According to Zhitong Finance APP, on October 28, the funds managed by Zhang Kun of E Fund disclosed their third-quarter reports. In terms of holdings, apart from changes in product scale, Zhang Kun adjusted the holding structure in the third quarter, focusing more on domestic consumption and technology sectors, increasing positions in Focus Media (002027.SZ), Yum China (09987), and Alphabet Inc. (GOOGL.US). Some funds further increased their positions in Moutai (600519.SH) and Wuliangye (000858.SZ).
First, let's look at the E Fund Quality Select Mixed (QDII), which Zhang Kun has managed the longest. As of the end of the reporting period, the fund's net asset value per share was 5.7973 yuan, with a net asset value growth rate of 17.58% during the reporting period, while the benchmark return rate was 13.57%.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761636434986512.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761636434986512.png"/>
In terms of holdings, Prada (01913) exited the top ten heavy stocks, while JD Health (06618) and Focus Media (002027.SZ) entered the top ten. Additionally, the fund increased its positions in Moutai and Wuliangye in the third quarter, while reducing holdings in Alibaba-W (09988) and Luzhou Laojiao (000568.SZ).
Next, looking at the largest fund, E Fund Blue Chip Select, as of the end of the reporting period, the fund's net asset value per share was 2.0449 yuan, with a net asset value growth rate of 16.37% during the reporting period, while the benchmark return rate was 13.25%.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761636975218918.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761636975218918.png"/>
In terms of holdings, E Fund Blue Chip Select reduced its positions in Tencent Holdings, Alibaba-W, and Luzhou Laojiao in the third quarter, while increasing positions in Moutai and Yum China, with Focus Media entering the top ten heavy stocks.
Next, let's look at the E Fund Quality Enterprises Three-Year Holding. As of the end of the reporting period, the fund's net asset value per share was 1.0393 yuan, with a net asset value growth rate of 15.81% during the reporting period, while the benchmark return rate was 13.25%.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761637175715166.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761637175715166.png"/>
In terms of holdings, most stocks held in E Fund Quality Enterprises Three-Year Holding, including Alibaba, showed a significant decrease in the number of shares held, with only Yum China showing a notable increase in holdings. The top three heavy stocks were Tencent Holdings, Alibaba, and Moutai.
Finally, let's take a look at the QDII product managed by Zhang Kun, E Fund Asia Select. As of the end of the reporting period, the fund's net asset value per share was 1.368 yuan, with a net asset value growth rate of 17.63% during the reporting period, while the benchmark return rate was 9.58%
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761637470278792.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="image.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20251028/1761637470278792.png"/>
From the third quarter's portfolio adjustment, ASML (ASML.US) and SK Hynix have exited the top ten holdings of E Fund Asia Select, while Google and Prada have entered the top ten. The fund reduced its holdings in Trip.com Group-S (09961) and TSMC (TSM.US) during the third quarter.
Zhang Kun stated in the quarterly report that he will adhere to his investment style, conducting in-depth research from the bottom up to find companies with excellent business models, significant competitiveness and pricing power, industries with sustainable growth potential, and those that wisely reallocate capital. By holding these companies for the long term, shareholders can share in their free cash flow and intrinsic value growth.
In the long run, &#34;Mr. Market&#34; will more accurately &#34;weigh&#34; a company's value. However, in the short term, &#34;Mr. Market's&#34; emotions are often unstable, sometimes overly excited and at other times overly depressed, occasionally amplifying short-term factors while neglecting important long-term structural factors.
Zhang Kun pointed out that a considerable proportion of the portfolio consists of domestic demand-related companies. They believe that the core challenge for &#34;Mr. Market&#34; at this stage lies in the &#34;sustainable growth potential of the industry.&#34; Considering that the GDP deflator has been negative for more than two years, this year's CPI has been negative for half of the months, and real estate sales have nearly halved compared to four years ago, &#34;Mr. Market&#34; has reacted by linearly extrapolating short-term difficulties.
However, investors have no reason to ignore long-term structural factors. According to World Bank statistics, although China's GDP ranks second globally, in 2024, China will still be a developing country with a per capita GDP of about $13,000, slightly below the global average. Considering the goal set by the Fifth Plenary Session of the 19th Central Committee to &#34;reach a moderate developed level of per capita GDP by 2035,&#34; it is believed that China's GDP growth rate will exceed the global average.
At the same time, the proportion of Chinese residents' consumption in GDP is already close to the lowest level among major countries globally. They believe that the probability of this proportion increasing is far greater than the probability of it continuing to decline. In the long run, Zhang Kun believes the most likely scenario is &#34;China's consumption growth rate &gt; China's GDP growth rate &gt; global GDP growth rate.&#34; Moreover, compared to operating in several small markets with differences, the scale effects of a unified market of 1.4 billion people in terms of products, research and development, and sales cannot be ignored, allowing companies to amplify their advantages more fully. They believe that &#34;Mr. Market's&#34; pessimism merely amplifies short-term difficulties without a long-term foundation.
Zhang Kun pointed out that, based on fundamental probabilities, China's domestic consumption market remains a fertile ground for long-term investment, and the current low valuation levels provide ample safety margins. If companies continue to meet investment standards, they will fully understand &#34;Mr. Market's&#34; emotional fluctuations and the uneven distribution of returns. They believe that the free cash flow continuously accumulated by companies will reflect in the accumulation of intrinsic value, and the growing intrinsic value will ultimately project onto the growth of market capitalization

002027

GOOG

YUMC

09987

600519

The E Fund managed by Zhang Kun disclosed its third-quarter report on October 28, showing adjustments in its portfolio structure, focusing on domestic consumption and technology. It increased its holdings in Focus Media, YUM China, and Alphabet - C, while some funds added positions in Moutai and Wuliangye. The net value of E Fund Quality Select Mixed Fund grew by 17.58%, and Blue Chip Select increased by 16.37%

- On October 28, E Fund's Zhang Kun reported adjustments in fund holdings, focusing on domestic consumption and technology sectors, increasing stakes in companies like Focus Media and Yum China.  
- The report highlighted significant growth in net asset values across various funds, with the E Fund Quality Selected Mixed Fund achieving a 17.58% growth rate.  
- Zhang Kun emphasized the importance of long-term structural factors over short-term market fluctuations, predicting that China's consumption growth will outpace GDP growth in the long run.

Zhitong

Focus Media

Yum! Brands

Alphabet - C

YUM China

YUM CHINA

Moutai

Zhang Kun's fund disclosed its third-quarter report, continuing to focus on domestic consumption and technology