Special Focus on 2026 Fund Q2 Reports: Heavy Positions in "Chips & Light" Yield Strong Performance

"The underlying logic of the AI industry has not reversed. After the tech stock adjustment, it should be an opportunity to position again," stated Xiong Yuan, Chief Economist at Guosen Securities, sharing his perspective on "tech stocks" on July 19th.

On June 22nd, the share price of ZJ INNOLIGHT (SHE: 300308) touched a historical high of 1,416.88 yuan.

Who could have imagined that this moment marked the peak of the tech stock rally, often referred to as the "Yi Zhongtian" phenomenon?

In the following month, the market took a sharp downturn, with tech stocks declining in turn. Particularly in the past week, tech stocks experienced a deep correction. The "storage concept stock" Demingli hit five跌停板 (limit-down) in six trading sessions.

Funds heavily invested in tech stocks saw their net asset values ride a rollercoaster.

On July 21st, tech stocks finally caught a breather. ZJ INNOLIGHT surged 13.20% in a single day, and Demingli finally broke its跌停板 streak, rebounding 5.20%.

However, at the opening on July 22nd, tech stocks fell again, with Demingli hitting跌停板 once more and ZJ INNOLIGHT dropping over 6%.

Amidst the volatility of tech stocks, fund managers with heavy tech exposures face a dilemma: should they sell into strength or continue holding firm?

What a 20% Weekly Drop Feels Like

Over the past week, the decline in tech stocks accelerated.

Whether it was optical modules or storage chip concepts; whether the "Yi Zhongtian" group or stocks like Demingli, Jiangbolong, and GIGADEVICE (SHA: 603986), they all trended downwards with volatility.

The most typical case was the "storage leader" Demingli. It first experienced four consecutive跌停板, and on July 21st, it also hit跌停板 at one point, nearly achieving a "five-limit-down streak." It finally broke the跌停板 during a broader market rebound, ending the day up 5.20%.

However, in early trading on July 22nd, Demingli's stock price opened lower and fell to跌停板 again after the midday session.

With five跌停板 in six trading days, Demingli's stock price plummeted from 736 yuan to 457.20 yuan, wiping out over 60 billion yuan in market value.

The weakness in tech stocks also led to significant shrinkage in the net asset values of funds heavily invested in them, with many experiencing weekly declines of around 20%.

Wind data shows that as of July 22nd, among equity funds (primarily A-shares, excluding those established in 2026), the fund with the largest decline over the past week was Dongwu Multi-Strategy A, with a return of -21.76%. Its fund manager is Zhang Haojia.

Another fund managed by Zhang Haojia, Dongwu Value Growth A, also fell over 20% in the past week, at -21.62%, ranking high on the list of decliners.

A look at the 2026 Q2 report of Dongwu Multi-Strategy A reveals the reason. Among its top ten holdings are not only Demingli and Jiangbolong but also GIGADEVICE and Puran Shares, both of which have fallen over 40% since July.

Dongwu Value Growth A holds almost the same stocks, with the difference being its holding in the even worse-performing "mainstream storage chip supplier" Hengshuo Shares.

"Focusing on investment opportunities in directions such as the AI industry chain, storage semiconductors, and robotics, while also striving to select industries and companies with continuously rising ROE and gradually stabilizing and upward industry profitability," Zhang Haojia explained his investment strategy in the Dongwu Multi-Strategy A 2026 Q2 report.

Despite the severe declines in the two funds managed by Zhang Haojia over the past week and even the past month, they have still maintained a year-to-date return of at least 50%.

However, if tech stocks continue to fall, it remains uncertain how much of these returns Zhang Haojia's two funds can preserve.

Sticking Firmly to the Tech Sector

The tech stock correction since late June and early July is not an isolated case. The net asset values of equity funds across the market have generally been under pressure, especially those focused on themes like semiconductors, new energy, and high-end manufacturing.

Besides Zhang Haojia, another equity fund among the top three decliners over the past week is Southern Semiconductor Industry A, with a weekly return of -21.64%. Its fund manager is Zheng Xiaoxi.

This fund's top ten holdings are also "packed" with tech stocks, particularly in the optical and optoelectronics sector, such as Wavelength Opto-Electronic, Fugang Shares, and Zhongrun Optics. However, these stocks have mostly fallen over 20% since July.

Extending the period to the past month, the market adjustment has further amplified, with over 200 equity funds (including A/C shares) experiencing drawdowns exceeding 30%.

Wind data shows that as of July 22nd, among equity funds (primarily A-shares, excluding those established in 2026), the fund with the largest decline over the past month was China Merchants Core Equipment A, with a return rate of -42.39%.

The fund manager of China Merchants Core Equipment A is Feng Fuzhang. Another fund he manages, China Merchants High-end Equipment A, also ranks high on the list of decliners, with a monthly return rate of -37.99%.

Similarly, Feng Fuzhang is also "sticking firmly" to tech stocks. His heavily held Changfei Fiberoptic Cable has fallen nearly 50% in the past month, and Yuanjie Technology has also dropped over 20%.

"Continuing to be optimistic about the development prospects of industries related to high-end equipment manufacturing, and maintaining high portfolio turnover operation," Feng Fuzhang stated in the Q2 report.

However, he manages only these two funds, and the return rates during his tenure for both are negative, meaning investors who initially bought his funds and held until now have not made a profit.

Classified by holding sectors, the top decliners over the past month are mainly in semiconductors and AI hardware, reflecting that this round of adjustment represents risks specific to a single, narrow sector.

It is evident that an extreme concentration model in a single sector can further amplify net asset value volatility. Once the market trend reverses, concentrated holdings can lead to significant drawdowns in a fund's net value.

The Favorite Remains the "Yi Zhongtian" Group

If the declines over the past week and month are considered "short-term pains," then funds that are still in the red year-to-date are facing "long-term agony."

Wind data shows that as of July 22nd, the ten equity funds (primarily A-shares, excluding those established in 2026) with the largest year-to-date losses have all declined over 37%.

Among them, the worst performer is Penghua Manufacturing Upgrade A, down 45.50% year-to-date.

Its fund manager, Yan Siqian, holds heavy positions in Sunway Communication, Lens Technology, and some new energy stocks like Maiwei Shares and Junda Shares.

Since July, Sunway Communication has fallen 43%, Lens Technology 31%, Maiwei Shares 35%, and Junda Shares 26%.

According to the disclosed 2026 Q2 report data from public funds, tech stocks represented by the "Yi Zhongtian" group remain the favored holdings of funds.

Wind data shows that the top ten holdings of public funds in Q2 2026 were updated to: ZJ INNOLIGHT, Suzhou New Sea Union Telecom, Dongshan Precision, Cambricon, CATL, NAURA, GIGADEVICE, Yuanjie Technology, AMEC, and Sanhuan Group.

Compared to the end-of-Q1 list, six tech stocks including Cambricon, NAURA, and GIGADEVICE newly entered the top ten.

Tencent Holdings, Kweichow Moutai, Zijin Mining, Alibaba-W, WuXi AppTec, and Luxshare Precision collectively exited the top ten holdings.

Although facing institutional减持 (selling), the "Yi Zhongtian" group remains the favorite of public funds. ZJ INNOLIGHT has held the position as the top holding for three consecutive quarters, with Suzhou New Sea Union Telecom closely following.

Although Tianfu Communication did not break into the top ten, it was still增持 (bought) by institutions such as Guotai Fund, AVIC Fund, and Cinda-Australia Fund.

Multiple funds uniformly maintained an optimistic outlook in their Q2 reports, stating that the long-term upward logic of global AI computing power capital expenditure has not changed. Supply and demand dynamics in the storage, optical module, and semiconductor equipment industry chains remain tight, and industry profitability possesses持续 upward elasticity (sustained upward potential).

In Xiong Yuan's view, highly crowded sectors in tech stocks have seen some degree of deleveraging, and pressures from forced liquidations and passive selling have been somewhat released. "However, market positioning has not been fully cleared, and short-term fluctuations between rebounds and selling may persist."

The剧烈震荡 (violent fluctuations) in tech stocks over the past month since late June have sounded a risk alarm for fund investors and managers across the market.

For fund managers like Zhang Haojia who "stick firmly" to tech stocks, the gains can make you question reality, and the drops can equally make you question reality.

For fund investors, the most important thing is not to guess tops and bottoms, but to understand what their purchased funds are actually betting on. After all, high returns often come with承受高波动 (bearing high volatility).