Core Viewpoint - The report highlights the investment strategies of top fund managers, particularly focusing on Zhang Kun from E Fund, who has made adjustments in his portfolio amidst market fluctuations, maintaining a long-term optimistic outlook on China's economic transformation and the growth of domestic demand [1][10]. Fund Performance - As of the end of Q4 2025, Zhang Kun managed funds totaling 48.383 billion yuan, with three A-share focused products underperforming against benchmarks, while the E Fund Asia Select, which invests in overseas Chinese stocks, achieved a positive return of 4.53% [1][2][10]. - The performance of the funds is as follows: - E Fund Blue Chip Select: -8.93% return, 31.021 billion yuan in size - E Fund Quality Select: -8.42% return, 11.385 billion yuan in size - E Fund Quality Enterprise Three-Year Holding: -6.82% return, 2.585 billion yuan in size - E Fund Asia Select: 4.53% return, 3.392 billion yuan in size [2][12]. Portfolio Adjustments - In Q4 2025, Zhang Kun reduced holdings in key stocks such as Kweichow Moutai, Wuliangye, Shanxi Fenjiu, and Luzhou Laojiao, while maintaining overall stock positions but adjusting sector allocations towards pharmaceuticals, consumer goods, and technology [3][13]. - The top holdings in the portfolio include Tencent Holdings (6.93%), Kweichow Moutai (6.87%), and Wuliangye (6.70%), with notable reductions in their respective weightings [3][13]. Economic Outlook - Zhang Kun expressed a long-term optimistic view on macroeconomic conditions, predicting significant improvements in living standards and social security in China over the next decade, narrowing the gap with developed countries [4][14]. - He emphasized the unique advantages of the Chinese market in the context of the global AI wave, suggesting that a strong domestic demand market is a crucial driver for technological innovation [4][14]. Investment Philosophy - The report indicates that despite current market pessimism regarding core assets, Zhang Kun believes that the intrinsic value of quality companies remains intact, presenting attractive investment opportunities for long-term investors [5][15]. - The central economic work conference highlighted the importance of boosting consumption and expanding domestic demand as key tasks for 2026, reinforcing the focus on consumer-driven growth [6][16]. GDP Growth Projections - According to the "14th Five-Year Plan," China aims to achieve a per capita GDP of $23,400 by 2035, requiring a compound annual growth rate of 5.27% from the current level of $13,300 [7][17]. - The report notes that the decline in housing prices over the past five years has negatively impacted consumer wealth and spending, but this trend may be reversing, potentially improving consumer sentiment and demand [8][18].

Core Viewpoint - The report highlights the investment strategies of top fund managers, particularly focusing on Zhang Kun from E Fund, who has made adjustments in his portfolio amidst market fluctuations, maintaining a long-term optimistic outlook on China's economic transformation and the growth of the domestic market [1][10]. Fund Performance - As of the end of Q4 2025, Zhang Kun managed a total fund size of 48.383 billion yuan, which reflects adjustments from the previous quarter [1]. - Three of the funds primarily investing in A-shares reported negative quarterly returns, failing to outperform their benchmarks, while the E Fund Asia Select, which focuses on overseas Chinese stocks, achieved a positive return of 4.53%, significantly exceeding its benchmark [2][10]. Portfolio Adjustments - In Q4 2025, there was a reduction in holdings of key stocks such as Kweichow Moutai, Wuliangye, Shanxi Fenjiu, and Luzhou Laojiao, while maintaining a stable stock position overall [3][13]. - The adjustments focused on reallocating investments in sectors such as pharmaceuticals, consumer goods, and technology [3][13]. Economic Outlook - Zhang Kun expressed a long-term optimistic view on the macroeconomic environment, predicting significant improvements in living standards and social security in China over the next decade, narrowing the gap with developed countries [4][14]. - He emphasized the unique advantages of the Chinese market in the context of the global AI wave, noting that a strong domestic demand market is a crucial driver for technological innovation [4][14]. Investment Philosophy - The report addresses concerns regarding the long-term value of core assets, with Zhang Kun asserting that the underlying value remains intact and that current market pessimism has created attractive valuations for quality companies [5][15]. - He believes that the current low valuation of quality assets presents a rare opportunity for long-term investors [5][15]. Policy Context - The Central Economic Work Conference in December emphasized the importance of boosting consumption and expanding domestic demand as a key task for 2026, highlighting the government's commitment to enhancing consumer spending [6][16]. - The report notes that recent indicators show domestic consumption has been weak, particularly for companies focused on domestic demand compared to those reliant on exports [6][16]. GDP Growth Projections - According to the "14th Five-Year Plan," China aims to achieve a per capita GDP level comparable to that of middle-income developed countries by 2035, requiring a compound annual growth rate of 5.27% [7][17]. - The report suggests that the decline in housing prices over the past five years has negatively impacted consumer wealth and spending, but this trend may be reversing due to potential policy support and lower interest rates [7][17].

Group 1 - The core viewpoint of the news is that E Fund's Blue Chip Select Fund, managed by Zhang Kun, has maintained a stable stock position while adjusting its sector allocations in pharmaceuticals, consumer goods, and technology as of Q4 2025 [1] - The top ten holdings of the fund as of the end of Q4 2025 include Tencent Holdings, Kweichow Moutai, Wuliangye, Alibaba-W, Shanxi Fenjiu, Luzhou Laojiao, Yum China, CNOOC, JD Health, and Focus Media, showing no changes from Q3 2025 [1] - Zhang Kun expresses confidence that both the actual living standards and social security levels in China will significantly improve over the next decade, narrowing the gap with developed countries [1] Group 2 - The current AI wave highlights the importance of a strong domestic demand market in promoting technological innovation, as it attracts global resources, talent, and capital [2] - Subscription revenues, such as the approximately $200 annual fee for C-end users of leading AI models like GPT and Gemini, are crucial for companies' financing and ongoing investment confidence amid debates about an "AI bubble" [2] - A domestic company with leading foundational model capabilities could benefit from a stronger consumer environment, enhancing subscription income and model investment interactions, which may help it catch up with global leaders [2]

Group 1 - The company Yum China (09987) announced a share buyback plan, committing to repurchase 20,800 shares at a cost of HKD 7.7125 million [1] - The buyback is scheduled to take place on January 20, 2026 [1] - This move reflects the company's strategy to enhance shareholder value through share repurchases [1]

格隆汇1月21日丨百胜中国(09987.HK)公告，1月20日耗资771.3万港元回购2.1万股。 ...

智通财经APP讯，百胜中国(09987)发布公告，于2026年1月20日，该公司斥资771.25万港元回购2.08万 股。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 FF305 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2026年1月21日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | | 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | | 庫 ...

格隆汇1月20日丨百胜中国(09987.HK)发布公告，2026年1月19日耗资773.15万港元回购2.1万股，回购价 格每股365.6-372.6港元。 ...

智通财经APP讯，百胜中国(09987)发布公告，于2026年1月19日，该公司斥资773.15万港元回购2.1万 股。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2026年1月20日 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 09987 | 說明 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | 事件 | | 已發行股份（不包括庫存股份）數 目 | | 佔有關事件前的現有已發 行股份（不包括庫存股 份）數目百分比 (註3) | 庫存股份數目 | 每股發行/出售價 (註4) | 已發行股份總數 | | 於下列日期開始時的結存(註1) | 2026年1月16日 | | 354,808,851 | | 0 | | 35 ...