Flexibility in investment scope, often termed the "drift" clause, is emerging as a core advantage for Shanghai-Hong Kong-Shenzhen funds, enabling strong performance and enhancing their viability. Against the backdrop of generally pressured performance across the broader Hong Kong stock fund sector, the steady trajectory and leading returns of Shanghai-Hong Kong-Shenzhen funds have sparked significant industry discussion. Since 2026, performance dispersion among actively managed equity funds has intensified. Hong Kong Stock Connect funds and Hong Kong-focused QDII funds have frequently ranked at the bottom in terms of performance losses, with many products facing substantial redemptions, challenging their continued operation. In contrast, a group of funds also bearing the "Hong Kong" label—the Shanghai-Hong Kong-Shenzhen funds—have leveraged their contractual terms to deliver impressive results. Their product design has become key to enhancing risk resilience and strengthening long-term operational durability.
Transforming into A-share funds, Shanghai-Hong Kong-Shenzhen products see performance surge against the trend. This year, the sustained focus on the technology theme has driven overall returns higher for equity funds. However, divergence within the actively managed equity space has become increasingly pronounced. Wind data shows that top-performing actively managed equity funds have already achieved returns exceeding 100% year-to-date, with structural profit opportunities persisting in the market. On the other hand, a significant number of products have seen their net asset values decline by over 10% year-to-date. Among these, Hong Kong Stock Connect funds and Hong Kong-focused QDII funds have been primary contributors to the performance pressure.
Amid this divergent landscape, Shanghai-Hong Kong-Shenzhen funds, which also include "Hong Kong" in their names, have demonstrated sharp performance, with their overall results standing out. Notably, the Qianhai Kaiyuan Shanghai-Hong Kong-Shenzhen Enjoy Life Fund has achieved a year-to-date return of 86.68%, ranking among the top three actively managed equity funds in the entire market. Since its inception in 2017, the fund's total return has surpassed 500%, with its cumulative net asset value climbing to 6.38 yuan. Against the backdrop of ongoing adjustments in Hong Kong stock indices and generally tepid returns for southbound capital, what explains this Shanghai-Hong Kong-Shenzhen fund's leapfrog performance?
Analysis of the fund's first-quarter 2026 report reveals that the Qianhai Kaiyuan Shanghai-Hong Kong-Shenzhen Enjoy Life Fund not only switched its top ten holdings entirely to A-share securities but also held no Hong Kong stocks among its other significant positions. By the end of March 2026, the fund's Hong Kong stock allocation had dropped to zero, completing its transformation from a "Shanghai-Hong Kong-Shenzhen Fund" to a "Shanghai-Shenzhen Fund."
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