Semiconductor and AI-Themed Funds Dominate China’s 2026 Fund Rankings
TREE NEWS reports: China’s public mutual fund industry has delivered a striking set of first-three-quarter results for 2026, with a clear “technology plus resources” dual theme emerging across active equity, index, bond, QDII and FOF categories. Semiconductor localization, AI computing demand and a resilient oil price combined to create a structural bull market in A-shares that rewarded managers with concentrated exposure to chip supply chains and energy.
Active Equity: New Names Take the Lead
Yang Zongchang of E Fund topped the active non-money-market fund rankings with his E Fund Supply-Side Reform vehicle, while his E Fund Industry Opportunity A posted a 111.62% gain over the first three quarters. Chen Siyu’s Huian Trend Momentum A returned 96.66%, and Zuo Shaoyi’s Nuofan Innovation Drive A gained 94.83% after climbing from 613th place in Q1. Jin Zicai of Caitong Fund placed four products in the top 20, cementing a “Caitong tech legion” reputation.
Equity Funds: Pharma Revival Meets Semiconductors
Among active equity funds, semiconductor and pharmaceutical themes shared the spotlight. China Merchants Frontier Healthcare A and China Merchants Pharmaceutical Health Industry each returned above 61%, with most of those gains coming in the third quarter after a muted first half. Semiconductor funds such as Guoshou Security Digital Economy and Invesco Great Wall Global Semiconductor Chip Industry also ranked highly.
Index Funds: Semiconductor Materials Sweep the Board
Passive products were almost entirely monopolized by semiconductor materials and equipment ETFs. Penghua SSE STAR Semiconductor Materials and Equipment ETF led with 82.43%, followed closely by China AMC and Huatai-PineBridge versions of the same theme. A cross-border fund tracking Korean semiconductor names also gained 75.25%, reflecting the regional chip cycle.
Bonds and QDII: Convertibles and Crude Oil Shine
Zhang Yongzhi of Huashang Fund swept the top three bond fund spots, with Huashang Ruixin Regular Open gaining 26.64%. His convertible bond fund staged a dramatic turnaround from a 4.48% first-quarter loss to a 40.74% first-half gain. In QDII, E Fund Crude Oil A USD led at 86.47%, while semiconductor and technology funds such as China AMC Mobile Internet USD also posted strong returns, creating a “two-horse race” between energy and chips.
FOF: E Fund Dominates
E Fund products occupied the entire top five of the FOF rankings, with Zhang Haoran’s E Fund Advantage Drive One-Year Holding A leading at 35.58%. Pension target products also performed well, underscoring the growing link between fund-of-funds and retirement investing.
Market Implications
These results signal that Chinese investors are positioning heavily around three narratives: domestic semiconductor substitution, AI-driven computing demand, and commodity-linked inflation hedges. The strong showing from oil funds suggests energy remains a key portfolio diversifier. The pharmaceutical revival indicates a rotation into defensive growth sectors after a long slump.
Key Takeaways for Investors
- Semiconductor and AI themes remain the dominant alpha source in Chinese equities, but concentration risk is rising.
- Convertible bonds offer high-beta exposure to equity recoveries — with corresponding drawdown risk.
- QDII investors are effectively choosing between energy and technology; both have delivered strong year-to-date returns.
- FOF and pension products are gaining traction as long-term allocation tools.
