The &#34;Private Letter&#34; from Jinglin Asset was exposed during trading on July 3rd.
This entrusted manager of a trillion-scale equity private fund believes, in the latest mid-year letter to investors, that the portfolio construction in 2023 will always revolve around a key &#34;proposition&#34;:
That is, in the rare era of unprecedented changes and the turning point of artificial intelligence technology that occurs once in decades, how investors can seize the great opportunity of this technological revolution without missing out.
The related letter also points out: Just as automobiles replaced horse carriages and computers replaced abacuses, the widespread application of artificial intelligence will be the next unstoppable technological trend.
<h2>Increased Investment Difficulty</h2>
The author of this &#34;Private Letter&#34; from Jinglin is fund manager Gao Yuncheng.
He believes that many investors at the beginning of the year thought that 2023 would be a year of low economic base and eased international relations, perhaps a year of relatively stable economic recovery and stock market valuation repair. However, various changes both domestically and internationally in the past six months, combined with the impact of the new technological wave, have still caused volatility in the capital market in the first half of 2023.
The A-share and Hong Kong stock markets experienced a recovery expectation at the beginning of the year. However, a series of data releases after the Spring Festival have shaken the expectations and confidence of many investors. The market expects the introduction of strong policies, but remains observant of the effectiveness of these policies. However, this is not closely related to the fundamentals of listed companies.
<h2>High Expectations for Artificial Intelligence</h2>
Gao Yuncheng points out in the letter: Currently, the macro environment and geopolitical issues both domestically and internationally are like dense fog, but companies within their respective industries that have the ability to innovate, break through, and expand globally are like bright beacons in front of the fog. The direction of investment portfolios should always be invested in companies that maintain development momentum.
He mentions a &#34;logic&#34;: Excellent technology in science and industry will ultimately transcend national borders, and sooner or later people will accept and adopt more efficient and advanced technologies and products. Just as automobiles replaced horse carriages and computers replaced abacuses, the widespread application of artificial intelligence will be the next unstoppable technological trend.
With the development of large language models and the commercialization of general AI, the obstacles that restrict the development of intelligent robots may be overcome in the near future. Once natural language understanding, free movement, and the ability to execute tasks given in natural language are breakthroughs, robots will become intelligent devices with cognitive, understanding, and completion capabilities in the true sense.
<h2>Revisiting the &#34;Value&#34; of Chinese Assets</h2>
Gao Yuncheng summarizes the changes in the investment portfolio in the first half of this year with three keywords: concentration, contrarianism, and long-term.
He explains as follows: Concentrating investments in companies and related industries with long-term global competitiveness, taking advantage of market fluctuations and extreme investor behavior to buy misunderstood companies in a contrarian manner, continuously tracking companies in the portfolio, reducing trading frequency, and improving the accuracy of each transaction.
Gao Yuncheng further points out three key directions for layout:
<blockquote>
[Consumer Goods] Firmly believe that the consumption level of the Chinese people will continue to rise, and the pursuit of good things will not change. The opportunities brought by this trend are worth paying attention to.
[Artificial Intelligence] Artificial Intelligence (AI) is the biggest technological revolution of the next decade, and the world of intelligence will be significantly different. Jinglin Asset must participate in it.
[Chinese Industries with Global Comparative Advantages] Some industries in China have global comparative advantages. Excellent companies in these industries not only have the supply advantages of the Chinese industrial chain, but also have stronger research and development capabilities and product iteration capabilities.
</blockquote>
Regarding industrial opportunities, Gao Yuncheng gave an example: Since 2023, China's automobile export volume has ranked first in the world, and its products have global competitiveness. Moreover, China's capacity and technological accumulation in the power, energy storage battery, and photovoltaic industry chains are far ahead of other regions. The advantages in new energy will nurture more investment opportunities.

Revisiting the "Value" of Chinese Assets

Jinglin Asset "Speaking in the Market": Seizing the Greatest Investment Opportunities in the Next Decade of Technological Revolution