Two Championship Fund Managers Face the "Oil Price Test" with Heavy Stakes in Airlines - How Will Their Performance Hold Up?

Cailian Press, March 24 (Reporter Li Di) — Since March, international oil prices have risen sharply, leading to a significant decline in airline stocks, and funds heavily invested in the airline sector are under performance pressure.

The product managed by Cui Chenlong, the champion fund manager of active equity funds in 2021, has faced considerable setbacks due to heavy holdings in airline stocks. For example, the Qianhai Open Source Research-Driven Hybrid A, which he manages, had China Eastern Airlines (A-shares) as its top holding at the end of Q4 last year. Additionally, its third-largest holding was China Southern Airlines (Hong Kong shares). As of March 23, the product’s return since March is -12.28%.

Lin Yingrui, the performance champion of semi-annual mixed funds in the first half of 2021, has also recently experienced performance pressure due to heavy holdings in airline stocks. His managed funds, GF Ruiyi Leading Hybrid A and GF Value Leading Hybrid A, both included six airline stocks among their top ten holdings at the end of Q4 last year. Both funds have lost more than 20% since March.

Furthermore, several other fund managers, including Yang Chao, Jiang Yanglei, Zhu Huilin, and Zheng Xiaobing, manage multiple products that face significant drawdowns due to heavy holdings in airline stocks, with losses exceeding 15% since March.

Industry insiders point out that the short-term trend of airline stocks is heavily influenced by oil prices. However, over a longer cycle, domestic airlines with large dollar-denominated debts are expected to benefit from the appreciation of the RMB. If Middle East conflicts ease and oil prices fall, airline stocks may see valuation recovery amid the long-term RMB appreciation trend.

Cui Chenlong’s multiple products are heavily invested in airline stocks, and performance has been under pressure since March.

Since March, international oil prices have surged, and funds heavily invested in airline stocks are generally underperforming.

Taking Cui Chenlong of Qianhai Open Source Fund as an example, by the end of last year, the top ten holdings of his managed fund, Qianhai Open Source Research-Driven Hybrid A, included China Eastern Airlines (A-shares) and China Southern Airlines (Hong Kong shares), with holdings of 7.36% and 5.84%, respectively. China Eastern Airlines (A-shares) was the fund’s largest holding.

As of March 23, the net value of Qianhai Open Source Research-Driven Hybrid A has declined by 12.28% since March. However, over a longer period, the fund has still achieved steady returns. Established in June 2025, it has since March 23 of this year gained 48.28%.

Cui Chenlong was once considered a “dark horse” fund manager. He officially became a fund manager in July 2020 and quickly became the annual performance champion of active equity funds within just over a year. In 2021, his management of Qianhai Open Source Utility achieved an annual return of 119.42%, ranking first among active equity funds in the market. However, this product faced significant setbacks in 2022 and 2023, with performance recovering in 2024 and 2025.

Besides Qianhai Open Source Research-Driven Hybrid A, Cui manages two other funds that, at the end of Q4 last year, had over 10% of their total holdings in airline stocks.

Specifically, the top ten holdings of Qianhai Open Source Shanghai-Hong Kong-Shenzhen Non-Cyclical Stocks A include three Hong Kong-listed airline companies: Bank of China Aviation Leasing, China Eastern Airlines, and China Southern Airlines, with holdings of 4.46%, 4.22%, and 2.69%, respectively. The top ten holdings of Qianhai Open Source Research-Selected Hybrid A include two A-share listed airlines: China Eastern Airlines and China Southern Airlines, with holdings of 5.82% and 5.04%.

As of March 23, the return of Qianhai Open Source Research-Selected Hybrid A since March is -10.58%, and the since-inception return of Qianhai Open Source Shanghai-Hong Kong-Shenzhen Non-Cyclical Stocks A is -12.97%.

Industry experts note that because the overall industry allocation of these three products is relatively balanced, even if performance is pressured by declines in airline stocks, the level of drawdowns remains manageable. Qianhai Open Source Research-Selected Hybrid A, established in August 2025, still shows a positive return of 11.15% since inception as of March 23 this year. Over the past two years, its return is 55.63%, ranking in the top quarter among similar funds.

Multiple active equity products are heavily invested in airline stocks, with losses exceeding 15% since March.

Besides Cui Chenlong, Lin Yingrui of GF Fund also has a heavy allocation to airline stocks.

The six largest holdings of GF Ruiyi Leading Hybrid A at the end of Q4 last year were all airline stocks listed in A-shares: China Eastern Airlines, China Southern Airlines, Spring Airlines, Air China, Huaxia Airlines, and Juneyao Airlines, with a combined holding of 49.81%.

Similarly, GF Value Leading Hybrid A’s top ten holdings at the end of Q4 last year included six airline stocks: China Eastern Airlines, China Southern Airlines (both Hong Kong-listed), and Huaxia Airlines, Spring Airlines, Air China, and Juneyao Airlines (all A-shares), with a combined holding of 45.66%.

Due to their high allocation to airline stocks, these two funds have faced performance pressure since oil prices rose in March. As of March 23, GF Ruiyi Leading Hybrid A’s return since March is -20.46%, and GF Value Leading Hybrid A’s is -22.03%.

In the first half of 2021, Lin Yingrui’s management of GF Value Leading Hybrid A achieved a return of 40.16%, making it the top-performing semi-annual mixed fund.

In addition to Lin Yingrui, several other fund managers have also experienced performance setbacks due to heavy holdings in airline stocks. Yang Chao’s Jinxin Consumer Upgrade Stock A, with its top six holdings all in airline stocks, accounted for 55.64% of the portfolio at the end of Q4 last year. As of March 23, its return since March is -19.23%.

Jiang Yanglei and Zhu Huilin jointly manage Debang Consumer Goods Hybrid A, which had five airline stocks among its top ten holdings at the end of Q4 last year, with a total holding of 35.8%. As of March 23, its return since March is -17.87%.

Zheng Xiaobing manages HSBC Jintrust Small and Mid Cap Stocks, which included four airline stocks among its top ten holdings at the end of Q4 last year, with a total holding of 36.08%. As of March 23, its return since March is -17.2%.

Industry analysts point out that the short-term trend of airline stocks is heavily affected by oil prices. However, over a longer cycle, airline stocks are expected to benefit from the RMB’s appreciation.

Because domestic airlines purchase and lease aircraft with large dollar-denominated debts, RMB appreciation will lead to exchange gains when converting dollar debts, directly boosting reported net profits. Over the long term, if Middle East conflicts ease and oil prices fall, airline stocks may see valuation recovery amid the long-term RMB appreciation trend.