China’s top money managers bet on more tech stocks, cut liquor producers to boost returns amid policy challenges
- Zhang Kun at E Fund made Tencent his top holding in flagship fund, while Yang Ruiwen at Invesco Great Wall bought Shiyuan Electronics, Raytron Technology
- While fortunes were mixed last quarter, both have suffered losses in the opening weeks of 2022 amid risk aversion
Zhang Kun, who manages more than 100 billion yuan (US$15.8 billion) at E Fund Management, added Tencent Holdings to elevate the WeChat operator as the top holding in his Blue Chip Selected Mixed Fund, according to his quarterly report to investors.
Yang Ruiwen, who oversees about 50 billion yuan at Invesco Great Wall Fund Management, also bought chip maker Raytron Technology. Lu Bin at HSBC Jintrust Fund Management picked up more of No. 1 electric-car battery maker Contemporary Amperex Technology, their reports showed.
“It may not be a problem of whether to invest in technology stocks or not, but one of how to invest,” Shenzhen-based Yang said in his fund report. “China’s rise is impossible without the rise of technology stocks. We’ll be committed to tapping technology growth to bring sustainable above-average returns to investors.”
Zhang’s flagship fund lost 0.1 per cent last quarter to end the year with an almost 10 per cent decline. Yang’s Selected Equity Fund gained 11 per cent during the October-to-December period, taking its annual winnings to 20 per cent. Yang’s fund has lost 5.1 per cent this month, in line with the broader market.
E Fund and Invesco Great Wall declined to comment on the fund changes.
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“After the valuation digestion in 2021, some good quality companies are already attractive,” Zhang of E Fund said in one of his latest quarterly reports. There is a big chance their earnings will be reflected in their market value in the next three to five years, he added.
Zhang bought 1.3 million shares in Tencent after the stock slumped 21 per cent in the third quarter, raising his stake to 18.3 million shares or 10 per cent of the US$11.1 billion Blue Chip Selected Mixed Fund. The social media giant was its 8th biggest holding in the third quarter.
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Guangzhou Shiyuan Electronic Technology, which makes intelligent interactive panels, took up 5.1 per cent of the fund managed by Yang at Invesco Great Wall. He bought 215,300 shares in the Shenzhen-based firm last quarter. Chip makers Raytron and Hangzhou Silan Microelectronics were his next favourites.
Zhang sold 580,000 shares in Kweichow Moutai, relegating it to fourth largest in the fund, versus second in the third quarter. He also reduced his positions in smaller rival distillers Wuliangye and Luzhou Laojiao. Liu Yanchun, another star manager at Invesco Great Wall, made a similar move in paring down liquor stocks in his fund.
