Huashang Fund's Deng Mo: Optimistic about two main directions—technology growth and upstream resources

After the Spring Festival holiday, the A-share market will enter the trading session for the Year of the Horse. Looking ahead to the Year of the Horse, Deng Mo, General Manager of Quantitative Investment at Huashang Fund and Fund Manager of Huashang Quality Wisdom Selection Hybrid Fund, stated that as the economy enters a virtuous cycle, profit recovery and market liquidity will support subsequent market gains. Market risk appetite will further increase, and while maintaining optimism, attention will be paid to potential risks. The industry remains optimistic about two major directions: technological growth and upstream resources.

Deng Mo is currently the Director of Quantitative Investment and General Manager of the Quantitative Investment Department at Huashang Fund. He is a well-known veteran in active quantitative investing with over 10 years of securities investment experience. His investment style favors balanced allocation, primarily based on quantitative models, combining the objective and rational characteristics of quantitative data with in-depth research methods of active investment. He leverages the objectivity and rationality of quantitative models alongside Huashang Fund’s active management advantages. By combining quantitative and qualitative analysis, he employs different stock selection logic under various price scenarios to identify high-growth industry quality assets.

Deng Mo stated that as the economy enters a virtuous cycle, profit recovery and market liquidity will jointly support future rises. More corporate values will be rediscovered in this process, and market risk appetite will further increase. We will remain optimistic, seize structural opportunities, and strictly control potential risks, striving to generate long-term stable excess returns for investors.

Additionally, Deng Mo further mentioned that the market may remain volatile in the short term, with structural opportunities concentrated in technological growth (such as domestic semiconductor development, AI, and its applications) and industrial metals and anti-inflation sectors. The industry remains optimistic about two major directions: technological growth and upstream resources.

He believes that some stocks in the technology sector are currently overvalued, and these stocks may still fail to meet performance expectations. Therefore, within the sector, it is necessary to consider replacing some overvalued stocks and actively seek low-position opportunities in related industry chain companies. Besides industrial and precious metals, the upstream resources sector also includes industries with currently low valuations, such as oil, petrochemicals, and basic chemicals, which are experiencing sustained improvement in prosperity. There is a certain probability of performance realization and valuation recovery, leading to a Davis double play. Furthermore, the “14th Five-Year Plan” may include policies to counteract internal competition, and in the first quarter, focus will be placed on undervalued companies in these industries that meet certain criteria for strategic allocation.

(Source: Shenzhen Business Daily · Duchen)