When the people whose job is to take your money start refusing it, that’s worth paying attention to.

Wealspring 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.

The pause that says more than any forecast

Yang 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.

The 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.

Yang 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.

A track record that’s hard to ignore

Yang Dong has a documented history of calling major market inflection points before they arrived.

He 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.

Chen 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.

What this means for investors

Yang 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.

One 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.