On April 22, Zhang Kun disclosed the first quarter report for the year 2026, revealing the holding situation of the funds under his management. As of the end of March 2026, the total scale of the funds under Zhang Kun's management had decreased to approximately 41.672 billion yuan. Taking the two largest funds, E Fund Blue Chip Select and E Fund Quality Select as examples, the stock positions of the funds in the first quarter remained stable, with alcoholic beverages occupying a major position in the heavily-weighted stocks, but the overall position had decreased, showing a significant reduction. The decrease in overall scale is more likely due to passive reduction. Looking at E Fund Blue Chip Select, as of the end of the reporting period, the net asset value of the fund was 26.793 billion yuan, with a net asset value per share of 1.7660 yuan. The net asset value per share growth rate for this reporting period was -5.17%, while the benchmark return for the same period was -3.85%. In the top ten holdings, there were no changes in the top ten heavy-weighted stocks of E Fund Blue Chip Select, which were: Guizhou Maotai, Wuliangye, Luzhou Laojiao, Tencent, Yum China, CNOOC, Shanxi Fenjiu, Alibaba, JD Health, and Focus Media. In terms of the latest changes in holdings, Zhang Kun reduced holdings in CNOOC, Guizhou Maotai, and Focus Media, among others. China National Offshore Oil Corporation saw a reduction of 29.4 million shares, and its stock price rose significantly due to the increase in oil prices during the period. Additionally, there were reductions in Yum China, Wuliangye, and Luzhou Laojiao, while Alibaba and Tencent saw slight increases in their positions, with an additional 400,000 shares and 298,000 shares, respectively. Zhang Kun stated that the stock market showed significant differentiation in the first quarter, with industries such as coal, petroleum and petrochemicals, and utilities performing well, while non-bank finance, retail and trade, and computer industries lagged behind. The stock positions of the fund remained stable in the first quarter, with structural adjustments made in the pharmaceutical, consumer, and technology sectors. In terms of individual stocks, the fund still held high-quality companies with outstanding business models, clear industry landscapes, and strong competitiveness. In the first quarter of 2026, the A-share market saw the Shanghai and Shenzhen 300 index fall by 3.89%, the Shanghai Composite Index by 1.94%, and the Growth Enterprise Market Index by 0.57%. In the Hong Kong market, the Hang Seng Index fell by 3.29%, and the Hang Seng China Enterprises Index fell by 6.05%. He believes that the prices of high-quality equities have deviated significantly from their intrinsic value, leading to intermittent periods of market depression where the "market gods" use short-sighted measures to assess the depth of evergreen trees. For patient investors, the safety margin of high-quality equities is significantly magnified in a collectively pessimistic environment. Another fund managed by Zhang Kun is E Fund Quality Select Mixed, the second largest fund under his management. As of the end of the reporting period, the net asset value of the fund was 9.544 billion yuan, with a net asset value per share of 4.9102 yuan. The net asset value per share growth rate for this reporting period was -7.51%, while the benchmark return for the same period was -3.96%. In E Fund Quality Select, there were changes in two of the top ten heavy-weighted stocks, with the latest holdings being Guizhou Maotai, Wuliangye, Luzhou Laojiao, Huazhu Group, Tencent, Shanxi Fenjiu, Alibaba, CNOOC, Focus Media, and Yum China. In terms of changes in holdings, alcoholic beverage stocks saw reductions, with different degrees of downsizing in positions like Guizhou Maotai, Wuliangye, and Luzhou Laojiao. In the Hong Kong stock market, Tencent's position slightly increased by 41,000 shares, while Alibaba saw a reduction of 670,000 shares. New entries into the top ten holdings were CNOOC and Yum China. Unlike E Fund Blue Chip Select, CNOOC saw a significant increase in holdings in this fund, with a holding of 27 million shares, accounting for approximately 7% of the net asset value. Huazhu Group is the only hotel industry stock among the top holdings, and he noted that in the first quarter of this year, the prices of second-hand houses in core cities gradually stabilized, RevPAR in the hotel industry began to turn positive, and the same-store growth of leading companies in the catering industry began to turn positive, indicating a gradual recovery in consumer confidence among the general public. Although the ascent is relatively gradual, the direction is certain. Zhang Kun mentioned that he holds an optimistic attitude towards the future consumer market, believing that the current challenges are cyclic rather than structural. The next generation of Chinese people will purchase higher quality and more quantity of goods and services throughout their lifecycle compared to the current generation. The current difficulties are destined to pass, and there is no reason for a linear extrapolation. He pointed out that attention should be paid to the effective consumer population in China's domestic consumption. In comparison to the total population of 1.45 billion, it is more important to focus on whether the effective consumer population can increase from 300 million to 400 million. This requires an increase in the number of people with corresponding purchasing power as the economy develops. For example, the consumer goods market in the United States, with a population of 350 million, is larger than the consumer goods market in China with a population of 1.45 billion, while the consumer goods market in India, with the same population size as China, is only about one-sixth of China's market size. Therefore, the unit purchasing power of the population is sometimes more important than the population size.