Summary of Key Points
Jiashi Fund, one of the “top ten” public funds in China, has recently promoted Zhang Danhua, a seasoned technology investment researcher, to the position of vice president. This move reflects the company’s multiple challenges: a reduction in management scale by over 100 billion yuan, continuous loss of talent, significant performance disparities (with the technology sector performing exceptionally well while traditional sectors lagging behind), and frequent compliance issues. The choice of Zhang Danhua is aimed at stabilizing the internal team (as he was internally trained and does not require acclimation) as well as placing a bet on the technology sector—having 15 years of experience in technology investment, he understands AI research and is familiar with the company’s systems. However, whether this promotion can reverse Jiashi’s situation of being “large but not strong” remains uncertain: the technology sector is highly volatile, and any market shift could amplify risks; moreover, the company’s deep-seated personnel and compliance problems cannot be resolved by just one vice president.
I. Why Zhang Danhua? – Internal Stability and Technical Expertise Are Key
This promotion is not a random choice but a pragmatic decision by Jiashi:
1. Internal Promotion = Stabilizer: Zhang Danhua has worked at Jiashi for 15 years, rising from researcher to chief stock investment officer, and is well-versed in the company’s research and investment processes. Compared to externally hired executives, he can quickly take on responsibilities without the need for adaptation, helping to stabilize the team that has been unsettled by recent personnel changes (with several high-ranking officials leaving in the past six months).
2. Technical Expertise Is Rare: With his long-term experience in technology investment and his role as the head of the AI Lab, Zhang Danhua possesses a unique combination of knowledge in cutting-edge technologies like chips and AI, as well as financial investing skills and leadership abilities. Currently, public funds are competing fiercely in the technology sector, and such professionals are in high demand; Jiashi needs him to lead their technology strategy.
3. A Bet on the Technology Sector: The A-share market has seen a surge in technology-related sectors (AI, computing power, semiconductors) in recent years. Although Jiashi has invested in AI research tools early on, it has not yet turned this into a competitive advantage. Promoting Zhang Danhua to a management position is an attempt to elevate the approach to technology investment from a grassroots level to a corporate strategy, making technology a core focus for the company.
II. Performance Disparities: Technology Sectors Outperform, Traditional Sectors Lag
Jiashi’s current performance reflects a stark contrast:
- Technology Sector Is Booming: In the first half of the year, 38 funds outperformed by more than 50%, and 13 funds doubled in value. For example, a semiconductor index-enhanced fund grew by 240% (the highest in its category), and the科创 chip ETF reached a scale of 64.3 billion yuan (also the largest in its sector).
- Traditional Sectors Are Struggling: 51 active equity funds suffered losses, with consumer and Hong Kong stock products being particularly hit—Jiashi’s “Domestic Demand Selection” fund lost 24.75% in half a year and 34% in the past year; its “Consumer Selection” fund lost 21% in the same period.
- Risks of Technology Volatility: Since July, the technology sector has experienced a downturn, with leading technology funds experiencing significant declines in net value (the semiconductor fund’s largest loss being 27%), and the scale of the科创 chip ETF shrinking by over 10 billion yuan. This indicates that Jiashi’s performance is heavily dependent on the technology sector, which could lead to even worse results if market trends change.
III. Deep-Seated Crises: Personnel, Compliance, and Scale Issues
The performance disparities are just the surface of Jiashi’s broader problems:
1. Continuous Personnel Changes: In 2024, former chairman Zhao Xuejun resigned due to personal reasons, followed by several vice presidents, the chief information officer, and the financial director. In 2025, 17 fund managers left, and another 7 left in the first half of 2026. The loss of key talent not only undermines team stability but also erodes customer confidence.
2. Disorganized Talent Allocation: Of the 104 fund managers, 14 are responsible for managing more than 10 products—for instance, Duan Shili manages 30 fixed-income funds, and Wang Zihan manages 18 index funds (which lost 11.5% in the past year). Managing so many products makes it difficult to maintain consistent performance.
3. Compliance Issues: In 2025, Jiashi’s fixed-income product registration was suspended for three months due to internal control issues; in 2026, its subsidiary, Jiashi Wealth, received a warning for non-compliant business premises. Compliance problems directly affect the company’s reputation, making it harder to attract institutional clients and partners.
4. Declining Scale: The company’s non-security fund assets shrank by 120 billion yuan in the first half of the year, dropping its industry ranking from sixth to eighth. While some of this was due to the outflow of broad-based ETFs, peers are experiencing growth (e.g., E Fund Group increasing its assets by 217.7 billion yuan in a single quarter), indicating that Jiashi’s ability to grow is weakening.
IV. Betting on Technology: Risks Are Present
Promoting Zhang Danhua is a strategic move, but the outcome is uncertain:
- Strategic Intent: Jiashi aims to transform technology investment from a reliance on individual experts into a team-based system, ensuring that the company’s investment capabilities are not tied to any one manager. This would allow for continuity even if key personnel leave.
- Potential Risks:
- The technology sector is highly volatile; if market trends shift (e.g., back to consumer or renewable energy sectors), Jiashi’s overemphasis on technology could lead to significant losses.
- Whether Zhang Danhua can address the underlying issues of personnel turnover and compliance is uncertain, as he comes from a research background and may lack experience in managing the entire company.
- Building a strong technology investment system takes time, and Jiashi already faces substantial pressure in terms of scale and performance.
Conclusion
Zhang Danhua’s promotion is a sign of Jiashi’s attempt to turn things around, but it is far from solving all of its problems. To regain its place among the industry leaders, the company must address personnel stability, improve compliance management, and strengthen traditional sectors while balancing the risks associated with its technology strategy. After all, the prestige of established public funds has faded, and now, what really matters are stable performance, a reliable system, and customer trust—none of which can be achieved through a single promotion.