{"slug": "wealspring-asset-warns-ai-stocks-have-formed-a-super-bubble", "title": "Wealspring Asset warns AI stocks have formed a super bubble", "summary": "Two prominent Chinese hedge fund managers, Yang Dong of Wealspring Asset Management and Chen Guangming of Foresight Fund, have stopped accepting new subscriptions, warning that AI stock valuations have inflated into a super bubble. The Shanghai Composite Index hit a 10-year high in October 2025, driven by AI enthusiasm and easing US-China tensions, but the managers say prices have decoupled from fundamentals. Both have a track record of calling major market inflection points, and their move signals a belief that risk-adjusted returns are inadequate at current levels.", "body_md": "# Wealspring Asset warns AI stocks have formed a super bubble\n\nTwo prominent Chinese hedge fund managers have stopped accepting new money, warning that AI-driven stock valuations have decoupled from reality\n\nWhen the people whose job is to take your money start refusing it, that’s worth paying attention to.\n\nWealspring Asset Management’s Yang Dong and Foresight Fund’s Chen Guangming, two of China’s most closely watched hedge fund managers, have paused new fund subscriptions. Their reasoning: AI stock valuations have inflated into what they consider a super bubble, and they don’t want to be the ones deploying fresh capital at the top.\n\n## The pause that says more than any forecast\n\nYang Dong stopped accepting new subscriptions on November 1, 2025. Chen Guangming’s Foresight Fund followed with a similar freeze on its onshore hedge fund around the same date.\n\nThe Shanghai Composite Index hit a 10-year high in October 2025, propelled by two forces that converged at exactly the right moment: global enthusiasm for artificial intelligence and a meaningful thaw in US-China tensions. Those twin tailwinds sent Chinese equities surging, particularly stocks with any connection, real or imagined, to AI.\n\nYang Dong and Chen Guangming aren’t saying those tailwinds are fake. They’re saying the prices have run far ahead of the fundamentals those tailwinds actually support.\n\n## A track record that’s hard to ignore\n\nYang Dong has a documented history of calling major market inflection points before they arrived.\n\nHe predicted the bubble that preceded China’s 2007 stock market crash. He flagged the 2015 bubble before Chinese equities lost roughly a third of their value in a matter of weeks. And he warned about the 2021 renewable-energy stock downturn before that sector gave back its pandemic-era gains.\n\nChen Guangming’s decision to join the subscription freeze adds weight. Having two independently operated funds reach the same conclusion at the same time suggests this isn’t an idiosyncratic view. Both managers cited difficulty identifying investments that offer adequate risk-adjusted returns at these levels.\n\n## What this means for investors\n\nYang Dong and Chen Guangming are firmly in the camp that says prices have overshot. Their response isn’t to short the market or make dramatic public declarations. It’s the quieter, arguably more telling move of simply closing the door to new capital. They’re protecting future investors from buying in at levels they believe are unsustainable.\n\nOne notable absence in this entire discussion: neither manager referenced crypto assets or digital tokens in their analysis. The institutional focus remains squarely on traditional equities, suggesting that for China’s most prominent fund managers, the AI bubble conversation is entirely a stock market phenomenon.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/wealspring-asset-warns-ai-stocks-have-formed-a-super-bubble", "canonical_source": "https://cryptobriefing.com/wealspring-asset-ai-stocks-super-bubble/", "published_at": "2026-06-26 09:29:53+00:00", "updated_at": "2026-06-26 09:44:00.575036+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-startups", "ai-products", "ai-ethics", "ai-policy"], "entities": ["Wealspring Asset Management", "Yang Dong", "Foresight Fund", "Chen Guangming", "Shanghai Composite Index"], "alternates": {"html": "https://wpnews.pro/news/wealspring-asset-warns-ai-stocks-have-formed-a-super-bubble", "markdown": "https://wpnews.pro/news/wealspring-asset-warns-ai-stocks-have-formed-a-super-bubble.md", "text": "https://wpnews.pro/news/wealspring-asset-warns-ai-stocks-have-formed-a-super-bubble.txt", "jsonld": "https://wpnews.pro/news/wealspring-asset-warns-ai-stocks-have-formed-a-super-bubble.jsonld"}}