Against the backdrop of a volatile market, the HuaShang New Quant Flexible Allocation Mixed Fund managed by Dr. Deng Mo, General Manager of the Quantitative Investment Department at HuaShang Fund, has demonstrated considerable resilience. As of September 30, 2026, according to fund evaluation agency data, the fund's Class A shares ranked in the top 15% of peers over both the past 1 year and past 3 years, and in the top quartile of peers over the past 7 years, illustrating the unique value of active quantitative investing through medium- to long-term performance.
Dr. Deng Mo: Letting Models Talk to Fundamentals
Dr. Deng Mo, General Manager of the Quantitative Investment Department at HuaShang Fund and fund manager of HuaShang New Quant Flexible Allocation Mixed Fund and other products, holds a doctorate in mathematics. He joined HuaShang Fund in 2011 and currently serves as General Manager of the Quantitative Investment Department. With over 15 years of investment research experience (including 11 years of securities investment experience), 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 HuaShang Fund's methodology of in-depth active investment research. It adopts an analytical framework combining quantitative and qualitative approaches, adapting differentiated stock selection logic to different market price scenarios, and deeply uncovering high-quality assets in high-prosperity industries.
Currently, with the rapid development of AI technology, the research and development efficiency of quantitative strategies has improved significantly, 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 management, significantly shortening strategy iteration cycles and helping quantitative strategies respond more quickly to market style shifts and industry rotations."
Facing the current environment of accelerating prosperity rotation and rising crowding in sectors, the AI-empowered active quantitative model can likely capture high-prosperity opportunities while dynamically identifying and constraining industry crowding risks. In the process of uncovering 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 Report Performance 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 repeated Middle East tensions, uncertainty over the monetary policy path increased, risk appetite in capital markets came under pressure, and overseas markets entered a tug-of-war period between high oil prices and monetary policy fighting inflation. The domestic economic environment remained relatively stable, with the manufacturing PMI rebounding 0.3 percentage points to 50.1% in September this year. 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 leave and wait on the sidelines, causing broad-based indices to decline on shrinking volume, with existing capital shifting to defensive assets.
In the process of the market 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 to a reasonable range, and the overall market downside space is relatively limited.
In terms of 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 macro environment and market style, the HuaShang New Quant Flexible Allocation Mixed Fund portfolio maintained a large-cap growth style, precisely anchoring to the hard technology prosperity mainline. The technology sector stocks that were heavily allocated contributed considerable returns to the product, effectively capturing the structural market dividends. In the third quarter, minor optimizations were made to the holdings structure. Facing the market downturn, the previously significantly overweight technology sector was moderately reduced. Meanwhile, as the third-quarter report disclosure period for listed companies approaches, stock selection places greater emphasis on the matching between earnings certainty and valuation.
Looking ahead, Dr. Deng Mo emphasized that the restoration of market confidence still needs to be confirmed by third-quarter report performance. 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 to 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. From the data, infrastructure investment has shown signs of marginal recovery, and the proportion of new special bonds directed toward logistics and new infrastructure has increased. Therefore, attention will also be paid to some pro-cyclical industry investment opportunities with improving prosperity, screening for investment opportunities at reasonable valuation levels based on third-quarter report performance clues. Over the medium to long term, hard technology and resource products 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 experienced multiple market cycles and has a deep understanding of the essence of quantitative investment — quantitative investing is not a cold number game, but a long-term practice of using mathematical language to depict investment logic and using 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 Notes: Fund peer performance ranking data was published by fund evaluation agency Galaxy Securities in October 2026, with data as of September 30, 2026. Fund classification is flexible allocation funds (benchmark equity proportion 60%-100%) (Class A) / (Non-Class A). Funds participating in performance rankings across various time dimensions must deduct a 3-month position-building period. Funds with fewer than 10 funds in the same classification shall not be rated or ranked on a single indicator. HuaShang New Quant Flexible Allocation Mixed A's 7-year, 3-year, and 1-year performance rankings are 139/585, 98/656, and 90/661 respectively; HuaShang New Quant Flexible Allocation Mixed C was established on July 7, 2022, with 3-year and 1-year performance rankings of 57/377 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 for details. Other views in this article are solely judgments about the current market; the above views do not guarantee future investment performance 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. Funds managed by Deng Mo: HuaShang Large-Cap Quant Select Flexible Allocation Mixed Securities Investment Fund (20150909-20170426), HuaShang Quant Advanced Flexible Allocation Mixed Securities Investment Fund (20150909 to present), HuaShang New Quant Flexible Allocation Mixed Securities Investment Fund (20150909 to present), HuaShang Dynamic Alpha Flexible Allocation Mixed Securities Investment Fund (20180223 to present), HuaShang Dividend Preferred Flexible Allocation Mixed Securities Investment Fund (20190308 to present), HuaShang Electronics Industry Quant Equity Initiated Securities Investment Fund (20190917-20201215), HuaShang Computer Industry Quant Equity Initiated Securities Investment Fund (20191030-20201215), HuaShang Quant Quality Select Mixed Securities Investment Fund (20201028-20240123), HuaShang Quality Smart Select Mixed Securities Investment Fund (20220308 to present), HuaShang CSI A500 Index Enhanced Securities Investment Fund (20241101 to present), HuaShang CSI 500 Index Enhanced Securities Investment Fund (20250617-20260812), HuaShang CSI 800 Index Enhanced Securities Investment Fund (20250805 to present), HuaShang CSI 300 Index Enhanced Securities Investment Fund (20250819 to present).
HuaShang New Quant 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 is 1.5% for 0 yuan ≤ M < 500,000 yuan, 1.2% for 500,000 yuan ≤ M < 1,000,000 yuan, 0.8% for 1,000,000 yuan ≤ M < 3,000,000 yuan, and 1,000 yuan per transaction for 3,000,000 yuan ≤ M; Class C does not charge subscription fees. Redemption fee rates are divided based on holding time (N): Class A redemption fee is 1.5% for 0 days ≤ N < 7 days, 0.75% for 7 days ≤ N < 30 days, 0.5% for 30 days ≤ N < 1 year, 0.25% for 1 year ≤ N < 2 years, and 0% for 2 years ≤ N; Class C redemption fee is 1.5% for N < 7 days, 0.5% for 7 days ≤ N < 30 days, and 0% for 30 days ≤ N. 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 the fund assets with honesty, diligence, prudence, and due care, 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 guarantee future investment performance, and do not represent investment advice. Markets carry risks, and fund investment requires caution.
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