{
  "id": 207089,
  "title": "Chinese fund managers’ pursuit of AI plays backfires as hot tech stocks wobble",
  "url": "https://urgent.news/2026/08/06/chinese-fund-managers-pursuit-of-ai-plays-backfires-as-hot-tech-207089",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-06T06:00:09.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3363131/chinese-fund-managers-pursuit-ai-plays-backfires-hot-tech-stocks-wobble"
  },
  "original_language": "en",
  "account": "A strategy employed by some of China's most experienced fund managers, who shifted their focus to technology stocks, has resulted in a decline in the value of their investment products. This change came after the unwinding of AI-related investments, which negatively impacted the overall performance of their portfolios.\n\nDuring the second quarter, several star managers with a value-investing approach experienced declines in their net asset values as they transitioned to chipmakers, optical transceiver manufacturers, and other technology-related sectors. The performance of technology stocks listed in mainland China deteriorated significantly in July, marking the biggest monthly decline since records began in July 2020.\n\nThe pursuit of hot tech stocks by China's top fund managers, fueled by a fear of missing out on the AI trend and a departure from their traditional value-investing approach, appears to have led to buying at the peak of the boom. This shift likely resulted in the fund managed by Liu Yanchun at Great Wall Invesco Fund Management recording a 28% decline in value last month. Liu Yanchun had added optical transceiver maker Zhongji Innolight, Konfoong Materials International, and other tech stocks to his portfolio in the second quarter and reduced long-held positions in consumer and pharmaceutical stocks.\n\nZhang Kun, who once managed the largest equity mutual fund in mainland China at E Fund Management, also faced the consequences of this strategy. His flagship fund witnessed a 1.2% decline in value in July as Zhang Kun pivoted towards AI investments in the second quarter. The fund's top 10 holdings included Semiconductor Manufacturing International Corp and Suzhou Dongshan Precision Manufacturing, a maker of optical modules for artificial intelligence data centers. Zhang Kun reduced his exposure to liquor producers like Kweichow Moutai and Wuliangye Yibin by at least 47%.\n\nShanghai's tech-heavy Star Market 50 Index saw its worst monthly performance since its inception in July 2020, with a 26% decline in July. The similarly structured ChiNext gauge also experienced a similarly significant drop of 23%, representing the second-worst decline on record. The tech-heavy index had risen by at least 40% this year before the pullback.\n\nIn contrast, a gauge of consumer stocks on the CSI 300 Index rose by 12% last month, and a measure tracking pharmaceutical shares rebounded by 7.9%.",
  "summary": "A shift to technology stocks by China’s most seasoned fund managers has backfired, with the unwinding of AI plays taking a toll on the performances of their products. Funds run by some star managers with a value-investing approach all recorded declines in net asset values last month after they switched to chipmakers and the manufacturers of optical transceivers and out of long-held consumer bets…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post",
        "title": "Chinese fund managers’ pursuit of AI plays backfires as hot tech stocks wobble",
        "url": "https://urgent.news/2026/08/06/chinese-fund-managers-pursuit-of-ai-plays-backfires-as-hot-tech",
        "published": "2026-08-06T06:00:09.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}