The technology sector’s rapid transformation is fundamentally reshaping investment paradigms, with breakthroughs in AI, the emergence of humanoid robotics, and accelerated autonomous driving development igniting fervor in tech investments. Among the prominent fund managers excelling in this domain is Yan Siqian, General Manager of Equity Investment Department III, Investment Director, and Fund Manager at Peng Hua Fund.
With over 14 years in securities, including roles at China Renaissance Securities, CICC Securities, and ICBC Credit Suisse Fund before joining Peng Hua in January 2022, Yan specializes in new energy vehicles (NEVs) and AI. She strategically identified AI, robotics, and autonomous driving as critical extensions of the NEV supply chain in Q3 2023. Her early positioning delivered standout performance during this year’s tech stock resurgence.
1. Expanding Depth and Breadth in Industrial Chain Research
Reflecting on pivotal moments, Yan highlighted the challenging evolution of China’s NEV sector since 2011: “Initial models offered only 300km range and faced setbacks like battery fires and subsidy fraud. Yet, persistent innovation propelled battery technology forward.”
Studying NEVs provided foundational advantages, she noted. Lithium battery applications expanded from consumer electronics to vehicles, requiring analysis of Apple’s supply chain, upstream minerals, and materials. “The 2019 shift toward vehicle intelligence integrated mobile hardware and chips into automobiles, leveraging my computer science background,” Yan explained. Subsequent entries by Huawei and Xiaomi into NEVs deepened her expertise in autonomous driving software. Tesla’s 2022 pivot toward humanoid robots and AI marked another expansion. “Global supply chains like Apple, Tesla, and automotive sectors broadened my research scope exponentially.”
Since managing funds in 2017, Yan attributed early success to NEV industry growth, supplemented by strategic sub-sector allocations and stock selection. Addressing recent NEV volatility, she emphasized adaptability: “Amid 2022’s supply-demand imbalances, we pivoted to solar inverters and energy storage. In 2023, we focused on Huawei’s smart car ecosystem and Tesla-aligned humanoid robotics firms—all yielding strong long-term returns.”
Looking ahead, Yan envisions a 10-20 year growth runway for NEVs, driven by decarbonization, autonomous driving, and robotics integration. “China now leads global auto exports, with domestic brands dominating locally. Our manufacturing excellence has scaled from electronics to automobiles—a multi-trillion-yuan sector. The robot Industry will eclipse this, becoming an even larger market. As Chinese NEV, manufacturing, and tech giants enter this space, robots will serve as AI’s primary hardware载体, making them a global strategic priority and modern ‘pillar of national strength.'”
2. The Trillion-Yuan Potential of the Robot Industry
Yan began investing in humanoid robotics in 2023, prompted by automakers diversifying into the field. “By 2022, NEV suppliers initiated robotics projects; 2023 brought formal expansions, and 2024 delivered technological leaps. This clarity prompted portfolio adjustments toward robotics,” she stated. The robot Industry represents AI’s ultimate application, poised to surpass automobiles and smartphones as manufacturing’s largest frontier—potentially worth tens of trillions.
Despite significant portfolio volatility in early 2024, Yan remained resolute. “Pre-Chinese New Year, robotics updates were scarce. While companies achieved breakthroughs, their stocks declined—a difficult period for investors.” However, she drew parallels to NEV evolution: “Early EVs were impractical at 300km ranges, but 600-800km ranges revolutionized adoption. Similarly, 2024’s AI advancements convinced me robots—as AI’s humanoid载体—would succeed. Progress in mobility and interaction capabilities solidified this.”
When asked about consistently capturing trends like NEVs and AI, Yan credited rigorous tracking and patience: “Tesla’s multifaceted innovation required sustained study. Identifying high-demand sectors with excellent companies works, but foresight must be paired with discipline to endure market irrationality.”
3. Humanoid Robotics’ Approaching “Model 3 Moment”
Yan expanded beyond NEVs starting in 2023. “We invested in Huawei’s smart car chain when China lagged in autonomous driving but anticipated breakthroughs. In 2024, we added Huawei servers, GPU cards, and HarmonyOS—a fully autonomous ecosystem critical for China’s self-reliance,” she said. This independence now spans semiconductors, devices, operating systems, AI models, and beyond.
She linked this progress to national resilience, citing figures like “Black Myth: Wukong” creator Feng Ji and DeepSeek founder Liang Wenfeng: “Their journeys from obscurity to excellence embody our growth engine. Quality and innovation will define the next era. Leading auto exports is just the start; the robot Industry’s trillion-yuan scale is next, leveraging our foundational strengths.”
On China’s robotics competitiveness, Yan highlighted dual advantages: “Historically strong in hardware but weak in software, we now excel in both. Huawei propels advancements in cars, phones, and servers, while DeepSeek democratizes computing power and intelligent driving. Together, they enable leapfrogging.”
The timeline from concept to commercialization? Yan compared it to EVs: “The 0-to-1 phase took EVs 6-7 years. For the robot Industry, Tesla’s roadmap—10,000 units in 2024, 100,000 in 2025, and 1 million by 2026—suggests acceleration. Three years may suffice, thanks to mature supply chains, autonomous-driving software, and tech giants like Huawei, Xiaomi, ByteDance, and global players accelerating deployment. Mass production is likely by 2025—the ‘Model 3 moment’ is imminent.”
4. Accelerating AI Implementation and Navigating Volatility
Addressing potential bubbles in China’s tech rally, Yan contextualized historical patterns: “Bubbles require bull-market sentiment and genuine industrial momentum. Currently, macroeconomic recovery, ample liquidity, and rising risk appetite align with rapid AI progress. Crucially, AI deployment is advancing swiftly—akin to China’s internet adoption speed.”
To manage tech-stock volatility, Yan advocated three approaches: “First, deeply analyze actual industry progress. If development outpaces expectations, extend holdings; if lagging, adjust early. Second, diversify across AI segments—from computing power to applications—prioritizing faster-maturing areas. For example, our 2023 auto-sector holdings gained from unexpected robotics exposure. Third, valuation thresholds mitigate swings, but avoiding high-potential sectors solely due to valuation isn’t optimal. Complementary choices across subsectors, timelines, and entry points create balance.”
Her stock-selection methodology adapts to tech’s inherent lag: “Fundamentals trail valuations, causing volatility. Thus, we shift focus across segments. In 2023, we prioritized NVIDIA’s optical-module suppliers; in 2024, we emphasized domestic computing power and the robot Industry. Innovations like DeepSeek necessitate constant tracking to identify near-term executable opportunities.”
Yan concluded by linking her NEV experience to tech investing: “It built resilience for 0-to-1 innovation. If growth remains robust, I stay invested despite volatility. Long-term holdings in leaders like top lithium firms yielded 10x returns post-peak—proof that enduring industrial trends ultimately reward patience.”