Highlights

The recent quarterly disclosure unveiled changes in public fund portfolios, notably affecting Kweichow Moutai due to a dip in the liquor market performance. Once a top holding, Moutai dropped from third to tenth place among equity-biased funds. This unprecedented decline was informed by a reduction of 116.84 million shares held. Despite this, Zhang Kun's confidence remains, as he strategically increases his stake.

Sentiment Analysis

• The sentiment around Kweichow Moutai is mixed, reflecting both optimism in long-term investments and concerns over short-term market fluctuations.
• Some investors see the current valuation as a potential bargain, while others remain cautious of industry trends.
• Market analysts highlight the potential for a rebound as economic conditions improve.

Article Text

The strategic landscape of Chinese public funds has witnessed significant shifts, as seen in the third-quarter reports. Amidst a fluctuating liquor market, Kweichow Moutai experienced a notable decline in its stature among equity-biased investment funds, dropping from third to tenth place. This adjustment is a rare occurrence, influenced by reduced fund holdings and a broader market performance context.

As per Tianxiang's advisory data, at the end of Q3, Kweichow Moutai maintained its position as the tenth largest holding among 5,278 actively managed equity-focused funds, with a valuation of 283.72 billion yuan. This represents a visible decrease from its previous quarter's valuation, marking a drop of around 9.7 billion yuan. Notably, the total number of shares held by these funds decreased by over 116 million shares, illustrating a shift in investor confidence.

Despite Kweichow Moutai's reduction in some active funds, it remains the second-largest holding across all public funds, highlighting the role of passive investment strategies. By the end of the quarter, the cumulative public fund holdings of Moutai increased slightly, reinforcing the broad-based confidence in its long-term value.

Interestingly, Zhang Kun, a well-known fund manager, has bucked the trend by increasing his stake in Moutai, indicating faith in the enduring potential of this sector. Using his management of the E Fund Blue Chip Select Fund as a vehicle, Zhang has slightly increased Moutai's position to be its third-largest holding. Such moves contrast with the more cautious stances of other renowned fund managers who continue to reduce their positions in the liquor giant.

The underlying market dynamics influencing these decisions include the apparent underperformance of individual liquor stocks despite a robust Chinese liquor index performance. During the third quarter, while the index rose by 7.75%, Moutai's stock price saw a relatively modest increase of just 2.45%. This discrepancy has prompted some fund managers to diversify towards other, more volatile liquor stocks in pursuit of excess returns.

Moreover, comprehensive market analyses suggest that Moutai's brand value is poised for potential recovery. The Chinese market is seen as a fertile ground for consumer growth, even as the beverage sector grapples with broader economic challenges. Analysts point to existing valuation lows and a forecasted sector uplift as key incentives for tapping back into such stocks.

Institutional voices also weigh in, considering macroeconomic indicators that may affect the sector's recovery. Reports suggest the industry stands at a pivotal junction, balancing challenges of slowing growth with broader economic recovery signals. In this climate, savvy investors like Zhang Kun appear to use short-term fluctuations as opportunities for strengthening their long-term positions.

Key Insights Table

Aspect	Description
Market Position	Kweichow Moutai dropped from third to tenth place in equity-biased funds.
Investment Strategy	Zhang Kun increased his stake in Moutai, contrasting with other fund managers.
Stock Performance	Moutai's stock underperformed the broader liquor index in Q3.
Future Outlook	Potential for recovery with improved economic conditions and valuations.

Last edited at：2025/11/1