In a remarkable display of strategic focus, Chinese investment funds have decisively outperformed their international counterparts throughout 2025. The key to their success was a concentrated bet on the nation's booming artificial intelligence and technology sector, according to an analysis of global fund performance data.
The AI-Fueled Ascent to the Top
Data from Bloomberg reveals a stunning dominance by Chinese funds in the cross-asset mutual fund arena. Among the world's top 20 funds managing assets exceeding $500 million, a staggering 13 were from China. The performance of these funds was nothing short of extraordinary, with seven delivering returns surpassing 100% for the year.
Interestingly, the "multi-asset" label for many of these top performers was largely nominal. Instead of diversifying across various asset classes, they channeled the majority of their capital into Chinese equities. This move capitalized on a powerful rally in shares connected to artificial intelligence, which became the defining investment narrative of the period.
The convergence of strategy was evident in their stock picks. Eoptolink Technology Inc., an optical communications firm whose shares skyrocketed by over 400% in 2025, was a top holding in every single one of the 13 leading Chinese funds. Similarly, shares of its competitor, Zhongji Innolight Co., were held by twelve of these funds.
Navigating Global Volatility for Stellar Gains
This exceptional performance highlights the immense profitability of AI-focused investments over the past year, even as global markets faced headwinds from unpredictable trade policies under US President Donald Trump. While Trump-related news initially captured traders' attention, the AI theme powerfully reasserted itself by the close of 2025.
The surge helped engineer a dramatic recovery for China's stock markets. After a prolonged downturn exacerbated by the Covid-19 pandemic and economic concerns, Chinese indices posted two consecutive years of gains. The MSCI China Index closed the year up by an impressive 28%, marking its strongest annual performance since 2017.
"Multi-asset fund performance in 2025 with exposure to China and particularly China tech has been stellar given the severe underperformance from 2021 through to late 2024," commented George Boubouras, Head of Research at K2 Asset Management Ltd in Melbourne.
Standout Performers and Regulatory Tailwinds
Several fund managers emerged as clear winners. Maxwealth Fund Management Co. saw its Science and Technology Zhixuan Mixed Launched Fund, with assets of roughly 11.5 billion yuan, generate total returns of 231% in 2025. Another major player, Tebon Fund Management Co., recorded a 129% surge for one of its 9 billion yuan vehicles, significantly boosted by a 583% rise in shares of circuit board maker Victory Giant Technologies Guizhou Co.
This rally was further supported by proactive measures from Beijing aimed at channeling long-term capital into the equity market. Authorities implemented policies pushing mutual funds to increase local equity holdings by a minimum of 10% annually for three years. Additionally, large state-owned insurers were directed to invest 30% of new policy premiums starting from 2025. In October, regulators also introduced a two-year plan to simplify market entry for qualified foreign institutional investors.
While Chinese funds led the charge, the global top-performers list also included two funds from Turkey that claimed the highest spots. Furthermore, precious metals funds from Greece, France, and Japan saw significant gains as gold and silver prices climbed to record highs during the year.
