Amid market turbulence, the Hua Shang New Quantitative Flexible Allocation Mixed Fund, managed by Dr. Deng Mo, General Manager of the Quantitative Investment Department at Hua Shang Fund, has demonstrated notable resilience.
As of September 30, 2026, according to fund evaluation agency data, the A-class shares of the fund ranked in the top 15% of peers over both the past 1-year and 3-year periods, and in the top quartile over the past 7 years, illustrating the unique value of active quantitative investing through medium- to long-term performance.
Deng Mo: Letting Models Engage with Fundamentals
Dr. Deng Mo, General Manager of the Quantitative Investment Department at Hua Shang Fund and portfolio manager of Hua Shang New Quantitative Flexible Allocation Mixed and other funds, holds a doctorate in mathematics. He joined Hua Shang Fund in 2011 and has over 15 years of investment research experience, including 11 years in securities investment. He has gradually built a distinctive active quantitative investment system.
This system centers on quantitative models, fully leveraging the objective and rational advantages of quantitative data, while integrating Hua Shang Fund's active investment deep-research methodology. It adopts an analytical framework combining quantitative and qualitative approaches, adapting differentiated stock selection logic to different market price scenarios, and deeply uncovering quality assets in high-prosperity industries.
Currently, with the rapid development of AI technology, the efficiency of quantitative strategy research and development has greatly improved, 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 research and development, and risk control, significantly shortening strategy iteration cycles and helping quantitative strategies respond faster to market style shifts and industry rotation."
Facing the current environment of accelerating prosperity rotation and rising sector crowding, the AI-empowered active quantitative model is likely to capture high-prosperity opportunities while dynamically identifying and constraining sector 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, Selecting 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. With strengthening Federal Reserve rate hike expectations and repeated Middle East tensions, uncertainty over the monetary policy path increased, capital market risk appetite came under pressure, and overseas markets entered a tug-of-war between high oil prices and monetary policy fighting inflation.
The domestic economic environment remained relatively stable. In September this year, the manufacturing PMI rebounded by 0.3 percentage points to 50.1%. 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 receded, short-term profit effects were insufficient, and Federal Reserve rate hike expectations drove capital to the sidelines, leading to a volume-contracted decline in broad-based indices, with existing capital shifting to defensive assets.
In the process of pricing pessimistic expectations, the technology industry has not experienced systemic risks. From a valuation perspective, the current trailing PE of the CSI 300 has fallen back to a reasonable range, and overall market downside is relatively limited.
Regarding portfolio operations, Dr. Deng Mo stated that in the first half of 2026, A-shares showed明显的 K-shaped divergence. Based on analysis of the macro environment and market style, the Hua Shang New Quantitative Flexible Allocation Mixed Fund portfolio maintained a large-cap growth style, precisely anchored to the hard technology prosperity mainline. Key technology sector holdings contributed considerable returns to the product, effectively capturing structural market dividends.
In the third quarter, minor optimizations were made to the holdings structure. Facing market downturns, the previously significantly overweight technology sector was moderately reduced. Meanwhile, as the third-quarter earnings disclosure period approaches, stock selection places greater emphasis on the match between earnings certainty and valuation.
Looking ahead, Dr. Deng Mo emphasized that the restoration of market confidence still requires confirmation from third-quarter earnings. After a period of decline, if third-quarter earnings forecasts 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 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. Data shows that infrastructure investment has shown signs of marginal recovery, with the proportion of new special bonds allocated to logistics and new infrastructure increasing. Therefore, attention will also be paid to investment opportunities in some pro-cyclical industries with improving prosperity, screening for investment opportunities at reasonable valuation levels based on third-quarter earnings 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 investing鈥攒uantitative investing is not a cold numbers game, but a long-term practice of using mathematical language to depict investment logic and 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 ratio 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. Hua Shang New Quantitative Flexible Allocation Mixed A's 7-year, 3-year, and 1-year performance rankings are 139/585, 98/656, and 90/661 respectively; Hua Shang New Quantitative 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 are 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 on the current market; the above views do not guarantee future investment 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. Deng Mo's managed funds: Hua Shang Large Cap Quantitative Select Flexible Allocation Mixed Securities Investment Fund (20150909-20170426), Hua Shang Quantitative Aggressive Flexible Allocation Mixed Securities Investment Fund (20150909 to present), Hua Shang New Quantitative Flexible Allocation Mixed Securities Investment Fund (20150909 to present), Hua Shang Dynamic Alpha Flexible Allocation Mixed Securities Investment Fund (20180223 to present), Hua Shang Dividend Preferred Flexible Allocation Mixed Securities Investment Fund (20190308 to present), Hua Shang Electronics Industry Quantitative Equity Initiating Securities Investment Fund (20190917-20201215), Hua Shang Computer Industry Quantitative Equity Initiating Securities Investment Fund (20191030-20201215), Hua Shang Quantitative Quality Select Mixed Securities Investment Fund (20201028-20240123), Hua Shang Quality Wisdom Select Mixed Securities Investment Fund (20220308 to present), Hua Shang CSI A500 Index Enhanced Securities Investment Fund (20241101 to present), Hua Shang CSI 500 Index Enhanced Securities Investment Fund (20250617-20260812), Hua Shang CSI 800 Index Enhanced Securities Investment Fund (20250805 to present), Hua Shang CSI 300 Index Enhanced Securities Investment Fund (20250819 to present). Hua Shang New Quantitative 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 0 yuan 鈮?M < 500,000 yuan at 1.5%, 500,000 yuan 鈮?M < 1,000,000 yuan at 1.2%, 1,000,000 yuan 鈮?M < 3,000,000 yuan at 0.8%, 3,000,000 yuan 鈮?M at 1,000 yuan per transaction; Class C does not charge subscription fees. Redemption fee rates are divided based on holding time (N): Class A redemption fee, 0 days 鈮?N < 7 days at 1.5%, 7 days 鈮?N < 30 days at 0.75%, 30 days 鈮?N < 1 year at 0.5%, 1 year 鈮?N < 2 years at 0.25%, 2 years 鈮?N at 0%; Class C redemption fee, N < 7 days at 1.5%, 7 days 鈮?N < 30 days at 0.5%, 30 days 鈮?N at 0%. Sales service fee: Class A does not charge, Class C at 0.6% per year. Please refer to the fund's prospectus and related announcements for details. Risk Disclosure: The fund manager undertakes to manage and use fund assets with honesty, diligence, prudence, and due care, but does not guarantee fund profits or 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 on the current market, do not guarantee future investment, and do not represent investment advice. Markets carry risks, and fund investment requires caution. MACD golden cross signals have formed, and these stocks are rising well!
Comments