Prominent Chinese Funds Slash Baijiu Holdings to Pivot into AI, Sparking Style Drift and Momentum-Chasing Concerns
Taylor Wilson
E Fund Blue Chip Select and Invesco Great Wall Dingyi slashed baijiu holdings and loaded up on AI hardware in Q2, but both funds are down for the year — raising questions about whether this is trend-chasing, not foresight.
What exactly did these two funds do?
E Fund Blue Chip Select cut its combined position in Kweichow Moutai, Wuliangye, and Luzhou Laojiao from 30% to 13%, rotating into SMIC and Suzhou Dongshan Precision — an AI-linked PCB maker.
Invesco Great Wall Dingyi swapped Moutai and Guangdong Haid Group for Zhongji Innolight and Tuojing Technology, both AI-theme plays.
This means → two marquee active funds executed a "consumer-to-tech" style switch almost simultaneously — a swing this large is unusual for active managers.
Why does this look like chasing, not foresight?
The rotation happened after AI hardware stocks had already surged: Dongshan Precision doubled in Q2; SMIC's Hong Kong shares rose over 70%.
Liang Jinxin, investment adviser at Yingmi Fund, challenged the timing directly: "Adding tech exposure is fine — the problem is that many managers bought in only after these stocks had already run up hard. It's easy to read that as chasing."
In plain terms = buying a stock after it has doubled may turn out right, but the timing is inherently passive — if it keeps rising, you got lucky; if it falls, you bought at the top.
What happened on the baijiu side?
Moutai fell 18% in the same quarter; Wuliangye dropped 28%. The sell-down objectively shielded the funds from further consumer-sector weakness.
But since July, consumer stocks have rebounded — Moutai and Luzhou Laojiao outperformed several chip names within the month.
This reflects how fast style rotation moves in this market: a fund that switches lanes aggressively may miss the rebound in the lane it just left.
What does the personnel reshuffling signal?
E Fund brought in a tech-focused fund manager in late May; Invesco Great Wall added a second portfolio manager the same month.
This means → the style drift was not impulsive — the firms laid the personnel groundwork first, signaling an organized decision.
Yet E Fund's Q2 report still called consumer-sector valuations "excessively depressed" and did not fully abandon the consumer thesis — keeping a foot in both camps.
What does this mean for unit-holders?
Both funds are in the red this year: E Fund Blue Chip Select is down roughly 18%; Invesco Great Wall Dingyi is down about 9%.
If the consumer rebound continues, AI-heavy funds face a double squeeze of missing the rally and absorbing tech volatility.
In plain terms = holders originally bought a "consumer blue-chip fund." Now the underlying portfolio has quietly morphed into AI hardware — the risk-return profile is no longer what they signed up for.
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