The second-quarter reports for 2026 from public fund managers have been largely disclosed. This analysis provides a comprehensive review of the scale, holdings, returns, and selected fund manager perspectives for the quarter.

Overview of Fund Market Scale: Total Assets Near 40 Trillion

As of the end of the second quarter of 2026, the total assets under management (AUM) for public funds reached 39.66 trillion yuan, marking a 5.70% increase from 37.52 trillion yuan at the end of the first quarter. Year-over-year, this represents growth of 16.48% from 34.05 trillion yuan in Q2 2025.

Analyzed by primary fund categories, most of the eight major types saw quarter-over-quarter growth. Notably, mixed funds and 'other' funds (primarily REITs) recorded significant increases of 23.32% and 16.04%, respectively. In contrast, commodity funds and equity funds experienced declines of 19.33% and 1.48%.

Excluding money market funds, the total AUM for non-monetary funds across the market stood at 24.04 trillion yuan, an increase of 2.10 trillion yuan from 21.94 trillion yuan in the prior quarter.

Analysis of Fund Manager Scale: Top Ten Hold 15.65 Trillion, 39.45% Share

The combined AUM of the top ten fund managers totaled 15.65 trillion yuan by the end of Q2 2026. This represents 39.45% of the total market AUM of 39.66 trillion yuan, a slight decrease of 0.33 percentage points from the previous quarter-end. The aggregate market share of the top ten managers has been declining over the past three quarters.

Among fund managers with active equity AUM exceeding 100 billion yuan, Founder Fubon Fund performed well, achieving a size-weighted quarterly return of 127.15% in Q2 2026. The vast majority of active equity fund managers realized positive returns for the quarter, with size-weighted net value growth rates concentrated between -20% and 130%. Larger managers were clustered around the 40% mark.

In the active fixed-income space, Huashang Fund stood out among managers with AUM over 100 billion yuan, posting a quarterly return of 8.20%. The majority of fund managers in this category were profitable.

Aggregating profits by fund manager for Q2 2026, E Fund ranked first with total profits of 260.615 billion yuan. China Asset Management followed with 194.312 billion yuan, and Harvest Fund took third place with 103.932 billion yuan.

Review of Fund Holdings: Mixed Fund Equity Allocation Rises to 80.79%

In the second quarter of 2026, the average equity allocation for mixed funds across the market increased by 1.84 percentage points, rising from 78.94% in the prior quarter to 80.79%. Concurrently, the average bond allocation decreased by 0.81 percentage points, from 11.21% to 10.40%. Mixed funds continued to operate with high equity allocations amidst a generally volatile and corrective A-share market during the quarter.

From a manager perspective, funds including Peng'an, Yimi, Ruida, Huatai-PineBridge, Fengchao, Allianz, Taixin, Guorong, Xinwo, and Quanguo increased their equity holdings. Conversely, managers like Hongyi Yuanfang, Anxin, Penghua, Bohai Huijin Asset Management, Guoxin Guozheng, Chuangkun Hexin, China Merchants Fund, Green, Boyuan, and Southern increased their bond holdings.

Market-wide Top Holdings and Trading Activity: ZJ INNOLIGHT, New Easson, Dongshan Precision Lead

As of the end of Q2 2026, the top ten holdings for active equity and mixed funds were led by ZJ INNOLIGHT, followed by New Easson and Dongshan Precision. During the quarter, stocks like GigaDevice and Sanhuan Group saw gains exceeding 200%, while ZJ INNOLIGHT, Dongshan Precision, Cambricon, Yuanjie Technology, and AMEC rose over 100%. Among the top ten holdings, ZJ INNOLIGHT, CATL, and New Easson were held by over 1,000 funds each. Since the end of Q2, all stocks on the list have declined, with GigaDevice falling the most at 41.65%.

In terms of net buying activity by active equity and mixed funds in Q2, the top three stocks were ZJ INNOLIGHT, New Easson, and Cambricon, with increases in holdings valued at 92.375 billion, 68.768 billion, and 51.663 billion yuan, respectively. The top three stocks sold were CATL, Kweichow Moutai, and Zijin Mining, with reductions valued at 17.572 billion, 14.645 billion, and 11.836 billion yuan, respectively. All stocks in the top ten for increased holdings rose during the quarter, with GigaDevice surging over 240%. Conversely, all stocks in the top ten for decreased holdings declined, with Salubris dropping over 40%.

Perspectives and Portfolio Adjustments from Notable Fund Managers

Several prominent fund managers adjusted their portfolios in Q2 2026. Highlights of their market reviews, adjustments, and outlooks are summarized below.

Kong Tao, manager of Hua'an Manufacturing Upgrade One-Year Holding Mixed A, noted that the market trended upward in Q2, particularly for the ChiNext and STAR boards. The fund captured the main market trends, focusing on high-growth sectors like optical modules and semiconductor equipment, while increasing allocations to PCB and memory. It reduced holdings in power equipment and non-ferrous metals. Looking ahead, the fund will continue focusing on the AI industry chain.

Zhang Chuanjie, manager of Xingquan Heheng Three-Year Holding Mixed A, observed that the market recovered post the US-Iran conflict scare, with rapid AI model development boosting confidence in both overseas and domestic supply chains. The fund further concentrated its holdings on AI-related areas like optical networks and PCB materials, while reducing exposure to gold and energy storage. Future focus remains on structural demand changes and AI-driven industry shifts, with increased attention to supply-side risks.

Lin Nian, manager of ICBC Dividend Mixed, stated that the impact of the US-Iran situation on capital markets weakened in Q2. Domestically, economic growth momentum slowed, with divergence being a key feature—strong external demand versus pressured internal demand, and better performance in new productive forces like AI. The fund maintained high equity allocation, focusing on quality growth dividends. Sector adjustments included reducing gold and copper while adding tungsten, and maintaining focus on competitive home appliance and electronic sector opportunities.