As of 11:20 AM on October 28, 2025, the disclosure rate of Q3 reports for active equity funds reached 100%. The strategy team at Industrial Securities, led by Zhang Qiyao, analyzed the holdings and allocation trends of these funds, noting that the overall position of active equity funds rose by 1.46 percentage points (pct) quarter-on-quarter (QoQ) to 87.43% in Q3. Specifically, ordinary stock funds, partial stock hybrid funds, and flexible allocation funds increased by 0.93 pct, 1.33 pct, and 1.87 pct, respectively.

In terms of sector allocation, ChiNext positions saw a significant rise of 4.70 pct to 23.7%, while STAR Market allocations grew by 2.12 pct to 17.45%. Conversely, main board allocations declined by 6.71 pct to 58.51%. For Hong Kong-listed stocks, active equity funds slightly reduced their exposure by 0.76 pct to 19.09% under the heavy-position benchmark.

Sector-wise, funds increased holdings in healthcare and raw materials while reducing positions in information & telecommunications, finance, and energy. At the stock level, Alibaba (09988), SMIC (00981), and TENCENT (00700) saw the largest increases in allocation, whereas Xiaomi Group (01810) was notably reduced.

Key takeaways from the Q3 fund reports include: 1. Active equity funds' overall position rose by 1.46 pct QoQ to 87.43%. 2. ChiNext allocations surged by 4.70 pct to 23.7%, while STAR Market allocations grew by 2.12 pct to 17.45%. Main board allocations fell by 6.71 pct to 58.51%. 3. Top sector increases were in electronics (+6.77 pct), communications (+3.96 pct), and power equipment (+2.42 pct), reflecting a tilt toward tech growth. The most reduced sectors were banking (-3.05 pct), food & beverage (-1.81 pct), and home appliances (-1.62 pct). 4. At the subsector level, communication equipment (+4.45 pct), consumer electronics (+3.09 pct), and semiconductors (+2.34 pct) saw the largest increases, while white goods (-1.67 pct), city commercial banks (-1.45 pct), and liquor (-1.02 pct) were the most reduced. 5. Top individual stock increases included Zhongji Innolight, Foxconn Industrial Internet, and New Sea Union Technology, with respective allocation gains of 2.17 pct, 2.03 pct, and 1.92 pct. In contrast, China Merchants Bank, Kweichow Moutai, and Gree Electric saw the largest declines. 6. For Hong Kong stocks, active equity funds slightly trimmed exposure by 0.76 pct to 19.09%, favoring healthcare and materials while cutting telecom, finance, and energy. Alibaba, SMIC, and TENCENT saw the highest allocation boosts, while Xiaomi Group was significantly reduced.