Great Wall Fund's Zhao Fengfei: The technology market trend is highly likely to continue into 2026, and market styles may become more balanced.

As 2025, now in the past, draws to a close, the technology sector has undergone many changes, helping technology stocks become the main storyline for the market throughout the year. By year-end, market volatility around technology themes such as artificial intelligence, semiconductors, and new energy has noticeably intensified. With the debate over an AI bubble flaring up again, market attention has turned to the investment thread for technology in the coming year.

Amid the haze, the Great Wall Fund’s 2026 Annual Investment Strategy Conference arrives as scheduled. Zhao Fengfei, manager of the Great Wall Intelligent Industry Fund, has devoted years to the “Tech+” field, and at this strategy conference she delved deeply into popular questions in technology investing.

On the performance of technology stocks in 2025, Zhao Fengfei summarized it with the two words “stunning.” She believes the core driving force behind this market is global technological change and China’s breakthrough progress in its technology industries. Sector rotation throughout the year has been clear, and each wave of gains has strong industry-logic support—this is the result of an overall improvement in China’s technology strength leading to the market.

Can the 2026 technology market continue? This is the key question investors care about most. In response, Zhao Fengfei believes the market will most likely continue, but market styles will become more balanced. She judges whether the market can rise based on whether industry-side investment will not stop, and currently major cloud companies at home and abroad are still pushing capital expenditures at high intensity. This kind of rigid investment is precisely the solid “cushion” behind technology stock market performance; translated into the capital market, it naturally provides support for the market’s continuity.

On this basis, Zhao Fengfei believes next year’s technology stocks will show balanced development across three dimensions:

First, in the computing power sector, domestic and overseas computing power are trending toward balance. In the past few years, overseas computing power stock winners have seen significant gains; the difficulty of sustaining sharply higher rises going forward is increasing. Meanwhile, domestic computing power is entering a critical breakthrough window. Revenue and profits are about to enter a phase of significant release, and there is hope it will accelerate its push to break through.

Second, internal structural balance within the AI field. Over the past three years, the market’s investment focus has been concentrated on infrastructure-type companies that are “selling shovels,” such as computing power. After years of long-term layout, the foundation for infrastructure construction has increasingly become complete, and the conditions for large-scale爆发 on the application side are gradually maturing. In 2026, AI applications are expected to see substantive breakthroughs.

Third, within the technology sector, there is hope for even more balanced development between AI and non-AI areas. As AI is the mainstream topic in the industrial world, it has performed strongly in the capital market for three years, delivering impressive results. As for new sectors such as commercial space and quantum computing, if subsequent new industrial changes emerge, their phased performance may not be inferior to AI.

When discussing the specific sub-sectors she favors within the technology sector, Zhao Fengfei clearly pointed out that in 2026, three major directions will reach key milestones. First is solid-state batteries, which are expected to enter the first year of small-batch mass production, kicking off technological iterations in the field of power batteries. Second is commercial space: recoverable technologies will likely achieve major breakthroughs, helping to solve the capacity bottleneck in building satellite internet and paving the way for grand scenarios such as space computing power. Third is AI applications: as model performance improves, AI Agents will move into a usable threshold, becoming an important tool for empowering industries. If we expand the time horizon to the “15th Five-Year Plan to 25 (2026–2030)” period, the potential of quantum computing should not be underestimated.

Zhao Fengfei stated that once quantum computing achieves commercial breakthroughs from 0 to 1, it will trigger a chain reaction: existing encryption mechanisms used in cryptocurrencies could be quickly cracked, forcing the entire industry to reshape its cryptography system and driving explosive growth in the information security field. At the same time, quantum computing will tackle scientific computation problems that are difficult for classical computers to complete, becoming a super engine for advancing progress across the entire industry.

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Editor-in-charge: He Junxi