The social security fund's rebalancing path became increasingly clear in the fourth quarter of last year, with a heavy position in 54 stocks and 22 new securities.

The National Social Security Fund is regarded as the “ballast” of long-term capital in the capital market. Recently, as annual reports from listed companies have been continuously disclosed, the changes in its holdings for the fourth quarter of 2025 are gradually coming to light.

As of the time of publication by the Securities Daily, the Social Security Fund appeared among the top ten circulating shareholders of 54 A-shares in the fourth quarter of last year, with a total holding of 1.32 billion shares and a total market value of 22.652 billion yuan. From the currently known operational trajectory, in the fourth quarter, the Social Security Fund entered 22 new stocks, increased holdings in 14 stocks, reduced holdings in 8 stocks, while maintaining its position in another 10 stocks. The adjustment actions both continued the long-term value investment logic and highlighted the strategy for layout in emerging sectors.

From the disclosed data, among the 22 new stocks entered by the Social Security Fund are Zhongcai Technology, Shunluo Electronics, Hongqiao Holdings, and Kelun Pharmaceutical, with new targets mainly concentrated in hardware equipment, pharmaceutical biology, and chemicals. Additionally, among the 14 stocks with increased holdings, those with larger increases include China Merchants Shekou, Focus Technology, and Cangge Mining.

In terms of stock concentration, the Social Security Fund’s holdings show a “focus on leaders, with appropriate diversification” characteristic. China Merchants Shekou, with a holding market value of 1.921 billion yuan, became the largest heavy stock for the Social Security Fund, held jointly by the National Social Security Fund 112 and 413 combinations; Cangge Mining and China Glass ranked second and third, with holding market values of 1.646 billion yuan and 1.462 billion yuan, respectively. Notably, Shantui Co., Ltd. became the most favored stock by the Social Security Fund combinations, with a total holding market value of 1.165 billion yuan held by five combinations, reflecting a high consensus among institutions on leading companies in the machinery sector.

From the specific operations in the fourth quarter last year, the Social Security Fund’s adjustment actions revealed three main directions: “increase allocation in cycles, layout for growth, and optimize structure.” In terms of new entries, the Social Security Fund entered 22 new stocks in the fourth quarter, covering multiple fields including hardware equipment, pharmaceutical biology, and chemicals, with several targets related to the computing power supply chain and new energy in emerging sectors. For example, Shunluo Electronics in the hardware equipment sector, as a core supplier of electronic components, received new holdings from the Social Security Fund; Kelun Pharmaceutical in the pharmaceutical biology sector, with its advantages in innovative drug development, saw a single holding market value exceeding 400 million yuan; and Anhui Wanhua High-Tech in the chemical sector entered the Social Security Fund’s heavy stock list due to its layout in new materials.

“The targets that the Social Security Fund has newly entered and increased holdings in generally possess characteristics of stable performance and reasonable valuation,” said Chen Yuheng, a senior investment advisor at Shaanxi Jufen Investment Consulting Co., Ltd., in an interview with the Securities Daily. “From the perspective of new entry targets, the Social Security Fund not only focuses on long-term opportunities in growth sectors like the computing power supply chain but also values the valuation recovery opportunities of leading cyclical stocks; from the perspective of increased holdings, it mainly focuses on high-quality companies with strong performance certainty and stable dividends, reflecting the allocation logic of long-term funds.”

Corresponding to the new entries and increased holdings, the Social Security Fund reduced its holdings in 8 stocks in the fourth quarter, mainly involving some targets with uncertain fundamentals or high valuations. Among them, Shantui Co., Ltd. was reduced by 6.9022 million shares, with its holding market value dropping to 1.165 billion yuan; China Merchants Jin Yu was reduced by 1.3039 million shares; additionally, some consumer electronics and medical device targets were also moderately reduced, with an overall gentle reduction aimed at optimizing the holding structure.

There were also 10 stocks in which the Social Security Fund maintained its holdings in the fourth quarter, including Shanjin International and China Glass, which were previously heavily held. These stocks generally possess characteristics of stable performance growth and prominent industry positions, and the Social Security Fund’s choice to hold them long-term reflects its long-term confidence in quality assets.

Yang Delong, chief economist at Qianhai Kaifeng Fund, believes that as a representative of long-term funds, the holding trends of the Social Security Fund have significant reference value. The current balanced allocation of the Social Security Fund between cyclical sectors and growth tracks not only reflects an optimistic expectation for the economic fundamentals but also demonstrates a precise grasp of the trend of industrial upgrading, providing ordinary investors with a clear allocation idea.