Technology as the spear, dividends as the shield: Fund managers reconstruct the attack and defense system

This article is from: China Securities Journal

On March 31, the 2025 annual reports of publicly offered funds were completed. Data from Tianxiang Investment Advisory shows that performance and industry trends have become important considerations for fund managers when buying. Among the top ten A-share stocks with the largest net purchases by publicly offered funds in 2025, there are high-quality performers such as ProBig Data Storage and Shengyi Technology. Dividend-focused assets have also become “favorites” of publicly offered funds. Financial blue chips such as China Ping An and CITIC Securities, as well as high-dividend-yield stocks such as Industrial Bank, were also subject to large-scale net purchases by publicly offered funds in 2025.

Data shows that in 2025, stocks such as Guotai Haitong, Dongshan Precision, China Ping An, Oriental Fortune, and Horizon Technology ranked among the top in net purchases by publicly offered funds; while stocks such as CATL, BYD, Midea Group, Luxshare Precision, and Yangtze Power ranked among the top in net sales by publicly offered funds.

● By reporter Zhang Lingzhi and Wan Yu

Focusing on technology and dividends

Among A-share stocks with the highest net purchase amounts by publicly offered funds in 2025, technology stocks account for half the market, and dividend-related financial assets have also gained the favor of publicly offered funds. Data from Tianxiang Investment Advisory shows that throughout 2025, the top ten stocks by net purchase amount by publicly offered funds were Guotai Haitong, Dongshan Precision, China Ping An, Oriental Fortune, Horizon Technology, CITIC Securities, China Shipbuilding, ProBig Data Storage, Shengyi Technology, and Luoyang Mo-Tech.

Specifically, Guotai Haitong received net purchases of RMB 20.899 billion in 2025, ranking first; Dongshan Precision followed closely, with net purchases of RMB 14.177 billion. Net purchases of China Ping An, Oriental Fortune, and Horizon Technology were RMB 12.243 billion, RMB 11.564 billion, and RMB 8.181 billion, respectively; while CITIC Securities, China Shipbuilding, ProBig Data Storage, Shengyi Technology, and Luoyang Mo-Tech had net purchase amounts between RMB 5.7 billion and RMB 7.4 billion.

Performance and industry trends have become important considerations for fund buying. Taking ProBig Data Storage as an example, the company’s stock price rose by more than 80% in 2025. With the storage industry recovering, the company’s business grew significantly. Shengyi Technology’s stock price rose by more than 200%. In 2025, the company achieved net profit attributable to shareholders of listed companies of RMB 3.334 billion, a year-on-year increase of 91.76%.

At the same time, dividend-related assets remain the “stabilizing force” in publicly offered funds’ holdings. Financial leaders such as China Ping An and CITIC Securities, as well as stocks with high dividend-yield characteristics such as Industrial Bank, saw large-scale net purchases by publicly offered funds in 2025, showing that while fund managers pursue growth, they remain highly attentive to defensive assets that offer stable returns.

In terms of stock price performance, several stocks with large net purchases by publicly offered funds saw substantial gains in 2025. Dongshan Precision, Luoyang Mo-Tech, Kingwin Electronics, Jushih Optoelectronics, and others all rose by more than 100%. Financial stocks such as China Ping An and Huatai Securities also delivered gains of more than 35%.

Multiple high-priced stocks were reduced significantly

Looking at net selling, data from Tianxiang Investment Advisory shows that in 2025, the top 10 A-share stocks by net sales amount by publicly offered funds were CATL, BYD, Midea Group, Luxshare Precision, Yangtze Power, Cambricon, Agricultural Bank of China, Wuliangye, Gree Electric Appliances, and ZTE.

Among them, CATL was net sold the most by publicly offered funds, with net sales amounting to RMB 28.409 billion; BYD followed closely with net sales of RMB 23.617 billion. Net sales of Midea Group, Luxshare Precision, Yangtze Power, Cambricon, Agricultural Bank of China, and Wuliangye all exceeded RMB 10 billion.

Among the list of the top ten stocks by net sales by publicly offered funds, there are both blue-chip names such as Midea Group, Agricultural Bank of China, and Wuliangye, as well as star technology stocks such as Luxshare Precision and Cambricon in recent years.

It is worth noting that, aside from Cambricon, several technology stocks also saw large-scale net selling by publicly offered funds in 2025. Shenghong Optoelectronics, Goertek New, and JAC Interconnect also had net sales amounts exceeding RMB 7 billion in 2025.

Equity assets are more attractive

Looking ahead to investment opportunities in 2026, Zhu Shaoxing, a fund manager at Fullgoal Fund, said that the trend of recovery in the real economy will continue, and the external environment may enter a valuable easing window. The time window for consumption to rebound may lag. The positive factors include observing that the industrial upgrading process of leading enterprises is progressing rapidly, and the global competitiveness of a large number of listed companies has increased significantly. After the comprehensive rally in 2025, the market’s overall valuation has been lifted noticeably; even some popular sectors show signs of bubble. Overall, the market is experiencing a rebound after several consecutive years of decline. Valuations remain within a reasonable range, and valuations of many high-quality companies not riding on the hype are even more attractive. Coupled with the level of bond yields, equity assets still remain the more attractive category.

Zhou Weiwend, a fund manager at CIE Fund, said that this year, allocations can be built around two main lines: first, to seize industry opportunities where prices form a bottom or rise as liquidity improves and the supply-demand landscape changes. Focus should be placed on industries that enter an upcycle driven by constraints in supply or the recovery of demand. For example, in the aluminum electrolysis industry, due to limited capacity expansion, global production capacity is expected to maintain a tight balance over the next 1–2 years. Combined with the Federal Reserve’s rate-cut cycle providing liquidity support to commodities, allocations to this area increased gradually in the fourth quarter of 2025. The earnings levels of some chemical companies are currently low, and in the future they have strong profit-recovery elasticity. Second, continue to allocate to emerging industry trend opportunities represented by AI.

With regard to specific investment opportunities in the AI sector, Chen Hao, a fund manager at E Fund, said that he still looks favorably on the TMT direction led by AI, but stock selection will be more focused. The capabilities of AI large models continue to iterate, and the industry trend continues to advance. From a multi-year industry cycle perspective, AI has shifted from the acceleration phase in 2025 to the stable long-term growth phase in 2026. At the current point in time, the resilience of overseas CSPs (cloud service providers)’ core business remains strong: profits and cash flows are still steady, enabling CAPEX (capital expenditures) to continue rising. At the same time, the requirements for an AI commercialization closed-loop are gradually increasing. In the future, the key focus can be placed on structural opportunities within the sector and on the progress of AI commercialization implementation. Meanwhile, the integration between AI and local scenarios continues to improve; coordination between compute infrastructure building and application deployment is advancing in tandem. Confidence in domestic industry chains continues to strengthen, and related sector investment opportunities are expected to keep emerging.