Surpassing CATL and Moutai, Tencent becomes the top holding stock for public funds in Hong Kong stocks for the first time

The latest disclosed public fund Q1 2025 report shows that in the turbulent market of Q1 this year, funds strongly embraced technology and innovation, with Tencent becoming the top heavy stock for the first time, CATL falling to second place, and Moutai being the third largest heavy stock.

Among the top 50 heavy stocks of the funds, there are as many as 12 companies in the information technology sector among A-share companies, including semiconductor companies such as Northern Huachuang, Haiguang Information, SMIC, Zhaoyi Innovation, Cambrian, and Shengbang Technology, as well as leading stocks in the Apple supply chain like Luxshare Precision and PCB leader Shenghong Technology.

In Q1 this year, funds increased their layout in Hong Kong stocks. Among the top 50 heavy stocks of the funds, there are 8 Hong Kong stock companies, namely Tencent Holdings, Alibaba-W, Xiaomi Group-W, Meituan-W, China Mobile, CNOOC, Pop Mart, and SMIC.

Notably, Tencent has become the top heavy stock for public funds for the first time. Data shows that by the end of Q1, a total of 1,186 funds held Tencent Holdings, with a holding market value of up to 69.384 billion yuan; CATL was heavily held by 1,267 funds, with a total holding market value of 55.369 billion yuan; the market value of funds holding Moutai was 37.862 billion yuan. Following that, the stocks with significant fund holdings include Alibaba-W, Midea Group, Luxshare Precision, BYD, and others.

From the data on heavy stocks of public funds, at the end of Q2 2019, Moutai surpassed Ping An Insurance to become the top heavy stock for public funds, and it remained a favorite for funds for the next two years until it was replaced by CATL at the end of Q3 2021. At the end of Q2 2022, Moutai regained its position as the top heavy stock for funds until it was surpassed by CATL at the end of Q2 2024, with CATL subsequently retaining the title of top heavy stock for funds twice, and this year in Q1 being surpassed by Tencent Holdings.

Looking ahead, in the context of market uncertainty, fund managers are optimistic about the domestic demand direction supported by policies and the positive trends in AI applications.

Chen Ying, manager of the Golden Eagle Core Resource Fund, stated that the domestic technology sector is poised for breakthroughs in multiple areas, with AI-related product launches expected to be concentrated in Q2, coupled with the introduction of industrial policies to catalyze market sentiment, making technology a favorable investment opportunity. From the perspective of technological innovation, AI remains the main driving force in the consumer electronics industry, with foldable screens, AI PCs, and AI smartphones continuing to drive the prosperity of industry chain companies.

Liu Yuanhai, manager of the Soochow Mobile Internet Fund, indicated that the AI direction remains an important investment theme in the A-share market going forward, with expectations for rapid development of the domestic AI industry in Q2 this year and the second half of the year, focusing on advanced AI models and applications, while also paying attention to domestic technology's self-sufficiency and controllability.

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