On January 22, the four funds managed by Zhang Kun of E Fund Management all disclosed their fourth-quarter reports for 2025. By the end of December 2025, the total assets under Zhang Kun's management had fallen below 50 billion yuan, totaling 48.383 billion yuan. Among them, three products primarily investing in A-shares reported negative quarterly returns and underperformed their respective benchmarks, while the E Fund Asia Select, which focuses on overseas Chinese stocks, bucked the trend with a positive return, significantly exceeding its benchmark.
The largest product by size is the E Fund Blue Chip Selected Mixed Fund. As of the end of December 2025, the fund's net asset value per share was 1.8623 yuan, with a reported period growth rate of -8.93%, compared to its benchmark's return of -2.63% for the same period.
Regarding holdings, the E Fund Blue Chip Selected, E Fund Quality Selected, and E Fund Quality Enterprise Three-Year Holding Fund all reduced their stakes in Kweichow Moutai Co.,Ltd., Wuliangye, Luzhou Laojiao, and Shanxi Fenjiu. Additionally, Focus Media and China Merchants Bank also saw significant reductions by Zhang Kun.
Zhang Kun revealed that he maintained a stable stock仓位 during the fourth quarter but adjusted the portfolio structure, with a focus on reallocating investments in sectors such as pharmaceuticals, consumer goods, and technology. On individual stocks, he continues to hold high-quality companies with excellent business models, clear industry structures, and strong competitiveness.
The top ten holdings of the E Fund Blue Chip Selected fund remained unchanged, listed in order as: TENCENT (00700), Kweichow Moutai Co.,Ltd. (600519.SH), Wuliangye (000858.SZ), Alibaba (09988), Shanxi Fenjiu (600809.SH), Luzhou Laojiao (000568.SZ), Yum China (09987), CNOOC (00883), JD Health (06618), and Focus Media (002027.SZ). Among these, Zhang Kun substantially reduced the position in Focus Media and also trimmed holdings in Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye; he increased the stake in Alibaba.
Regarding the future macroeconomic and market outlook, Zhang Kun expressed long-term optimism in the quarterly report. He stated that from both incremental and存量 perspectives, over the next decade, there will be a significant improvement in both the actual living standards of the general public and the level of social security, with the gap in living standards compared to developed countries noticeably narrowing. At some point, the market will realize that investing in domestic companies is also "fishing where the fish are."
Zhang Kun also used the current global AI wave as an example to illustrate the unique advantages of the Chinese market. He believes that a country with a strong domestic market also plays a crucial role in promoting technological innovation; robust demand and profitability can attract global resources, talent, and capital to serve innovation.
Using leading overseas models like GPT and Gemini as examples, Zhang Kun noted these have become essential daily tools for many investors conducting research. Their C-end subscription fees of around $200 per year constitute a significant current revenue stream for these companies. Amid today's debates about an "AI bubble," these tangible subscription revenues play a vital role in boosting confidence for model companies in fundraising and sustained investment.
In contrast, Zhang Kun mentioned a domestic company he invests in, which also possesses leading domestic foundational model capabilities. He stated, "If there were a stronger consumer environment, subscription revenue and investment in model capabilities could achieve better interaction, helping to narrow the gap with globally leading model levels in the future."
Addressing growing investor concerns about "whether the moat still exists if the city is gone," Zhang Kun responded in the quarterly report by reiterating his consistent confidence in the business models, competitive barriers, and cash flow generation capabilities of the companies in his portfolio.
Zhang Kun emphasized, "We believe the city is always there; it is no surprise that given China's endowments, it is progressing towards being a developed country. Difficulties are only temporary, and more and more ordinary people will lead better lives. The market's pricing has already made some high-quality companies appear very attractive even for privatization, presenting excellent opportunities for long-term investors."
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