China's Top Fund Manager Raises Tech Stakes, From Meituan To TSMC

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, South China Morning Post (SCMP) reported.

Photo Insert: Zhang Kun, who oversees $13 billion in assets for Guangzhou-based E Fund Management, bought 3 million shares in Meituan, China's biggest on-demand delivery service provider.

Zhang Kun, who oversees $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 $40 billion in market capitalization between them this year, recovering from a rout that erased at least $1 trillion in value after Beijing tightened its hold on the tech sector.

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. "We continue to adhere to high-quality companies with decent business models, clear industry landscapes, and strong competitiveness."

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