The top ten major holdings of E Fund’s Blue Chip Select underwent notable changes in the third quarter. New additions included Accelink and Sichuan Chuantou Energy, while SMIC and Dongshan Precision were removed. Among the holdings, only Alibaba-W saw a significant increase, while most other positions were reduced. Zhang Kun currently oversees three funds, with total assets under management (AUM) declining to approximately RMB 29.3 billion. E Fund Quality Select Mixed, one of these funds, primarily adjusted its portfolio in Q3, notably cutting its exposure to baijiu (Chinese white liquor) stocks.

In the top ten holdings of E Fund Asia Select Equity, Futu Holdings and Google-A were newly included, while Alibaba-W was taken out. Zhang Kun’s investment team stated that the third-quarter adjustments in the technology sector were driven by a combination of factors. However, they remain positive about the sector’s long-term growth potential. They emphasize the significance of the business models and competitive advantages of high-quality companies, preferring to invest in industry leaders capable of expanding their market share during challenging times.

In the first three quarters of this year, funds managed by Yang Zongchang—E Fund Supply-side Reform and E Fund Industrial Opportunities—ranked among the top performers. Both funds experienced substantial growth in assets and made significant portfolio adjustments in Q3. E Fund Supply-side Reform replaced nine of its top ten holdings, removing several tech stocks and retaining only Cambricon. New positions were added in WuXi AppTec, Zijin Mining, and Sany Heavy Industry. E Fund Industrial Opportunities implemented similar changes.

Yang Zongchang explained that the portfolio was optimized in the third quarter, with increased allocations to sectors such as CXO (Contract Research Organizations) and coal. This adjustment aimed to create a more diversified and balanced portfolio. He remains optimistic about the future of the artificial intelligence industry and plans to intensify research on high-quality companies within traditional sectors. The goal is to dynamically optimize the portfolio and improve risk-adjusted returns.