Investors should focus on identifying promising opportunities amid the market's fluctuations. Shi Jianghui, the founder and fund manager of Guoyuan Xinda, recently shared his market outlook. He believes the bull market is most likely not over, and there are still numerous opportunities in the capital markets, advocating for accumulating positions during periods of decline.
Guoyuan Xinda founder and fund manager Shi Jianghui suggests that the technology sector's high concentration of capital may lead to subsequent differentiation. However, he maintains that the bull market has probably not ended. He also points out that some traditional industries with improving fundamentals and relatively reasonable valuations could gain more performance opportunities. He mentioned that he has been steadily adding to his positions during the recent market adjustment and will dynamically adjust his portfolio based on the market environment.
Shi Jianghui, a graduate of Peking University, previously worked at Peng Hua Fund and Guotai Junan Securities. He is known for his macroeconomic cycle investing approach since founding his private fund. His fund has recorded losses only in 2018 since its inception in 2017. He achieved substantial returns from gold investments in 2025 and has posted slight positive returns in the first half of this year. Guoyuan Xinda's assets under management once exceeded 100 billion yuan, with the latest figures from the Asset Management Association showing a range of 50 to 100 billion yuan.
Potential Shift in Tech Stocks
Shi Jianghui commented on the recent market pullback, attributing it to adjustments in overseas technology sectors combined with high capital concentration in domestic tech stocks, leading to crowded trades. He anticipates that following this adjustment, the technology sector will transition from broad-based gains to structural differentiation. Companies with clear industry trends and sustainable profit realization remain worthy of attention, while the importance of matching valuations with earnings may increase further.
While Shi profited significantly from gold investments in 2025, he adjusted his gold holdings in October 2025 and January of this year, and began gradually increasing exposure to the technology sector starting in late April. He stated that he maintained a relatively cautious and neutral position in the first half of the year, primarily holding gold, technology, and some cyclical sectors, while keeping a certain proportion of cash. Facing the recent market downturn, he has continued to add to his positions.
Broader Market Opportunities
In Shi's view, as market capital ceases to concentrate solely on one direction, some traditional industries with improving fundamentals and relatively reasonable valuations may also see more opportunities. He believes the domestic economy is still in a gradual bottoming phase, and a comprehensive market rally requires further observation. Nonetheless, he asserts the bull market is likely not over, citing the large scale of household deposits as a potential foundation for incremental capital in the markets.
Regarding specific investments, Shi continues to adhere to a framework combining fundamentals, valuation, and industry cycles, focusing on companies with growth potential in profits and relatively reasonable valuations. For sectors that have seen significant prior gains and where trading is crowded, he indicated he would appropriately control position sizes to reduce portfolio concentration and net value volatility. Overall, his strategy prioritizes maintaining portfolio stability and controlling drawdowns.
Key Sectors for Focus
On specific directions, Shi Jianghui stated he continues to monitor gold, semiconductor equipment, aluminum, and some chemical industries. For gold, the long-term allocation logic remains, but he will control overall position size based on price levels and market volatility. For semiconductor equipment, the industry is expected to benefit from downstream capacity expansion, increased capital expenditure, and the domestic substitution process. For some non-ferrous metal and chemical companies, there are already signs of improved profitability, and he will focus on tracking subsequent earnings realization and valuation changes.
Shi Jianghui added that he will continue to dynamically adjust his portfolio based on the market environment, seeking investment opportunities where fundamentals and valuations align across gold, technology, and traditional cyclical sectors, while balancing return generation with portfolio drawdown control.
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