Let’s start with the list of heavy holdings of technology stocks “dominating the screen” funds

Let’s start with the list of heavy holdings of technology stocks “dominating the screen” funds.

The 2026 second quarter report of public funds shows that as of the end of the second quarter, public funds have made unprecedented allocations to technology stocks. Among the top 50 largest holdings of public active equity funds, there are 41 AI-related technology concept stocks.

The remaining nine targets include CATL and Sungrow in the new energy field, Hengrui Pharmaceuticals and WuXi AppTec in the innovative drug field, as well as Tencent Holdings and Luxshare Precision. The only real non-technological concept targets are Kweichow Moutai, Midea Group and Zijin Mining.

Judging from the market value of fund holdings, the top five are Zhongji InnoLight (136.621 billion yuan), Xinyi Sheng (136.621 billion yuan), Dongshan Precision (67.406 billion yuan), Cambrian (64.714 billion yuan), and CATL (55.519 billion yuan). Kweichow Moutai has retreated to the 30th largest holding in public offerings.

The "frequent customers" among the top 50 largest holdings of public offerings in the past - Ping An of China, China Merchants Bank, Wanhua Chemical, Conch Cement, Yangtze Power and other white horse leading stocks, are now nowhere to be seen.

According to calculations by GF Securities: As of June 30, public funds’ holdings in a single first-level electronics industry accounted for 43.4%, overweighting by about 20 percentage points; the combined holdings of the two major industries of electronics and communications accounted for nearly 60%.

There is no doubt that technology stocks are highly sought after and are supported by hard logic of industry trends. In recent years, the prosperity of the AI industry has continued to rise. Investment in AI computing power has boosted demand for high-speed optical modules, and the localization logic of AI chips and storage has also provided strong support.

Looking at industry trends, both China and the United States are investing in computing power infrastructure, and the signals from the policy and industry sides are dense and clear. Judging from performance, both the leading optical module company and the semiconductor equipment company have performed well in terms of revenue and net profit.

Judging from the capital flow in the second quarter of this year, a large amount of capital continues to flow out of the weak sectors and continues to flow into the AI-related industrial chain, eventually forming a situation where the list of fund holdings is dominated by technology targets.

For the capital market, asset prices always achieve a dynamic balance around fundamentals and capital supply and demand. When institutions heavily invest in an industry and continue to obtain excess returns far exceeding the market average, the industry's valuation continues to rise, and chips continue to be crowded.

Once there is a marginal change in expectations, adjustment pressure will quickly appear. Judging from the market trends since July, many stocks have experienced adjustments. It should be noted that after the adjustment in the past three weeks, the market may have returned to a rebalancing state.

It is undeniable that the artificial intelligence industry represented by AI still has a lot of room for development in the future, but the road to pursuing great dreams may still be tortuous. For investors, it is not enough to dream big, but also to deeply understand the complexity of reaching success.

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