The first five months of 2026 have seen continued structural divergence in the A-share market, placing active equity funds in starkly different positions—some basking in the spotlight while others remain in the shadows. On one side, the technology sector, led by AI computing power, optical communication, and semiconductor equipment, has surged ahead, producing two funds with returns exceeding 100% and over a dozen with gains above 90%. Huashang Balanced Growth (taking Class A shares as an example, same below) and Caitong Multi-Strategy Fuxin recorded returns of 101.73% and 101.19%, respectively. On the other side, traditional sectors such as consumer goods, healthcare, and agriculture have underperformed, with more than 20 funds experiencing drawdowns exceeding 20%. The performance gap between the top and bottom performers approached 130 percentage points. Tongtai Huize and Tongtai Great Health Theme posted returns of -27.31% and -27.52%, respectively.

In the first five months of 2026, the Shanghai Composite Index edged up 2.51%, while the Shenzhen Component Index rose 15.16%. The ChiNext and STAR 50 indices performed even more strongly, gaining 26.06% and 30.29%, respectively. Fund performance vividly reflected the dominance of the "hard tech" theme. As of May 31, 2026, the two top-performing active equity funds, both of which more than doubled in value, were heavily concentrated in optical modules.

Huashang Balanced Growth led the pack with a year-to-date return of 101.73%. Fund manager Zhang Mingxin's top holdings at the end of Q1 included Yangtze Optical Fibre And Cable Joint Stock Limited Company (601869.SH), Eoptolink Technology Inc.,Ltd. (300502.SZ), Zhongji Innolight Co.,Ltd. (300308.SZ), and Yuanjie Semiconductor Technology Co.,Ltd. (688498.SH), positioning the fund in optical communication and AI computing infrastructure.

Caitong Multi-Strategy Fuxin followed closely with a 101.19% return. Fund manager Jin Zicai's portfolio at the end of Q1 was led by holdings such as Shenzhen Han'S Cnc Technology Co.,Ltd. (301200.SZ), Zhongji Innolight Co.,Ltd. (300308.SZ), Shengyi Electronics Co.,Ltd. (688183.SH), Eoptolink Technology Inc.,Ltd. (300502.SZ), and Guangdong Dtech Technology Co.,Ltd. (301377.SZ). The semiconductor equipment and PCB industry chains served as the core engines for its net value surge.

Five other funds managed by Jin Zicai—Caitong Craftsman Selection One-Year Holding A, Caitong Prosperity Selection One-Year Holding A, Caitong Integrated Circuit Industry A, Caitong Growth Selection A, and Caitong Quality Selection A—all ranked near the top of the gainers list, with returns between 87% and 98% for the period, making them among the biggest winners in this technology-driven market cycle.

In the Q1 report, Jin Zicai stated that the fund maintained a significant overweight position in the overseas computing power sector during Q1 2026. He emphasized, "Even today, A-share market investors still somewhat undervalue companies in the overseas computing power supply chain, with current pricing not yet fully reflecting their worth. As the dominant theme of this market cycle, the slight undervaluation of AI computing power has created a favorable, long-term investment主线 for A-share fund managers skilled in industry research."

Another fund managed by Zhang Mingxin, Huashang致远回报, also ranked near the top with a 98.17% return. Regarding AI computing power, he holds a similar view: "The strategy maintains a high equity allocation, dynamically optimizing holdings within sectors experiencing high annualized revenue growth both domestically and internationally, seeking alpha returns, and capturing opportunities for certain growth amidst industrial transformation."

Across the entire performance list, the 13 funds with returns exceeding 90% show concentrated holdings. Zhongji Innolight Co.,Ltd. (300308.SZ) and Eoptolink Technology Inc.,Ltd. (300502.SZ) were among the top holdings in 11 of these funds, while Yuanjie Semiconductor Technology Co.,Ltd. (688498.SH) was a top holding in 9, continuing the trend from 2025 where optical modules drove performance.

It is noteworthy that the managers of these top-performing funds are not newcomers. Zhang Mingxin already delivered a 137.15% return with Huashang Balanced Growth in 2025, demonstrating strong performance continuity. Caitong's Jin Zicai is likewise a long-term investor in the technology sector. Their common characteristics include making high-conviction bets based on industry trend judgments and maintaining high portfolio concentration, effectively "staying invested" during the core market trend.

In stark contrast to the spotlight on technology, the bottom of the performance rankings is occupied by funds heavily invested in sectors like healthcare and major consumer goods, which have yet to post positive returns. Tongtai Huize fell 27.31%, ranking last in the market, followed closely by Tongtai Great Health Theme, which declined 27.25%. Both products are managed by Ma Yi and Mai Jianpei.

Tongtai Huize primarily focuses on AI applications, the pet economy, and healthcare services. Its top five holdings are Capitalonline Data Service Co.,Ltd. (300846.SH), Hand Enterprise Solutions Co.,Ltd. (300170.SZ), Leon Technology Co.,Ltd. (300603.SZ), Kunlun Tech Co.,Ltd. (300418.SZ), and Beijing Haitian Ruisheng Science Technology Ltd. (688787.SH). Tongtai Great Health Theme is mainly invested in healthcare, with its top holdings including Mehow Innovative Ltd. (301363.SZ), Beijing Sun-Novo Pharmaceutical Research Co.,Ltd. (688621.SH), Jiangsu Apon Medical Technology Co.,Ltd. (300753.SZ), Sanbo Hospital Management Group Limited (301293.SZ), and Innovative Medical Management Co.,Ltd. (002173.SZ).

Notably, Tongtai Great Health Theme actually achieved a positive return of 10.89% in 2025, but the continued downturn in the healthcare sector in 2026 led to a significant net value drawdown. Similarly, Xinhua Medical Innovation, also heavily weighted in healthcare, posted a return of -26.84%, ranking third from the bottom.

Beyond healthcare, several funds among the bottom 20 performers are heavily invested in airline stocks. For instance, the top five holdings of GF Value领先 include Spring Airlines Co.,Ltd. (601021.SH), TONGCHENGTRAVEL (00780.HK), China Express Airlines Co.,Ltd. (002928.SZ), CHINA EAST AIR (00670.HK), and CHINA SOUTH AIR (01055.HK).

In terms of fund size, 9 of the 20 worst-performing funds have assets below the 50 million yuan liquidation threshold, with 6 even having less than 20 million yuan. Xinhua Medical Innovation holds only 9.15 million yuan, while GTHT (02611.HK) Consumption Opportunity is even smaller at 9.14 million yuan, further increasing their liquidation risk.