As the 2026 semi-annual reports from A-share companies were fully disclosed, the second-quarter positioning moves of the "national team" have come to light.

The national team continued its buying spree in the technology sector during Q2 2026, even expanding its scope to the "AI+" industries. Key sectors targeted for increases included optical optoelectronics, IT services, medical services, automation equipment, general equipment, and semiconductors.

Since the start of Q2, the Shanghai Composite Index has been fiercely contesting the 4,000-point level. On September 3rd, the index closed at 3,942.09 points, up 0.02%.

Based on market value, data shows that by the end of Q2 2026, the national team held a total of 555.3 billion A-share shares, with an aggregate market value of approximately RMB 3.88 trillion (calculated based on the number of shares held by the national team among the top ten circulating shareholders as disclosed in the listed companies' regular reports).

The national team in this context includes the National Social Security Fund, Central Huijin Investment Ltd. and its subsidiary Central Huijin Asset Management, China Securities Finance Corp., China Securities Finance's custom funds, the investment platforms under the State Administration of Foreign Exchange, and China Securities Finance Asset Management.

By Shenwan secondary industry classification, large state-owned banks, insurance, securities, white goods, and coal mining were the top five industries by national team market value in Q2 2026, each exceeding RMB 21 billion in holdings. The financial sector remained the national team's primary stronghold.

The national team's holdings in large state-owned banks amounted to RMB 3.2 trillion, still dominating the top spot by industry. According to Zhongtai Securities, in the first half of 2026, the six major state-owned banks saw marginal upticks in year-on-year revenue and net profit growth, with the non-performing loan ratio flat at 1.25% and the provision coverage ratio up 1.06 percentage points to 233.84%, further enhancing their safety margin.

"In H1, the average arithmetic dividend payout ratio of large state-owned banks was 32.4%, up 0.6 percentage points year-on-year; the average dividend yield in 2025 was 4.23%, and the forecasted average for 2026 is around 4.18%. High-dividend stability remains one of the main investment themes for bank stocks, and we strongly recommend large state-owned banks."

Following its Q1 moves, the national team continued to increase holdings in the technology sector for the second straight quarter. Data shows that in Q2 2026, the top five industries for national team additions were optical optoelectronics, chemical products, professional engineering, IT services, and medical services, with each seeing increases of over 34 million shares.

Among these, optical optoelectronics, IT services, and medical services all fall under the technology and "AI+" umbrella. The top ten industries for additions also included automation equipment, general equipment, and semiconductors.

Hou Dawei, a veteran investment banker, told Caijing that the national team's continued buying in tech marks a shift towards new directions, driven by two main factors. On one hand, tech stocks have led gains this year while traditional sectors have lagged, so adding tech exposure helps balance portfolio performance. On the other hand, purchasing heavyweight tech stocks also plays a positive role in maintaining market stability.

From a fundamentals perspective, the performance of national team-held companies has generally improved. Among the 656 A-share companies held in Q2, over 70% saw year-on-year revenue growth in H1 2026, and nearly 60% saw year-on-year increases in net profit attributable to parent companies.

Continuing its trend from 2025 and Q1 2026, the national team boosted its tech holdings in Q2 2026, expanding its targets to include "AI+" sectors. Data shows that the national team increased holdings in 36 industries during Q2, with 18 industries seeing additions of over 10 million shares.

Six of the top ten industries for national team additions were tech or "AI+" related: optical optoelectronics, IT services, medical services, automation equipment, general equipment, and semiconductors, ranking first, fourth, fifth, sixth, seventh, and ninth respectively, with each seeing increases of over 22 million shares. This marked a broader scope of increases compared to Q1's top five industries.

In Q2, optical optoelectronics saw the largest industry-level increase, with the national team adding 136 million shares. The team increased positions in three companies in this sector: Tcl Technology Group Corporation (000100.SZ), Zhejiang Chenfeng Technology Co.,Ltd. (603685.SH), and Guangdong Hongjing Optoelectronic Technology Inc. (301479.SZ), with increases of 138 million, 2.1 million, and 1.57 million shares respectively. Tcl Technology Group Corporation was the primary target of these additions.

The national team appeared among the top ten circulating shareholders of Tcl Technology Group Corporation in Q2, a company focused on semiconductor display, new energy photovoltaics, and semiconductor materials. The National Social Security Fund's 118th portfolio held 138 million shares, securing the tenth position, having not appeared in the Q1 top ten list.

In terms of industry rankings for national team additions, IT services jumped sharply from 39th in Q1 2026 to fourth in Q2. During the quarter, the national team increased positions in four IT services companies, with Hangzhou Turbine Power Group Co.,Ltd. (300277.SZ), Guangzhou Sie Consulting Co.,Ltd. (300687.SZ), and State Grid Information & Telecommunication Co.,Ltd. (600131.SH) leading the pack with additions of 15.26 million, 13.45 million, and 12.76 million shares respectively.

Hangzhou Turbine Power Group Co.,Ltd., a leader in the global industrial steam turbine manufacturing sector and a standard-setter for China's industrial steam turbine products, received increased holdings from the Social Security Fund in Q2. The fund's 2105 and 17022 portfolios became the company's third and sixth largest circulating shareholders, holding 9.69 million and 5.57 million shares respectively, neither of which appeared in the Q1 top ten. As the tenth-largest shareholder in Q1 held 3.92 million shares, this indicates both funds significantly boosted their stakes during Q2. In H1 2026, the company's revenue grew 14.23% year-on-year to RMB 2.9 billion, with non-GAAP net profit turning around to a profit of RMB 143 million.

Guangzhou Sie Consulting Co.,Ltd., which is building a business pattern of "traditional software main business + industrial AI computing power second growth curve," also attracted Social Security Fund increases in Q2. The fund's 115 and 420 portfolios became the company's sixth and seventh largest circulating shareholders, holding 7.21 million and 6.23 million shares respectively. Neither appeared in the Q1 top ten, and both Q2 positions were larger than the Q1 tenth-largest shareholder's stake, indicating substantial second-quarter buying.

The national team also increased holdings in 17 semiconductor companies during Q2, with 13 seeing additions of over one million shares. Among them, Union Semiconductor(Hefei)Co.,Ltd. (688403.SH), Shenzhen Dawei Innovation Technology Co.,Ltd. (002213.SZ), and Hunan Goke Microelectronics Co.,Ltd. (300672.SZ) led the sector with additions of 12.3 million, 7.79 million, and 4.95 million shares respectively.

Notably, AI chip companies also received national team attention. In Q2, the Social Security Fund's 412 portfolio became the tenth-largest circulating shareholder of Moore Threads Technology Co.,Ltd. (688795.SH), holding 160,000 shares. Among the three A-share AI chip companies, only Moore Threads Technology Co.,Ltd. had a national team presence in its top ten shareholder list.

The medical services industry, which is leveraging AI for cost reduction and efficiency gains, also caught the national team's eye. During Q2, three medical services companies received increases, with Meinian Onehealth Healthcare Holdings Co.,Ltd. (002044.SZ) topping the sector with an addition of 48.7 million shares. The Social Security Fund's 17042 portfolio became the company's tenth-largest circulating shareholder in Q2, holding 48.7 million shares, a newly added position in the top ten. Concurrently, the Basic Pension Insurance Fund's 1205 portfolio increased its holding to 105 million shares, adding over 33 million shares quarter-on-quarter.

Despite a 6% year-on-year revenue decline in H1 2026, Meinian Onehealth Healthcare Holdings Co.,Ltd. narrowed its net loss attributable to parent. As a leading preventive medicine company, the firm continues to upgrade its AI product matrix around the goal of "scientific efficiency and cost reduction," transforming AI from a supporting tool into a driver of operational change.

Traditional industries such as chemical products, professional engineering, and building decoration also received national team support in Q2. In the chemical products sector, 16 companies saw increases, with six receiving more than 10 million shares each. Meihua Holdings Group Co.,Ltd. (600873.SH), Zhejiang Runtu Co.,Ltd. (002440.SZ), and Sinochem International Corporation (600500.SH) led the industry with additions of 37.59 million, 33.28 million, and 31.65 million shares respectively.

The financial industry remains the national team's core holding. By the end of Q2 2026, the financial sector accounted for three of the top ten industries by market value, including large state-owned banks, insurance, and securities, with a combined market value of RMB 3.56 trillion, representing over 90% of the national team's total holdings.

Large state-owned banks topped the list with a market value of RMB 3.2 trillion. The national team held shares in five such banks during Q2, with no change in share counts quarter-on-quarter, each exceeding RMB 28 billion in market value. Holdings in Bank Of China Limited (601988.SH), Agricultural Bank Of China Limited (601288.SH), and Industrial And Commercial Bank Of China Limited (601398.SH) were valued at RMB 1.14 trillion, RMB 1.01 trillion, and RMB 0.99 trillion, respectively, ranking as the top three in the industry.

In Q2, Central Huijin, China Securities Finance, and Central Huijin Asset Management held 188.792 billion, 7.941 billion, and 1.81 billion A-shares of Bank Of China Limited respectively, making them the bank's first, second, and third largest A-share circulating shareholders, with respective market values of RMB 1.08 trillion, RMB 45.4 billion, and RMB 10.4 billion.

Agricultural Bank Of China Limited is also a major national team holding. Central Huijin, the National Council for Social Security Fund, China Securities Finance, and Central Huijin Asset Management held 140.5 billion, 23.5 billion, 1.8 billion, and 1.3 billion A-shares respectively, ranking as the bank's first, third, sixth, and eighth largest A-share circulating shareholders, with market values of RMB 852.8 billion, RMB 142.8 billion, RMB 11.2 billion, and RMB 7.6 billion.

The performance of large state-owned banks continues to grow. In H1 2026, all five banks reported year-on-year increases in both revenue and net profit. Agricultural Bank Of China Limited led the industry in revenue growth at 11%, while Bank Of China Limited topped the net profit growth chart at 5%.

Insurance and securities are also key national team positions. By end-Q2, the team held shares in five insurance companies, each with a market value exceeding RMB 4 billion. Holdings in New China Life Insurance Company Ltd. (601336.SH), Ping An Insurance (Group) Company Of China, Ltd. (601318.SH), and The People'S Insurance Company (Group) Of China Limited (601319.SH) were valued at RMB 63.6 billion, RMB 53 billion, and RMB 38.1 billion, ranking as the top three in the sector.

During Q2, Central Huijin, Central Huijin Asset Management, and the National Social Security Fund's 114 portfolio held 978 million, 28 million, and 13 million shares of New China Life Insurance Company Ltd., with market values of RMB 58.3 billion, RMB 1.7 billion, and RMB 0.8 billion respectively.

Beyond finance, real economy sectors such as white goods, coal mining, railways and highways, components, and semiconductors are also significant national team targets. The liquor industry, due to its prolonged slump, dropped out of the top ten list for national team market value.

In Q2, the national team held shares in three white goods companies: Midea Group Co.,Ltd. (000333.SZ), Gree Electric Appliances,Inc.Of Zhuhai (000651.SZ), and Haier Smart Home Co.,Ltd. (600690.SH), with share counts of 230 million, 72 million, and 60 million, and market values of RMB 17.4 billion, RMB 2.7 billion, and RMB 1.2 billion respectively.

By end-Q2, China Securities Finance and Central Huijin Asset Management held 142 million and 88 million shares of Midea Group Co.,Ltd., ranking as the company's fourth and sixth largest A-share circulating shareholders, with market values of RMB 10.7 billion and RMB 6.7 billion.

The national team also held positions in six railway and highway companies by end-Q2, each with a market value exceeding RMB 30 million. Holdings in Beijing-Shanghai High Speed Railway Co.,Ltd. (601816.SH), China Merchants Expressway Network&Technology Holdings Co.,Ltd. (001965.SZ), and China Railway Tielong Container Logistics Co.,Ltd. (600125.SH) were valued at RMB 13.9 billion, RMB 564 million, and RMB 157 million, ranking as the top three in the sector.

The investment logic behind these moves is clear: after Q1, technology remains the primary focus for increases, while finance stays the core holding. Market insiders suggest the national team's tech additions align with national strategic development directions, while heavy positions in financial and real economy leaders are crucial for index stability.

The sectors the national team added in Q2, including semiconductors, general equipment, and medical services, are all key national strategic priorities. In April 2026, the State Council issued opinions on promoting service industry capacity and quality, emphasizing the strengthening of technology service support, enhancing modern logistics competitiveness, accelerating software and information service innovation, bolstering supply chain finance capabilities, actively developing energy-saving and environmental services, and strengthening business services. The "15th Five-Year Plan for National Health" also calls for accelerating the quality and expansion of health consumption, implementing special actions to boost health consumption, developing new service formats like health checkups, and promoting high-level resident health assistants while expanding the application of intelligent assisted diagnostics in primary care.

The national team's heavy presence in finance stems from two factors: it is naturally a major shareholder in banks and other financial companies, and financial firms' low valuations and high dividends align with the strategic goal of preserving and growing state-owned assets. As of September 2nd, cumulative dividends from large state-owned banks, the securities sector, and the insurance sector in 2026 were RMB 150.1 billion, RMB 51 billion, and RMB 48.8 billion, ranking first, sixth, and eighth among A-share industries.

Among other heavily held sectors, coal mining and white goods had 2025 dividend yields of 6.25% and 5.53%, ranking first and second across A-share industries. As of September 2, 2026, among the eight coal mining companies held by the national team in Q2, four had dividend yields (TTM) exceeding 2%, with China Shenhua Energy Company Limited (601088.SH) leading the sector at 4.18%.

Since the start of 2026, among national team-held white goods companies, Midea Group Co.,Ltd., Gree Electric Appliances,Inc.Of Zhuhai, and Haier Smart Home Co.,Ltd. have declared total cash dividends of RMB 28.4 billion, RMB 16.8 billion, and RMB 8.2 billion respectively. From 2023 to 2025, all three maintained annual cash dividend payout ratios above 45%. In 2025, Midea Group Co.,Ltd.'s payout ratio increased to 73%, while the other two both exceeded 55%.