Funds managed by Zhang Kun disclosed their first-quarter reports for 2026 on April 22, revealing their latest portfolio holdings. By the end of March 2026, the total assets under Zhang Kun's management had decreased to approximately 41.672 billion yuan. Taking his two largest funds, E Fund Blue Chip Selected and E Fund Quality Selected, as examples, the equity allocation remained largely stable during the quarter. Baijiu stocks continued to dominate the top holdings, although their overall weighting declined due to significant reductions. The decrease in total assets under management is more likely attributable to passive reductions rather than active selling.
Looking first at E Fund Blue Chip Selected, the fund's net asset value reached 26.793 billion yuan by the end of the reporting period, with a net asset value per share of 1.7660 yuan. The fund's net asset value per share growth rate for the period was -5.17%, compared to its benchmark return of -3.85%. The fund's top ten holdings remained unchanged, listed in order as: Kweichow Moutai Co.,Ltd. (600519.SH), Wuliangye Yibin Co.,Ltd. (000858.SZ), Luzhou Laojiao Co.,Ltd. (000568.SZ), TENCENT (00700), YUM CHINA (09987), CNOOC (00883), Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (600809.SH), BABA-W (09988), JD HEALTH (06618), and Focus Media Information Technology Co.,Ltd. (002027.SZ). Based on the latest adjustment actions, Zhang Kun reduced positions in CNOOC, Kweichow Moutai Co.,Ltd., and Focus Media Information Technology Co.,Ltd.. Among these, CNOOC saw a reduction of 29.4 million shares; however, its share price rose significantly due to increasing oil prices, leading to an increase in the holding's market value despite the share reduction. Additionally, he also trimmed positions in YUM CHINA, Wuliangye Yibin Co.,Ltd., and Luzhou Laojiao Co.,Ltd.. On the buying side, positions in BABA-W and TENCENT saw slight increases, with additions of 400,000 shares and 298,000 shares respectively.
Zhang Kun noted that the stock market showed significant divergence in the first quarter. Sectors such as coal, petroleum & petrochemicals, and utilities performed well, while non-bank financials, commercial retail, and computers lagged relatively. The fund maintained a largely stable equity allocation during the quarter but adjusted its structure, making changes within sectors like pharmaceuticals, consumer goods, and technology. Regarding individual stocks, the fund continues to hold high-quality companies with excellent business models, clear industry structures, and strong competitiveness. In the first quarter of 2026, the CSI 300 Index fell by 3.89%, the Shanghai Composite Index declined by 1.94%, and the ChiNext Index dropped by 0.57%. In the Hong Kong market, the Hang Seng Index decreased by 3.29%, and the Hang Seng China Enterprises Index fell by 6.05%. He believes that the prices of high-quality equities have significantly deviated from their intrinsic value, suggesting "Mr. Market" has entered a phase of intermittent pessimism, using a short-sighted ruler to measure the depth of evergreen trees. For patient investors, the margin of safety for high-quality equities is being significantly amplified amidst widespread pessimism.
Another fund managed by Zhang Kun is E Fund Quality Selected Mixed, his second-largest fund. By the end of the reporting period, its net asset value was 9.544 billion yuan, with a net asset value per share of 4.9102 yuan. The fund's net asset value per share growth rate for the period was -7.51%, compared to its benchmark return of -3.96%. Two changes occurred in the fund's top ten holdings. The latest holdings, in order, are: Kweichow Moutai Co.,Ltd. (600519.SH), Wuliangye Yibin Co.,Ltd. (000858.SZ), Luzhou Laojiao Co.,Ltd. (000568.SZ), HWORLD-S (01179), TENCENT (00700), Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (600809.SH), BABA-W (09988), CNOOC (00883), Focus Media Information Technology Co.,Ltd. (002027.SZ), and YUM CHINA (09987). Based on portfolio adjustments, all baijiu stock positions were reduced, with holdings in Kweichow Moutai Co.,Ltd., Wuliangye Yibin Co.,Ltd., and Luzhou Laojiao Co.,Ltd. being lowered to varying degrees. For Hong Kong stocks, the position in TENCENT increased slightly by 41,000 shares, while the position in BABA-W was reduced by 670,000 shares. CNOOC and YUM CHINA were new entrants to the top ten holdings. Contrary to the action in E Fund Blue Chip Selected, CNOOC received a substantial increase in this fund, with the holding reaching 27 million shares, accounting for approximately 7% of the net asset value. HWORLD-S is the only hotel stock among the major holdings. He stated that in the first quarter, secondary housing prices in core cities gradually stabilized, RevPAR for the hotel industry turned positive, and same-store sales growth for leading restaurant companies turned positive, indicating a gradual recovery in consumer confidence among the public. Although the pace of recovery is relatively gentle, the direction is certain.
Zhang Kun expressed optimism regarding the future consumer market, believing current difficulties are cyclical rather than structural. He posited that the next generation of Chinese consumers will purchase higher quality and greater quantities of goods and services throughout their lifetimes compared to the current generation. Present challenges are destined to pass, and linear extrapolation is unjustified. He pointed out that China's domestic demand requires focus on the effective consuming population. Rather than focusing solely on changes in the total population of 1.45 billion, it is more important to consider whether the effective consuming population for products can increase from 300 million to 400 million. The prerequisite for this is an increase in the number of people with corresponding purchasing power as the economy develops. For example, the consumer market in the United States, with a population of 350 million, is larger than that of China with 1.45 billion people, while the consumer market in India, also with 1.45 billion people, is only about one-sixth the size of China's. Therefore, the per capita purchasing power level is sometimes more important than the sheer population size.
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