Big boss Yang Dong responds directly to "old timer" skepticism: Some assets are still worth holding

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This autumn, discussions about "Old Dengs" and "Little Dengs" have surged in every corner of the A-share market.

Investors holding traditional low-valuation, high-dividend sectors such as consumer, cyclical, financial, and utilities are regarded as "Old Dengs"; those holding high-growth themes like AI computing power, semiconductors, robots, and are willing to bear high valuations, are seen as "Little Dengs".

The two types of investors, with their different valuation systems and investment preferences, have had vastly different performance outcomes this summer. This has sparked round after round of heated discussions on "who will win in the end".

As early winter arrives and Ningquan's latest monthly report is released, prominent mainland private fund manager Yang Dong has also stepped in to join the debate.

For many years, Yang Dong (who once bought into mainstream new energy and new energy vehicle stocks very early, and frequently bottom-fished financials successfully) has not been particularly explicit in siding with either "Old Dengs" or "Little Dengs". This time, however, he has given a clear stance and view.

He also reminded: The current market offers both opportunities (undervaluation) and challenges (overvaluation). Investors need to grasp their own pace.

Seizing Market Opportunities Many Times in History

As the head of Ningquan Asset, Yang Dong has a brilliant investment record: The Xingquan Fund he once led was an early investor in BYD years ago and a long-term holder of leading LED sector names. At the same time, Yang Dong has been a classic long-term holder of banks, brokers, and convertible bonds.

Looking at historical holdings, Yang Dong does not naturally belong to either "Old Deng" or "Little Deng" camps—everything depends on whether he sees medium- or long-term “certainty” in investment opportunities.

Additionally, Yang Dong is sensitive to risk. Over a decade ago, during a market boom, he publicly advised investors to stay calm; in 2021, when new energy was red-hot, he calmly warned about risks; and in the years of correction leading up to the end of 2024, Ningquan was among the few "bear market experts" maintaining value near par.

Frank Admission of Holding Large Amount of "Old Deng" Stocks This Cycle

Ningquan's latest monthly report noted that throughout the third quarter, the market was in a continuous uptrend, with the Shanghai Composite Index hitting a new high in nearly 10 years.

But at the same time, “the rally was still structural: hot sectors such as AI-related semiconductors and optical modules saw astonishing gains, with winners getting stronger and contributing to the bulk of index performance, while many traditional sectors—the so-called 'Old Deng' sectors—stood still, resulting in stark market divergence.”

Ningquan also stated, “Because we do not chase hot sectors and hold a large number of Old Deng stocks, our NAV could only climb up slowly in Q3.”

NAV Progress Focuses on "Stability"

Ningquan Asset's latest disclosed product monthly report also confirms the above description. The private fund products managed by Yang Dong's team have indeed presented a “steady” performance amid the current restless market atmosphere.

In just-ended September, the product's NAV rose 2.76%, slightly underperforming the CSI 300 Index’s 3.20% gain for the same period.

Stretching to year-to-date numbers, the "slow" style is even more apparent: the product's YTD return is 13.95%, whereas the CSI 300 rose 17.94%.

Of course, in terms of absolute return, the cumulative NAV performance is still quite good. One Ningquan product's NAV is already close to 1.49 yuan, significantly outperforming the CSI 300 Index by 54 percentage points over the same period.

Market Warming Up Faster Than Expected

Additionally, in this month’s report, Ningquan admitted, “the market has heated up much faster than we expected.”

He noted that in many hot sectors and stocks, “bubbles (overvaluation)” are clearly visible. The emergence of new technology, especially those with significant social impact, often leads to large bubbles in the capital market.

Moderate bubbles can attract capital inflows, accelerate tech adoption and sector development, but bubbles that are too large are not only a waste of resources, but often also cause investors to lose vast amounts of wealth.

This is probably the clearest and most objective “reminder” Yang Dong’s team has made about certain sectors in their monthly reports this year.

Still Opportunities in a Structural Market

At the same time, the Ningquan team also noted, “Fortunately, the bubbles are also structural, and there are still a fair number of targets worth holding and waiting for.”

Ningquan also explicitly expressed their hope for a “slow bull” market.

They wrote word for word in the monthly report:

We still hope for a “slow bull” market, hoping that as the market matures, this feast can proceed in a waltz rather than ending in haste to the beat of a samba.

Holdings Remain Stable, According to Public Information

The monthly report also shows that as of the end of September, the sectors most heavily weighted in Ningquan’s products are, in order: real estate, basic chemicals, power equipment, textiles and apparel, utilities, telecommunications, and commercial retail, etc.

Real estate is ranked first, which is clearly very different from mainstream asset management thinking that prefers technology.

According to public information, as of mid-2025, Ningquan’s products hold shares in Aojiahua (massage robots, up 3.66% YTD), Unilumin Technology (LED equipment, up 19% YTD), Tianhao Energy (natural gas and energy-saving, up 13% YTD), Shandong Hi-Speed Road & Bridge (transportation), and Meichang Co. (diamond products), etc.

These companies' YTD gains are not large, but each has its own characteristics, basically fitting Ningquan’s long-term stock-picking style.

Another “Cycle”?

The term “Old Deng” comes from a regional dialect of Northern China, used to describe “old men who look for trouble when there’s none”.

The related buzz started in September 2025, triggered by debates among different analysts in the investment circle, then turned into a public debate over investment paradigms, and soon caught on throughout the investment community.

But what the industry may have forgotten is that such debates about Old Dengs and Little Dengs also occurred in 2015 and 2000, respectively.

In both periods, the market experienced a sharp rally in innovation and thematic stocks, while value stocks remained lukewarm—a situation that occurred simultaneously. Both times, the story ended with a structural market and the hot/cold sectors swapping places.

This time, will Yang Dong's comments come true again, or trigger some coolheaded reflection in the market? That remains to be seen.

Risk Warning and DisclaimerThe market has risks, and investments require caution. This article does not constitute individual investment advice, nor does it consider the particular investment objectives, financial status, or needs of any specific user. Users should decide whether the opinions, views, or conclusions in this article fit their personal situations. Investing accordingly is at your own risk. ```