China’s biggest fund manager increases tech stakes from Meituan to TSMC, betting on regulatory easing, AI boom

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Zhang Kun, who oversees US$13 billion for Guangzhou-based E Fund Management, bought more shares in online delivery giant Meituan and TSMC in the first quarter

He is betting that the worst of a regulatory crackdown on the sector is over and that an artificial intelligence boom will bolster demand for processing chips

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Zhang bought 3 million shares in Meituan, China’s biggest on-demand delivery service provider, in his flagship Blue Chip Selected Mixed Fund. Photo: Elson Li

Zhang Shidongin Shanghai

Published: 2:00pm, 21 Apr 2023Updated: 2:09pm, 21 Apr 2023

China’s biggest fund manager ramped up his buying of technology stocks from Meituan to Taiwan Semiconductor Manufacturing Corp (TSMC) in the first quarter, betting that the worst of a protracted regulatory crackdown on the sector is over and that an artificial intelligence (AI) boom will bolster demand for processing chips.

Zhang Kun, who oversees US$13 billion in assets for Guangzhou-based E Fund Management, bought 3 million shares in Meituan, China’s biggest on-demand delivery service provider, in his flagship Blue Chip Selected Mixed Fund, according to the first-quarter portfolio report released on Friday.

He also purchased 112,000 shares of TSMC, the world’s biggest contract chip maker, and increased his stakes in Alibaba Group and JD.com for the smaller Asian Elite Fund in the first three months, a separate report showed.

The portfolio recalibration shows how China’s star money managers have positioned their funds in response to a slew of major news headlines from the reappearance of Alibaba founder Jack Ma Yun to the launch of AI-powered ChatGPT and its Chinese competitors.

The Hang Seng Tech Index and the Nasdaq Golden Dragon China Index have added almost US$40 billion in market capitalisation between them this year, recovering from a rout that erased at least US$1 trillion in value after Beijing tightened its scrutiny of the tech sector.

Zhang Kun, the star investor at E Fund Management, who manages the biggest amount of cash among all equity managers in mainland China. Photo: SCMP Handout

The “unswerving” support for the private sector enshrined in the government work report this year “boosts confidence in the market and among entrepreneurs,” said Zhang in the quarterly report. “We continue to adhere to high-quality companies with decent business models, clear industry landscapes and strong competitiveness.”