Hedge funds in China that profited from AI stocks start looking for exits

12:53 AM · July 15, 2026

Chinese hedge funds that made substantial gains on AI linked stocks this year are starting to dial back their exposure, telling investors they are watching closely for signs the rally has become unsustainable, according to Bloomberg. Shanghai Everlead Capital, whose Growth Strategy fund returned 164 percent through the end of May, said it has trimmed positions in optical communications and advanced packaging companies. Other prominent managers were more blunt: Wealspring Asset's founder, known in China for having called the top of the market in 2007, said global AI stocks have become a super bubble and that its collapse point may not be far away, while Shanghai Banxia Investment Management Center said the trigger for an AI bubble to burst has already appeared, pointing to pressure on breakneck revenue growth expectations at Anthropic. China's CSI Artificial Intelligence Index is still up more than 35 percent this year, far outpacing the roughly 5 percent gain in the broader benchmark, even as offshore Chinese stocks have performed far worse, with the MSCI China Index down 15 percent, among the worst performances globally. The divergence between onshore enthusiasm and offshore caution captures how unevenly confidence in the AI trade is currently distributed within China's own investment community.