Great Wall Fund's Zhao Fengfei: The technology market trend is highly likely to continue into 2026, and market styles may become more balanced.

The soon-to-be-past year 2025 saw the technology sector undergo many changes, boosting technology stocks to become the main storyline of market performance throughout the year. Near year-end, market volatility for technology themes such as artificial intelligence, chips, and new energy clearly intensified. With the debate over an AI bubble flaring up again, the technology investment outlook for the new year has become a key focus for the market.

Amid the fog, the Great Wall Fund 2026 Annual Investment Strategy Conference arrives as scheduled. Zhao Fengfei, manager of the Great Wall Intelligent Industry Fund, has been deeply focused on the “Technology +” space for many years. At this strategy conference, she held in-depth discussions on popular questions in the field of technology investing.

Regarding the performance of technology stocks in 2025, Zhao Fengfei summed it up with the words “breathtaking” and “outstanding.” She believes the core driving force behind this market is global technological change and China’s breakthrough progress in the technology industry. Throughout the year, the sector rotation was clear, and each wave of rise had solid industry-logic support. This is the result of an overall improvement in China’s technology strength reflected in the market.

Can the technology market in 2026 continue? This is the fundamental question investors care most about. In response, Zhao Fengfei believes the market will likely continue, but market style will become more balanced. Zhao Fengfei’s view is that the key to whether the market can rise lies in whether industry-side investment will stop. And currently, capital expenditures by leading cloud companies both at home and abroad are still being pushed forward at high intensity. This kind of rigid investment is precisely the solid “anchor” for technology stock market performance; applied to the capital markets, it naturally provides support for market continuity.

On that basis, Zhao Fengfei believes that next year’s technology stocks will show a balance across three dimensions:

First, in the compute-power segment, domestic and overseas compute power are moving toward balance. Over the past few years, overseas compute-power stock gains were significant, and it will be more difficult to sustain large increases going forward. Meanwhile, domestic compute power is entering a critical breakthrough period. Revenue and profits are about to move into a phase of large-scale release, and there is potential to accelerate through the bottleneck.

Second, balance within the AI sector’s internal structure. Over the past three years, market investment focus has been concentrated on infrastructure-type enterprises such as “selling shovels,” like compute power. After long-term layout, the construction of basic infrastructure has increasingly become complete, and conditions for a mass surge of the application layer have gradually matured. In 2026, AI applications are expected to see substantive breakthroughs.

Third, within the technology sector, AI and non-AI areas are expected to develop in a more balanced way. As AI has become the mainstream topic across industry, it has already performed strongly in capital markets for three years with impressive results. At the same time, new segments such as commercial spaceflight and quantum computing—if new industrial changes emerge later—could see phase-by-phase performance that is no worse than AI.

When discussing specific sub-sectors she is optimistic about in the technology sector, Zhao Fengfei clearly stated that in 2026, three major directions will reach key turning points. First is solid-state batteries: they are expected to enter the first year of small-batch mass production, initiating technology iteration in the power-battery field. Second is commercial spaceflight: recoverable technologies are likely to achieve major breakthroughs, addressing the capacity bottleneck in building satellite internet and paving the way for grand scenarios such as space compute power. Third is AI applications: as model performance improves, AI Agents will move into a usable threshold point, becoming an important tool for empowering industries. If the timeframe is extended to the “14th Five-Year Plan’s second half and the 15th Five-Year Plan” period, the potential of quantum computing cannot be overlooked.

Zhao Fengfei said that once quantum computing achieves commercial breakthroughs from 0 to 1, it will trigger a chain reaction: existing encryption mechanisms used in cryptocurrencies could be rapidly cracked, forcing the entire industry to rebuild its cryptography system and driving explosive growth in the information security field. At the same time, quantum computing will tackle scientific computation problems that are difficult for classical computers to complete, becoming a super engine that pushes progress for the whole industry.

Disclaimer: The information contained in this communication is sourced from channels this company considers reliable and from the personal judgments of its analysts. However, the company does not provide any direct or implied statement or guarantee regarding its accuracy or completeness. This communication is not a complete description or summary of the relevant securities or market. Any opinions expressed may change and will not be notified separately. This communication should not be received by recipients as a substitute for their independent judgment or investment decision-making. Neither the Company nor any of its related institutions, employees, or agents shall be responsible for any loss arising from or related to anyone’s use of all or any part of the contents of this communication. Without the prior written permission of Great Wall Fund Management Co., Ltd., no one may distribute, copy, retransmit, quote, or publish this report or any part of it in any form, nor make any cuts or modifications to this communication that are inconsistent with the original intent. The fund manager reminds that each citizen has the duty and the right to report money-laundering crimes. Each citizen should strictly comply with relevant laws and regulations regarding anti-money laundering. Funds involve risk; investment requires caution.

A vast amount of information and precise interpretation—available in the Sina Finance App

Responsible editor: He Junxi