On January 21, Zhang Kun, a fund manager at E Fund Management, released the fourth quarter report for 2024 for his funds. In summary, Alibaba (09988) was the only stock that saw an increase in holdings in the fourth quarter by both the E Fund Blue Chip Selection and the E Fund Quality Enterprise funds managed by Zhang Kun. China National Offshore Oil Corporation (00883), on the other hand, saw significant reductions in holdings by four funds managed by Zhang Kun. Additionally, stocks in the media sector were more favored, with companies like Focus Media (002027.SZ) entering the top ten holdings compared to the previous quarter, while the liquor sector saw reductions in holdings of companies like Wuliangye (000858.SZ) and Shanxi Fenjiu (600809.SH). Currently, Zhang Kun manages four public funds under E Fund Management, including E Fund Blue Chip Selection, E Fund Quality Selection, E Fund Quality Enterprise Three-Year Holding, and E Fund Asia Selection. In terms of portfolio adjustments, the largest fund, E Fund Blue Chip Selection, did not change its top holdings in the fourth quarter of 2024. The top ten holdings for E Fund Blue Chip Selection at the end of the period were Tencent Holdings (00700), Alibaba, Wuliangye, Moutai (600519.SH), Yanghe Brewery (002304.SZ), Luzhou Laojiao (000568.SZ), Shanxi Fenjiu, China National Offshore Oil Corporation, Meituan (03690), and Yum China (09987). Zhang Kun significantly reduced holdings in China National Offshore Oil Corporation, Tencent Holdings, and Wuliangye. Similarly, the top ten holdings for E Fund Quality Selection at the end of the period were Tencent Holdings, Wuliangye, Moutai, Alibaba, Yanghe Brewery, Luzhou Laojiao, Shanxi Fenjiu, Prada (01913), Ctrip (09961), and Focus Media. Ctrip entered the top ten holdings for the first time and was ranked ninth. Zhang Kun also significantly increased holdings in Focus Media and Prada. In the fourth quarter of 2024, E Fund Quality Enterprise Three-Year Holding also saw significant reductions in holdings of China National Offshore Oil Corporation, while Yum China entered the top ten holdings. Additionally, the fund slightly reduced holdings in Tencent Holdings and Wuliangye, while Shanxi Fenjiu dropped out of the top ten. In E Fund Asia Selection, Ashmore Group re-entered the top ten holdings, while Zhang Kun reduced holdings in Futu Holdings, Taiwan Semiconductor, Tencent Holdings, China National Offshore Oil Corporation, and Alibaba. Consumer stock newcomer Li Ning exited the top ten holdings. In the report, Zhang Kun mentioned that he is finding more assets that meet both high quality and high dividend yield criteria. He believes that these companies have demonstrated the ability to maintain or grow net profits and free cash flow in relatively difficult environments, showcasing their resilience. Zhang Kun noted that many companies are showing the ability and willingness to increase shareholder returns, which could potentially provide long-term commitments for investors. He emphasized the importance of increasing ownership in high quality companies over time without additional investments, by increasing the proportion of shares through buybacks or reinvesting dividends. Additionally, Zhang Kun pointed out that many high-quality companies have "cyclical options," which could see a revision of growth expectations once economic trends improve and investors regain confidence. Some companies also have "technology options," investing heavily in AI with top talent, data, and application scenarios, which could benefit significantly from the advancements in AI. He believes that the current valuation does not fully capture the potential of both "cyclical options" and "technology options." Zhang Kun mentioned that while the market consensus perceives risks for many high-quality companies, there may be a discrepancy between the perceived risks and the actual risks in the capital markets. He highlighted that the market should serve investors and provide attractive valuations for many high-quality companies.