Entering the intensive disclosure period for semiannual reports, fund stock selection is shifting from focusing on themes to emphasizing performance.

As we enter the intensive disclosure period for semi-annual reports, the narrative around fund holdings has shifted towards a focus on performance rather than themes. With the expectation gap becoming the key factor in pricing following the release of earnings, the stock selection logic of public funds has recently begun to change. The premium on thematic labels has receded, and the ability of individual stocks to deliver on performance has become central to valuation recovery, allowing a number of previously underweighted stocks in public fund portfolios to emerge with independent price movements due to better-than-expected earnings. Several public fund professionals believe that the semi-annual report results may be crucial in observing whether the style switching can truly materialize. In the stock selection frameworks of many fund managers, the popularity of sectors is no longer the primary consideration during the earnings disclosure period; instead, the ability to deliver on earnings and high growth has become the core metric for determining the elasticity of individual stocks. Over the past month, multiple products in the consumer, pharmaceutical, and digital economy sectors have consistently ranked among the top performers in terms of earnings, with market movements largely tied to the achievements of semi-annual report results. The market narrative is gradually moving away from the single industry thematic logic of the first half of the year, with bottom-up stock opportunities continuously emerging. Industry insiders analyze that many of the recently strong-performing stocks were previously in a state of long-term underweighting by public funds, and some have even experienced ongoing reductions in holdings. Once the semi-annual reports reveal earnings exceeding market expectations, significant expectation gaps will form, driving valuation recovery. During this intensive earnings disclosure phase, the focus of fund research and positioning has shifted; rather than chasing popular sector concepts, funds are more willing to pay a premium for realized profit growth.