Core Viewpoint - The article highlights the significant growth and investment opportunities in China's military industry, driven by recent geopolitical tensions and upcoming military events, particularly the September 3 parade showcasing new domestic military equipment [4][5][11]. Summary by Sections Military Industry Performance - A-share military-related sectors, including military equipment and drone concepts, experienced a short-term surge, with companies like Zhongtian Rocket and Chengfei Integration hitting the daily limit [4]. - The China Securities Military Index has risen over 20% year-to-date as of August 18, 2025, outperforming many other sectors [4]. Fund Performance - Nearly all 120 defense and military-themed mutual funds have achieved positive returns this year, with 66 funds yielding over 20% and some exceeding 40% [4][5]. - Among funds with over 20 billion yuan in assets, the average return is 25.12%, with the top performers being Bosera Fund's Bosera Military Theme Stock A, Huaxia Fund's Huaxia Military Security Mixed A, and GF Fund's GF Small and Medium Cap Selected Mixed A [5][7]. Fund Manager Insights - Fund manager Zeng Peng of Bosera Military Theme Stock A reported a year-to-date return of 35.84%, significantly outperforming the benchmark [7]. - The fund maintained a high allocation in missile industry chains and sectors like military AI, drones, and information security, anticipating continued strong performance in the third quarter due to geopolitical catalysts [7][11]. Fund Rankings by Size - For funds with 5-20 billion yuan, the top performer is the China Europe High-end Equipment Stock Initiation C, managed by Li Shuai, with a return of 41.04% [9][10]. - In the 1-5 billion yuan category, the China Europe High-end Equipment Stock Initiation A leads with a return of 41.47% [13][14]. - The top fund in the 1 million to 10 million yuan category is the Huafu Guotai Min'an Flexible Allocation Mixed A, achieving a return of 42.72% [16][17]. Future Outlook - The military industry is expected to see a performance boost due to anticipated quarterly reports showing earnings turning points for many military companies and the upcoming military parade [11][18]. - The 14th Five-Year Plan emphasizes modernization in defense and military capabilities, indicating a strategic shift for China's military industry towards leading rather than following [18].

Group 1 - The core point of the article is the appointment of Deng Xiang as the new fund manager for Huafu Guotai Min'an Flexible Allocation Mixed Fund (000767), effective from August 19, 2025, alongside the existing manager Chen Qi [1] - As of August 18, 2025, the net value of Huafu Guotai Min'an Flexible Allocation Mixed Fund was 1.6189, reflecting a daily increase of 3.48% and a yearly increase of 74.85% [1] - Deng Xiang holds a master's degree from Clark University in the United States and has been with Huafu Fund Management Co., Ltd. since May 2015, previously serving in various roles including assistant industry researcher and fund manager assistant [1] Group 2 - Deng Xiang has managed public funds, including Huafu Strategy Selected Mixed Fund A and C, with returns of 13.82% and 12.88% respectively since his appointment on April 2, 2024 [1] - A notable performance was recorded with the management of Huafu Strategy Selected Mixed Fund A, which invested in Cambrian during the third quarter of 2024 at an average price of 233.11 and exited in the second quarter of 2025 at an average price of 646.15, yielding an estimated return of 177.19% [1]

Core Insights - The best-performing fund managed by Chen Qi in the second quarter of 2025 is the Huafu Times Selected Mixed A Fund (016119), with a net value increase of 1.84% [1] - Chen Qi has managed two funds, with the Huafu Times Selected Mixed C Fund (016120) showing a slightly lower increase of 1.74% [2] Fund Performance - Huafu Times Selected Mixed A Fund has a scale of 0.59 billion yuan and an annualized return of -4.91% [2] - Huafu Times Selected Mixed C Fund has a scale of 0.10 billion yuan and an annualized return of -5.29% [2] Investment Strategy - During Chen Qi's tenure managing the Huafu Wulian World Flexible Allocation Mixed A Fund (001709), the cumulative return was 75.1% with an average annualized return of 10.27% [2] - The fund had 92 adjustments in heavy stocks, with a win rate of 53.26% [2] Notable Stock Adjustments - Significant stock adjustments include: - Ningde Times: Purchased in Q2 2020, sold in Q1 2023, with an estimated return of 192.52% and a company revenue growth of 696.74% [4] - East Mountain Precision: Purchased in Q2 2024, sold in Q1 2025, with an estimated return of 99.11% and a company revenue growth of 9.27% [4] Underperforming Stocks - Notable underperforming stocks include: - Unisoc Microelectronics: Purchased in Q2 2022, sold in Q3 2024, with an estimated return of -67.26% and a revenue decline of 22.6% [5] - New Yichang: Purchased in Q1 2023, still held, with an estimated return of -59.62% [3]