Chinese fund portfolios recorded a notable reshuffle in the fourth quarter of 2025, with five stocks now held by funds at more than RMB 100 billion apiece. Contemporary Amperex Technology Co. Ltd. (CATL, 宁德时代) remains the single largest position, but other heavyweights have reshuffled: optical-communications suppliers Zhongji Xuchuang (中际旭创) and Xin Yisheng (新易盛) sit in second and third, while luxury-liquor giant Guizhou Moutai (贵州茅台) has slid to fourth place.
The concentration in five names — CATL, Zhongji Xuchuang, Xin Yisheng, Guizhou Moutai and Zijin Mining (紫金矿业) — highlights where capital has pooled: electric-vehicle supply chains, data‑centre and telecom components, traditional consumer staples and resource plays. Wind data show fund managers trimmed positions in the top three industrial/technology names during Q4 even as they increased stakes in Moutai and Zijin, suggesting a nuanced rebalancing rather than a simple tech-to-defensive rotation.
Beyond the top quintet, funds were active across sectors. Large on‑market increases favored financials and securities houses — China Ping An (中国平安), CITIC Securities (中信证券) and Industrial Bank (兴业银行) were among the biggest buy targets. In Hong Kong, fund buying concentrated on names such as China Cinda (中国信达) and technology-related stocks including SenseTime-W (商汤-W), along with energy heavyweights like Sinopec.
Selling pressure was visible in a different cohort: internet platforms and several technology and healthcare names saw material reductions. Alibaba (阿里巴巴‑W), East Money (东方财富), Alibaba Health (阿里健康), SMIC (中芯国际), Luxshare Precision (立讯精密) and Hengrui Medicine (恒瑞医药) were among the names that funds pared back, reflecting selective profit‑taking or risk repricing in parts of the high‑beta spectrum.
Active managers’ behaviour underlines the diversity of convictions inside the industry. Active funds pushed their A‑share exposures materially into a handful of stocks where incremental market value exceeded RMB 2 billion, with notable increases in Ping An, Dongshan Precision (东山精密) and Tianhua New Energy (天华新能). At the same time, active funds were among the larger sellers of EVE Energy (亿纬锂能), GigaDevice (兆易创新) and Zhongji Xuchuang, indicating clinicians of growth names are not uniformly bullish.
A separate but related trend is the growing role of fund‑of-funds (FOF) in shaping demand for bond products. Fourteen funds were held by FOFs at more than RMB 1 billion, predominantly short‑duration or state‑backed bond funds and ETFs such as short‑term credit ETFs and state‑owned enterprise bond funds. This points to a significant institutional allocation to lower‑volatility, income‑oriented assets even as equity portfolios are actively rebalanced.
The market implications are twofold. First, the trimming of some high‑flying industrial and tech suppliers signals portfolio managers are crystallising gains after a strong run, leaving room for more idiosyncratic performance rather than broad sector momentum. Second, increased exposure to banks, insurers and resource companies — alongside FOF demand for bonds — suggests managers are positioning for a slower, more uneven macro recovery and potential downside risk from volatility or policy shifts.
Investors and corporates should watch whether the Q4 adjustments signal a longer‑term reallocation or a quarter‑end technical rebalance. Continued outflows from platform and selected semiconductor names could weigh on valuations if sustained, while persistent inflows into financials, energy and mining could support cyclical earnings re-ratings. The strong position sizes in a handful of stocks also mean any renewed sector rotation or macro shock would have outsized effects on fund performance and market liquidity.