Among China's fund managers handling tens of billions in assets, Jiao Wei stands as a representative figure.
This portfolio manager at Yinhua Fund oversees up to 13.5 billion RMB in public fund assets (as of the end of Q2 2025).
His professional background is remarkably diverse, having previously worked at banks, small and medium-sized securities firms, as well as Xiang Cai Holland Bank Fund, Dacheng Fund, Cinda Australia Bank Fund, and Ping An Trust - truly a "grand slam" level resume.
How has his performance been? Let's take a look.
**Highly Concentrated Portfolio**
As of August 7th, Jiao Wei's flagship product, Yinhua Wealthy Theme, has significantly underperformed the CSI 300 index year-to-date, and has also lagged behind broad market indices over the past three years.
However, examining his portfolio holdings reveals banking stocks that have been "soaring" this year.
As of the end of Q2 2025, Jiao Wei's flagship product - Yinhua Wealthy Theme - demonstrates a highly concentrated investment style in its top ten holdings.
As shown below, this fund manager has concentrated about 60% of his funds into just a few companies. This billionaire-level fund manager has placed his "heavy bets" on the banking sector, equivalent to putting most chips on financial cards in a single hand.
Specifically, banking stocks occupy five positions: China Merchants Bank (8.58%), CITIC Bank (7.94%), Bank of Hangzhou (6.88%), Bank of Jiangsu (6.24%), and Industrial Bank (4.36%), totaling 33.99% - more than half of the entire portfolio.
Beyond banking, he has also allocated positions in China Pacific Insurance and Ping An Insurance, further strengthening the financial sector weighting.
By this calculation, the financial sector holdings approach nearly 50% of the total portfolio.
Against this backdrop, Jiao Wei's bets on non-financial sectors are merely "decorative," such as PetroChina and China Mobile. This allocation approach leans toward value style, suitable for steady investment in volatile markets.
**Deconstructing Sector Investment**
Reading through Jiao Wei's Q2 report, this fund manager has embarked on "yet another" sector investment strategy.
Let's first examine Jiao Wei's latest statement:
"Mainly based on dividend comparison considerations, we reduced holdings in utilities and tilted toward the financial sector. Within the financial sector, we reduced holdings in national large banks and increased positions in non-bank financials, joint-stock banks, and city commercial banks in regions showing sustainable recovery in economic vitality."
Let us provide investors with a vivid "translation" of this statement: Jiao Wei is like an investment "chef" who, in the first half of this year, switched his ingredient selection from conservative and stable "tofu" (utilities) to more appetizing meat (financial sector), specifically selecting "lean meat" (more growth-oriented financial stocks).
Between the lines, he seems to "look down upon" the Big Four state-owned banks, which many in investment circles commonly regard as slow-growing assets with few surprises. This "disdain" comes on the premise of reducing holdings in utility stocks, which are more like "honest people."
Generally speaking, the utilities sector encompasses companies like power, water services, and highway operators, characterized by stable revenues and dividends but weak growth prospects. However, investors familiar with A-shares over the past three years surely know that this sector produced numerous bull stocks during volatile periods, with stock price gains matching individual growth stocks. After accumulating such gains, Jiao Wei decided to shift his focus to the more "attractive" financial sector.
Checking Q1 holdings records, only two utility companies were among Jiao Wei's heavy holdings: China Mobile and Guangdong Highway, with the latter disappearing from the top ten holdings by Q2 end, while the former's portfolio weight also declined quarter-over-quarter.
**Risks of "Fortress Strategy"**
At this point, investors likely get the impression that Jiao Wei employs a "highly concentrated" fortress strategy, like choosing a strategically elevated position.
However, risks follow: if the battle line is chosen incorrectly, or if the fortress itself encounters problems, the entire defense system could collapse instantly.
In reality, this represents a "high-risk" case in fund investment.
For instance, if the banking industry as a whole turns cold - whether due to real estate risk spillover, declining bank asset quality, compressed interest margin spreads, or sudden regulatory policy changes - these factors could trigger systematic declines across the entire financial sector.
It's like a chess player stacking all pieces on one side - if the opponent precisely targets this area, the entire game situation could suddenly shift.
Another portfolio detail cannot be ignored.
During the previous bull market period, Jiao Wei was known for heavy positions in consumer stocks. As of the end of 2023, he held heavy positions in Kweichow Moutai, Shanxi Xinghuacun, Tsingtao Brewery, Jiannanchun, and Jiuzhaigou Liquor, with no banking or insurance stocks making the top ten holdings list at that time.
Now there's been a complete transformation!
Investors may also notice that as of the latest reporting, Jiao Wei has allocated almost nothing to emerging growth industries such as technology, semiconductors, and new energy - currently hot sectors. Against the backdrop of rapid market style rotation, this "specialized" allocation undoubtedly plants seeds of underperformance risk.
More importantly, the liquidity of some small and medium-sized bank stocks deserves attention. Once the market experiences significant volatility or panic selling, fund net asset value curves will experience dramatic swings.
Using a vivid metaphor: when we park our car in a narrow dead end, once the front is blocked, we're stuck with nowhere to go, only able to worry helplessly.
For investment purposes, excessive concentration is like putting all eggs in one basket - no matter how well-made the basket, it cannot withstand sudden risk arrival.