In the investment world, high visibility can attract unwanted attention. A fund manager and his firm, recently celebrated for stellar performance, have found themselves at the center of market rumors.

Following significant remarks from the China Securities Regulatory Commission (CSRC) chairman today, A-share technology stocks experienced a powerful surge, with the STAR 50 Index rocketing from a gain of less than 1% to close up 4.69%.

Amid this tech stock frenzy, a minor disturbance emerged. This morning, screenshots circulated online alleging that Caitong Fund Management Co., Ltd. was subject to an unannounced inspection, with employee phones and computers confiscated, and the matter reportedly involved PCB sector stocks.

However, by the afternoon session, informed sources refuted the rumors to the media, stating the claims were entirely false.

It is noteworthy that at today's Lujiazui Financial Forum, CSRC Chairman Wu Qing emphasized a crackdown on "illegal activities such as hyping concepts or manipulating markets under the guise of technology, including insider trading." The emergence of these rumors so soon after his statement raised eyebrows.

The rumors specifically targeted Caitong Fund's star active equity manager, Jin Zicai. Among Jin's top ten holdings are Dingtai Gaoke, Shengyi Electronics, Shengyi Technology, and HANS CNC, which rank as his first, third, tenth, and fifth largest holdings, respectively. These four stocks have posted impressive gains over the past three months.

Influenced by the rumors, several PCB stocks heavily weighted in Jin Zicai's managed funds experienced volatility and declines during the midday session.

For instance, Dingtai Gaoke saw its share price dip, with gains retreating from over 7% to 2.54%. Fortunately, it quickly shook off the rumor's impact. Bolstered by a broader PCB sector rally, the stock staged a sharp recovery late in the session, closing at 590 yuan, up 6.58%.

Shengyi Technology, Shengyi Electronics, and HANS CNC, however, faced steeper declines. They opened lower in the afternoon, briefly turning negative before being lifted by the strong PCB sector performance on the back of positive tech news. Shengyi Technology closed at 180.15 yuan, up 0.42%. Shengyi Electronics also pared gains after rising over 10% intraday, finishing up 1.52%.

PCB equipment supplier HANS CNC followed a similar trajectory to Shengyi Technology: turning negative in the afternoon before a late recovery led to a modest 0.64% gain at the close. Interestingly, its Hong Kong-listed shares showed the opposite pattern, rallying strongly in the afternoon to close up 4.48% after a weak morning.

The rumor incident involving Caitong Fund ultimately underscores the adage that high profiles invite scrutiny. In the current technology bull market, Caitong Fund has undoubtedly become a standout performer among public funds.

Data shows several of Caitong Fund's products have delivered returns exceeding 400% over one year, with one even achieving "5-bagger" status. The fund manager behind all these successes is Jin Zicai.

A closer look at his managed funds reveals even more staggering tenure returns. Jin currently manages 7 funds (A and C shares combined), most ranking within the top ten of their peer groups.

Notably, the Caitong Multi-Strategy Fuxin Fixed Open Hybrid and Caitong Value Momentum Hybrid A have delivered astonishing tenure returns of 1,121.68% and 1,692.30%, respectively.

Returns of such magnitude have earned him a near-legendary status. As of now, Jin Zicai's total assets under management (AUM) stand at 8.909 billion yuan, solidifying his position as Caitong Fund's top active equity manager. Caitong Fund's overall AUM is not particularly large, amounting to just over 89 billion yuan as of April 16, 2026. This means Jin's current AUM represents about one-tenth of the firm's total.

Driven by the tech bull market, the scale of Caitong Fund's equity products has also skyrocketed since the second half of last year, surging from just over 200 million yuan to 1.7 billion yuan.

While his AUM still lags behind some top industry fund managers overseeing tens of billions, sustained momentum in the tech bull market could see him cross the 10-billion-yuan threshold soon.

Public information shows Jin Zicai joined Caitong Fund in 2014, marking over 11 years, nearly 12, with the firm. A master's graduate in Microelectronics and Solid-State Electronics from Shanghai Jiao Tong University, he currently serves as a Party Committee Member, Vice President, Equity Investment Director, General Manager of the Fund Investment Department, and Fund Manager at Caitong Fund Management Co., Ltd.

Some may wonder why Jin Zicai was relatively unknown before this tech bull market despite his current prowess. The answer can be partly inferred from the significant volatility in the ranking trends of his managed funds.

Jin's academic background in microelectronics aligns perfectly with the semiconductor and communication themes driving the current tech rally, providing solid professional expertise. His recent success is largely attributed to capitalizing on the AI boom. However, before the AI computing frenzy ignited the tech sector, his flagship fund, Caitong Growth Preferred Hybrid, was heavily invested in consumer stocks like Wens Foodstuff Group Co., Ltd. and Muyuan Foods Co., Ltd. in 2022. It shifted to utilities and hotels in Q4 2022, and later to media and software.

In terms of performance, Caitong Growth Preferred Hybrid posted negative annual returns in both 2022 and 2023, with a decline exceeding 30% in 2023, underperforming both its peer average and the CSI 300 Index.

The turnaround began in Q3 2023 when the fund started heavily weighting New Easun, followed by additions of Wus Printed Circuit Co., Ltd. and Foxconn Industrial Internet Co., Ltd. in Q4, laying the groundwork for subsequent AI-driven returns. By 2025, the portfolio had concentrated on the currently hot PCB and CPO sectors.

Concurrently, the concentration of the top 10 holdings in Caitong Growth Preferred Hybrid A increased from over 60% to nearly 90%, suggesting a significant, focused bet on PCB and CPO.

Jin Zicai's success is also supported by the backing of its parent company, Caitong Securities. The historical returns of Caitong Growth Preferred Hybrid A clearly show the high volatility in Jin's product performance.

The fund's turnover rate has consistently been above 300%, even exceeding 500% at its peak in 2025.

For some astute managers, a high turnover rate reflects timely adjustments to market trends and can contribute to higher returns. However, given the market's rapid shifts, a high turnover rate for many managers can lead to style drift and progressively worse performance. In this tech bull market, Jin Zicai, with his relevant expertise, has evidently made the right switches.

In recent years, Caitong Fund's net profit has hovered around just over 100 million yuan, less than 200 million. Last year, it managed a 17.31% year-on-year increase to 175 million yuan. Given the strong performance of several of Jin Zicai's funds in the first half of this year, the interim report is likely to be quite impressive.