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Chinese value fund managers’ AI pivots trigger declines in July
SCMP Economy reports several flagship products fell after managers shifted from consumer holdings to chipmakers and optical transceiver firms, with one fund down 28% in July.
China’s most seasoned fund managers have reportedly seen their recent technology bets backfire, as unwinding of artificial intelligence plays pressured fund performance during July.
According to SCMP Economy, funds managed by some star managers with a value-investing approach recorded declines in net asset values last month after they switched in the second quarter from long-held consumer positions to chipmakers and makers of optical transceivers.
The outlet reports that technology stocks listed in mainland China posted their biggest monthly declines in July, reflecting a broader global reversal in AI investment expectations tied to doubts about returns for cloud-service infrastructure.
SCMP Economy cited examples including the Great Wall Invesco Fund Management’s product managed by Liu Yanchun, which fell 28% in value in July after buying into optical transceiver maker Zhongji Innolight, Konfoong Materials International, and other tech names, as well as cutting positions in consumer and pharmaceutical stocks. It also said E Fund Management manager Zhang Kun’s flagship fund slipped 1.2% in July after he pivoted to AI in the second quarter.