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How China’s young managers grappled with billion-yuan mandates as AI shocks hit portfolios

As Leopold Aschenbrenner’s US hedge fund saw assets wiped off by more than two-thirds in a single month, some of China’s new portfolio managers also…

By Samantha Johnson / August 15, 2026

As Leopold Aschenbrenner’s US hedge fund saw assets wiped off by more than two-thirds in a single month, some of China’s new portfolio managers also felt the shock across the Pacific, learning bitter lessons early in their careers.

The 50-day market turmoil, sparked by a global correction in artificial intelligence stocks in June, turned some of China’s rookie managers into an unwitting focal point. Even seasoned investors faced hard questions from clients as portfolios sagged.

For Yuan Zeqiang, with three and a half years of sell-side research, his two debut portfolios at Caitong Fund Management tumbled 36 per cent and 33 per cent, respectively, between his June 11 appointment and July 30, market data showed.

Taking over two products from the outset, Yuan inherited combined assets of 7.28 billion yuan (US$1.08 billion) at the end of the second quarter – an unusually large mandate for a first-time manager.

The rapid drawdown stemmed from his heavy exposure to tech stocks, which retreated after sharp gains earlier in the year.

Even as debate intensified over the sustainability of the AI boom, Yuan had remained steadfast in his second-quarter report on July 21, writing that domestic optical communications “still held upside potential” and that printed circuit board values would rise significantly.

Yuan is not alone in this highly competitive environment.

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