In a crowded landscape of Asian investment funds, one standout strategy is turning heads: a China-focused equity fund has outperformed 98% of its peer funds by placing high-conviction bets on two of the country's fastest-growing sectors — the AI supply chain and healthcare. The results speak for themselves, with the fund delivering outsized returns while most peers struggled to keep pace with volatile markets.
Value Partners, the Hong Kong-based asset manager, has been at the center of this outperformance story. Fund manager Chung oversees the Value Partners Asian Income Fund and the Asian Innovation Opportunities Fund, which jointly manage approximately $490 million in assets and have each outperformed 98% of peers over the past year. Her strategy centers on a contrarian but calculated pivot: rotating away from expensive tech valuations in Taiwan and South Korea toward undervalued Chinese AI hyperscalers listed in Hong Kong.
Chung has been selling holdings in Taiwanese and South Korean markets to increase exposure to Chinese hyperscalers — a rotation she expects to continue. While Chinese firms currently lag behind U.S. counterparts in AI capital expenditure, their investment trajectory still has substantial room for growth. The key insight: as China ramps up AI infrastructure spending, the related stocks — currently trading at a significant discount — are poised for meaningful appreciation.
The valuation gap is striking. The Hang Seng Tech Index, home to China's top AI and cloud companies, trades at around 18 times one-year forward earnings, compared to 21 times for the Nasdaq-100 Index. That relative discount is exactly the kind of opportunity these funds are designed to exploit before the market catches up.
On the healthcare front, the investment thesis is equally compelling. China's AI healthcare market is projected to grow from $1.59 billion in 2023 to $18.88 billion by 2030, at a compound annual growth rate of 42.5%. AI is being deployed across diagnostics, medical imaging, drug development, and telehealth — sectors that benefit from China's massive patient datasets and strong government support. The fund's exposure to this megatrend positions it well ahead of the curve.
The broader context matters too. China's government has unveiled a national AI healthcare strategy, with pilot implementations planned across 50 hospitals and 500 township clinics throughout 2026, backed by an estimated CNY 15–20 billion ($2–3 billion USD) over five years. That level of state-backed deployment creates a powerful tailwind for private investors positioned in the sector early.
For investors looking to understand the full scope of China's AI investment landscape, Bloomberg has been tracking the macro and micro dynamics shaping these emerging opportunities in depth.
The takeaway for global investors is clear: while mainstream narratives focus on U.S. tech giants and Nvidia-driven rallies, China's AI supply chain and healthcare ecosystem represent a significant, and still relatively underpriced, opportunity. Funds like Value Partners are betting that the next leg of the AI investment supercycle will be written in Hong Kong and Beijing — not just Silicon Valley.
