Technology Fund Trading Crowding Risk Is Increasing, and Undervalued Assets Are Expected to Gradually Become a Direction for Public Fund Deployment

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In the first half of this year, the net asset values of more than 200 technology-themed funds across the market have doubled, which is extremely rare in history. As the risk of overcrowding in technology-fund trading increases, the pressure from taking profits and redemption has begun to rise. Against this backdrop, the pace of rotation along public fund tracks has also naturally accelerated. Reporters noted that as the second quarter ended and the third quarter began, the quarterly portfolio-rebalancing window for public funds arrived. Public fund capital has started to flow out of the overcrowded AI track at high levels, with previously oversold sectors such as consumer and healthcare, as well as Hong Kong stocks that have been reduced by public funds, becoming new areas of allocation. Multiple fund companies have also warned that short-term volatility risk in the technology sector has increased, and that undervalued “pit” assets are expected to gradually become an important direction for public fund positioning. (People’s Financial News)
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