Chinese hedge funds maintain AI bets despite recent losses

When your flagship fund returns 164% through May and then the market knocks you sideways in July, most investors would at least consider taking their chips off the table. Chinese hedge funds, by and large, have decided to stay seated. Despite a sharp correction in AI-linked stocks that dealt an average 17% loss to quant funds in July 2026, the vast majority of Chinese hedge fund managers are holding firm on their artificial intelligence and semiconductor positions. A Bank of America survey from August found that 95% of the 98 Asia-based fund managers polled either maintained or increased their focus on AI and chip stocks after the sell-off. Roughly 73% of respondents identified these sectors as their prime investment areas going forward. The whiplash year in Chinese quant The numbers tell a story of extraordinary gains followed by a gut punch. Chinese quant hedge fund assets surpassed RMB 2.6 trillion, roughly $385 billion, as of July 2026. Long-only quant strategies returned 44.7% in 2025, setting the stage for even more aggressive positioning this year. Some individual funds posted returns that would make a venture capitalist blush. Shanghai Everlead Capital’s Growth Strategy No....