2026 shows minimal changes to its top ten holdings list, with the market caps of these holdings consistently remaining above 100 billion yuan each quarter.
The fund's holdings have been highly concentrated in recent years. From the end of Q2 2025 to the end of Q1 2026, the combined weighting of its top ten stocks consistently accounted for over 90% of its total equity portfolio and around 85% of its net asset value.
In terms of performance, the fund's net asset value reached a historical peak in 2021 before experiencing volatility and drawdowns. From 2021 to 2025, the fund recorded three negative and two positive annual returns, each underperforming its respective annual benchmark return. As of June 15th, the fund's year-to-date return for 2026 is approximately -16.15%, underperforming its benchmark return of -0.15% for the same period.
At its peak, the fund's assets under management exceeded 60 billion yuan, ranking among the largest active equity funds in the market at that time. By the end of Q1 2026, the scale of E Fund Blue Chip Select had declined to approximately 26.793 billion yuan.
Market Focus on Potential Portfolio Changes
The fund's recent purchase of Guangshen Railway shares and the appointment of new co-managers have drawn significant market attention to its future strategy.
A review of disclosures from A-share listed companies suggests this may be the only stock the fund has purchased in significant volume recently. Other activity appears limited to acquiring small amounts of stock through methods like participating in IPOs.
An analysis of the investment histories of the two newly appointed managers shows some overlap with Zhang Kun's stock selection. Prior to joining E Fund, Yang Siliang managed several public funds at Bosera, with liquor stocks like Kweichow Moutai and Wuliangye Yibin being long-term core holdings. He also held significant positions in leading companies in the dairy, home appliance, and insurance sectors, as well as tech stocks like Tencent Holdings and Meituan.
He Yicheng first assumed a fund manager role in August 2024, taking over E Fund New Normal Flexible Allocation Mixed Securities Investment Fund. At the end of Q3 2024, that fund's top holdings included stocks like Kweichow Moutai and Wuliangye Yibin. It subsequently underwent significant portfolio adjustments, increasing its allocation to the AI sector.
As of the end of Q1 2026, the top ten holdings of E Fund New Normal were, in order: Shenzhen Sunwin Communication Co.,Ltd., Zhongji Innolight Co.,Ltd., Dongshan Precision Manufacturing Co.,Ltd., Hengtong Optic-Electric Co.,Ltd., Nan Ya New Material Technology Co.,Ltd., Zhongtian Technology Co.,Ltd., Wus Printed Circuit Co.,Ltd., Changxin Memory Technologies Inc., Shijia Photons Co.,Ltd., and FiberHome Telecommunication Technologies Co.,Ltd.. In the fund's Q1 2026 report, He Yicheng stated the portfolio remained concentrated in the AI industry chain during the quarter, with tactical allocations to sectors like chemicals and non-ferrous metals. He noted the AI focus is shifting from training to inference, with the fund emphasizing beneficiaries of this transition, such as optical communication, fiber optic cables, PCBs, and upstream components.
Whether the purchase of Guangshen Railway is an isolated event or signals a new direction, and what changes the new co-managers might bring, will become clearer with future disclosures from E Fund Blue Chip Select and the relevant listed companies.
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