According to data from Tianxiang Investment Consulting, as of the end of the second quarter of 2026, the total scale of public funds reached 39.66 trillion yuan. This represents a 5.70% increase from the 37.52 trillion yuan recorded at the end of the first quarter of 2026 and a 16.48% year-on-year increase from the 34.05 trillion yuan reported at the end of the second quarter of 2025.

Market Scale Overview

From the Tianxiang Level 1 fund classification perspective, most of the eight fund categories saw a quarter-on-quarter scale increase. Notably, the scale of hybrid funds and other funds (primarily REITs) grew significantly, increasing by 23.32% and 16.04%, respectively. Conversely, the scale of commodity funds and equity funds decreased, falling by 19.33% and 1.48%, respectively. Excluding money market funds, the total scale of non-money market funds across the market was 24.04 trillion yuan, an increase of 2.10 trillion yuan compared to the 21.94 trillion yuan at the end of the first quarter of 2026.

Fund Manager Scale Review

At the end of the second quarter of 2026, the combined scale of the top ten fund managers was 15.65 trillion yuan, accounting for 39.45% of the total market scale of 39.66 trillion yuan. This share represents a decrease of 0.33 percentage points from the end of the previous quarter. The combined market share of the top ten managers has been declining for three consecutive quarters.

For active equity funds (including Tianxiang Level 2 categories: aggressive equity funds, partial equity hybrid funds, and flexible allocation hybrid funds) managed by managers with over 10 billion yuan in active equity scale, Fangzheng Fubon Fund achieved a notable performance with a scale-weighted quarterly return of 127.15% in the second quarter of 2026. Across the entire market, the vast majority of active equity fund managers posted positive returns for the quarter, with scale-weighted quarterly net value growth rates concentrated between -20% and 130%. Larger-scale managers were typically clustered around the 40% return mark.

For active bond funds (including Tianxiang Level 2 categories: partial bond hybrid funds, pure bond funds, and mixed bond funds), Huashang Fund performed well among managers with over 10 billion yuan in scale, recording a quarterly return of 8.20%. The vast majority of fund managers were profitable in this category.

In terms of aggregate fund manager profits for the second quarter of 2026, E Fund Management ranked first with a total quarterly profit of 260.615 billion yuan. China Asset Management followed in second place with 194.312 billion yuan, and Harvest Fund Management ranked third with 103.932 billion yuan.

Portfolio Holdings Overview

In the second quarter of 2026, the average stock position of hybrid funds across the market increased by 1.84 percentage points from the previous quarter, rising to 80.79% from 78.94%. The average bond position decreased by 0.81 percentage points, falling to 10.40% from 11.21%. Despite the A-share market's volatile correction during the quarter, hybrid funds maintained a high stock allocation strategy.

From a fund manager perspective, managers such as Pengan Fund, Yimi Fund, Ruida Fund, Huatai-PineBridge Fund, Fengchao Fund, Allianz Fund, Taixin Fund, Guorong Fund, Xinwo Fund, and Quanguo Fund increased their equity positions. Conversely, managers including Hongyi Yuanfang Fund, Anxin Fund, Penghua Fund, Bohai Huijin Asset Management, Guoxin Guozheng Fund, Chuangjin Hexin Fund, China Merchants Fund, Green Fund, Boyuan Fund, and China Southern Fund increased their bond allocations.

Top Holdings and Transactions

As of the end of the second quarter of 2026, the top three heavyweight stocks held by active equity hybrid funds were ZJ INNOLIGHT in first place, Eoptolink Technology in second, and Shenzhen Deren Electronic in third. During the quarter, stocks like GigaDevice Semiconductor and Chaozhou Three-Circle Group surged over 200%, while ZJ INNOLIGHT, Shenzhen Deren Electronic, Cambricon Technologies, Yuanjie Technology, and Advanced Micro-Fabrication Equipment Inc. (AMEC) all saw gains exceeding 100%. Among the top ten holdings, over 1,000 funds held positions in ZJ INNOLIGHT, Contemporary Amperex Technology Co. (CATL), and Eoptolink Technology. Since the end of the quarter, all stocks on the list have declined, with GigaDevice Semiconductor experiencing the largest drop of 41.65%.

In terms of transaction activity, the top three stocks with the largest increase in market value held by active equity hybrid funds were ZJ INNOLIGHT (92.375 billion yuan), Eoptolink Technology (68.768 billion yuan), and Cambricon Technologies (51.663 billion yuan). The top three stocks with the largest decrease in market value were CATL (17.572 billion yuan), Kweichow Moutai (14.645 billion yuan), and Zijin Mining Group (11.836 billion yuan). All stocks in the top 10 for increased value rose during the quarter, with GigaDevice Semiconductor gaining over 240%. Conversely, all stocks in the top 10 for decreased value fell, with Salubris Pharmaceuticals dropping over 40%.

Key Fund Manager Views and Positioning Changes

Several prominent fund managers adjusted their portfolios in the second quarter of 2026. Here are the views, adjustments, and outlooks from three managers across different styles.

Kong Tao, Huaan Manufacturing Upgrade One-Year Holding Hybrid A

Kong Tao noted that the market showed an upward trend in the second quarter, with significant gains in the ChiNext and STAR Market. Their investment strategy successfully captured the market's main themes by focusing on high-growth sectors like optical modules and semiconductor equipment, while increasing allocations to PCBs and memory. They reduced holdings in sectors such as electrical equipment and non-ferrous metals. Looking ahead, the fund will continue to focus on the AI supply chain, including overseas and domestic computing power and semiconductors, while cautiously monitoring cyclical sectors. The fund's top ten holdings saw significant structural changes, with KB Group newly added as the top holding at 9.38%. Chongqing Polycomp International Corp and Chaozhou Three-Circle Group entered the top ten, while Eoptolink Technology and Songfa Ceramics exited. Concentration among the top ten increased.

Zhang Chuanjie, Xingquan Henghe Three-Year Holding Hybrid A

Zhang Chuanjie observed that the market recovered after the initial shock from the Iran-US conflict. AI large model development accelerated, with overseas companies seeing rapid ARR growth and increased CSP capital expenditure visibility. Domestic AI models also achieved breakthroughs, bolstering confidence in the domestic computing power supply chain. A-share AI-related sectors like electronics, telecom, and building materials performed well. The fund further concentrated its holdings on AI-related areas, including AI optical networks, PCB upstream materials, optical fiber, domestic equipment, and MLCCs, while reducing exposure to gold and energy storage. For the future, the focus will remain on structural demand changes from global governments and tech giants, as well as new opportunities from evolving AI models. The fund will also be mindful of supply-side risks. In the fund's top ten holdings, ZJ INNOLIGHT remained the largest holding, with its weight increasing to 9.98%. Chaozhou Three-Circle Group and Accelink Technologies entered the top ten, while Wanguo International Mining Group and Shanjin International Gold exited. Concentration increased.

Lin Nian, ICBC Credit Suisse Red Dividend Hybrid

Lin Nian stated that the impact of the Iran-US situation on capital markets weakened over the quarter. The market's focus shifted to AI technology progress and Fed monetary policy. The AI supply chain remained robust, while expectations for Fed policy became more cautious. Domestically, economic growth momentum slowed, and differentiation remained a key feature, with strong external demand but weak internal demand, and AI-related industries outperforming traditional sectors. The fund maintained a high stock allocation strategy. The investment approach continued to focus on quality growth and dividends, evaluating dimensions like earnings stability, profitability improvement, and dividends. In sector allocation, the fund maintained a focus on brokerages in the financial sector, adjusted resource holdings by reducing gold and copper while increasing tungsten, continued to watch globally competitive home appliance stocks, and focused on electronics within the technology manufacturing sector. In the top ten holdings, Yoke Technology became the largest holding, increasing to 9.72%. Xiamen Tungsten Co. and Ningxia Orient Tantalum Industry entered the top ten, while Shandong Gold Mining and Zangge Mining exited. Concentration increased.