February Public and Private Funds Actively Conduct Research on Technology and High-End Manufacturing Sectors

Public Fund Research Data Show that in February, public and private funds conducted nearly 2,000 research visits, covering over 200 listed companies. From an industry perspective, electronics, electrical equipment, pharmaceuticals, and biotech sectors are particularly favored by public and private institutions. Industry insiders believe that, against the backdrop of low risk-free rates and gradually recovering corporate fundamentals, a structural market trend is expected to continue. Segments benefiting from the rapid development of AI industry, such as computing power, power infrastructure, and new energy, are worth paying close attention to.

Active Public and Private Fund Research

According to data from Public Fund Research Network, in February, 139 public fund institutions participated in research visits to A-share listed companies, with a total of 1,259 visits, covering 199 targets across 27 first-level Shenwan industries. Specifically, 37 companies received more than 10 research visits from public funds in February, with the most attention on power equipment company Tianshun Wind Energy, which was visited 66 times. Additionally, companies such as Frontier Biotech, Fenghua High Tech, Ruiming Technology, Huanxu Electronics, and Medisi were each visited more than 20 times.

Private fund research activity was also vigorous in February. Data from Private Fund Research Network show that 383 private funds participated in research visits, with a total of 704 visits, covering 158 targets across 22 Shenwan first-level industries.

Notably, leading private funds with substantial capital actively conducted research. In February, 34 private funds with over 10 billion yuan participated in A-share research, with a total of 128 visits. Among the 26 private funds that visited at least five times, 14 are over 10 billion yuan in size. Regarding targets, biotech company BeiGene attracted the most private fund attention, with 12 large institutions including Fushan Springs, Jinglin Assets, Gao Yi Assets, and Chongyang Investment participating in research.

Fushan Springs Investment told Shanghai Securities Journal that the support foundation of the A-share market remains solid. Specifically, excellent companies are sharing the dividends of global AI technological innovation, power infrastructure, and other industry chains through “going global,” while China’s self-controlled technological fields continue to show resilient growth. Meanwhile, with low risk-free rates, capital reallocation needs are increasing, and liquidity in equity markets is expected to remain positive. Currently, it is a good time to actively seek and deploy structural opportunities.

Electronics and Power Equipment Sectors Favored

Research data shows that technology and high-end manufacturing sectors are particularly attractive to institutions.

According to Public Fund Research Network, in February, the electronics industry was the most followed sector by public and private funds, with 301 research visits; power equipment was second with 287 visits; pharmaceuticals, biotech, machinery, and computers each received over 200 visits.

Weng Qiang, Director of Equity Investment at Ningyongfu Fund, told Shanghai Securities Journal that under the backdrop of “upgrading the global power grid” and rapidly increasing AI computing power demand, the power equipment industry is entering a new development phase. Specifically, the demand for AIDC (air conditioning and data center) electricity is rising rapidly, and power and energy are becoming key constraints for AI development. Meanwhile, the average service life of power grid equipment in Europe and the US exceeds 30 years. During the process of integrating new energy sources and energy transformation, overseas utility companies are expected to increase capital expenditure. In this context, Chinese power equipment companies, with their ultra-high voltage technology, full industry chain cost advantages, and strong delivery capabilities, have a competitive edge in going abroad.

From a sub-sector perspective, Weng believes that as UPS (Uninterruptible Power Supply) systems evolve toward HVDC (High Voltage Direct Current), Chinese companies with overseas production capacity and certification qualifications are likely to continue benefiting.

Gao Yuyang, Chief Analyst of Electronics at Zheshang Securities, told Shanghai Securities Journal that current industry trends indicate that AI computing power demand will continue to expand. Upstream hardware segments are expected to benefit from this growth, making the computing chain worth close attention.

“Under the continuous growth of AI computing power demand, data transmission within data centers and between systems faces increasing pressure. High bandwidth and low latency communication needs are rising, and optical communication systems will become more critical for data transfer. As AI servers and high-speed switches upgrade, demand for optical fibers and high-speed optical modules is expected to grow through 2026. Among these, CPO (Co-Packaged Optics), as an important next-generation optical interconnect technology, integrates optical engines with switching chips, which can reduce power consumption and increase bandwidth density. From the industry chain perspective, CPO is expected to see technological upgrades and industrialization in areas such as optical engines, advanced packaging, and high-density interconnects,” Gao said.

（Source: Shanghai Securities Journal）