STOCKS | China’s A-Share AI Rally Drives Diverging Results Among Private Fund Managers

China’s A-share “tech bull” market has accelerated capital flows into the AI industry chain, contributing to a widening performance gap within the private fund sector. According to Odaily, some institutions heavily positioned in AI and computing power have led returns, while discretionary private funds that did not keep pace have faced net asset value drawdowns and shrinking assets under management. Data cited in the report show that Yunzhou Capital, previously a discretionary private fund manager with assets exceeding 10 billion yuan, has seen its assets under management fall to below 5 billion yuan. Other established private fund managers that previously exceeded 10 billion yuan in assets, including Banxia Investment and Tongben Investment, have also experienced declines in scale. Banxia Investment founder Li Bei responded to drawdowns in the firm’s funds by saying she does not want to follow the trend into AI and believes conditions that could trigger an AI bubble burst have already emerged. Industry participants cited in the report said whether a discretionary private fund manager has aligned with the AI industry chain’s market rhythm has become a key dividing line for performance.