China’s AI Frenzy Drives Massive Chasm in Mutual Fund Returns

A historic pivot toward computing power in China’s equity markets has created a stark divide, with top artificial intelligence-focused mutual funds outperforming traditional portfolios in returns by more than 200 percentage points during the first half of the year.

The tech-heavy STAR 50 Index surged 64% as AI euphoria reshaped market hierarchies. The electronics sector eclipsed banks to become the largest in the Chinese mainland market by total capitalization.