Chinese Tech Funds Lift Purchase Caps After Sector Correction, Signaling Confidence
Several Chinese tech-focused mutual funds, led by E Fund's Zheng Xi, have raised or removed large-purchase limits since July 2024, following a sharp correction in the tech sector. E Fund raised daily subscription caps on two funds from 10,000 yuan to 500,000 yuan on September 22. The CSI STAR 50 index fell over 30% from its July peak. Analysts attribute the moves to improved valuations and sustained confidence in AI and tech growth, though internal sector divergence and external macro risks remain.
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Common ground
- Both sides agree that retail investors who bought tech stocks at the peak suffered significant losses.
- Both acknowledge that the STAR 50 index experienced a sharp correction of around 30%.
- Both recognize that fund manager Zheng Xi closed his funds in June and is now reopening them.
- Both agree that external factors like U.S. Fed rate hikes and sanctions affect Chinese markets.
Points of contention
- The Eastern Agent sees the fund reopening as a confident signal of value, while the Regional Agent views it as damage control to stop redemptions.
- The Eastern Agent argues China's tech sector is decoupling from U.S. supply chains, but the Regional Agent insists it still depends on Western equipment like ASML.
- The Eastern Agent praises Chinese regulators for tightening rules after the crash, while the Regional Agent says those rules came too late to protect investors.
- The Eastern Agent calls the correction a healthy purge of speculation, but the Regional Agent calls it a bloodbath that hurt ordinary people.
Blind spots
- Neither side fully addresses how global liquidity cycles, not just Chinese policy, drive retail investor behavior in tech stocks.
- Both overlook the role of state-owned media and social platforms in amplifying the 'AI revolution' narrative during the market peak.
- The debate ignores the impact of China's demographic trends and slowing economic growth on long-term tech valuations.
- Neither discusses how the fund managers' personal incentives, like bonuses tied to asset size, might influence their decisions.
WorldAttention’s read
This debate boils down to a fundamental clash of perspectives. The Eastern Agent sees the reopening of tech fund limits as a sign of a maturing market that uses counter-cyclical guidance to protect investors and position for long-term growth in AI and semiconductors. The Regional Agent views it as damage control by institutions that let a bubble form, then manage its collapse while small investors bear the losses. Both agree retail investors got hurt and external pressures like Fed policy matter, but they disagree on whether the system is learning or exploiting. The blind spots include how global liquidity and media narratives fueled the bubble, and how fund managers' own incentives shape their actions. Ultimately, the truth likely lies somewhere in between: the reopening may be both a calculated bet on future value and a necessary move to stabilize funds, but the system's real test will be whether it can prevent the next bubble from forming in the first place.
Reporting timeline
Multiple Tech-Sector Funds Ease Purchase Limits as AI Valuations Correct
Several actively managed equity funds focused on the technology sector have significantly relaxed or removed large-purchase restrictions since July, according to a Securities Daily report. E Fund Management raised the daily subscription limit for two of its tech funds managed by Zheng Xi from 10,000 yuan to 500,000 yuan. Other funds, including Huashan Advantage Industry Hybrid and Caitong Growth Preferred Hybrid, have also lifted or increased their purchase caps. Qianhai Open Source Fund's chief economist Yang Delong explained that funds had previously tightened limits to protect holders from volatility during capital inflows, but are now easing as the tech sector has experienced a notable correction, suggesting the adjustment may be nearing completion. Looking ahead, multiple institutions remain bullish on AI. Minsheng Jiayin Fund's research team sees technology as the main investment theme, with AI demand driving improvements in TMT earnings. Morgan Stanley Fund's Ma Zixuan argued that AI investment is entering a second phase, shifting from model and compute investment to identifying companies that can convert AI capabilities into revenue and profit, highlighting agent commercialization, domestic model iteration, and AI revenue contributions from software and content firms as key tracking directions.
Tech Fund Caps Lifted After Correction: What It Means for Investors
Several Chinese tech-focused mutual funds have raised or removed their large-purchase limits in September 2024, following a significant correction in the technology sector. The article, citing fund managers and analysts, reports that the move signals confidence in the sector's long-term prospects despite recent volatility. The CSI Science and Technology Innovation 50 (STAR 50) index fell over 30% from its July peak, while the Shenzhen ChiNext index is at a neutral valuation level. Fund managers cited include Zheng Xi of E Fund, who manages two funds that raised their daily purchase limits from 10,000 yuan to 500,000 yuan. Analysts from Paipaiwang Research and Zhizhiyu Investment note that the sector's growth logic remains intact, particularly in AI, satellite, and software, but warn of internal divergence and external macro risks such as the US midterm elections and interest rate uncertainty. The article also notes a surge in new tech-themed ETF launches in September, with over 15 new funds focused on computing power, AI, chips, and robotics.
Chinese Tech Funds Lift Purchase Caps After Correction, Signaling New Opportunities
Multiple Chinese mutual funds focused on technology stocks have raised or removed large-purchase limits in September 2024, following a significant correction in the tech sector. The CSI STAR 50 index fell over 30% from its July peak. Funds including E Fund and Zhong Ou Fund increased single-day purchase limits to 500,000 yuan or removed restrictions for institutional investors. Meanwhile, over 15 new tech-themed ETFs, focusing on AI computing, chips, and robotics, were launched in September. Analysts cited in the article, including Zhang Pengyuan from Paipaiwang Research and He Li from Zhizhiyuzhe Investment, attribute the moves to fund managers' confidence in the long-term value of AI and tech sectors after the valuation correction. They note that while the sector's growth logic remains intact, internal divergence is significant. Forecasts suggest the market may rise gradually in Q4, but caution is warranted due to potential overseas macro uncertainties such as the US midterm elections and interest rate policy.
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Tech Fund Subscription Caps Raised After Sector Correction, Signaling New Opportunities
This article from East Money News reports that several Chinese tech-themed mutual funds have raised or removed their large-amount subscription limits in September 2024, following a significant correction in the tech sector. For example, E Fund raised the daily subscription cap for two of its tech funds from 10,000 yuan to 500,000 yuan. Zhong Ou Fund also lifted restrictions for non-individual investors. The move is interpreted by analysts as a sign of fund managers' confidence in the long-term prospects of the tech sector, particularly in AI, satellite, and software industries. The article notes that the tech sector has seen a sharp pullback, with the STAR 50 index falling over 30% from its July high. Analysts from Pai Pai Pai Wealth and Zhi Yu Zhi Shan Investment provide contrasting views: one sees structural opportunities after the correction, while the other warns of high valuations in domestic tech chains versus more reasonable valuations in overseas-linked stocks. Looking ahead, Wan Jia Fund expects a gradual market recovery in Q4 but cautions about potential volatility from the US midterm elections and interest rate decisions.
Read sourceChina Tech Funds Ease Purchase Limits as Managers Bet on Rebound After Correction
Several Chinese technology-focused mutual funds have been lifting or easing large-purchase restrictions since July 2023, following a sharp correction in the A-share tech sector. The most notable move came on September 22, when E Fund's Zheng Xi, the largest active equity fund manager by assets under management, raised the daily subscription cap on two of his tech funds from 10,000 yuan to 500,000 yuan. The article attributes this trend to fund managers' view that the risk-reward ratio has improved after the market downturn, rather than a short-term trading bet. The background includes a 31% peak-to-trough decline in the STAR 50 index from July to September, driven by valuation digestion, crowded-position deleveraging, and AI narrative verification pressures. External headwinds include the Federal Reserve's September rate hike and rising long-term U.S. Treasury yields. However, analysts cited in the article, including Galaxy Securities, argue that the AI capex theme remains intact and that the correction has created more reasonable valuations for companies with real earnings. The article notes that fund managers are also seeking to stabilize asset sizes amid redemptions.
Tech-themed funds in China lift purchase limits after market correction
Following a significant correction in China's A-share tech sector, several tech-themed mutual funds are lifting purchase restrictions, signaling renewed confidence among fund managers. On September 22, E Fund Management's manager Zheng Xi raised the daily purchase limit for two of his funds from 10,000 yuan to 500,000 yuan, the first relaxation in three months. Zheng, now the largest active equity fund manager by assets under management (578.88 billion yuan as of mid-2026), had previously tightened limits to curb inflows during the tech rally. Other fund managers, including Zhang Mingxin of Huashang Fund and Chen Wenkai of Huatai-PineBridge, have also raised or removed purchase caps since July. Analysts cited in the article attribute this trend to improved valuations after the correction, sustained high景气度 in AI computing and semiconductors, and a desire to guide rational investment at lower market points. The article notes that regulatory emphasis on investor experience encourages such moves, as opening funds at lower levels is seen as more favorable than launching 'hot products' at market peaks. A research report from China Merchants Securities suggests that tech stocks with earnings support may see a rebound, recommending attention to AI computing and CPO supply chains.
Read sourceNewly Crowned 'Public Fund King' Zheng Xi Lifts Large-Purchase Limits on Two Tech Funds
On September 22, E Fund Management, led by newly crowned top active equity fund manager Zheng Xi, raised the daily subscription limit on two of its A-share tech funds—E Fund Information Industry and E Fund Information Industry Select—from 10,000 yuan to 500,000 yuan, a fifty-fold increase. This marks the first easing since the limits were tightened in June amid a tech stock rally to curb speculative inflows and protect existing holders. The funds have delivered year-to-date returns of over 52% and three-year returns exceeding 255%. Industry analysts view the move as a strategic 'counter-cyclical' measure: it replenishes cash for the manager to deploy during the current tech correction, buffers against redemption pressure, and signals a bullish long-term outlook for A-shares. The article notes a broader trend among active equity funds, including those managed by Huashang, Huatai柏瑞, Caitong, and other firms, which have also relaxed or removed purchase limits since July. A fund company source explained that such actions aim to balance scale and performance, and align with regulatory emphasis on improving investor returns by discouraging 'buy high, sell low' behavior.
Read sourceE Fund Manager Zheng Xi Reopens Two A-Share Funds to Large Subscriptions
E Fund management Co., Ltd. has raised the daily subscription limit for two A-share funds managed by star fund manager Zheng Xi from 10,000 yuan to 500,000 yuan, effective September 22. The funds, E Fund Information Industry and E Fund Information Industry Select, had previously tightened limits in June amid a tech stock rally. This move comes as China's tech-heavy indices, including the ChiNext and STAR 50, have fallen over 20% since July. Industry insiders cited in the article attribute the reopening to a strategy of 'reverse selling,' allowing fund managers to deploy capital during market downturns and improve investor experience. The article notes that several other fund managers, including Zhang Mingxin of Huashang Fund and Chen Wenkai of Huatai-PineBridge, have similarly relaxed subscription limits since July. Zheng Xi, who manages 578.88 billion yuan as of mid-2026, has seen his funds deliver over 250% returns in the past three years despite the recent tech correction. The article frames the trend as a response to regulatory pressure to prioritize investor returns over chasing hot products.