Since 2026, structural market conditions in A-shares have continued to unfold, with the technology growth theme led by AI becoming one of the directions with the highest consensus among capital, from computing infrastructure to application scenario implementation, each deepening of the industrial trend has stirred ripples through the capital markets. In this sea full of volatility and opportunity, Zhang Mingxin, General Manager of the Equity Investment Department at Huashang Fund, has consistently adhered to his own investment philosophy, continuously cultivating depth in industrial trends. Data from fund evaluation agencies shows that as of August 31, 2026, the Huashang Balanced Growth Mixed A fund he manages ranked 4/1943, 3/1585, and 3/961 among peer funds over the past 1 year, 3 years, and 5 years respectively, all ranking in the top 1% of peers, rewarding unitholders' trust with solid performance.

Huashang Balanced Growth Mixed Fund Performance Ranking (Zhang Mingxin's tenure: since March 4, 2025) Data note: Data as of August 31, 2026. For more details, please see the data notes at the end.

Zhang Mingxin Chartered Financial Analyst (CFA), General Manager of the Equity Investment Department at Huashang Fund, and fund manager of Huashang Balanced Growth Mixed and other funds.

Looking at the present and looking ahead to the future, Zhang Mingxin stated that there is a bottom line for economic downturn, policies continue to support the capital market, and the depth and breadth of the AI industrial wave are the core elements determining the height of the market.

Zhang Mingxin elaborated specifically that on the industrial side, he understands this round of AI revolution through a "three-ring progressive" framework. The first layer is the technology closed loop: after the release of GPT3.5 at the end of 2022, the industry went through repeated skepticism from "toy theory" to "bubble theory," but technology companies achieved a self-reinforcing closed loop of capital investment-model training-technological progress through continuous R&D and capital expenditure investment. The second layer is the commercial closed loop: when technological accumulation crosses the critical point, a commercial closed loop from the R&D end, to the application end, and converting into ARR revenue begins to emerge—in May 2025, coding was the first to achieve a revenue closed loop, and in early 2026, Agent further transformed technological capabilities into scaled applications, driving ARR growth at leading model companies led by Anthropic at an extremely steep slope, initially achieving a commercial closed loop of capital investment-revenue. The third layer is the productivity closed loop: if the technology and commercial closed loops continue to deepen and break through the critical point in the future, AI is expected to achieve a leap from "value transfer" to "value creation"—by enhancing total factor productivity, pushing open the boundaries of the social production function, and driving the elevation of civilization levels. Currently, the industry stands above the commercial closed loop and is evolving toward the productivity closed loop. Only when the three rings resonate will a larger-scale super cycle fully unfold.

In this majestic evolutionary process of industrial transformation, it means both enormous investment opportunities and that any static judgment may be overturned. For investment, Zhang Mingxin will build a tracking and decision-making framework around four core dimensions: In terms of direction, technological progress determines industry 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 eventually be disrupted. In terms of rhythm, revenue cycles determine investment rhythm: he will closely track core indicators such as CAPEX and OCF status of leading overseas cloud companies, ARR growth slope of leading model companies, and depth and breadth of Agent penetration into various industries, dynamically assessing the health and sustainability of the commercial closed loop, thereby calibrating the intensity and direction of investment. In terms of height, value creation determines industry height: the ultimate height of this industrial revolution depends on whether AI can truly break through "replacing existing labor" to "creating incremental value"—on the one hand, AI for Science accelerates drug discovery and materials discovery, leading overseas model companies have successively launched products for scientific research, directly connecting models with scientific databases and research tool chains, and the scientific research workflow itself is being rebuilt; on the other hand, with GPT-6 Astra achieving breakthroughs in multimodal understanding and computer use capabilities, the threshold for software operation has further declined, AI continues to reshape production processes and efficiency boundaries across industries, and the creation of incremental value has only just begun. In the future, he will continue to track the key process of AI penetration in various industries evolving from "value transfer" to "value creation."

Zhang Mingxin candidly acknowledged that he is also clearly aware of the challenges currently faced. At present, the ARR revenue of leading large model companies mainly comes from the replacement and transfer of human labor value across industries, and the leap toward "creating incremental value" is still in the early validation stage; at the market pricing level, although from the perspective of industrial cycles the AI trend is still continuing, volatility and divergence in the process are increasing. In this process, the continuous verification of industrial prosperity, marginal changes in supply-demand dynamics, product ramp-up progress, and structural changes in chips are all variables that need to be closely tracked. "Under rapid industrial progress, every link may be redefined at any time. We acknowledge our cognitive boundaries, and any arbitrary bullish or bearish view at present is not a rigorous investment approach. Deeply researching the industry to establish an analytical framework, sorting out core factors and closely tracking changes with dynamic responses—we believe this is the correct way to participate in the investment of the era's wave."

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 stock pricing have always been two equally important core dimensions in investment. So-called value investment is about finding the direction of value concentration and creation in the economy and society. In the future, he will continue his consistent value-based industrial trend investment approach, continuously evolving in the era's industrial wave, striving to achieve long-term stable excess returns for unitholders.

Data note: Fund peer performance ranking data was released by fund evaluation agency China Galaxy Securities in September 2026, with data as of August 31, 2026. The fund classification is equity-biased funds (stock upper and lower limits 60%-95%) (Class A and non-Class A). Relative return, also called excess return, represents the portion of fund return exceeding the performance benchmark over a certain time interval. The information in this article is solely the fund manager's investment philosophy. The investment strategy of this fund is detailed in the fund legal documents. For more information, please see the fund prospectus and other fund legal documents. As of June 30, 2026, Zhang Mingxin has 10.7 years of securities industry experience, including 5.3 years of securities research experience and 5.4 years of securities investment experience. Zhang Mingxin's fund management history: Huashang Balanced Growth Mixed Securities Investment Fund (since March 4, 2025), Huashang Advantage Industry Flexible Allocation Mixed Securities Investment Fund (since March 12, 2025), Huashang Zhiyuan Return Mixed Securities Investment Fund (since July 15, 2025). Huashang Balanced Growth Mixed Securities Investment Fund was established on April 8, 2021; the performance benchmark was modified on June 1, 2026, please read the legal documents for details; the performance benchmark is CSI 800 Index return rate × 85% + China Bond-Composite Full Price (Total Value) Index return rate × 15%. The latest fund unit net value is available on the Huashang Fund official website. Huashang Balanced Growth Mixed Securities Investment Fund former fund managers: Liang Hao (April 8, 2021-June 20, 2022), Tong Li (May 19, 2022-March 4, 2025), Zhang Mingxin (since March 4, 2025). 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 implement a specific subscription fee rate, please see this fund's prospectus and related announcements for details.

Risk warning: The fund manager is committed to managing and using fund assets with honesty, diligence, and prudence, but does not guarantee that the fund will definitely profit or guarantee minimum returns. Past performance of the fund and its net value level do not predict its 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 fund contracts, prospectuses, and other fund legal documents. Investors are advised to choose products that match their risk tolerance and investment objectives. The above views are only judgments on the current market, do not serve as guarantees for future investment, and do not represent investment advice. Markets carry risks, and fund investment requires caution. MACD golden cross signals have formed, these stocks are rising well!