According to the August Asia Fund Manager Survey conducted by BofA Global Research, artificial intelligence and semiconductor stocks remain the primary investment focus for fund managers in China. This trend persists despite a sharp decline in global semiconductor share prices during July, which was largely triggered by investor skepticism regarding the long-term profitability of AI-related ventures.

The survey, which polled 98 regional participants between August 7 and 13, highlights a nuanced approach to the current market environment. While fund managers are holding onto their core positions in the tech sector, there is a measurable shift toward risk mitigation. Specifically, more investors are moving to hedge their tech exposure, suggesting that while the long-term thesis for AI and chips remains intact, managers are increasingly wary of short-term volatility and potential downside risks.

The data reflects a broader regional sentiment where institutional investors are balancing the growth potential of the AI sector against the reality of recent market corrections. The survey results serve as a sentiment indicator, showing that the conviction in the AI and chip narrative has not been entirely dismantled by the recent sell-off, though it is now being tempered by more cautious portfolio management techniques.