China’s quant private fund sector suffered a broad pullback in July, according to a report cited by ChainCatcher from National Business Daily. Several firms saw monthly net-value declines of more than 20%, with some products’ year-to-date returns flipping from positive to negative.
Among Huanfang Quant’s nine disclosed products, eight had fallen into negative territory for the year, and all posted losses of more than 20% in July. The largest drawdown reached 22.15%. Minghong Investment reported that nine of its 14 displayed products had posted negative returns for the year. Jiukun Investment showed better year-to-date resilience, with 14 of 15 products still in positive territory, though its monthly pullback was also described as notable. Yanfu Investment was cited as relatively steady by comparison.
Several institutions said the sell-off reflected sentiment and trading structure rather than the end of the AI industry trend. Danshuiquan Investment said AI is still advancing rapidly in model capability, lower usage costs, and broader applications. Institutions added that AI investing is shifting from a first phase centered on computing infrastructure to a second phase of wider access to intelligence, which may benefit supply-chain companies serving top model developers and major cloud providers with cost-effective solutions.
China’s quant private fund industry went through a broad drawdown in July, with several firms posting monthly net-value declines of more than 20% and some year-to-date returns turning negative, according to a National Business Daily report cited by ChainCatcher.
At Huanfang Quant, eight of nine disclosed products had slipped into negative territory for the year. All nine fell by more than 20% in July alone, and the biggest drawdown reached 22.15%.
At Minghong Investment, nine of 14 displayed products recorded negative returns for the year. Jiukun Investment showed more resilience on a year-to-date basis, with 14 of 15 products still positive, though its monthly retreat was also significant. Yanfu Investment was described as relatively steady by comparison.
Institutions point to sentiment and market structure
Several institutions said the latest adjustment was driven more by sentiment and trading structure than by any end to the AI industry trend.
Danshuiquan Investment said AI is still in a period of rapid development, citing stronger model capabilities, lower usage costs, and a broader set of applications. The firm added that, based on the internet era, setbacks during a major technology wave are normal.
Focus shifts in AI investing
Institutions said AI investing is moving from an earlier phase focused on computing-power infrastructure to a later phase centered on broader access to intelligence. In that stage, usage costs keep falling and application scenarios open up faster. They said supply-chain companies that can offer cost-effective solutions to leading model companies and major cloud providers may see opportunities.
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