China Mutual Funds Swing to $287 Billion Profit on AI Stock Binge

China’s mutual funds swung back to profitability in the second quarter, raking in 1.94 trillion yuan ($287 billion) in net profit as active managers dumped traditional staples for AI and tech stocks.

The massive gains snapped two consecutive quarters of losses, according to data from Wind Information Co. Ltd.

The rapid capital rotation underscores a highly polarized Chinese stock market, as growth-chasing managers boosted their exposure to the technology, media and telecommunications sector.