YICAI｜Over Half of China's Actively Managed Funds Boosted Stock Holdings in First Quarter
(Yicai) April 22 -- More than half of China's actively managed equity funds increased their stock exposure in the first quarter, with three-quarters of them exceeding 80 percent equity allocations, reflecting a broadly bullish stance.
Nearly three-quarters of the 1,490 funds had positive returns in the three months ended March 31, with 10 scoring more than 30 percent, based on their first-quarter reports. The top performer was Penghua Carbon Neutrality Theme A, at over 60 percent. As a result, the value of its assets under management surged nearly 11-fold to CNY109 billion (USD14.9 billion).
The best-performing funds were heavily invested in technology stocks. Ping An Advanced Manufacturing Theme A and Yongying Advanced Manufacturing Select A, for example, posted returns of about 54 percent and 52 percent, respectively. Both fund managers noted in their reports that their portfolios were focused on humanoid robotics.
Maxwealth Advanced Manufacturing Smart Choice Theme A, another fund investing heavily in humanoid robot and tech stocks in general, achieved a 52 percent first-quarter return, but had declined by about 12 percent this month as of April 18.
"The humanoid robotics industry is undoubtedly a high-growth golden track for the coming years or even decades, offering immense development potential and investment opportunities," said Zhang Yinxian, fund manager of Ping-An Advanced Manufacturing Theme A.
The industry's development trajectory will parallel that of smartphones and electric vehicles, with an even longer duration and larger total market capacity, he noted.
But last quarter's tech-focused high-flyers are now under short-term correction pressure as market conditions shift. The average drawdown for Penghua Carbon Neutral Theme A, Ping An Advanced Manufacturing Theme A, and Yongying Advanced Manufacturing Select A was more than 12 percent this month as of April 18, according to data from Wind Information.
Since the start of this quarter, funds themed around the Beijing Stock Exchange and the pharmaceutical sector have surged. For instance, closed-end fund Wanjia BSE Huixuan Two-Year Regular Open Fund A has jumped 12 percent so far in April, with its year-to-date return climbing to 48 percent.
Meanwhile, Great Wall Pharmaceutical Industry Selected Fund A and Maxwealth Pharmaceutical Innovation Smart Selected Fund A, which focus on innovative drug stocks, have achieved annual returns of nearly 45 percent and over 35 percent, respectively.
China's innovative drug sector is rapidly transitioning toward commercialization and global expansion, said Dan Lin and Chu Kefan, fund managers at Maxwealth Pharmaceutical Innovation Smart Selected Fund A. State support for pharma and medical device innovation remains unchanged, and the novel drug sector holds many investment opportunities, they added.