Tech-themed funds that were topping the "double-your-money" charts in the first half of the year have been on a wild rollercoaster since July.

A look at data from Tiantian Fund Network shows that, as of September 9th, among the top ten public funds with the steepest net value declines since July (primarily A-share classes), the top five have each fallen by more than 40%. Zhonghang Zhuoyue Linghang A posted the largest drop, followed by Dongwu Duocelue A, Dongfang Alpha Tech Select A, Dongwu Shuangdongli A, and Huaxia Xinjingcheng A.

Interestingly, both "Dongwu" funds are managed by the same fund manager, Zhang Haojia. Despite their significant net value declines since July, on a "year-to-date" basis they remain the best performers among all Dongwu Fund products, each gaining over 40%. The reason mirrors that of many other funds experiencing sharp pullbacks since July: "success and failure both stem from tech stocks."

Net Value Give-Back Yet Still Profitable

Dongwu Fund is a well-established public fund company. According to Tianyancha, it was founded in September 2004 with a registered capital of RMB 100 million, with General Manager Li Suming serving as its legal representative. Currently, Dongwu Securities and Hailan Group hold 70% and 30% stakes, respectively.

In terms of scale, Dongwu Fund ranks as a mid-tier player in the industry. Wind data shows that as of June 30th, its net asset value stood at approximately RMB 65.712 billion, ranking 82nd in the sector.

Turning to Dongwu Duocelue A and Dongwu Shuangdongli A, their net values dropped 42.97% and 41.91%, respectively, from July 1st to September 9th. Losing more than 40% of value in just over two months is indeed rapid. However, viewed across the full year, both funds still hold strong rankings—as of September 9th, Dongwu Shuangdongli A is up 47.62% year-to-date, while Dongwu Duocelue A has gained 42.57%. In other words, they raked in substantial gains in the first half, and since July, they've merely given back a portion of those profits.

Nevertheless, as the tech "bull market" rotation shifts toward innovative drugs and financials, other Dongwu Fund products have also seen their net values rise. Tiantian Fund Network data shows that from July 1st to September 9th, among the top ten gainers under Dongwu Fund, Dongwu Medical Services A led with a 5.24% net value increase. Its fund manager, Mao Kejun, holds heavy positions in WuXi AppTec and Kelun Pharmaceutical, with the top ten holdings entirely in pharma stocks, perfectly capturing the innovative drug rally. Additionally, Dongwu State-Owned Enterprise Reform A rose 4.39%, with manager Zhou Jian heavily invested in CITIC Securities and China Merchants Bank, allocating over 58% to financials. Zhou Jian's other fund, Dongwu Anxin Quantitative A, gained 1.05% and has accumulated 84.75% since inception, with a diversified portfolio of blue-chip stocks. Meanwhile, from July 1st to September 9th, all six of Dongwu Fund's bond products posted positive returns, ranging from 0.12% to 0.57%, with year-to-date gains between 0.61% and 2.34%—characteristic of low volatility and stable income.

The Gains and Losses of Heavy Tech Allocations

According to semi-annual report disclosures, the top ten holdings of Dongwu Duocelue A include GIGADEVICE, Puya Semiconductor, Beijing Ingenic, Montage Technology, Demingli, and Longsys—a lineup dominated by semiconductor supply chain names, with memory chips taking the lion's share. Dongwu Shuangdongli A has a similar allocation: GIGADEVICE, Puya Semiconductor, Beijing Ingenic, Hengshuo, Montage Technology, plus Zhongtian Technology, Sinoma Science & Technology, Dongxin, and Demingli. The two funds share eight of the same top-ten holdings, with positions in GIGADEVICE and Puya Semiconductor each maxed out at around 9%, and memory chip-related stocks collectively exceeding 50% of the portfolio.

Despite being named "Duocelue" (Multi-Strategy) and "Shuangdongli" (Dual Dynamics), these funds are effectively all-in on tech stocks centered on memory chips. Since July, the tech sector—especially memory chips—has undergone a deep correction, with names like GIGADEVICE and Puya Semiconductor falling over 40%. Consequently, funds heavily weighted in tech have seen their net value gains evaporate.

Both funds are managed by Zhang Haojia, a relatively young mid-career fund manager who joined Dongwu Fund in November 2017 as an industry researcher, began managing Dongwu Duocelue in September 2021, and took over Dongwu Shuangdongli in December 2022. Why such a heavy tilt toward memory-chip-centric tech stocks? In the 2026 semi-annual report, Zhang stated that with the acceleration of global AI infrastructure buildout and tightening supply-demand dynamics, "price increases are emerging across memory, optical fiber, chips, and electronic fabric/CCL segments." Looking ahead, he emphasized "valuing the earnings elasticity that upward industry cycles in growth sectors may bring, with a focus on AI supply chain and memory semiconductor investment opportunities," while also striving to select companies with rising ROE and stable upward industry profitability. In essence, he believes that as long as memory chip cyclicality remains intact, the tech rally has legs and warrants continued conviction.

Historically, both funds have performed impressively under Zhang: since inception, Dongwu Duocelue A is up 423.88%, and Dongwu Shuangdongli A has gained 177.45%.

These aren't the only funds that rode the tech bull market only to give back gains. Tiantian Fund Network data shows that from July 1st to September 9th, Dongwu Anxiang Quantitative A fell 30.35%, Dongwu Shuangtriangle Equity A dropped 24.86%, and Dongwu Industry Rotation A declined 24.22%. Another Dongwu fund manager, Liu Yuanhai, runs Dongwu Mobile Internet A and Dongwu New Trend Value Line, whose holdings are almost exclusively AI computing power chain names, including Eoptolink, Luxshare Precision, Zhongji Innolight, WUS Printed Circuit, and GIGADEVICE—all giving back more than 20% in net value since July. Yet, both funds still show year-to-date gains exceeding 10%, because Liu positioned ahead of the tech bull run. In the semi-annual report for Dongwu New Trend Value Line, Liu outlined his repositioning: "In early 2026, allocations were concentrated in the AI supply chain, including overseas AI computing power, memory, and AI applications. In Q2, I increased exposure to the domestic computing power chain, including wafer foundry, AI chip design, and semiconductor equipment."

Ultimately, these tech-heavy Dongwu funds have delivered a textbook "same source for gains and losses" outcome: surging to the top of performance charts during the first-half tech rally, only to rank among the worst decliners during the sector's correction since July.

Funds That Are "Holding the Line" on Tech

Dongwu Fund is just a microcosm of the broader trend among tech-focused funds. Of the remaining eight funds in the top ten decliners from July 1st to September 9th, nearly all are "stubbornly" committed to tech stocks.

Leading the list with a 44.73% net value decline, Zhonghang Zhuoyue Linghang A is a devoted follower of memory chips, holding Puya Semiconductor, Biwin Storage, Demingli, Montage Technology, and Longsys.

Ranked third with a 42.28% drop, Dongfang Alpha Tech Select A is likewise a memory chip enthusiast, with heavy positions in GIGADEVICE, Shannon Semiconductor, Longsys, Biwin Storage, and Demingli. Despite this, the fund is still up 48.86% year-to-date, and its manager Liang Shaowen has only five years of experience.

Huaxia Xinjingcheng A, which pursues a balanced allocation across the AI hardware chain, also saw its net value tumble over 40%, with exposure to optical communications, PCB, semiconductor equipment, and AI chips. Meanwhile, Dongfang Alpha Ruifeng A and CICC Advanced Manufacturing A, both favoring a "stand in the light" approach, suffered declines exceeding 39%.

The remaining funds largely follow a similar strategy: optical modules plus memory chips. China Post Future New Blue Chip, managed by Bai Peng, holds Bojun New Materials and Huakong Precision, with a 39.19% drop. Jingguan Taifu Technology Driven A fell 39.06%, with the 29-year veteran Xiao Qiang holding AMEC, Demingli, Jiangfeng Electronics, Hua Hong Semiconductor, and Biwin Storage. China Merchants Core Equipment A declined 38.83%, with manager Feng Fuzhang betting on optical communications and PCB materials, holding Yangtze Optical Fibre and Cable.

When these ten funds' holdings are viewed together, a clear pattern emerges: they are all concentrated in AI hardware technology supply chains, spanning memory chips, optical communications, PCB, semiconductor equipment, and aerospace satellites. During the first-half tech bull run, these sectors surged the most, but as the market's main theme shifted since July, the pullbacks have been equally dramatic.

Of course, judging solely by declines since July would be one-sided. Net value gains tell a different story—Dongfang Alpha Tech Select is up nearly 49% year-to-date, Jingguan Taifu Technology Driven A has gained 64% since inception, and China Post Future New Blue Chip has doubled since its launch. In other words, many of these funds had already positioned themselves before the tech bull run, demonstrating long-term stock-picking ability in the tech sector that shouldn't be dismissed based on a single correction.

For fund holders or stock investors, what matters most isn't just the current holdings or historical returns, but the timing of these fund managers' heavy tech allocations and the logic behind their repositioning. And when net values experience significant drawdowns, it may be time to consider taking profits and exiting.