U.S. stocks plummet causing significant product pullback? Dan Bin responds

Due to the recent adjustment in the US stock market, Dan Bin, under performance pressure, shared his latest thoughts on his social media platform.

Dan Bin, founder of Dongfang Hongyuan, stated that he sold 70% of his holdings by the end of February, retaining only the six tech giants in the US stock market excluding Tesla. However, concerned about missing out on the AI era, "he quickly bought back in, resulting in a significant drawdown in net value."

Data from third-party platforms shows that as of March 31, the "Dongfang Hongyuan Marathon No. 17" product managed by Dan Bin has experienced a drawdown of over 20% this year, significantly diverging from the overall positive returns achieved by private equity. Nevertheless, the performance pressure has not changed Dan Bin's optimistic outlook on the US stock market. In his latest statement, he boldly remarked: "If the US economy continues to grow strongly after the new tariffs are implemented, the US stock market will return to a bull market."

It is worth mentioning that several well-known private equity firms in China with assets over 10 billion have differing views from Dan Bin. Firms like Jinglin Asset and Panjing Asset have reduced their US stock holdings this year while increasing their investments in Chinese assets. This indicates a significant divergence in institutional judgment regarding Chinese and US tech assets.

Recent Operations of Dan Bin Exposed

Dan Bin, who heavily invested in US tech assets last year and gained significant market attention, is facing performance pressure this year.

According to data from Private Equity Ranking, as of March 31, the "Dongfang Hongyuan Marathon No. 17" product has experienced a drawdown of 23.42% this year.

Regarding the drawdown this year, Dan Bin recently stated on his social media platform that after being fully invested at the end of 2022, the portfolio for 2023 and 2024 has seen very low turnover except for minor adjustments. Entering 2025, adjustments were made to the holdings in Nvidia, reducing its proportion, but Nvidia remains the largest holding in the portfolio "At the end of February, due to concerns about policy issues, I chose to sell 70% of my positions, completely selling out of the two index funds TQQQ and FNGA (it should be noted that these two indices are leveraged, while we do not use leverage, but there are friction costs during the holding process; we hold them in phases and control the position ratio), only retaining the six tech giants in the U.S. stock market excluding Tesla, holding 70% in cash. If I had held on until now, it would have certainly been a better situation. Unfortunately, fearing to miss out on the era of artificial intelligence, and thinking that the occurrence of new regional wars is a very low probability event, I quickly bought back in, resulting in a significant drawdown in net value!"

Despite facing performance pressure, Dan Bin remains relatively optimistic about the U.S. stock market.

He believes: "Investing is a business full of regrets; we only avoid systematic risks when they arise, but it's unlikely to avoid every single one. The current challenges for the U.S. stock market are the uncertainties of tariff barriers and whether they will trigger inflation and economic recession. However, I believe the tariffs will yield results; they just need some time to ferment. The economy and the market will operate according to their own laws. The recently released U.S. non-farm payroll data indicates that economic growth is still quite strong. If the new tariffs are implemented and this remains the case, the U.S. stock market will return to a bull market. Moreover, after such a drastic market adjustment, once it hits the bottom, it will become a new starting point for the next decade or even a considerably long cycle!"

Choice data shows that from April 1 to April 4, during four trading days, the "seven tech giants" in the U.S. stock market all fell, with Tesla down a cumulative 7.61%, Apple down a cumulative 15.19%, Amazon down a cumulative 10.12%, Meta down a cumulative 12.43%, NVIDIA down a cumulative 12.98%, Google A down a cumulative 5.85%, and Microsoft down a cumulative 4.14%.

Several Private Equity Firms Increase Investment in Chinese Assets

However, many leading domestic private equity firms hold a different view from Dan Bin.

Gao Yuncheng, a partner at Jinglin Asset, previously stated in an internal communication meeting: "In my current investment portfolio, all assets of pure American companies (i.e., non-Chinese companies) have been completely removed. I am very optimistic about a series of Chinese companies related to technology and new consumption, among which technology companies may occupy a relatively larger proportion."

Gao Yuncheng believes that, on one hand, the Chinese economy has already opened a new growth cycle under the development model of intelligent manufacturing as a new growth point; on the other hand, as time goes by, Chinese companies are likely to have a smoother process in "going global," and it is expected that a batch of companies capable of entering the ranks of world leaders will emerge, and even in some fields, companies capable of setting industry rules will appear.

"From the perspective of stock investment, we judge that the era of undervaluation of Chinese assets, especially core assets, has ended, and a brand new development cycle may be unfolding," Gao Yuncheng stated.

Panjing Investment recently also indicated that the company has reduced its holdings in U.S. stocks, aiming to actively grasp the main line of technology growth in A-shares and Hong Kong stocks. The value reassessment driven by DeepSeek has not yet ended, and the logic of global capital reassessing Chinese technology assets remains valid. The domestic industrial upgrade centered on AI technology is transitioning from concept to commercialization, driving the reconstruction of the global industrial chain. In the future, more and more companies in the industrial chain will gradually move from thematic speculation to the real stage of "achieving performance," focusing on leading companies with technological barriers and strong performance realization capabilities Yuanle Sheng Asset stated that the US stock market has entered a very complex stage, and investors are currently confused about US policy expectations. Since Trump's election at the end of last year, the market's fervent mentality has completely dissipated. "We remain cautious about US stocks until US policies stabilize. In terms of specific operations, the company has already reduced its position in US technology stocks in February."

Technology Remains an Important Focus Area

Which opportunities are private equity firms targeting as they increase their investments in Chinese assets? Technology remains an important layout direction.

Recently, Liu Xiaolong, founder of Juming Investment, revealed that Chinese companies have indeed demonstrated strength and efficiency in research and innovation fields with clear pathways. Therefore, the main allocation of the current portfolio is in Hong Kong stocks, especially in Hang Seng Technology-related assets.

A private equity professional from Shanghai with assets in the hundreds of billions also stated: "In our investment allocation, the technology sector is a direction we continue to focus on. Recently, our portfolio changes include reducing positions in the robot sector, which had become overheated, and increasing allocations in Hong Kong internet stocks."

According to statistics from a third-party platform, as of April 3, nearly 20 securities investment private equity firms have participated in the targeted issuance of A-share listed companies through their products this year, with a cumulative allocation amount exceeding 1 billion yuan.

Specifically, the technology sector is a gathering place for private equity participation in targeted issuances.

For example, the highest allocation amount for private equity is for Luyihuanbo, a leading domestic harmonic reducer company, which currently has compatible products in robot joints, fingers, and other areas. The private equity firm with the most allocations, Demingli, focuses on the innovative research and development of storage control chips and solutions. The company stated that with the consumption of downstream inventory, the innovation of large model technology, the acceleration of AI edge applications, and the increase in smart driving penetration, storage demand is expected to continue improving, extending the upward cycle.

"The strong trend of technology stocks has just begun," said Chen Yu, founder of Shennong Investment. Although the technology sector has experienced short-term fluctuations after a rapid rise recently, the upward logic of the technology sector has not changed. Specifically, the current US and Chinese stock markets are at different stages of development. US technology companies have achieved saturated financing and investment, entering a peak and even bubble-bursting stage, while Chinese technology companies have not yet been fully capitalized, and financing and reinvestment are still ongoing. AI computing power and algorithms have also not yet deeply integrated with the industry. Therefore, investment in technology stocks has not yet entered the growth realization stage, and this round of strong trends led by technology stocks is expected to last at least until mid-2026.

Author of this article: Ma Jiayue, Source: Shanghai Securities Journal (ID:gh_222a507c7767), Original title: "What Did Ban Bin Say After the Plunge of US Stocks?" Risk Warning and Disclaimer

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