On October 25, Zhang Kun disclosed the third quarter report for the year 2024 in various managed funds. In terms of portfolio adjustments, Alibaba (09988) was bought into for the first time by E Fund Blue Chip Selection and entered its top ten holdings, ranking as the second largest heavy stock. At the same time, Zhang Kun significantly increased holdings in two liquor stocks - Luzhou Laojiao (000568.SZ) and Shanxi Fenjiu (600809.SH). In addition, Zhang Kun further increased the allocation to Korean stocks. The third quarter report for E Fund Asia Select, managed by Zhang Kun, shows that the investment in Korean stock market securities and depository certificates has increased from 6.92% to 13.58% of the fund's net value. SK Hynix Semiconductor returned to the top ten holdings of the fund, and Samsung Electronics also saw a significant increase in holdings. On the sell side, Tencent Holdings (00700) saw a significant reduction in holdings by Zhang Kun in the third quarter. Zhang Kun stated that when considering shareholder returns - through buybacks and dividends, the shareholder return levels for some leading technology and consumer companies are very high, both in absolute and relative terms. He is also pleased to see that corporate governance levels are improving, and companies are expressing a stronger commitment to continuous shareholder returns. If stock prices remain stable, or even possibly see some leading companies reducing their total number of shares by half 8 to 10 years later, this means a doubling of the ownership percentage for long-term shareholders without additional costs. Alibaba ranks as the second largest heavily weighted stock, while Tencent Holdings saw a significant reduction in holdings once again Currently, Zhang Kun manages four public funds, namely E Fund Blue Chip Selection, E Fund Quality Selection, E Fund Quality Enterprises Three-Year Holding, and E Fund Asia Select. The largest of these products is E Fund Blue Chip Selection, which is also considered Zhang Kun's flagship fund. As of the end of the third quarter of 2024, the net asset value of the fund was 43.835 billion yuan, an increase of 4.799 billion yuan from the end of the second quarter when it was 39.036 billion yuan. Specifically, the stock exposure of E Fund Blue Chip Selection at the end of the third quarter was 94.42%, an increase of 0.92% from the end of the second quarter, maintaining a high stock exposure operation. This is the highest stock exposure since the establishment of the fund. Regarding adjusting holdings, E Fund Blue Chip Selection made changes to two heavy stock holdings in the third quarter, as well as increased holdings in two other stocks and decreased holdings in three stocks. The top ten heavy stock holdings of E Fund Blue Chip Selection at the end of the quarter were: Wuliangye (000858.SZ), Alibaba (09988), Kweichow Moutai (600519.SH), Tencent Holdings (00700), Yanghe Share (002304.SZ), Luzhou Laojiao (000568.SZ), Shanxi Fenjiu (600809.SH), CNOOC (00883), Meituan (03690), and Yum China (09987). It is worth mentioning that Alibaba was bought into by E Fund Blue Chip Selection for the first time and entered the top ten heavy stock holdings as the second largest heavily weighted stock. At the same time, Yum China also entered the top ten holdings. However, in the fund's second quarter report of 2024, Yum China was ranked twelfth. In terms of the number of shares held, Zhang Kun did not increase his position in the stock in the third quarter, which means that with the stock price rising by 53.24% in the third quarter, Yum China "passively" entered the top ten holdings. In terms of active increase in positions, Zhang Kun increased holdings in the two liquor stocks Luzhou Laojiao and Shanxi Fenjiu by 3.63% and 93.47% respectively. Additionally, Hong Kong Exchanges and Clearing, and Samsonite exited the top ten holdings of E Fund Blue Chip Selection in the third quarter. In terms of performance, as of the end of 2024 third quarter, the net asset value of the fund units of E Fund Blue Chip Selection was 1.9323 yuan, with a growth rate of 15.11% in the third quarter of 2024, compared to a benchmark return rate of 11.97%. As of the end of the third quarter, the size of the E Fund Quality Selection Fund was 15.782 billion yuan. The fund also significantly reduced its holding in Tencent Holdings by 11.39%. However, Zhang Kun further reduced his position in Alibaba by 22.99% in this fund. On the buy side, Zhang Kun increased his holdings in two liquor stocks - Luzhou Laojiao and Shanxi Fenjiu by 8.31% and 76.67% respectively; Prada also received additional investments. In terms of performance, as of the end of the 2024 third quarter, the net asset value of the fund units of E Fund Quality Selection Mixed was 5.4293 yuan, with a growth rate of 17.90% in the third quarter of 2024, compared to a benchmark return rate of 13.14%. In the third quarter of 2024, E Fund Quality Enterprises Three-Year Holding also increased its holdings in Shanxi Fenjiu, which re-entered the top ten heavy stock holdings in the third quarter. It is worth noting that Alibaba was also bought into by E Fund Quality Enterprises Three-Year Holding for the first time and entered the top ten heavy stock holdings as the third largest, with a holding of 4.6 million shares. In addition, the fund also reduced its holdings in Tencent Holdings and CNOOC by 15.38% and 5.07% respectively. Hong Kong Exchanges and Clearing and Samsonite exited the top ten heavy stock holdings. As of the end of the third quarter, the net asset value of the fund units of E Fund Quality Enterprises Three-Year Holding was 0.948 yuan, with a growth rate of 15.12% in the third quarter of 2024, compared to a benchmark return rate of 11.97%. As of the end of the 2024 third quarter, the net asset value of the fund units of E Fund Asia Select was 1.080 yuan, with a growth rate of 2.08% in the third quarter of 2024, compared to a benchmark return rate of 5.70%. In terms of individual stock holdings, a company engaged in the production and sale of semiconductor memory - SK Hynix Inc., jumped from the 16th largest heavy stock at the end of the second quarter to the sixth largest heavy stock, accounting for 7.03% of the fund's net value. Meanwhile, Futu Holdings and Prada also saw slight increases in holdings. It is worth noting that another Korean stock - Samsung Electronics also saw an increase in holdings by Zhang Kun in the third quarter, with an increase of up to 73.08%. The third quarter report shows that the investment in Korean stock market securities and depository certificates by the fund has increased from 6.92% to 13.58%.It has risen to 13.58%.Currently, the shareholder return levels of some leading technology and consumer companies are very high. In the third-quarter report, Zhang Kun stated that traditionally, investors tend to use "growth mindset" and "marginal changes" to view leading companies in the technology or consumer industry. Once there is a slowdown or decline in profit growth, they will reflexively feel anxious and panic. In fact, considering that these companies usually have a premium valuation in the past, meaning expected excess growth, this reaction is somewhat reasonable. At the same time, when looking at dividend-paying companies, investors usually use "value mindset" and "absolute value" to consider. They take into account the past undervaluation of these companies, and are usually more accepting of cyclical profit fluctuations. However, after experiencing more than three years of reverse stock price changes, it has been found that the dividend yield levels of some consumer leading companies are among the top in the market, exceeding a considerable number of dividend index component companies. In this situation, investors will have more comparative dimensions when analyzing these companies, comparing them with dividend index component stocks in terms of generating free cash flow, asset-liability status, and management's willingness to distribute dividends. In these dimensions, these consumer leaders even surpass many dividend-paying companies. Taking into account shareholder returnsbuybacks and dividends, the shareholder return levels of some leading technology and consumer companies are very high both in absolute and relative terms. It is also very encouraging to see that more and more companies are continuously improving their governance levels, and are more firmly expressing their commitment to continuously return value to shareholders. If the stock price remains stable in the future, and even some leading companies may see their total number of shares halve in 8 to 10 years, this means that long-term shareholders will double their ownership stake without spending any extra money. Although the stock price has risen at the end of the quarter, the shareholder return rate is still near its historical high levels, especially considering the low 30-year government bond yield, the difference between the two is undoubtedly at a high level. Zhang Kun believes that a series of policies introduced at the end of September are expected to stabilize the economy, break the market's continuous pessimistic expectations for the economy, and also break the expectation of continued downward revision of corporate profits. The long-term development prospects have been discussed multiple times in previous regular reports, so they will not be reiterated. In conclusion, as long as we believe that the living standards of the people will be better in 10 years, technology and consumer leading enterprises will overcome the current stage of growth constraints and re-enter a period of growth. In the current environment, the market is rarely offering prices that allow investors to buy stakes in excellent companies at cheap prices.