China Fund Managers Turn Optimistic on Q4 A-Share Earnings Cycle

The notable shift here is positioning rather than conviction: managers are flagging that crowding has eased, which suggests the recent volatility did more to reset ownership than to change the earnings thesis. That matters because it implies the next leg, if it comes, would be driven by fundamentals rather than flows. The focus on AI-related names is the tell — it is where the earnings-upcycle argument is most testable and most fragile. Whether that earnings momentum actually broadens beyond the flagged sub-sectors is the open question.