In the second half of last year, built positions in Atour and increased holdings in Hong Kong Exchanges; E Fund's Zhang Kun's three products were reduced by their own employees.

In the second half of 2025, Zhang Kun made his first allocations to multiple “high-potential” stocks.

On March 31, “top-tier” fund manager Zhang Kun of E Fund disclosed the 2025 annual report of the funds under his management, and his hidden heavy-holding stocks were thus exposed as well.

Specifically, among several funds under Zhang Kun, first-time positions were established in New Industrial, NetEase Cloud Music, MMT Thread-U, Muxi Shares, Atour, and other targets; meanwhile, he made large-scale additional purchases of the Hong Kong Exchanges and Clearing. At the same time, some overseas semiconductor targets saw clearly reduced positions—SK Hynix, ASML, and Ketech Semiconductor all appeared on the list of reduced holdings.

In addition to the portfolio rebalancing actions by the fund manager, a reporter from The Paper (澎湃新闻) noted that another key signal also appeared in the product annual reports: compared with the fund unitholder data disclosed at mid-2025, in the second half of last year, the staff members internally at E Fund, across the three products managed by Zhang Kun—E Fund Asian Select, E Fund Blue-Chip Select, and E Fund Quality Enterprises Three-Year Holding—each implemented reductions at different proportions, with the maximum reduction in a single product exceeding 9.05 million units.

New Industrial and NetEase Cloud Music

Currently, Zhang Kun manages four publicly offered funds: E Fund Blue-Chip Select, E Fund Premium Select, E Fund Quality Enterprises Three-Year Holding, and E Fund Asian Select. The largest product by scale is E Fund Blue-Chip Select, which is also Zhang Kun’s flagship fund. As of the end of December 2025, Zhang Kun’s total assets under management had fallen to about RMB 48.383 billion.

Specifically, at the end of 2025, E Fund Blue-Chip Select held 54 stocks, an increase of 12 individual stocks compared with the end of June 2025.

According to the previously disclosed 2025 Q4 report, the top ten heavy-holding stocks of E Fund Blue-Chip Select did not change, in the following order: Tencent Holdings (00700.HK), Kweichow Moutai (600519.SH), Wuliangye Yibin (000858.SZ), Alibaba (09988.HK), Shanxi Fenjiu (600809.SH), Luzhou Laojiao (000568.SZ), Yum China (09987.HK), China National Offshore Oil (00883.HK), JD Health (06618.HK), and Focus Media (002027.SZ).

Meanwhile, his hidden heavy-holding stocks revealed several “high-potential” stocks Zhang Kun was paying attention to. The heavy-holding stocks ranked from No. 11 to No. 20 were: New Industrial (300832.SZ), Wita Medical (688617.SH), NetEase Cloud Music (09899.HK), Nongfu Spring (09633.HK), MMT Thread-U (688795.SH), Muxi Shares-U (688802.SH), Xi’an Yicai-U (688783.SH), KE Holdings-W (02423.HK), and Bibbet-U (688759.SH).

Among them, the seven stocks—New Industrial, NetEase Cloud Music, Nongfu Spring, MMT Thread-U, Muxi Shares-U, Xi’an Yicai-U, and Bibbet-U—were all first-time positions initiated by Zhang Kun.

At the same time, Zhang Kun also significantly increased his holdings of the Hong Kong Exchanges and Clearing (00388.HK), with the added holding ratio reaching 200%.

It’s not only E Fund Blue-Chip Select; E Fund Quality Enterprises Three-Year Holding also significantly increased its holdings of the Hong Kong Exchanges and Clearing in the second half of 2025, and it similarly built positions in New Industrial and NetEase Cloud Music, while also newly adding United Power, China Axis Industries, China Southern Power Grid Digital, Marco Polo, Hainan Group, and Guangdong Janke.

At the end of 2025, another of Zhang Kun’s flagship products—E Fund Quality Premium Select—held 54 stocks in total, and its hidden heavy-holding stocks (ranked from No. 11 to No. 20) were: Yum China (09987.HK), New Industrial, Wita Medical, Prada (01913.HK), Hong Kong Exchanges and Clearing, China National Offshore Oil, MMT Thread, Muxi Shares, Xi’an Yicai, and Bibbet.

Among them, New Industrial, MMT Thread, Muxi Shares, Xi’an Yicai, and Bibbet are all the stocks that were first established for this fund.

E Fund Asian Select is the smallest fund by scale among the funds managed by Zhang Kun, and it is also a QDII fund, with a total of 18 stocks held as of the end of 2025.

Based on the latest disclosed hidden heavy-holding stocks, E Fund Asian Select further increased its holdings of Interactive Brokers (IBKR.US), reduced its holdings of SK Hynix (000660.KS), ASML (ASML.US), and Ketech Semiconductor (KLAC.O), and for the first time initiated a position in Atour, a mid-to-high-end hotel chain group (ATAT.US).

“The profit outlook and valuation for high-quality companies will face significant upward adjustment upside”

In its annual report, Zhang Kun said that in 2025, one notable feature of the market was “linear extrapolation.” When investors repeatedly saw falling home prices, insufficient consumer confidence, and ongoing downward pressure from deflation, their concerns about “domestic demand” and “consumption” gradually evolved from a phased tactical avoidance into a strategic form of doubt, and many investors tended to believe that this was a permanent state.

However, he also pointed out a divergence phenomenon: on the one hand, the expectation that companies implied by stock prices would become a value trap; on the other hand, the ability of companies to continuously generate free cash flow, the cash steadily accumulated on the books, and an increasingly high level of shareholder returns. “In the history of investing, this kind of divergence is often right before a significant window of opportunity.”

Zhang Kun believes that the current state of his portfolio can be summarized as “high-certainty base returns + free upside call options.” The base return comes from dividends and share buyback gains under low valuation, and this portion of returns can already provide a yield better than that of bonds. Once China’s domestic economy stabilizes and rebounds (for example, CPI turns positive and growth in social retail sales picks up), the profit outlook and valuation of these high-quality companies will face significant upside from upward revisions.

“As of now, ‘Market man’ generously gives this option to us for free,” Zhang Kun said.

Zhang Kun said that we would rather pursue “vague correctness” than “precise wrongness.” We believe that vague correctness is: the upward driving force for China’s economy in the long run still exists; what we buy is a group of the best companies in China; their valuations are very low, and they are actively rewarding shareholders through buybacks and dividends.

“Investment is an infinitely iterative game. In the short term, the market is a voting machine, filled with the noise of emotions; but in the long run, the market is a weighing machine that measures the ability of companies to create free cash flow. The return of value may come late, but it will not be absent. Every buyback, every dividend, and every efficiency-improvement measure by a company adds to the enhancement of shareholder value. It is unlikely that the price of high-quality assets will remain below their replacement cost for the long term, and even less likely that they will stay at a level where taking them private is always worth it,” Zhang Kun said.

（Source: The Paper (澎湃新闻)）