Top Private Equity Funds' Positions Hit New Annual High, Electronics Sector Favored
Miles Bennett
China's largest private funds pushed their position index to 88.64%, a 2026 high, with over 70% running full allocation; this means → top-tier funds are collectively betting on the second half amid market turbulence, and the electronics sector is their most concentrated target.
How high have private-fund positions climbed?
As of July 24, the overall equity private-fund position index rose to 84.12%, up for four straight weeks since June 26 — a cumulative gain of 2.12 percentage points.
Mega funds (those managing over ¥10 billion) went further: their index hit 88.64%, up 2.73 points from the prior week, a new 2026 high.
This means → despite ongoing market volatility, the largest funds are not trimming — they are accelerating purchases.
Who is fully invested, and who is still watching?
72.32% of mega funds are running above 80% allocation (effectively full). Mid-range allocation (50%–80%) accounts for 23.77%.
Low and zero allocations together total under 4%; the zero-allocation share is just 0.43%.
In plain terms = 96% of mega funds hold at least half their capital in equities. Virtually no one is sitting out — top institutions are in near-unanimous agreement on the market outlook.
Why are they adding positions during a pullback?
Xing Yicai, research director at Ziruixing Investment, argues that after A-shares' rapid correction, the safety margin on equity assets has widened (prices have fallen to relatively cheap levels), limiting further downside.
Meanwhile, the interim-results disclosure window (when listed companies release first-half earnings) is providing fresh performance clues. Funds are using these data to shift chips toward sectors with confirmed momentum.
This means → the buying is not blind bottom-fishing. Funds used interim data to run a performance screen, rotated into validated names, and pushed overall allocations higher as a byproduct.
Why has the electronics sector become the top research target?
In July, 690 private funds conducted A-share company visits, with 59 mega funds making 329 visits covering 134 stocks.
Panjing Investment made 26 visits, 14 of which targeted electronics names including HC SemiTek, BOE Technology, and WUS Printed Circuit. Danshui Spring made 23 visits covering 10 electronics stocks; Gaoyi Assets covered 6 electronics names in 18 visits.
This reflects a clear signal: even as the tech sector pulled back in July, top funds kept probing the electronics supply chain at high frequency — visit intensity itself is a leading indicator of capital intent.
How do these institutions view the road ahead?
Star Stone Investment: July's correction has released considerable valuation risk; the AI industry trend has not reversed, and companies with confirmed earnings benefit deserve attention.
Wu Weizhi, chairman of China-Europe Ruibo: tech growth stocks with competitive moats and technology barriers still have room to run after the valuation reset.
Li Deliang, founder of Renbu Investment: chips, servers, equipment, and materials remain core allocation targets; as model penetration rises, the application layer also offers new opportunities.
What should investors watch next?
The interim-results verification window is the pivotal checkpoint — if earnings deliver, the current 88.64% high-allocation stance has fundamental support.
If earnings disappoint, the same high positioning could amplify selling pressure.
In plain terms = the funds have pushed their chips onto the table. Interim results are the card flip — pass verification and the rally continues; fail, and the positions themselves become the risk.
Content is for reference only, not financial advice.