Chinese Funds Recover Over 30% Since August After July Drawdown

The scale and speed of this round-trip suggests positioning and sentiment, not fundamentals, drove both legs — a reminder that concentrated AI-adjacent supply-chain exposure can swing violently without any change in the underlying business. The optical communications complex is where Chinese fund performance is now most tightly coupled to the global AI capex narrative, so these vehicles effectively act as a leveraged proxy on that theme. Whether the rebound holds, or whether flows chase performance into another overshoot, is the open question worth watching.