What signals are indicated by debt funds densely deploying "stock players"?

At the start of the New Year, signs of bond funds shifting toward equities are accelerating.

The trend of capital moving from bond assets to equity assets has quietly begun. Fund companies sensing this market style switch are also starting to adjust their product management teams accordingly.

Brokerage China has noticed that several public mutual funds have recently announced the addition of fund managers for their bond funds. A group of managers skilled in stock investing have been “airlifted” onto bond products, clearly reflecting the long-term optimism of public funds toward the equity market after the holiday.

Multiple fund managers have also explicitly stated that pure bond opportunities in the first quarter of 2026 are unlikely to be trend-driven. They expect the market to likely present a pattern of weak bonds and strong stocks after the holiday, with the spring rally in A-shares worth looking forward to amid oscillations upward.

Bond funds are increasingly hiring “stock pickers”

Under the major trend of capital shifting from bonds to equities, fund companies are quietly injecting stronger “stock genes” into traditional bond products.

Penghua Fengsheng Bond Fund, which has maintained a long-term stock position of zero, is undergoing an internal style shift. Penghua Fund recently announced that, starting February 13, 2026, Yan Siqian will be appointed co-fund manager alongside the original manager Liu Fangzheng to jointly manage Penghua Fengsheng Bond. Yan Siqian is a typical tech-themed fund manager in the industry. While taking over this bond fund, she also remains the manager of Penghua Shanghai-Hong Kong-Shenzhen Emerging Growth Fund. After this adjustment, Penghua Fengsheng Bond will adopt a dual-manager structure: Yan Siqian will mainly handle stock investments, while Liu Fangzheng will focus on bonds.

Notably, during Liu Fangzheng’s sole management, Penghua Fengsheng Bond’s stock holdings were consistently zero. As of the end of December 2025, the fund held no stocks. According to the product prospectus, Penghua Fengsheng Bond can allocate up to 20% of its assets to stocks. The appointment of an equity fund manager indicates that this bond fund is about to substantially increase its stock holdings.

Around the Spring Festival, such cases of bond funds hiring “stock pickers” have become a prominent new trend in the industry. Besides Penghua Fund, Ping An Fund, Minsheng JiaYin Fund, and others have also followed suit.

On February 13, Minsheng JiaYin Fund announced the appointment of Xia Rongyao as manager of Minsheng JiaYin Tianrun Bond Fund, jointly managed with the original manager Fu Yu. In terms of investment style, Xia Rongyao’s managed products are notably more aggressive in stock strategies. Data shows that when Fu Yu managed Minsheng JiaYin Tianrun Bond alone, the stock position was less than 4%; whereas Xia Rongyao, managing similar bond-hybrid funds, typically maintains stock positions between 14% and 29%, significantly increasing equity exposure.

Ping An Fund has even directly brought in star equity fund managers for bond funds. On February 11, Ping An Fund announced the appointment of Lin Qingyuan as co-manager of Ping An Tianyue Bond Fund, partnering with the original manager Wang Ruipao. Lin Qingyuan is an outstanding equity fund manager in the industry, especially skilled at uncovering high-elasticity internet and tech sectors. Currently managing Ping An Xin’an Hybrid, which has already achieved over 30% return in early 2026; since taking over in late November 2024, the fund’s cumulative return has reached 1.48 times. The addition of a star equity fund manager has raised market expectations for this bond fund’s enhanced return potential.

Sub-bond funds leverage stocks to stabilize scale

Industry analysts believe that the intensive addition of stock fund managers to bond funds before and after the Spring Festival reflects a consensus view that the equity market will continue to improve in 2026, while the appeal of pure bonds will temporarily decline.

Wang Shiqian, general manager of the Multi-Asset Investment Department at Penghua Fund, believes that bond yields may still decline in the short term, with a mid-term oscillation pattern; meanwhile, the stock market still has room to rise, with a short-term preference for high-quality stocks in insurance, liquor, and new energy sectors. Convertible bonds are currently at historically high valuations, and after continuous capital inflows, marginal growth has slowed, likely leading to more oscillation.

Wang emphasizes that from a mid-2026 perspective, the main themes of technology and resources are not over. Although short-term risk appetite may be disturbed, there are still opportunities for continued performance. The rebound of low-priced sectors may persist, and structural opportunities remain active.

Wang Haoran, a researcher at E Fund, states that in 2026, the global AI development will enter a critical commercialization verification phase. Investment logic is shifting from thematic speculation to pursuing sustainable “business closed loops.” The market will demand higher clarity in AI application scenarios and profitability. Applications with clear business models and profit prospects will become focal points for capital. Meanwhile, domestic internet giants are intensifying competition in AI applications, which could accelerate AI technology adoption and scene development. The ongoing upgrade in user scale, usage duration, and application modes will further boost demand for underlying computing infrastructure.

Liu Wenliang, a fund manager at Southern Fund, also offers a general strategy view: “Pure bond opportunities are limited, and stock opportunities are greater.” He notes that since the beginning of 2026, the market has benefited from ample liquidity, technological catalysts, and clear profit recovery expectations in cyclical sectors, which should gradually lead to a spring rally. Industry-wise, he favors technology and cyclical sectors, as growth and small-cap factors often outperform in spring markets. The theme rotation will also be a key feature, and these style environments are conducive to convertible bonds.

Liu believes that after the adjustment in Q4 2025, bond yields have rebounded, making short- and medium-term bonds somewhat valuable. However, in the early stage of overall risk appetite increase, pure bonds in early 2026 are unlikely to trend strongly, and overall opportunities are weaker compared to equities.

It is clear that public funds are actively positioning for a “weak bonds, strong stocks” environment: increasing equity fund managers, raising stock allocations in bond funds, and strengthening growth and cyclical allocations—all indicating a faster capital flow from bonds into the market.

(Article source: Broker China)