25 July 2025 Equity Research Report China Equity Strategy Equity Strategy FAQs on 2Q25 fund positions Q1: How are institutional investors positioned in the AI value chain? In 2Q25, domestic and northbound funds increased allocations to AI infrastructure names by 2.4ppts and 0.7ppts, respectively, but both reduced their exposure to AI enablers and AI adopters. At a stock level, domestic mutual funds bought optical module suppliers, while northbound funds were more constructive on semiconductor names. Q2: Wha ...