China’s star fund manager dumps long-held consumer bets in pivot to AI trade

Zhang Kun cuts US$3.1 billion fund’s holdings in baijiu and e-commerce as ‘downside pressure on the economy has exceeded expectations’ “Judging from the data on retail sales and employment, the downside pressure on the economy has exceeded expectations,” Zhang said in his fund’s report this week. “Households are turning more cautious about future expectations. Excessive household savings have kept rising to cope with the uncertainty arising from employment.” In the April-to-June period, Zhang cut holdings of Kweichow Moutai to 968,500 shares, a decrease of 47 per cent from the preceding three-month period, while paring positions in Wuliangye by 71 per cent to 7.53 million shares and in Luzhou Laojiao by 52 per cent to 12.18 million shares, according to the report. Zhang held 5.78 million Hong Kong-traded shares in Alibaba as of the end of June, compared with 23.5 million in the first quarter.

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