Chinese fund managers’ pursuit of AI plays backfires as hot tech stocks wobble

A shift to Technology Stocks by China’s most seasoned Fund Managers has backfired, with the unwinding of AI plays taking a toll on the performances of their products.Funds run by some star managers with a value-investing approach all recorded declines in net asset values last month after they switched to Chipmakers and the manufacturers of optical transceivers and out of long-held consumer bets in the second quarter. Technology Stocks listed in China" class="entity-link entity-location" data-entity-id="12537" data-entity-type="location">Mainland China suffered their biggest monthly declines in July, aligning with a global unravelling of Artificial Intelligence bets amid doubts about the investment returns on Cloud-Service Infrastructure.The pursuit of hot tech stocks by China’s most influential Fund Managers, driven by the fear of missing out on the AI frenzy and a marked contrast to the value-investing approach they were known for, probably saw them buy at the peak of the boom. Meanwhile, the Consumer Stocks they had abandoned rebounded as they piled into Technology Stocks at elevated prices.