According to a research report, analysis of the SW Media sector's heavyweight fund allocations and valuation levels in Q4 2025 shows a decline in the sector index and a dip in trading activity, though it remains at a high level. The proportion of heavyweight fund holdings in the sector shifted from an overweight to an underweight position. Leading companies in the gaming field are the core focus for institutions, which recommend paying attention to game companies with abundant game license reserves and AI application deployments. The main viewpoints are as follows:
Media sector heavyweight allocations have decreased to an underweight position, yet the gaming segment remains a key market focus. In Q4 2025, the appropriate allocation ratio for the SW Media sector was 1.63%, while the actual heavyweight fund allocation ratio was 1.22%, resulting in an underweight ratio of 0.41%. Using the SW Media sector's heavyweight allocation as a benchmark, the gaming segment maintained an overweight position, with the overweight ratio increasing by 3.59 percentage points to 40.26%. All other sub-sectors continued to be underweight.
The gaming sector constitutes the majority of the top ten heavyweight holdings, indicating high market attention. Based on shareholding market value, the top ten heavyweight stocks in the SW Media sector for Q4 2025 were Giant Network, Century Huatong, Kingnet Network, Focus Media, 37 Interactive Entertainment, Perfect World, G-bits, Taimei Technology, Enlight Media, and Kunlun Tech. The gaming industry occupied eight of these positions. Regarding the performance of the top ten heavyweight stocks in Q4 2025, 37 Interactive Entertainment's stock price rose, while G-bits and Kingnet Network experienced significant declines, dropping by 24.58% and 22.12% respectively.
The concentration of heavyweight fund holdings declined quarter-over-quarter, but top-tier allocations remain elevated. In Q4 2025, the combined market value of the top 5, top 10, and top 20 heavyweight stocks in the SW Media sector accounted for 68.74%, 85.72%, and 97.33% of the total market value of the sector's heavyweight fund holdings, respectively. These figures represent quarter-over-quarter decreases of 8.47, 5.46, and 0.95 percentage points compared to Q3 2025, indicating that heavyweight capital remains highly concentrated in leading stocks.
Risk factors include a slower-than-expected macroeconomic recovery, industry policy risks, and slower-than-anticipated technological development.