China’s most highly performing mutual fund, Soochow Mobile, is currently preparing for the recovery of onshore shares.
Within the framework of this activity, the foundation focuses on artificial intelligence as the most promising direction of development. It implies an interest in AI-related shares, not the creation of digital products based on advanced technology.
The report of the Soochow Mixed Mobile Internet Flexible Distribution Fund for the first half of 2023 contains information that the onshore market is currently trading at a triple bottom, which is the worst state of affairs in terms of policy, revenue, and valuations. The risk of subsequent decline, according to this report, is small. The fund also stated its intention to maintain a high level of investments in stocks compared to money until the end of this year.
Currently, the list of Soochow’s largest assets includes electronics supplier Luxshare Precision Industry, automotive components manufacturer Huizhou Desay Sv Automotive, and Will Semiconductor, specializing in research and development, design, and sales of semiconductor devices.
Investors cannot come to a consensus on the further dynamics of the movement of the value of shares of Chinese companies. Many of them believe that the downward trend that has been observed over the past few months is gradually transforming into a growth trend. This position is justified by the fact that at present there are signs of the imminent start of state support and a decrease in the level of government influence on the technology sector is being recorded. There is an opinion that these signs will remain hints of improvement, which in reality will not be. In this case, there is no clear answer to the question about the near future of the Chinese stock market, since both optimistic and pessimistic forecasts are only assumptions with a guarantee of implementation that is not absolute or close to it. Although there are indeed signs of improvement. For example, on Thursday, July 13, global funds bought a number of shares of firms from China, which is the largest since January of this year.
Data from East Money Information, a company that tracks funds, indicates that Soochow’s profitability has reached 75% since the beginning of this year.
Managers of the mobile fund, which controls an amount equivalent to $38 million, are confident that a technological era will begin on the onshore stock market within the next five years. They are convinced that artificial intelligence and policy decisions that stimulate the development of the digital economy will become catalysts for growth. These considerations explain the fund’s interest in the onshore market, which currently cannot impress with anything, but is considered by analysts as a space in which significant potential will arise against the background of the natural impact of global trends related to the development of the technology sector.
The Fund is also very optimistic about the prospects for the semiconductor sector in the second half of 2023. Representatives of Soochow believe that applications like ChatGPT, as they develop, can lead to the creation of more powerful artificial intelligence-based products that will accelerate the cycle of replacement of consumer devices.
As we have reported earlier, China Publishes Final Version of Rules for Use of Generative AI.