Since the start of 2026, the A-share market has continued to exhibit structural trends, with the tech-growth theme led by AI emerging as one of the most consensus-driven directions for capital flows. From computing infrastructure to application scenario rollouts, every deepening of the industrial trend has sent ripples through the capital markets. In this sea of volatility and opportunity, Zhang Mingxin, General Manager of the Equity Investment Department at Huashang Fund, has consistently adhered to his investment philosophy, cultivating deep expertise within industrial trends. According to data from fund evaluation institutions, as of August 31, 2026, the Huashang Balanced Growth Mixed Fund A, which he manages, ranked 4/1943, 3/1585, and 3/961 in its peer group for the past 1-year, 3-year, and 5-year performance periods, respectively, placing it in the top 1% of its category and rewarding unitholder trust with solid results. Performance ranking of the Huashang Balanced Growth Mixed Fund (Zhang Mingxin's tenure: March 5, 2025 to present) Data notes: As of August 31, 2026; see the data notes at the end for further details. Zhang Mingxin, Chartered Financial Analyst (CFA), General Manager of the Equity Investment Department at Huashang Fund, and fund manager of Huashang Balanced Growth Mixed Fund, among others. Grounded in the present and looking ahead, Zhang Mingxin stated that the economic downturn has a floor, policies continue to support the capital markets, and the depth and breadth of the AI industrial wave are the core factors determining the height of the market rally. Zhang Mingxin elaborated that, on the industrial front, he understands this round of the AI revolution through a "three-layer progressive" framework. The first layer is the technology feedback loop: after the release of GPT-3.5 at the end of 2022, the industry faced repeated skepticism ranging from the "toy theory" to the "bubble theory," but tech companies, through sustained R&D and capital expenditure, achieved a self-reinforcing loop of capital investment, model training, and technological advancement. The second layer is the commercial loop: when technological accumulation crosses a critical threshold, a commercial loop spanning R&D, applications, and conversion into ARR revenue begins to emerge. In May 2025, coding was the first to achieve a revenue loop, and in early 2026, Agent further translated technological capabilities into scaled applications, driving the ARR of leading model companies, primarily Anthropic, to grow at an extremely steep slope, preliminarily realizing a capital-investment-to-revenue commercial loop. The third layer is the productivity loop: if the technology and commercial loops continue to deepen and break through critical thresholds in the future, AI is expected to achieve a leap from "value transfer" to "value creation"—by enhancing total factor productivity, pushing the boundaries of society's production function, and driving a civilization-level upgrade. The industry currently stands atop the commercial loop and is advancing toward the productivity loop; when the three loops resonate together, that will mark the full unfolding of a larger-scale super cycle. In the sweeping progression of this industrial transformation, there are both enormous investment opportunities and the risk that any static judgment may be overturned. For investing, Zhang Mingxin will build a tracking and decision-making framework around four core dimensions: Direction-wise, technological progress determines the industry's direction: for core links in the industrial chain, it is necessary to continuously and dynamically assess which have achieved "0-to-1" breakthroughs, which are bottlenecks, and which will ultimately be disrupted. Pace-wise, the revenue loop determines investment pacing: he will closely track core indicators such as overseas leading cloud vendors' CAPEX and OCF status, the ARR growth slope of leading model companies, and the depth and breadth of Agent penetration across industries, dynamically assessing the health and sustainability of the commercial loop to calibrate the intensity and direction of investment. Height-wise, value creation determines the industry's ceiling: the ultimate height of this industrial revolution depends on whether AI can truly break through from "replacing existing labor" to "creating incremental value." On one hand, AI for Science is accelerating drug development and materials discovery, with overseas leading model companies successively launching research-oriented products that directly connect models with scientific databases and research toolchains, reshaping the research workflow itself. On the other hand, with GPT-6 Astra achieving breakthroughs in multimodal understanding and computer use capabilities, the barrier to software operation is further lowered, and AI continues to reshape production processes and efficiency boundaries across industries. The creation of incremental value has only just begun, and the key process of AI penetration evolving from "value transfer" to "value creation" across industries will continue to be tracked. Zhang Mingxin candidly acknowledged that he is also clearly aware of the current challenges. At present, the ARR revenue of leading large-model companies mainly comes from substituting and transferring the value of human labor across industries, and the leap toward "creating incremental value" is still in its early validation stage. On the market pricing front, although the judgment from an industry cycle perspective is that the AI trend continues, volatility and divergence are increasing during the process. In this journey, variables such as the continuous validation of industrial prosperity, marginal changes in supply-demand dynamics, product volume ramp-up progress, and changes in holdings structure all require close tracking. "Under rapid industrial progress, every link can be redefined at any moment. We acknowledge our cognitive boundaries, and any dogmatic bullish or bearish stance at present is not a rigorous approach to investing. Delving deeply into industries to establish an analytical framework, sorting out core factors, closely tracking changes, and dynamically responding—this, we believe, is the correct way to participate in investing in the wave of the era." Finally, Zhang Mingxin stated that technological progress has never been linear, and long-term optimism does not mean smooth sailing. Changes in fundamentals and the degree of pricing in stock prices have always been two equally important core dimensions in investing. So-called value investing is about seeking the direction of value concentration and creation in the economy and society. Looking ahead, he will continue the value-based industrial trend investment approach, continuously evolving amid the era's industrial waves, and striving to deliver long-term, stable excess returns for unitholders. Data notes: Peer performance ranking data was published by the fund evaluation institution China Galaxy Securities in September 2026, with data as of August 31, 2026, and the fund classification is partial equity funds (with stock positions ranging from 60% to 95%) (Class A and non-Class A). Relative return, also known as excess return, represents the portion of a fund's return exceeding its performance benchmark over a specified period. The information in this article solely reflects the fund manager's investment philosophy; the fund's investment strategy is detailed in the fund's legal documents. For more information, please refer to the fund prospectus and other legal documents. As of June 30, 2026, Zhang Mingxin has 10.7 years of securities industry experience, including 5.3 years in securities research and 5.4 years in securities investment. Zhang Mingxin's fund management history: Huashang Balanced Growth Mixed Securities Investment Fund (from March 5, 2025 to present), Huashang Advantage Industry Flexible Allocation Mixed Securities Investment Fund (from March 12, 2025 to present), and Huashang Zhiyuan Return Mixed Securities Investment Fund (from July 15, 2025 to present). The Huashang Balanced Growth Mixed Securities Investment Fund was established on April 8, 2021; its performance benchmark was revised on June 1, 2026; please refer to the legal documents for details; the performance benchmark is CSI 800 Index Return*85% + ChinaBond Composite Full Price (Total Value) Index Return*15%. The latest fund unit net value can be found on the Huashang Fund official website. Previous fund managers of the Huashang Balanced Growth Mixed Securities Investment Fund: Liang Hao (April 8, 2021 to June 20, 2022), Tong Li (May 19, 2022 to March 4, 2025), and Zhang Mingxin (from March 5, 2025 to present). 011369-Huashang Balanced Growth Mixed Securities Investment Fund A, 011370-Huashang Balanced Growth Mixed Securities Investment Fund C. Pension clients purchasing this fund through the company's direct sales center are eligible for specific subscription rates; for details, please refer to the fund prospectus and related announcements. Risk disclosure: The fund manager promises to manage and use fund assets with integrity, diligence, prudence, and good faith, but does not guarantee that the fund will be profitable or guarantee a minimum return. Past performance of the fund and its net value levels do not indicate future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. When purchasing funds, investors should carefully read legal documents such as the fund contract and prospectus. Investors are advised to choose products that match their risk tolerance and investment objectives. The above views are solely judgments of the current market and do not constitute a guarantee of future investment returns or investment advice. Market risk exists, and fund investment requires caution. MACD golden cross signal formed; these stocks are performing well!