The only fund managed by Zhushaoxing in Fuguo Fund is Fuguo Tianhui Growth Hybrid (LOF) (A/B/C), with a management scale of 26.941 billion yuan as of the end of the second quarter of this year, a slight decrease of 0.779 billion yuan from 27.72 billion yuan in the previous quarter, and a cumulative decrease in scale of 1.399 billion yuan in the first half of this year.

In terms of performance, Fuguo Tianhui Growth Hybrid (LOF) A/B fell 1.74% in the first half of this year, underperforming the benchmark yield by 3.08%. Fuguo Tianhui Growth Hybrid (LOF) C fell 2.13% during the same period, underperforming the benchmark yield by 3.47%.

As of the end of the second quarter of this year, the top ten weighted stocks of Fuguo Tianhui Growth Hybrid were Guizhou Maotai, Zhejiang CFMoto Power, Luxshare Precision Industry, Yantai Jereh Oilfield Services Group, Shenyang Xingqi Pharmaceutical, Midea Group Co., Ltd, Spring Airlines, Bank of Ningbo, Zhengzhou Coal Mining Machinery Group and Shenzhen Mindray Bio-medical Electronics, accounting for only 33.26% of the fund's net asset value, reflecting Zhushaoxing's consistently high-diversified and evenly distributed investment philosophy.

In terms of changes in holdings, Zhushaoxing's most obvious action in the second quarter was to significantly reduce its holdings of Guizhou Maotai by nearly 0.27 million shares to 1.0301 million shares, and to reduce its holdings of the company for two consecutive quarters, with a total reduction of 0.48 million shares in the first half of the year.

According to the disclosed second-quarter data of public funds, the two actively managed equity fund products with the most Moutai shares held are E Fund Blue Chip Selected Mix and E Fund Consumption Stock, with stock holdings of 2.2505 million shares and 1.1919 million shares respectively, and their holdings remain unchanged. Fuguo Tianhui Growth Hybrid under Zhushaoxing's management is currently the third actively managed equity fund product holding the most Moutai shares.

In addition, in the second quarter, Zhushaoxing also significantly reduced its holdings of Shanxi Xinghuacun Fen Wine Factory, which fell out of the top ten weighted stocks list from the eighth in the previous quarter, and was replaced by Shenzhen Mindray Bio-medical Electronics.

As of the end of the second quarter of this year, the market value of the tenth largest weighted stock of Fuguo Tianhui Growth Hybrid, Shenzhen Mindray Bio-medical Electronics, is 0.605 billion yuan, and the fund held 0.637 billion yuan of Shanxi Xinghuacun Fen Wine Factory at the end of the first quarter of this year. This means that the market value of Shanxi Xinghuacun Fen Wine Factory held by Fuguo Tianhui Growth Hybrid at the end of the second quarter of this year is lower than 0.605 billion yuan, with a reduction of at least 0.032 billion yuan in scale.

If Fuguo Tianhui Growth Hybrid held 2.6006 million shares of Shanxi Xinghuacun Fen Wine Factory at the end of the first quarter of this year, and the closing price of the stock at the end of the second quarter was 206.51 yuan/share, the market value of Shanxi Xinghuacun Fen Wine Factory held by Fuguo Tianhui Growth Hybrid at the end of the second quarter of this year would be 0.537 billion yuan, assuming that the number of shares held remain unchanged. This means that Zhushaoxing did not necessarily reduce its holdings of Shanxi Xinghuacun Fen Wine Factory in the second quarter, but it is highly likely that the passive shrinkage of the market value of the stock due to a cumulative decline of more than 14% in the second quarter caused a reduction in the stock's market value held by the fund.

Looking at the past holdings, Fuguo Tianhui Growth Hybrid first bought Shenzhen Mindray Bio-medical Electronics in the fourth quarter of 2018, and has held the stock for 15 consecutive quarters since then, and it has long been one of the top ten heavy weight stocks of Fuguo Tianhui Growth Hybrid. However, the first quarter report of this year showed that Shenzhen Mindray Bio-medical Electronics had dropped out of the top ten, and was reduced by nearly 0.25 million shares at that time.

Although Shenzhen Mindray Bio-medical Electronics returned to the top ten list in the second quarter under Zhushaoxing's holdings, it was still reduced by 0.17 million shares during the second quarter and has been reduced for five consecutive quarters since the third quarter of 2022, with a total reduction of 1.12 million shares.

In addition to Guizhou Maotai, Luxshare Precision Industry was also reduced by Zhushaoxing for two consecutive quarters, with a small reduction of 0.1 million shares in the second quarter and a total reduction of 7.0081 million shares in the first half of the year.

In addition, the stocks that Zhushaoxing increased its holdings in the second quarter were Zhejiang CFMoto Power, Shenyang Xingqi Pharmaceutical, Midea Group Co., Ltd, Zhengzhou Coal Mining Machinery Group and Bank of Ningbo, all of which were continuously increased by Zhushaoxing.

Specifically, Zhu Shaoxing increased his shareholding of Zhejiang CFMoto Power by 0.2663 million shares in the second quarter of this year and has been increasing his shareholding for five consecutive quarters since the fourth quarter of 2022, with a total increase of 5.1001 million shares. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.

Zhu Shaoxing has held a continuous position in Shenyang Xingqi Pharmaceutical for two consecutive quarters, and increased his shareholding by 0.4 million shares in the second quarter of this year, with a total increase of 1.6994 million shares in the first half of the year.

The individual stock that Zhu Shaoxing has been increasing holdings for five consecutive quarters is Midea Group Co., Ltd., which has increased from 0.06 million shares in the fourth quarter of 2020 to 11.6004 million shares in the second quarter of this year, with a total increase of 11.5404 million shares.

Regarding the investment environment in the second quarter, Zhu Shaoxing believes that the real estate market continued to decline in the second quarter, and there was a trend of slowing down by the end of the quarter. Consumer data remained weak, and export pressure began to show. The monetary policy remained loose in the second quarter, with many specific disturbances in fiscal policy, and the effectiveness was not yet significant. Corporate investment confidence is at a very low level. Investor sentiment is extremely depressed.

Regarding this macro environment, Zhu Shaoxing said bluntly: 'Looking at current macro and micro indicators purely from a rear-view mirror, there is indeed not enough evidence to support us in making a non-pessimistic judgment.' But he turned the conversation around and added a more optimistic sentence: 'If we look at it from a longer-term perspective, we still believe that positive factors will eventually come into play.'

Regarding future investment prospects, Zhu Shaoxing's opinion is consistent with that of many fund managers with hundreds of billions of yuan. He clearly stated that the overall valuation of A shares is currently in a highly attractive position in the long cycle, and equity assets are in a good risk-return range. He encouraged investors with a soulful phrase: 'From a longer time dimension, we believe that the many difficulties faced now will eventually find a way out. Choosing to bear the market's volatility and expecting a corresponding level of return is quite appropriate for investors at present.'

Regarding specific investment directions, unlike public funds targeting Red Bonanza assets, Zhu Shaoxing still prefers to invest in growth-oriented companies, 'focusing on patiently collecting excellent companies with promising prospects, waiting for the realization of the company's own value and the cyclic return of market sentiment at some point in the future.'

Because Zhu Shaoxing firmly believes that investing in companies with good 'enterprise genes', perfect corporate governance structures, and excellent management has a greater chance of creating value for investors in the future. Sharing the capital market returns brought about by the company's own growth is the best way for growth funds to obtain returns.