For stock market investors, the Jin Qilin analyst research report provides authoritative, professional, timely, and comprehensive insights to help uncover potential thematic opportunities! A manager from a billion-yuan private fund has criticized certain insurance asset management giants for buying large amounts of tech stocks at highs in July and then significantly reducing positions to cut losses in late September, saying the "chasing rallies and panic selling is baffling."
On October 11, Liang Hong, founder of the billion-yuan private fund Hainan Xiwa, discussed in his latest weekly report the recent decline in tech stocks, institutional capital movements, and adjustments to his fund's holdings. Liang Hong questioned the trading behavior of certain large insurance asset management institutions: "We understand that some insurance asset management giants bought a lot of tech stocks at high levels in July, but made significant position reductions to cut losses in late September. This kind of large institution chasing rallies and panic selling is truly baffling." However, Liang Hong did not disclose which insurance asset management institutions were involved, nor did he reveal the specific trading details of these institutions.
At the same time, Liang Hong disclosed that most of his funds are expected to see net value declines of more than 2% this week (including the National Day holiday), and have retraced more than 20% from their highest point in June this year. In this weekly report, Liang Hong also disclosed recent investment operations and market judgments, mainly including the following points:
Regarding investment operations, Liang Hong revealed that over the past few months, Xiwa Private Fund cleared out US stock memory chip holdings and some other small positions, retained a 20% position in wafer manufacturing stocks, and bought Hong Kong internet stocks, wafer manufacturing stocks, and some A-share tech stocks with reasonable valuations and large upside potential. Due to regulatory policy adjustments, currently US individual stocks can only be sold, not bought, so Xiwa holds only one heavy position in US stocks. Liang Hong said this stock recently hit a historic high, but did not reveal its specific name.
Regarding the continued decline of tech stocks in A-shares and Hong Kong stocks recently, Liang Hong believes the main reason is capital flow issues, not deterioration in corporate fundamentals. He stated that the AI industry's development prospects remain broad, and although some A-share tech stocks previously had bubbles, after recent adjustments, many quality companies have become cheap, and Hong Kong stocks even more so. Despite his funds retracing more than 20% from June highs, Liang Hong remains confident in tech stocks. He said he will not shift to bank stocks like some capital has done, but will continue to stick to his investment judgment. If the funds continue to decline, Xiwa will purchase its own funds again.
The following is the full text of Liang Hong's October 11 weekly report:
Hello everyone, this week (including the National Day holiday) most funds are expected to see net value declines of more than 2%. The funds have retraced more than 20% from their June high. I think it's necessary to write something.
Our operations over the past few months mainly involved clearing out US stock memory chip holdings and some other small US stock positions, retaining a 20% position in wafer manufacturing stocks. Then we bought Hong Kong internet stocks, wafer manufacturing stocks, and some A-share tech stocks that I believe have reasonable valuations and large upside potential. However, looking at the trends of the Hang Seng Tech Index, ChiNext Index, and STAR Market over the past few months, the main reason for the fund's retracement is that the A-share and Hong Kong tech beta has been very poor, while some leading US tech stocks have hit historic highs. Especially in the past month, overseas and domestic trends have been completely opposite, and the only US stock we hold also recently hit a historic high. However, after regulatory policy adjustments, we can only sell US individual stocks, not buy them, and everyone knows I don't like buying index-type allocations. So going forward we only hold one heavy position in US stocks, the stock I've always said has the highest certainty, and it indeed hit a new high, while companies with the same business domestically are hitting new lows. I believe this is mainly due to capital flow reasons, not fundamental reasons. AI is developing very well and smoothly with great prospects, but the domestic capital flow situation is not good, which indeed surprised me. We understand that some insurance asset management giants bought a lot of tech stocks at high levels in July, but made significant position reductions to cut losses in late September. This kind of large institution chasing rallies and panic selling is truly baffling. I admit that domestic tech stocks, especially many A-share tech stocks, had bubbles initially, but now many good companies have become cheap, and Hong Kong stocks even more so. I believe our stock selection has alpha, but in just a few months, individual stock alpha is difficult to manifest, and can only rely on market beta. Under the poor beta of the Hang Seng Tech Index, ChiNext Index, and STAR Market, the fund's past performance has not been good, but I personally remain very confident. First, the fundamentals are very good; second, stocks becoming cheaper means greater upside potential. If fundamentals were bad, several US GPU, CPU, and wafer manufacturing leaders wouldn't be hitting new highs, and A-share and Hong Kong companies that are cheap and have good certainty will have great upside potential in the future. Many domestic funds have hidden in large banks, but I won't do that. I will stick to my views. If the funds continue to decline, we will make another round of self-purchases. Thank you. Xiwa Private Fund Liang Hong, October 11, 2026
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