Group 1 - The A-share market has shown significant structural trends this year, with the Shanghai Composite Index breaking through 3800 points in August, followed by accelerated rotation of market hotspots and fluctuating performance across sectors [1] - Despite the complexity of the market, it serves as a test for fund managers' abilities, with Hu Zhongyuan from Huashang Fund being highlighted for maintaining a steady upward performance curve [1] - Hu Zhongyuan's managed mixed funds have ranked in the top ten of their category over the past 1, 3, and 5 years, with specific funds achieving first place in their respective categories [1] Group 2 - Hu Zhongyuan's investment philosophy prioritizes the risk-reward ratio, focusing on industry comparisons and minimizing alpha in stock selection while adhering to a dual diversification principle in portfolio management [3] - The Huashang Runfeng Flexible Allocation Mixed A fund has achieved impressive returns of 146.96% over the past year, 193.05% over five years, and 332.42% over seven years, consistently ranking among the top funds in its category [3][5] - Hu Zhongyuan's management of the Huashang Yuanheng Flexible Allocation Mixed A fund has also resulted in significant returns, with 132.57% over the past year and 200.52% over five years, placing it in the top 1% of its category [3][5] Group 3 - Hu Zhongyuan emphasizes a diversified approach in portfolio construction, controlling the holding ratio of any single sector and spreading investments across various stages of the industry chain to mitigate concentration risks [7] - His strategy of combining high-growth sectors with stable defensive sectors helps to balance overall portfolio volatility, enhancing the investment experience [7] - Hu Zhongyuan's success is attributed to his deep understanding of industries and markets, focusing on fundamental research rather than short-term market fluctuations [7][8] Group 4 - Hu Zhongyuan's background in bond trading has instilled a strong focus on controlling downside risks, ensuring that every investment has sufficient potential returns to cover associated risks [9][10] - His extensive research covers over 30 major industries and more than 100 sub-sectors, allowing him to adapt to market changes effectively [9] - Hu Zhongyuan's dual expertise in both equity and fixed income markets enables him to flexibly manage investment strategies across asset classes [10] Group 5 - Looking ahead, Hu Zhongyuan is optimistic about the A-share market in 2025, driven by a combination of policy support and liquidity easing, which is expected to lead to a long-term valuation recovery [10] - Key investment opportunities are identified in sectors such as artificial intelligence, communications, electronics, and healthcare, driven by ongoing industry developments and demographic changes [10]

Core Viewpoint - The A-share market has shown significant structural trends in 2023, with the Shanghai Composite Index breaking through 3800 points in August, leading to accelerated rotation of market hotspots and fluctuating performances across sectors [1] Fund Performance - Hu Zhongyuan, a fund manager at Huashang Fund, has consistently ranked in the top ten for all mixed funds he manages over the past 1, 3, and 5 years, demonstrating strong market understanding and asset allocation skills [1][2] - Specific fund performances include: - Huashang Shuangyi Balanced Mixed A ranked 1st in its category for 1, 3, and 5 years [2] - Huashang Runfeng Flexible Allocation Mixed C ranked 1st over 5 years and in the top five for 1 and 3 years [2] Investment Philosophy - Hu Zhongyuan's investment philosophy prioritizes the risk-reward ratio, focusing on industry comparisons and minimizing alpha in stock selection while adhering to a dual diversification principle in portfolio management [3] - His managed funds, such as Huashang Runfeng Flexible Allocation Mixed A, have achieved significant returns since he took over in March 2019, with 1-year, 5-year, and 7-year returns of 146.96%, 193.05%, and 332.42% respectively [3][4] Investment Strategy - Hu Zhongyuan emphasizes a framework based on industry cycles and win rates, selecting industries with clear upward trends in revenue and profit for allocation [5] - He has successfully executed multiple industry switches, such as moving from liquor and pharmaceuticals to coal and consumer sectors, which have contributed to excess returns [5][6] - His strategy includes a dual approach of "industry diversification + stock diversification," which helps mitigate overall portfolio volatility [6] Market Outlook - Looking ahead, Hu Zhongyuan is optimistic about the A-share market in 2025, driven by a combination of policy support and liquidity easing, which he believes will lead to a long-term valuation recovery [8] - Key investment areas include artificial intelligence, communication, electronics, and the evolving Chinese pharmaceutical sector, which are expected to present new opportunities [8]

Core Insights - The A-share market has shown strong performance, with the Shanghai Composite Index frequently breaking near 10-year highs, leading to increased optimism among investors [1] - Huashang Fund has demonstrated significant strength in active management, with its Huashang Advantage Industry Flexible Allocation Mixed A fund achieving a nearly 92% increase over the past year and a net value growth rate of over 1058% since inception [1][2] Fund Performance - Huashang Advantage Industry Flexible Allocation Mixed A ranks first in its category over the past 10 years, and has also performed well in 7-year, 5-year, and 3-year rankings [1][2] - Other funds under Huashang Fund, such as Huashang New Trend Preferred Flexible Allocation Mixed and Huashang Credit Enhanced Bond A/C, have also ranked first in their respective categories over the past 7 years [1] - The performance data is sourced from Galaxy Securities, with rankings reflecting the funds' standings among their peers [2] Fund Management - The Huashang Advantage Industry Flexible Allocation Mixed A fund is managed by Zhang Mingxin, who emphasizes a growth-value investment style focused on "investment based on industrial trends" [2][3] - Zhang's investment strategy includes a balanced approach between deep value and growth, with a focus on tracking industry trends and marginal changes [2] - In the second quarter, the fund increased its allocation to overseas computing power sectors, anticipating a surge in demand driven by advancements in AI technologies [2][3] Future Outlook - Zhang Mingxin expresses optimism regarding AI industry opportunities, suggesting that domestic AI developments will follow the lead of international advancements [3]

Market Overview - The report indicates that major asset classes have shown positive performance, with Hong Kong stocks leading, followed by crude oil and A-shares. The A-share market saw the ChiNext Index increase by 3.17% [2][6] - The average stock position of all funds decreased to 78.89%, a drop of 1.38 percentage points from the previous week. However, the average position for ordinary equity funds rose to 83.57%, an increase of 0.90 percentage points [2][10] Equity Fund Performance - Passive index funds averaged an increase of 1.92%, while ordinary equity funds saw an average rise of 2.94%. Enhanced index funds increased by 1.49%, and flexible allocation funds rose by 2.19%. The best-performing fund in the passive category was the Invesco CSI Hong Kong Innovation Drug ETF, which surged by 13.98% [3][11] - The report highlights that the average performance of various equity fund types shows significant variability, with the top-performing funds in the ordinary equity category achieving a maximum increase of 17.61% [12][13] Fixed Income Fund Performance - Fixed income products also showed positive trends, with mixed bond funds averaging a 0.49% increase. The best performer in this category was the Huashang Dual-Wing Balanced Mixed A, which rose by 5.09% [14] - The report details that short-term pure bond funds had a minimal average increase of 0.05%, indicating a relatively stable performance in the fixed income market [14][15] Other Fund Categories - Commodity funds averaged a 0.51% increase, with the highest performer being the soybean meal ETF, which rose by 2.43%. International (QDII) funds performed well, averaging a 2.46% increase, with the top fund gaining 15.89% [15][16] - REITs funds remained stable, with the best performer showing a modest increase of 3.05% [16] Fund Market Dynamics - The report notes that 36 new funds were established this week, raising a total of 180.74 billion, which is a decrease compared to the previous week. Among these, 20 were equity funds, which raised the largest amount at 63.38 billion [18][19] - As of July 18, 2025, the total number of public funds reached 12,963, with a total net asset value of 33.78 trillion [21][22]

Report Industry Investment Rating Not provided in the content Core Viewpoints - This week (from July 14 to July 18, 2025), among various types of fund products, active equity funds had the highest weekly average return rate of 3.00%. The other types of funds, ranked by their weekly average return rates from high to low, were QDII funds (2.45%), ETF funds (1.81%), quantitative funds (1.48%), FOF funds (0.55%), bond funds (0.19%), and REITs funds (0.08%) [2][8]. - Year - to - date, REITs funds led with an average increase of 19.07%. The other types of funds, ranked by their return rates from high to low, were QDII funds (17.11%), active equity funds (11.94%), quantitative funds (9.79%), ETF funds (9.75%), FOF funds (4.94%), and bond funds (1.71%) [8]. Summary by Directory 1. Cross - Category Fund Product Return Overview - Selected funds for statistical analysis had a scale of over 0.1 billion yuan at the end of the latest reporting period and were established before 2025. This week, active equity funds had the highest weekly average return rate of 3.00%. Year - to - date, REITs funds led with an average increase of 19.07% [8]. 2. Active Equity Funds 2.1 Performance of Major Broad - Based Indexes in A - share and Hong Kong Markets - This week, all major broad - based indexes in the A - share market except the BeiZheng 50 index rose, with the overall increase slightly lower than last week. The ChiNext Index had the best performance with a weekly change of 3.17%, followed by the Shenzhen Component Index with 2.04%. The BeiZheng 50 index had the weakest performance with a weekly change of - 0.16%. All major broad - based indexes in the Hong Kong market rose this week, with the increase significantly higher than last week. The Hang Seng Index and the Hang Seng Tech Index had changes of 2.84% and 5.53% respectively [11]. 2.2 Performance of Shenwan Primary Industry Indexes - Most Shenwan primary industry indexes rose this week. The communication, pharmaceutical biology, and automobile industry indexes performed relatively well, with weekly changes of 7.56%, 4.00%, and 3.28% respectively. The public utilities, real estate, and media industry indexes performed weakly, with weekly changes of - 1.37%, - 2.17%, and - 2.24% respectively [13]. 2.3 Overview of Returns of High - Performing Active Equity Funds - This week, the overall average return rate of active equity funds was 3.00%. Great Wall Health Mix A had the best performance with a weekly return rate of 16.27%, driven by the launch of the national drug procurement and the total License - out amount approaching 66 billion yuan in the first half of the year. High - performing funds mostly had heavy positions in industries such as pharmaceutical biology and communication [15]. 2.4 Overview of Returns of Industry - Specific Active Equity Funds - This week, the average return rate of industry - specific active equity funds was 5.15%, significantly better than the overall level of active equity funds. Pharmaceutical industry funds performed brightly this week with an average return rate of 8.54%. TMT industry funds had a weekly average return rate of 4.86%. Financial real - estate industry funds had a relatively weak performance with a weekly average return rate of 0.03% [18]. 2.5 Overview of Returns of Non - Industry Active Equity Funds - This week, the average return rate of non - industry funds was 2.72%, slightly weaker than the overall level of active equity funds. The growth - style funds were relatively dominant this week with a weekly average return rate of 3.58% [21]. 3. Quantitative Funds 3.1 Overview of Quantitative Fund Returns - This week, the average return rate of quantitative funds was 1.48%. Huaxia CSI All - Share Pharmaceutical and Healthcare Enhanced had the highest weekly return rate of 8.83%. In terms of strategy types, active quantitative funds had the best weekly average return of 1.66% [23]. 3.2 Overview of Returns of Major Index - Enhanced Quantitative Funds - This week, among index - enhanced quantitative funds, funds tracking the Guozheng 2000 index performed better with an average return rate of 1.69%. The weekly average return rates of funds tracking the CSI 300, CSI 500, and CSI 1000 indexes were 1.10%, 1.06%, and 1.44% respectively. The proportion of funds achieving positive excess returns was 58.72%, slightly higher than last week [25]. 4. Bond Funds 4.1 Performance of Major Bond Indexes - This week, major bond market indexes generally rose. The CSI Aggregate Bond Index rose 0.11% to close at 261.42, the CSI Treasury Bond Index rose 0.04% to close at 247.89, and the CSI Credit Bond Index rose 0.08% to close at 214.00 [27]. 4.2 Performance of Convertible Bond Indexes - This week, the CSI Convertible Bond Index rose 0.67% to close at 453.86, with the weekly trading volume increasing by 3.75%. The median convertible bond price rose 1.07% to close at 127.55, and the median conversion premium rate rose 0.25% to 26.52% [30]. 4.3 Overview of Bond Fund Returns - This week, the average return rate of bond funds was 0.19%. Huashang Shuangyi Balance Mix A had the best performance with a weekly return rate of 5.09%. High - performing bond funds were mostly partial - debt hybrid, convertible bond, and hybrid bond funds [32]. 4.4 Overview of Returns of Pure - Bond Funds - This week, the average return rate of pure - bond funds was 0.07%. The return rates of short - term and medium - long - term pure - bond funds were 0.05% and 0.07% respectively. Huatai Zijin Zhihe Interest - Rate Bond performed relatively best with a weekly average return rate of 1.90% [34]. 4.5 Overview of Returns of Hybrid Bond Funds - This week, the weekly average return rate of hybrid bond funds was 0.26%. The return rates of hybrid bond - type level - 1 and level - 2 funds were 0.14% and 0.35% respectively. Golden Eagle Yuanfeng Bond A performed best with a weekly average return rate of 3.07% [37]. 4.6 Overview of Returns of Partial - Debt Hybrid and Flexible Allocation Bond Funds - This week, the average return rate of partial - debt hybrid bond funds was 0.49%, and that of flexible allocation bond funds was 0.30%. Huashang Shuangyi Balance Mix A performed best with a weekly return rate of 5.09% [39]. 4.7 Overview of Returns of Convertible Bond Funds - This week, the average return rate of convertible bond funds was 1.09%. Southern Changyuan Convertible Bond A performed best with a weekly average return rate of 2.42% [41]. 5. ETF Funds 5.1 Overview of ETF Fund Fund Flows - This week, ETF funds had a net inflow of 56.265 billion yuan, a 265.37% increase compared to the previous period. Except for bond - type and cross - border ETFs, which had net inflows, other types of ETFs had net outflows. Bond - type ETFs had a large - scale net inflow of 73.367 billion yuan, reaching a historical high. Stock - type ETFs had a net outflow of 17.072 billion yuan [43]. 5.2 Overview of ETF Funds with Top Net Inflows by Index - Among the tracked indexes, ETFs tracking the AAA Sci - tech Innovation Bond and Shanghai AAA Sci - tech Innovation Bond indexes in the bond index had the top net inflows, with 48.339 billion yuan and 18.073 billion yuan respectively. Among the equity indexes, ETFs tracking the securities company, Hong Kong securities, and Sci - tech Innovation 50 indexes had relatively large net inflows [47]. 5.3 Overview of ETF Funds with Top Net Outflows by Index - This week, the tracked indexes with top net outflows were all equity indexes, including the CSI A500 index (10.228 billion yuan), the CSI 300 index (7.175 billion yuan), the ChiNext Index (2.904 billion yuan), the CS Artificial Intelligence index (2.410 billion yuan), and the CSI 1000 index (2.235 billion yuan) [50]. 5.4 Overview of ETF Funds with Top Net Inflows - This week, most of the ETFs with top net inflows were Sci - tech Innovation Bond ETFs. Huaxia Sci - tech Innovation Bond ETF had the largest net inflow of 12.296 billion yuan, followed by Harvest Sci - tech Innovation Bond ETF with a net inflow of 11.324 billion yuan. Hong Kong Securities ETF also had a relatively large net inflow of 24.63 billion yuan this week [52]. 5.5 Overview of ETF Funds with Top Net Outflows - This week, most of the ETFs with top net outflows were scale - index ETFs. YinHua RiLi ETF had the largest net outflow of 3.632 billion yuan. Among the scale - index ETFs, CSI 300 ETF had a relatively large net outflow of 3.252 billion yuan. In addition, the Artificial Intelligence ETF in the theme - index ETF also had a relatively large net outflow [54]. 5.6 Overview of Returns of High - Performing ETF Funds - This week, the overall average change rate of ETF funds was 1.81%. Hang Seng Innovative Drug ETF had the highest weekly increase of 13.69%. High - performing ETF funds were mostly cross - border ETFs with investment themes such as innovative drugs. In addition, the ChiNext Artificial Intelligence ETF (Fullgoal) in the theme - index ETF also had a relatively high increase of 10.95% [56]. 6. FOF Funds - This week, the average return rate of FOF funds was 0.55%. Bank of Communications Smart Selection Starlight Mix (FOF - LOF) A had the best performance with a weekly return rate of 5.11%. Among the types, stock - type FOF funds performed best with an average return rate of 1.80% [57]. 7. QDII Funds - This week, the overall average return rate of QDII funds was 2.45%. Huatai - PineBridge Hong Kong Advantage Select Mix (QDII) A had the highest weekly return rate of 15.89%. The average return rates of different types of QDII funds were: stock - type 2.71%, hybrid - type 3.41%, bond - type - 0.04%, and other - type - 0.38% [60]. 8. REITs Funds - This week, the average change rate of REITs funds was 0.08%. China Merchants Sci - tech Innovation REIT had the best performance with a weekly change rate of 3.05% [62].

Core Insights - The best-performing fund managed by Hu Zhongyuan in Q2 2025 is the Huashang Runfeng Flexible Allocation Mixed A, with a net value increase of 12.28% [1] Fund Performance Summary - Hu Zhongyuan manages a total of 8 funds, with the following performance metrics: - Huashang Runfeng Flexible Allocation Mixed C: 28.50 billion, annualized return of 22.37%, Q2 increase of 12.23%, top holding in Zhongji Xuchuang [2] - Huashang Yuanheng Mixed C: 22.75 billion, annualized return of 31.14%, Q2 increase of 11.56%, top holding in Zhongji Xuchuang [2] - Huashang Anheng Bond A: 20.96 billion, annualized return of 11.33%, Q2 increase of 3.10%, top holding in Xinyi Sheng [2] - Huashang Yuanheng Mixed A: 17.04 billion, annualized return of 12.22%, Q2 increase of 11.68%, top holding in Zhongji Xuchuang [2] - Huashang Runfeng Flexible Allocation Mixed A: 14.36 billion, annualized return of 15.66%, Q2 increase of 12.28%, top holding in Zhongji Xuchuang [2] - Huashang Anheng Bond C: 10.95 billion, annualized return of 11.01%, Q2 increase of 3.03%, top holding in Xinyi Sheng [2] - Huashang Shuangyi Balanced Mixed A: 0.54 billion, annualized return of 7.76%, Q2 increase of 8.03%, top holding in Xinyi Sheng [2] - Huashang Shuangbi Balanced Mixed C: 0.05 billion, annualized return of 5.54%, Q2 increase of 7.90%, top holding in Xinyi Sheng [2] Investment Strategy and Performance - During his tenure as the manager of Huashang Shuangyi Balanced Mixed A, Hu Zhongyuan achieved a cumulative return of 104.52% with an average annualized return of 15.09%. The fund had 100 adjustments in heavy holdings, with a success rate of 75% [2] - Notable heavy stock adjustments include: - Cambrian (688256): Bought in Q1 2023, sold in Q4 2024, with an estimated return of 433.45% and a company performance growth of 65.56% [4][6] - Baorun (002568): Bought in Q2 2020, sold in Q4 2020, with an estimated return of 93.35% and a company performance growth of 78.31% [7] - Cambridge Technology (603083): Bought in Q3 2023, sold in Q2 2024, with an estimated return of -32.90% despite a company performance growth of 75.42% [5][8]