Dacheng Fund Management Co., Ltd., one of China's pioneering "Big Ten" mutual fund houses, faces mounting challenges in its once-celebrated equity investment segment.

Star manager Wei Qingguo, who previously oversaw over 10 billion yuan in assets, has been removed from all five funds under his management through five internal adjustments in 2025. His latest dismissals from Dacheng Industry Pioneer and Dacheng SME Board funds on November 4 and 6 respectively marked his complete exit without reassignment within the company. Wei's flagship Dacheng SME Board Fund delivered 156.38% cumulative returns during his tenure but underperformed recently with -11.3% three-year returns and 3857th/4601 ranking in H2 2025.

Meanwhile, Dacheng's equity strategy now heavily relies on three managers—Xu Yan, Liu Xu, and Han Chuang—who collectively manage 64.28 billion yuan (55% of total equity AUM). Xu Yan's eight products, totaling 21.46 billion yuan, all underperformed benchmarks in Q3. His newly launched Dacheng Xingyuan Qihang shrank 31.6%-68.8% by end-Q3 after slow positioning drew investor criticism for missing the bull market.

The fund house's concentrated bets reveal stylistic constraints: Han Chuang's portfolios lean heavily on resource stocks like Xingye Yintin and Shandong Gold, while Liu Xu's top holdings consistently feature China Mobile and Midea Group. Industry observers note such concentration reflects reluctance to expand beyond comfort zones.

Once a top-10 asset manager, Dacheng now ranks 26th with 473.88 billion yuan AUM. While its active equity products led peers during 2023-2024 bear markets, 2025 performance slumped to second-worst among peers. Bright spots include Guo Weiling's tech-focused Dacheng Technology Innovation Fund, delivering 114.17% YTD returns through concentrated positions in AI infrastructure plays like Eoptolink and Zhongji Innolight.

The firm's fixed income and index funds show relative strength, with bond fund rankings improving from 37th in 2023 to 27th currently. As this veteran asset manager seeks to revamp its research framework, market participants question whether its traditional value orientation can adapt to evolving market dynamics.