According to an analysis of Q3 2025 reports on active equity-hybrid funds by Guotai Haitong Securities, these funds saw a rise in stock positions but a slight active reduction in allocations. Notably, allocations to the STAR and ChiNext boards increased significantly, with active buying concentrated in electronics, communications, power equipment, and retail sectors.

By the end of Q3 2025, the top 5% of heavily held stocks by active equity-hybrid funds accounted for approximately 38.78% of total fund equity investments, up 5.58% from Q2 2025, indicating a clear rise in "herd mentality" and a shift toward large-cap growth styles.

**Key Findings by Guotai Haitong Securities:**

**Positioning Analysis:** Despite an overall increase in stock positions, active reductions were observed. The weighted average equity fund position reached 87.38%, up 1.64 percentage points from Q2 2025, primarily driven by market gains. Adjusted for CSI 800 Index fluctuations, active reductions were around 0.43%.

**Sector Allocation:** Allocations to the STAR and ChiNext boards rose notably. By September 30, 2025, active equity-hybrid funds held 58.97% of their portfolios in mainboard stocks, down 6.53% from Q2. Meanwhile, ChiNext allocations rose 4.53%, STAR board 1.92%, and Beijing Stock Exchange 0.08%. Hong Kong stock allocations in active Shanghai-Hong Kong-Shenzhen funds fell 2.89 percentage points to 33.43%.

**Top Holdings:** Funds primarily added AI hardware-related stocks. Among the top 10 holdings, three were from the electronics sector (consumer electronics, AI servers, and semiconductors), two were Hong Kong-listed internet stocks, two were AI computing-related, and the remaining three covered lithium batteries, metal mining, and baijiu. Holdings in Xinyisheng, Zhongji Innolight, Alibaba-W, and Foxconn Industrial Internet surged over 100% quarter-on-quarter.

**Style Trends:** The concentration in top holdings intensified, with a preference for large-cap growth stocks. The top 5% holdings' share rose to 38.78%, up 5.58% from Q2.

**Sector Adjustments:** Active increases were seen in electronics, communications, and retail, while banks and autos faced cuts. The top five sectors held were electronics, pharmaceuticals, power equipment, communications, and non-ferrous metals. Electronics saw a 5.25% increase in allocation, while communications and power equipment rose 2.72% and 2.02%, respectively.

**Large and Mid-Sized Fund Companies:** These firms actively boosted electronics, communications, and power equipment exposure while reducing banks. Electronics remained their top sector, appearing 19 times among top holdings (up 1 from Q2), followed by pharmaceuticals (unchanged at 12) and power equipment (up to 10). Seven firms prioritized electronics for active increases, while four cut banks.

**Risk Disclaimer:** This report objectively analyzes Q3 2025 fund data; none of the mentioned stocks or funds constitute investment advice.