Jiang Cheng's fund quarterly report released! The top ten major holdings remain largely unchanged, and he sees long-term potential in the Chinese economy.

On January 21st, Zhongtai Asset Management disclosed the quarterly report for 2024 of its flagship fund managed by renowned fund manager Jiang Cheng. Taking the Zhongtai Xingyuan Flexible Allocation Hybrid Fund managed by Jiang Cheng as an example, there were no significant changes in the top ten heavy-weighted stocks compared to the end of the third quarter of 2024, with only Hisense Visual Technology (600060.SH) exiting and Jiangsu Yangnong Chemical becoming a new heavy-weighted stock by the end of the fourth quarter. Jiang Cheng noted that overall, the portfolio did not undergo major changes and his long-term optimistic viewpoint remained unchanged. However, the net asset value of the fund saw some decline under the "fair value method". As of the end of the reporting period, the net asset value per share of Zhongtai Xingyuan Flexible Allocation Hybrid Fund A was 2.6517 yuan, with a growth rate of -2.91% during this reporting period, while the benchmark return rate was 0.14% for the same period. As of the end of the reporting period, the net asset value per share of Zhongtai Xingyuan Flexible Allocation Hybrid Fund C was 2.6160 yuan, with a growth rate of -3.01% during this reporting period, while the benchmark return rate was 0.14% for the same period. As of the end of the fourth quarter of 2024, stock investments accounted for 85.07% of the total assets of the Zhongtai Xingyuan Flexible Allocation Hybrid Fund. In terms of portfolio adjustment, the top ten heavy-weighted stocks of the Zhongtai Xingyuan Flexible Allocation Hybrid Fund at the end of the quarter were: China State Construction Engineering Corporation (601668.SH), Shandong Hualu-Hengsheng Chemical (600426.SH), Shandong Sun Paper (002078.SZ), China Merchants Bank (600036.SH), Industrial and Commercial Bank of China (601398.SH), Xiamen C&D Inc. (600153.SH), Zhejiang Supor (002032.SZ), Poly Developments and Holdings Group (600048.SH), Anhui Conch Cement (600585.SH), and Jiangsu Yangnong Chemical (600486.SH). Jiang Cheng stated that the market in the fourth quarter was volatile overall, with small and medium-sized stocks performing better than large-cap stocks, which were generally weak. In terms of industries, sectors related to artificial intelligence were relatively strong, while traditional industries such as pharmaceuticals, consumer goods, and real estate continued to decline. He favored long-term high success rate over high odds and therefore accepted some losses in his allocation. As stimulus policies were being implemented, Jiang Cheng believed that certain parts that had a structural impact on the long-term value of individual stocks needed extra attention, such as measures related to debt financing, which he found to be the most optimistic part of the policy. His other long-term views remained unchanged: the resilience of the Chinese economy was strong, with potential long-term returns ranking at the top compared to other major economies worldwide, large room for industrial structure upgrade, the equity asset benefiting from relatively lower valuations, and high attractiveness among main global markets. Overall, the additional information in the fourth quarter made the long-term judgment slightly more optimistic, and the specific effects of countercyclical adjustment measures and when they will be reflected were deemed less important as they were unpredictable as always. Not all assets in the portfolio rose or fell together, with the holding proportion of individual stocks affected by their fluctuations. Therefore, the holdings of rising stocks would slightly decrease, while those of falling stocks would slightly increase, determining the final position and structure of the portfolio through these "passive" operations.