Jinglin "Godfather" of Capital's Trillion Yuan Shift: Tech Heavyweights VS Consumer Stronghold

Jiang Jinzhi, the "first generation boss" of China's private equity industry and founder of the billion-yuan institution Jinglin Investment, has maintained an "undefeated" investment record for over 20 years.

Deepseek, a representative institution of China's AI large models, is set to become a sensation in the mainland market by 2025, with an unmatched momentum.

When these two distinctly styled and fundamentally different individuals and entities "meet," what kind of outcome will emerge?

Will value investment mogul Jiang Jinzhi remain unchanged?

Will Deepseek shake Jiang Jinzhi's "investment fundamentals"?

All questions are answered in the latest Jinglin Investment product report.

Rare "exposure" of the mogul's movements

In the past few years, Jiang Jinzhi has indeed been "tight-lipped." His "original voice" has rarely been heard in the entire market, with exposure far below that of other fund managers at Jinglin Asset, which he founded.

However, Jiang Jinzhi has always been a "rare expert" in the market.

He is a veritable first-generation private equity investor in China. After graduating from the Research Department of the People's Bank of China, he joined the Shenzhen Stock Exchange in the early 1990s, founded an investment company a few years later, and served as the chairman of Yuehai Securities, becoming a well-known figure who "went into business" during the early development of China's capital market.

Since 2000, he has been based in Hong Kong, starting his career in managing client assets. Jinglin Asset was established in 2004, and Jiang Jinzhi became one of the earliest investment experts to "taste" private equity.

In just over twenty years, Jinglin Asset remains active in the Chinese hedge fund circle, consistently occupying a leading position, which reflects Jiang's investment skills and vision.

Jinglin has also gradually introduced fund managers such as Jiang Tong and Gao Yuncheng, with Jiang Jinzhi gradually stepping back into the background.

Hong Kong stocks occupy absolute positions

Although the market "misses you every day," Jiang Jinzhi's products are still in operation, and his investment ideas can still be known to the outside world through these products.

According to the product report from Jiang Jinzhi's channels, as of the end of January 2025, his flagship product, which he personally manages, primarily allocates assets across four categories: Hong Kong stocks (H-shares), U.S. stocks and others, non-monetary funds, and cash (understood by the outside world as cash equivalents).

Among these, over 70% of the allocation is in Hong Kong stocks, nearly 20% in "U.S. stocks and others," while the allocations in the other two categories are negligible.

This may represent Jiang Jinzhi's latest investment viewpoint: The investment value of Chinese Hong Kong stocks is very prominent, surpassing other assets.

Favorite sectors: Information technology and telecommunications

So, in terms of stock investment, which sectors is Jiang Jinzhi currently most willing to allocate assets to?

The answer is: Technology (TMT - Telecommunications, Media, and Technology).

Delving into his equity assets, Jiang Jinzhi's top-heavy allocation is in the "Information Technology" sector, which includes many internet giants and emerging industry companies, with nearly 40% of his product's allocation in this area.

Additionally, over a third of the total allocation is reserved for "Telecommunications Services." Companies in this sector that have made a comeback in recent years due to developments in AI and big data belong to this category In addition, there is a 10% position in consumer discretionary, and there is reason to believe that Jiang Jinzhi, as the most senior investor in Moutai, may still hold a certain amount of food and beverage stocks.

Furthermore, Jiang Jinzhi will allocate a small portion of his position to companies in the energy and materials sectors.

Gradually Saying Goodbye to Consumption?

Investors who have long followed Jiang Jinzhi's movements may notice subtle changes in his investment philosophy in recent years.

A review of historical data reveals that Jiang Jinzhi has been optimistic about consumer stocks in the long term and has high expectations for the expansion of the consumer market.

He was an important investor in Kweichow Moutai during the first decade of this century, possessing a unique understanding of Chinese liquor stocks and achieving substantial returns across cycles.

However, in recent years, he and several other fund managers at Jinglin have gradually shifted their positions towards the telecommunications technology sector.

For example, in recent years, Jinglin Asset's overall holdings in U.S. companies like Pinduoduo and NetEase have gained significant recognition in the industry, having opened positions early and held them for a long time, making them representative.

Public information from the U.S. market at the end of last year showed that Jinglin primarily held companies such as Facebook Meta, Pinduoduo, NetEase, Manbang Group, Taiwan Semiconductor, and Apple in the U.S. market.

Additionally, among domestic companies, Jinglin holds a considerable proportion of Han's Laser, but this should not be part of the aforementioned products held by Jiang Jinzhi.

Jinglin Asset may hold a small-scale oil service company in the Hong Kong market, but it is uncertain whether this is also an investment by Jiang Jinzhi.

Overall, both Jiang Jinzhi and Jinglin's investment strategy focuses on selecting industry-leading companies—this stock-picking approach has a strong value investment style.

At the same time, they are also very bold in investing in new economy companies with significant growth attributes—this reflects a taste for growth.

Artificial Intelligence Will Change Capital "Aesthetics"

In Jiang Jinzhi's view, recent changes in China's artificial intelligence sector will prompt capital to re-evaluate the value of the global AI industry chain.

In his operational report, he wrote: The DeepSeek high-cost-performance large model is comparable to similar products from U.S. companies in mainstream evaluations, but costs have significantly decreased, overturning the traditional perception that "AI large models must rely on ultra-luxury hardware," leading the market to begin questioning the sustainability of large-scale capital expenditures by tech giants.

Jiang Jinzhi also cited an example: The "Stargate" project, led by several overseas institutions, involves a four-year investment of $500 billion, and the difficulty of implementing this project may further increase.

He further predicts that the capital side's perception of the value of the global AI industry chain will change.

"It is expected that in the future, major Chinese internet companies will successively launch a new generation of large models, accelerating the maturity of China's AI industry ecosystem, further enhancing market confidence in the competitiveness of Chinese AI companies, and prompting capital to re-evaluate the value of the China-U.S. AI industry chain."

Following this logic, Jiang Jinzhi has discovered from an investment perspective that the revaluation of Chinese assets, including Chinese technology assets, will become an important theme in the future market.

Regarding the trends in the technology industry, he provided the following observations:

First, the proposition that "the gap in core AI technologies between China and overseas is very large" has been completely broken, and the significant valuation disparity (undervaluation) of Chinese tech stocks will be narrowed Secondly, the open-source characteristics greatly increase the possibility for Chinese large model manufacturers to replicate and optimize DeepSeek R1 (the first-generation inference model of DeepSeek).

Thirdly, in conjunction with domestic GPUs and other software and hardware, it truly begins to make progress towards achieving a complete closed loop from chip production to model establishment to commercial implementation.

Fourthly, it significantly lowers industry pricing, enhances the commercialization capability of AI applications, and reduces trial and error costs.

Focusing on Chinese Assets in Global Layout

Observing Jiang Jinzhi's investment strategy, a major characteristic is its strong global investment color.

This is related to the history and "genes" of Jinglin Asset.

When Jiang Jinzhi founded Jinglin Asset in the early 2000s, the company's entity was mainly in Hong Kong, and early clients were primarily from Hong Kong, Asia, and Europe and the United States, with institutional investors accounting for a considerable proportion. The fund's focus was naturally on Hong Kong-listed Chinese concept stocks in the early stages.

Subsequently, Jiang Jinzhi expanded the product range to B-shares, which are Chinese stocks priced in US dollars on the Shanghai Stock Exchange and in Hong Kong dollars on the Shenzhen Stock Exchange. Public information shows that Huangshan B, Zhongqian B, China Merchants B, Zhangyu B, and Chenming B became heavily weighted stocks for Jinglin in the mid-2000s. In addition, Jinglin also launched offshore products for investing in B-shares and Hong Kong stocks in collaboration with Hong Kong-based Chinese securities firms. This wave of focused investment certainly attracted a lot of attention.

After that, Jinglin simultaneously covered domestic and overseas markets, raising funds through various channels both domestically and internationally, with an investment vision increasingly tending towards globalization.

Being adept at comparing global investment opportunities and making choices among global assets is a specialty of Jinglin.

Thus, an institution with such a broad vision mentioning investment opportunities in Chinese tech stocks in early 2025 will undoubtedly attract special attention.