As the Lunar New Year approaches, marking a fresh start, which sectors are poised to lead market trends with dynamic momentum, and how should investors position themselves?
Huasheng Xindongli Mixed Fund Manager Liu Li recently shared his outlook for 2026, highlighting three primary areas of focus. The first is the domestic AI ecosystem, which is expected to experience comprehensive growth this year. The second is innovative pharmaceuticals, where the industry's upward trajectory remains intact, with selective investment in targets offering above-average returns. The third is the commercial aerospace sector, which is achieving technological breakthroughs from "0 to 1" and warrants continuous monitoring to identify core players within the supply chain.
Liu Li, who holds a Master of Science degree from Peking University, joined Huasheng Fund in July 2016. He is a growth investment expert cultivated within the company and currently manages funds including the Huasheng Xindongli Mixed Fund and the Huasheng Digital Economy Mixed Fund. His investment philosophy centers on identifying excellent companies within long-term, high-growth sectors that align with industrial trends, aiming for sustainable returns over extended periods. His methodology de-emphasizes market timing, focusing instead on industry comparisons and stock selection.
"Artificial intelligence is currently a globally recognized industrial trend," Liu Li stated. "Although the GPU computing sector performed well in 2025, we assess that rapid iteration in large model technology continues to drive industry development. The increasing penetration of AI applications is exacerbating computing power shortages, thereby stimulating upstream capital expenditure and infrastructure construction, and propelling sectors like semiconductors into a high-growth cycle."
Liu Li indicated that breakthroughs in overseas large model technology in the first half of 2025 initially boosted the performance of related segments in the capital markets. Since the second half of last year, significant progress has been made domestically in both large model technology and semiconductor manufacturing, leading to leapfrog development in the local AI ecosystem. "We anticipate that the domestic AI industry may replicate the overseas growth path this year, thereby boosting the performance of related sectors."
From a supply chain perspective, Liu Li views large models and cloud computing as the core downstream elements, with upstream components including AI chips, memory, semiconductor manufacturing, equipment, and materials. As downstream demand continues to expand, the entire supply chain is expected to exhibit a gradually rotating and strengthening trend.
Beyond AI, Liu Li is also focused on other emerging industries, such as innovative pharmaceuticals. After years of accumulation, the domestic sector showed signs of explosive growth over the past 2-3 years. Although the segment experienced some correction in the latter half of last year due to periodic valuation pressures, the underlying industrial trend remains clear. For companies with international capabilities and a track record of pipeline realization, the current adjustment may present a favorable window for investment.
Additionally, the commercial aerospace and military informatization sectors are highlighted. With ongoing breakthroughs in technologies like rocket reusability and low-orbit satellites, the industry is expected to accelerate commercialization. Its growth path over the next 5 to 10 years is becoming clearer, and the sector combines thematic and growth attributes, making it a key area for focus.
Liu Li believes the key to investment lies in capturing major era trends—the beta of the times often represents the greatest alpha. "Moving forward, we will continue to conduct in-depth industry research and utilize a rigorous analytical framework to select stocks and build high-quality portfolios, striving to transform the opportunities of the era into long-term, sustainable returns for our investors."
Data Note: As of December 31, 2025, Liu Li has 9.5 years of experience in the securities industry, comprising 5.3 years in securities research and 4.2 years in securities investment. Funds managed by Liu Li include: Huasheng Xindongli Mixed A (since May 19, 2022); Huasheng Xindongli Mixed C (since February 20, 2023); Huasheng Reform and Innovation Stock A/C (since January 10, 2023); Huasheng Digital Economy Mixed A/C (since June 25, 2024); Huasheng Leading Enterprise Mixed (since January 6, 2025); Huasheng Science and Technology Innovation and Entrepreneurship Selection Mixed A/C (since November 4, 2025); and Huasheng Strategy Selection Flexible Allocation Mixed (October 26, 2021, to January 5, 2023). The views expressed represent the fund manager's investment philosophy. For detailed fund investment strategies, please refer to the fund's legal documents.
Risk Warning: The fund manager is committed to managing and utilizing fund assets with honesty, diligence, and prudence but does not guarantee fund profitability or a minimum return. Investors should carefully read the fund contract, prospectus, and product summary before purchasing. The above views are not investment recommendations. Market risks exist, and fund investments require caution. Investors are advised to choose products that align with their risk tolerance and investment objectives.