A wave of AI-driven bull markets has elevated a new generation of fund managers, who point out that “AI will be the most significant investment opportunity in recent years.”

The disclosure of the 2025 semi-annual report for funds has concluded, showcasing the long-term demeanor of outstanding asset management institutions once again. As of the end of June 2025, Huabao Fund has cumulatively served 64.12 million clients, with its public fund products generating a total profit of 83.2 billion yuan for fund holders and total dividends amounting to 59.4 billion yuan (including dividend reinvestment). Since the beginning of this year, the A-share market has exhibited a robust bullish trend, particularly in the technology innovation/AI sectors, which have consistently risen with remarkable momentum. Huabao Fund, having successfully seized market opportunities, has seen multiple products deliver impressive gains, becoming a dazzling tool for investors to share in the opportunities of technology innovation investments.

Among them, the Huabao Core Advantages Flexible Allocation Mixed Fund (Class A 002152; Class C 016461) has become a representative work within Huabao Fund’s active equity investment system. This fund, by focusing on prosperous growth and selecting core advantages, has accurately grasped the reversal opportunities in the A-share market since September 24, aided by a profound understanding of the trends in the artificial intelligence industry and market themes. During the bull market in 2025, it has capitalized on the momentum, earning increasing recognition and affection from investors due to its robust upward investment performance.

Fund Manager: AI may be the most significant investment opportunity in the coming years.

In the recently released Q2 2025 report for the Huabao Core Advantages Fund (Class A 002152; Class C 016461), the fund has achieved excess returns relative to its performance benchmark across multiple time periods, demonstrating remarkable combat effectiveness. Fund Manager Zheng Yingliang stated in the quarterly report that during Q2 of this year, the fund primarily allocated assets to industries with high prosperity and good growth potential, with current holdings mainly focused on artificial intelligence, smart vehicles, lithium batteries, and pharmaceuticals. Future investments will also be based on current research directions, with a key focus on identifying companies that align with industry trends and possess outstanding competitiveness.

Latest Top Ten Holdings of the Huabao Core Advantages Fund (Q2 2025 Report)

It can be observed that the fund has a significant layout in optical modules/optical communications within the AI industry, with substantial floating profits from the related stocks held. If we look at the performance of the related weighted stocks since Q2 2025 (April 1, 2025 – August 29, 2025), they have generally more than doubled, with increases ranging from 100% to 410%.

The ability to reap investment rewards is also a result of deepening understanding. Recently, Huabao Core Advantages Fund Manager Zheng Yingliang shared his views on the development of AI, stating: “From a long-cycle perspective over a decade, the trend of the AI industry has just begun. From a technological innovation standpoint, artificial intelligence may be the most significant technological breakthrough in recent decades. On one hand, it can accelerate the pace of technological development; on the other hand, AI can empower and enhance efficiency across various industries. The last time there was such an important technological breakthrough may have been the invention of electricity, which led to a century of industrial revolution; the current artificial intelligence revolution may usher in decades of intelligent transformation.”

Huabao Core Advantages Fund Manager Zheng Yingliang

Zheng Yingliang pointed out that from the perspective of a medium-term cycle of 3-5 years, the commercialization loop of AI has gradually taken shape. Compared to the last round of the Internet revolution, the commercialization process of this round of generative AI is very rapid. Taking OpenAI as an example, it has now become the fastest technology company in history to surpass an ARR of 10 billion USD. Furthermore, for major overseas cloud service providers, we are already witnessing significant boosts in cloud and advertising businesses driven by AI.

From a one-year perspective, the demand for AI reasoning has surged dramatically. Zheng Yingliang believes that due to the development of long-thinking chain reasoning models, a significant trend observed this year is the substantial increase in token consumption, which has been validated by both Google’s overseas operations and ByteDance domestically. Moreover, looking ahead, coding agents are also entering a period of explosive growth, and multimodal technologies are continuously evolving, with current reasoning computing power showing a trend of being in short supply. Additionally, various new training models are being tested, and it is expected that the demand for computing power in training will also increase significantly.

Zheng Yingliang emphasized that from an investment perspective, AI may represent the most important historic investment opportunity in the coming years. He indicated that attention should be focused on two major areas: first, computing power infrastructure, which belongs to high-certainty categories; the construction of computing power infrastructure is still in its early stages, and the market space remains enormous. This investment opportunity is mainly concentrated in computing power chips, optical modules, PCBs, and servers; second, AI applications, which belong to high-flexibility categories, but with slightly lower certainty compared to computing power, may require in-depth exploration of sub-sectors. This investment opportunity is mainly focused on areas such as internet/AI advertising e-commerce and AI education.

Ruiqi Treasure Fund: Full battle value.

In recent years, ETFs have become popular among investors as high-quality investment tools. At the same time, the rapid development of technology industries such as AI and pharmaceuticals is calling for the forward-looking layout capabilities of professional investors and investment institutions, their ability to deeply explore quality stocks across different market capitalizations, and their asset allocation capabilities. With the advancement of a hot bull market, a new generation of fund managers has stood out due to their sharp investment acumen and strong sensitivity to ‘hard technology,’ with fund net values continuously rising.

Among these, the Huabao Core Advantage Fund (Class A: 002152; Class C: 016461) has gained market attention due to its ‘hardcore performance,’ becoming a ‘treasure fund’ whose brilliance is increasingly recognized.

As of the end of the second quarter this year, the nearly six-month and one-year investment returns of Huabao Core Advantage A (002152) were 12.23% and 27.72%, respectively, with excess returns relative to the performance benchmark of 11.44% and 17.20%. By the end of August 2025, the performance of this fund had significantly improved again: according to data verified by the custodian bank, as of August 29, 2025, the nearly six-month investment return of Huabao Core Advantage A (002152) surged to 87.32%, and the one-year investment return rose to 129.42%. Furthermore, since its inception at the beginning of 2016 (from January 21, 2016, to August 29, 2025), the cumulative investment return of this fund has reached 293%, almost doubling.

Note: The performance data as of the end of the second quarter of 2025 is derived from the fund’s Q2 report; the performance data as of August 29, 2025, is sourced from Wind and Huabao Fund, and all data has been verified by the custodian bank.

Observing the net value trend of Huabao Core Advantage A (002152), it is evident that the steepest rise occurred during the strengthening phase of the A-share market in April this year. According to statistics from Galaxy Securities, as of August 29, 2025, Huabao Core Advantage A (002152) not only ranks in the top 1% of similar funds in terms of investment returns this year, but it also achieved top-level performance in multiple time frames, including the past 6 months, 1 year, and 3 years, reaching peak combat value!

Investment returns and performance rankings of Huabao Core Advantage A across various time periods.

As of August 29, 2025, similar funds are classified by Galaxy Securities as “flexible allocation funds (benchmark stock ratio 30%-60%) (Class A).”

The fund manager of Huabao Core Advantage (Class A 002152; Class C 016461), Zheng Yingliang, holds a Master’s degree in Finance from Peking University and has 10 years of experience in the securities industry and 4 years of investment management experience, characterized by a distinct growth style in investment. Industry insiders note that Zheng Yingliang is marked by three labels: “deep research foundation,” “strategic research,” and “investment star,” each contributing to his investment management capabilities and rich, multidimensional investment research experience. Zheng Yingliang stated that in managing Huabao Core Advantage, he employs a selective strategy that combines top-down and bottom-up approaches, conducting in-depth research on macroeconomic conditions and the meso-development trends of the relevant industries, analyzing the fundamentals and growth prospects of enterprises, and constructing investment portfolios through a combination of qualitative and quantitative analyses.

Considering the volatility of fund performance and drawdown control, how has the well-performing Huabao Core Advantage fund fared? According to Wind data, in the nearly two-year period ending August 29, 2025 (September 1, 2023 – August 29, 2025), the Sharpe ratio of Huabao Core Advantage A (002152) is 0.18, significantly outperforming the average Sharpe ratio of 0.07 for similar funds during the same period. This indicates that during the prior bear market, such flexible allocation mixed funds faced common market pressure in generating excess returns; on the other hand, it also reflects the higher volatility and elasticity characteristics of the Huabao Core Advantage fund, as well as its superior risk-adjusted performance compared to similar funds. Over the same nearly two-year period (September 1, 2023 – August 29, 2025), the Calmar ratio of Huabao Core Advantage A (002152) reached as high as 1.46, showcasing the excellent risk control capabilities of fund manager Zheng Yingliang, which allows the fund to exhibit strong resilience and recover well from drawdowns, even achieving new performance highs. This objective data on fund performance assessment also provides rational reference for investors interested in this fund.

Note: According to Wind’s fund classification, Huabao Core Advantage Fund is a flexible allocation mixed fund (secondary classification); as of August 29, 2025, there are a total of 1,352 flexible allocation mixed funds in the entire market.

Special Reminder: Recent market fluctuations may be significant, and short-term price changes do not predict future performance. Investors must make rational investment decisions based on their financial situation and risk tolerance, with a high degree of attention to position and risk management.

Data sources: Galaxy Securities, Wind, Huabao Fund, Opinion update time: 2025.8.29

Risk Factors:

1. The Huabao Core Advantage (Class A 002152; Class C 016461) is issued and managed by Huabao Fund. The distribution institutions bear no responsibility for the investment, redemption, and risk management of the product. Investors should carefully read the “Fund Contract,” “Prospectus,” “Fund Product Information Summary,” and other legal documents related to the fund to understand the risk-return characteristics of the fund and choose products that match their own risk tolerance. Past performance of the fund does not predict its future performance, and the performance of other products managed by the fund manager does not indicate the future performance of this fund. Investment in funds must be cautious! The risk level of Huabao Core Advantage assessed by the fund manager is R3 – medium risk, suitable for investors of C3 – balanced type and above. The appropriateness matching opinion should be based on the selling institution. Selling institutions (including direct sales institutions of the fund manager and other selling institutions) conduct risk assessments of this fund according to relevant laws and regulations. Investors should pay timely attention to the appropriateness opinions issued by the selling institutions and take their matching results as the standard. Opinions on appropriateness from different selling institutions may not be consistent, and the risk level evaluation results of fund products issued by fund selling institutions shall not be lower than the risk level evaluation results made by the fund manager. Differences in the characteristics of risk and return of the fund and the fund’s risk level in the fund contract arise from different considerations. Investors should understand the risk-return situation of the fund and cautiously select fund products in conjunction with their own investment objectives, time horizons, investment experience, and risk tolerance, and bear the risks independently. The registration of this fund by the China Securities Regulatory Commission does not imply any substantive judgment or guarantee regarding the investment value, market prospects, and returns of this fund. The views of the fund manager represent only the opinions at that time, which may change in the future, are for reference only, do not constitute any promotional materials, investment advice or guarantees, nor do they serve as any legal documents.

2. The performance benchmark for the Huabao Core Advantage Fund is the return of the CSI 300 Index × 55% + the return of the Shanghai Government Bond Index × 45%. The annual net value growth rates of Huabao Core Advantage A (002152) from 2020 to 2024 and their corresponding benchmark growth rates are: 67.73%, 0.73%, -20.60%, -2.76%, 19.12% and 16.76%, -0.66%, -10.69%, -4.64%, 12.26%.

3. The Huabao Core Advantage Mixed Fund was established on January 21, 2016. The fund managers have been Hu Ge You (January 21, 2016 – December 31, 2021), Zhong Qi (December 31, 2021 – August 16, 2025), and Zheng Yingliang (since December 31, 2021). Since Zheng Yingliang’s tenure (December 31, 2021 – August 29, 2025), the investment return of the fund has been 69.03%. This performance has been reviewed by the custodian bank.

4. Zheng Yingliang currently also serves as the fund manager of the Huabao Large Cap Selected Fund, with a tenure from February 21, 2023, to present. The Huabao Large Cap Selected Fund was established on October 7, 2008, with a performance benchmark of the CSI 300 Index return × 80% + the Shanghai Government Bond Index return × 20%. The annual net value growth rates of the fund from 2020 to 2024 and their corresponding benchmark growth rates are: 95.01%, 1.83%, -39.53%, -16.21%, 17.30% and 22.61%, -3.12%, -16.86%, -8.40%, 13.73%.