Fund Manager Nursing Loss in China Stocks Says He Made ‘Mistake’
- Brilliance fund saw loss exceed 12% in first 23 days of July
- Founder Shi stayed bullish on TAL, New Oriental amid new rules
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The founder of Hong Kong’s Brilliance Asset Management Ltd. said he made a mistake in underestimating the impact of Beijing’s reforms in the education sector, but struck an optimistic note about two players in an industry many are writing off.
Shi Lin’s Brilliance has invested in the sector, which saw its fortunes plummet after China unexpectedly banned certain after-school tutoring companies from making profits, going public and hosting classes on weekends and holidays. Shares of Chinese technology and education stocks began tumbling last Friday on news of the policy turn, spurring a record three-day drop in a gauge tracking the biggest U.S.-listed Chinese firms.