In recent weeks, public mutual fund companies have been actively engaging with listed firms, aiming to uncover promising investment opportunities that may lead to strong gains as the new year approachesThis strategic focus on research highlights a growing interest in sectors experiencing rapid technological advancements, particularly in areas like semiconductors, artificial intelligence (AI), and robotics.

A careful analysis by reporters from the Securities Times found that mutual funds are especially attentive to the performance growth of companies within these high-tech industriesThe burgeoning capabilities of AI are projected to pave the way for continued robust financial performance among related companies in 2024. Such optimism is finding traction among investors eager to capitalize on this growth trajectory.

The latest research activity reveals which stocks have captured the interest of fund managers

As of December 20th, the most proactive mutual funds this month include Bosera Fund, E Fund, Guotai Junan Fund, and Cinda AustraliaThey conducted 52, 45, 42, and 37 research visits to various companies, respectivelyA significant trend has emerged where firms listed on the Shenzhen Main Board, ChiNext, and the Science and Technology Innovation Board are getting more attentionSpecifically, four companies attracted over 100 research engagements each: Weigao Medical (136 engagements), Tabby Cat (125 engagements), Yifang Biological-U (110 engagements), and Liyade (109 engagements).

When examining which stocks got the most attention, Bosera Fund's focus was primarily on Runbang Holdings, Siquan New Materials, and Harbin Pharmaceutical; E Fund's notable interests included Hualian Holdings, Suning Global, and Siling Co.; Guotai Junan Fund was primarily interested in Migu Technology, Amway Corporation, and Jialian Technology; while Cinda Australia focused their research on Yidao Information, Northeast Pharmaceutical, and Boshi Glasses.

This pattern of fund managers showing interest in particular stocks indicates that some companies are widely held among various funds

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Take Harbin Pharmaceutical; as of the end of the third quarter, its top ten floating shareholders included Bosera Fund’s Chen Ximing, who manages a substantial 13.42 million shares, placing him seventhCinda Australia's Yang Ke also has significant stakes in this company with shares totaling 12.25 million and 9.75 million in his respective funds, ranking eighth and tenth.

Shifting the focus to the sectors garnering attention, chip manufacturing, artificial intelligence, and robotics are leading the chargeThis can be exemplified by the joint interest from 45 different fund houses in Tabby Cat, a comprehensive IP operatorMeanwhile, 16 funds have researched Liyade, which empowers robots with resources covering data, services, algorithms, and hardwareLikewise, 29 funds investigated Guoxin Technology, which focuses on developing and applying domestically controlled embedded CPU technology.

During recent investigations into the performance of these companies, reporters observed notable financial results

For example, Guoxin Technology reported a jump in custom chip service revenues to 229 million Yuan in 2022, marking a remarkable 147.66% increase year-on-yearThe company has continued to grow, projecting revenues of 284 million Yuan for 2023, a 24% increase, while the first half of 2024 is expected to yield revenue of 176 million Yuan, up 9.17% from a year ago.

Similarly, Tabby Cat announced successes in their in-game advertising segment, leveraging the massive user base of their character IPsBy collaborating with well-known global advertising service providers such as Google, Meta, Mobvista, and more, they are set to secure a steady stream of quality advertising orders.

Investment opportunities in the AI and consumption sectors seem abundant as wellXie Yi, a fund manager at Nord Fund, has honed in on emerging consumer markets that appeal to younger demographicsHe notes, “We’ve observed that today’s young generation approaches life objectives quite differently from their predecessors

Their viewpoints on marriage and children are relatively progressive, potentially reducing the expenses associated with these milestonesTheir appetite for spending is shifting away from traditional sectors toward industries like IP derivatives, creative cultural tourism, aesthetic medical treatments, and online gaming.”

Further insights from Morgan Stanley Fund highlight that the A-shares market is rich with opportunities, especially given the relatively low systemic risks currently at playKey areas of focus include AI applications, which have witnessed exponential growth over the past few yearsCompanies in this sector have capitalized on the rapid evolution of AI capabilities and are expected to sustain this growth into 2024. The foundational infrastructure for AI is becoming increasingly robust, creating fertile ground for breakthroughs, even if they are not immediately disruptive but rather consist of numerous incremental innovations that will keep the interest in AI high.

Another important aspect flagged by Morgan Stanley is the potential for turnaround situations in various industries, including defense, new energy, and pharmaceuticals

While some sectors have repeatedly pushed back their inflection points, leading to investor hesitance, a close analysis of recent industry policies suggests that the likelihood of these turning points approaches with increasing probability.

Additionally, China is showing competitive advantages in several emerging fields as it learns from the development paths of manufacturing powerhouses worldwideOnce breakthroughs are made in overseas markets, these advantages can be difficult to retract quicklyCurrently, several sectors in China continue to exhibit this edge, with growth potential expanding further.

This multifaceted interest in technology and innovative sectors reflects a broader narrative of adaptation and evolution within the investment landscapeFund managers are increasingly aware of how shifting societal trends and technological advancements present ripe opportunities for financial growth in the rapidly changing market arenas