As A-share listed companies release their 2026 semi-annual reports, the investment strategies of major billion-yuan private funds in the second quarter are becoming clearer. By August 6, firms like Gaoyi Asset Management, Chongyang Investment, Ruijun Asset Management, and Tengsheng Investment have appeared among the top ten circulating shareholders of several companies. Market analysts note that these funds' Q2 additions concentrated on tech stocks with strong earnings potential, aligning with the surge in private fund research activities in the electronics and communications sectors since July. Notably, significant divergence emerged among top institutions regarding the same stock in Q2.
Chongyang Investment increased its holdings in Hikvision during Q2. Its Chongyang Strategy Wisdom Fund bought over 7.8 million shares, raising its stake to 61.43 million shares, while the Chongyang Strategy Juzhi Fund entered as a new top-ten shareholder with 51.79 million shares. Combined, these two products hold over 110 million shares. This marks the second consecutive quarter of increased positions in the security camera leader. Public records show the Wisdom Fund first entered Hikvision's top shareholders in Q1 as its largest holding. The Juzhi Fund's new entry in Q2 signals a shift from a single-product trial to a dual-product strategy for Qiu Guogen's firm. Hikvision's fundamentals support this move: its semi-annual report shows net profit attributable to shareholders of 7.896 billion yuan in H1 2026, a 39.57% year-on-year increase. However, top institutional actions diverged: Gaoyi Asset Management's Feng Liu reduced his Gaoyi Linshan No.1 Yuanwang Fund's holdings by 87 million shares to 113 million shares, while Central Huijin exited the top-ten shareholder list entirely in Q2. Beyond Hikvision, Tengsheng Investment also showed interest in the computer sector stock Zhiwei Intelligent, entering its top-ten shareholders with 942,400 shares via its Tengsheng China Dingliang Index Enhancement No.1 fund.
Ruijun Asset Management's Q2 moves demonstrated a continued bullish stance on tech growth. In Espressif Systems' 2026 semi-annual report, its Ruijun Youfu No.2 fund entered the top-ten shareholders with 1.746 million shares, while the Youfu No.1 and Youfu No.3 funds increased their holdings to 3.059 million and 2.948 million shares, respectively. With two funds adding and one new entry, Ruijun's commitment to Espressif was pronounced. This sector focus aligns with research intensity: private placement data shows 610 research visits to the electronics industry in July, covering 68 stocks, accounting for 38.66% of total private fund research. Optical chip maker Yuanjie Technology led with 101 visits, attracting 23 billion-yuan funds including Danshui Spring, Chongyang Investment, and Ruijun Asset Management. Optical module leader Eoptolink Technology saw 92 visits, with 24 billion-yuan funds, including Jinglin Asset Management and Gaoyi Asset Management. This research is backed by earnings: Yuanjie Technology expects H1 2026 net profit to grow 1196.91% to 1304.98% year-on-year, while Eoptolink forecasts a 77.56% to 102.93% increase. However, tech sector volatility has increased since July, leading institutions to adopt a cautious stance. A source at a top private fund noted that the tech sector correction since early July exceeded expectations, but the firm remains confident that AI is a transformative change, and will add positions once market concerns are resolved.
Reviewing Q2 additions and new positions, a clear theme emerges: capital is flowing toward tech stocks with proven earnings and growth. Chongyang Investment's strategy, described as "defensive counterattack and surprise moves," is validated by Hikvision's nearly 40% net profit growth in H1. Ruijun Asset Management's increasing stake in Espressif Systems is similarly based on the positive outlook for IoT chips. The hundred-billion-yuan Gaoyi Asset Management continues to actively track tech leaders, researching 22 listed companies in July, all focused on the AI supply chain. For the mid-year report season and the second half of 2026, leading funds point to "earnings verification." Panjing Investment stated in its monthly outlook that A-share sector divergence is expected to widen, with AI trading now entering a phase focused on profitability. Concept hype should fade, with capital moving toward earnings-proven, industry-trend-driven directions. Non-AI opportunities may come from valuation rebounds and mean reversion, but with limited scope. Jinglin Asset Management's managing partner and CEO, Gao Yuncheng, recently wrote to investors that China's economy is shifting from a property cycle to tech innovation, advanced manufacturing, and AI industrialization cycles. Future core assets may be redefined. Gao revealed that his portfolio structure has not fundamentally changed over the past six months, remaining focused on long-term industrial trends. The core allocation continues to be semiconductors and AI infrastructure, including global advanced manufacturing and AI infrastructure. The firm also favors globally competitive Chinese advanced manufacturing and tech service companies, while maintaining some gold and resource allocations to hedge against global supply chain restructuring, geopolitical changes, and currency volatility. Danshui Spring, in its monthly outlook, highlighted structural opportunities beyond AI, including innovative drugs achieving breakthroughs from "down payment-driven" to "milestone-based," advanced manufacturing exports like lithium batteries, engineering machinery, and ships maintaining strong demand, and structural opportunities in the depressed consumer sector.
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