Its net asset value has been halved in just six months—what happened to this fund?

Today, the technology sector on China's A-share market continued to decline, causing significant drawdowns in funds heavily invested in these segments. One such example is the Penghua Manufacturing Upgrade Mixed Fund managed by Yan Siqian of Penghua Fund. As of July 20, the Class C shares of this fund have declined by 48.02% year-to-date, with a 50.1% drop over the past six months—effectively halving its net asset value in half a year.

Reporters from National Business Daily noted that this fund was established in October 2025, less than a year ago. According to the fund’s second-quarter report disclosed today, it continued to heavily allocate assets to sectors such as new energy, AI, brain-computer interfaces, and commercial space during the second quarter, significantly underperforming its benchmark index.

The latest NAV data shows that, as of July 20, the Class A shares of Penghua Manufacturing Upgrade Mixed Fund have posted a year-to-date return of -47.84%, while Class C shares returned -48.02%. Over the past six months, Class A shares declined by 49.94% and Class C shares by 50.10%, meaning the fund’s net asset value has effectively been halved in just half a year.

Public records show that the fund was launched on October 14, 2025—less than a year ago—and is managed by well-known fund manager Yan Siqian.

The fund released its second-quarter report today. Its top ten holdings are primarily concentrated in stocks from sectors such as new energy, AI, brain-computer interfaces, and commercial space.

Compared with the top ten holdings disclosed in the first-quarter report, the fund made significant portfolio adjustments, replacing six stocks: Lens Technology, China Information Technology Development Co., Ltd. (CITIC Mobile-U), XiCe Testing, Western Metal Materials, DEEIL Laser, and Chaojie Shares newly entered the top ten holdings, while Autowell, Triangle Defense, Guanglian Aviation, Laplace, CETC Blue Sky, and ST Zhenlei exited the list.

Notably, the fund’s net asset value not only experienced a sharp drawdown in a short period but also lagged significantly behind its benchmark. In the first quarter of this year, the Class A shares posted a NAV growth rate of -22.19% and Class C shares -22.31%, compared with a benchmark return of -2.38% for the same period. In the second quarter, Class A shares gained 4.99% and Class C shares 4.83%, while the benchmark surged by 41.59%.

In the second-quarter report, Yan Siqian stated: 'Investment opportunities in the second half of the year will continue to center on AI industry chains with strong fundamentals and earnings exceeding expectations, including North American optical communications, domestic computing power, PCBs and upstream materials, and semiconductor equipment. Additionally, we see significant long-term growth potential in emerging fields still in their infancy, such as embodied intelligence and commercial space.'

In fact, aside from this fund, many other products managed by Yan Siqian have also suffered substantial declines this year. For example, Penghua Carbon Neutrality Thematic Mixed Fund, widely recognized by the market, reported a year-to-date return of -33.93% for its Class A shares as of July 20.

According to the recently disclosed second-quarter report, the fund continues to maintain heavy positions in the humanoid robotics sector. In the report, Yan Siqian stated: 'Embodied intelligence represents the physical manifestation of AI. By 2026, AI will evolve from reasoning toward consciousness, and the next step will inevitably be the arrival of physical AI.'

She also noted: 'The current AI revolution is the most significant industrial trend. Embodied intelligence is AI’s largest application落地in manufacturing and lies at the heart of the Fourth Industrial Revolution and the battle for manufacturing’s future. We expect practical deployment in real-world scenarios by 2026, with terminal devices beginning to scale up and seeing initial adoption in areas such as performance, guided tours, factories, and office environments.'

Notably, Penghua Carbon Neutrality Thematic Mixed Fund is the largest product managed by Yan Siqian. In the second quarter, the fund experienced significant net redemptions, totaling over 1 billion units redeemed.

Additionally, as of July 20, the Class A shares of Penghua CSI 300 & Hang Seng Emerging Growth Mixed Fund, another fund she manages, have posted a year-to-date return of -35.93%. Its portfolio remains focused on technology-driven growth sectors, primarily AI and robotics.

Another fund under her management, Penghua Technology-Driven Mixed Initiation Fund, reported a year-to-date return of -30.19% for its Class C shares as of July 20. The fund underwent a major portfolio reshuffle in the second quarter, replacing all ten of its top holdings, with new positions concentrated in AI and domestic computing power sectors.

Overall, the funds managed by Yan Siqian are largely positioned around technology-driven growth themes, each with distinct strategic emphases—some focusing on commercial aerospace, others on robotics or AI and computing infrastructure. Despite substantial portfolio adjustments in the second quarter, all these funds have experienced significant drawdowns in net asset value.

Daily Economic News

46K Views