Private equity giant Jinglin filed its second-quarter 13F report to the Securities and Exchange Commission (SEC) on Aug. 13, Eastern time.

Jing Lin held 37 U.S. stocks with a position of $2.859 billion (18.5 billion yuan) at the end of the second quarter, up 21 percent from nine new companies and six companies at the end of the first quarter, according to the report.

Since the beginning of this year, Chinese stocks have been under constant pressure under the continuous influence of Sino-US policies, butJinglin still firmly increased its holdings of US-listed stocks in the second quarter, with Bilibili Inc. significantly increasing its holdings into the top 10, while 360 DigiTech Inc, JD.com, Vipshop Holdings Limited and other Chinese stocks were all increased.

It is worth noting thatIn the second quarter, Jinglin increased its allocation of education stocks, including New Oriental Education & Technology Group and Gaotu Techedu Inc., and TAL Education Group. Recently, due to the introduction of the "double reduction" policy, the share prices of domestic education stocks listed in the United States have been halved one after another. I do not know what choice Jinglin will make in the future.

However, although Jinglin increased its holdings in education stocks compared with the first quarter, its market capitalization accounted for only 1.13%, even if the share price halved would not have much impact on Jinglin's position portfolio.

By contrast, SEA, a Singaporean Internet giant that Jinglin has bought since the third quarter of 2019, has risen more than 10 times since its purchase, rising more than 50% this year, and even though Jinglin reduced its holdings by 78000 shares in the second quarter, Donghai still ranks as its largest position, accounting for 21.23%.

In addition, in the second quarter, Jinglin cleared 169000 shares of Apple Inc, significantly reduced its holdings of 119000 shares of Taiwan Semiconductor Manufacturing Co Ltd, and slightly reduced its holdings of NVIDIA Corp, who is also a chip giant.

The following are the top ten stocks of Jinglin assets in the second quarter.

China-listed stocks accounted for half of the country, significantly increased their holdings of Bilibili Inc., 360 DigiTech Inc, newcomers Li Auto Inc., KANZHUN LIMITED, AiHuiShou International

In Jinglin's top 10 heavy positions in US stocks in the second quarter, Chinese stocks accounted for half, and 24 of all 37 companies held shares, accounting for half of the total market capitalization of positions.

Among them, except for DoorDash and Snowflake Inc of American SaaS company, the other five are Chinese-listed stocks. Among them, KANZHUN LIMITED listed on Nasdaq on June 11, 2021 and closed at $37.2 on the first day, up more than 95 per cent from the offering price of $19 per share.

The latest share price as of Aug. 13 is $36.89. By the end of the second quarter, Jing Lin held 818600 shares of KANZHUN LIMITED, with a market capitalization of about US $32.455 million.

In the second quarter, Jinglin increased its holdings in a total of 12 stocks: Facebook Inc, 360 DigiTech Inc, Bilibili Inc., Alphabet, JD.com, Square, INC., TAL Education Group, Carvana, Vipshop Holdings Limited, ServiceNow, Futu and Wynn Holiday.

Including Futu and Macau's Wynn Holiday, Jinglin increased its holdings in a total of 7 Chinese stocks in the second quarter. Among them, station B significantly increased its holdings into the top 10 positions, accounting for 2.47%, rising to the ninth place from 12th in the previous quarter.

Three companies, Square, INC., Carvana and Vipshop Holdings Limited, increased their holdings by 557.08 per cent, 460.82 per cent and 200.5 per cent respectively.

In the third quarter of 2019, Jinglin Jiancang Vipshop Holdings Limited. Jinglin initially held 1.25 million shares, worth $11.15 million. In the second quarter of this year, Jinglin held 600000 of Vipshop month, about twice as much as when the position was first built, while the market capitalization of its holdings was $12.06 million.

In addition to US-listed stocks, the share prices of Facebook Inc and Carvana have also hit record highs in the past six months. Among them, Carvana is a newly built stock in Jinglin in the first quarter.

Increase the position of education stocks against the trend, but the proportion is only 1.13%. The introduction of policies will promote the stability of competition in the industry in the long run.

Among the new stocks in the second quarter, two stocks are general education stocks: New Oriental Education & Technology Group and Gaotu Techedu Inc..

In addition, in the target of increasing holdings, there is also a general education-- TAL Education Group.

As early as 6 years ago, Jinglin began to lay out the general education unit.

According to public information, Jinglin established positions in New Oriental Education & Technology Group in the third quarter of 2016 and TAL Education Group in the third quarter of 2015.

At that time, Jing Lin's bet on New Oriental Education & Technology Group was only tentative: he bought only 50, 000 shares, worth $2.318 million. In the following quarters, Jinglin continued to increase its positions, and by the second quarter of 2017, New Oriental Education & Technology Group became the largest position in Jinglin, worth more than $200m.

By the second quarter of 2019, Jinglin began to gradually reduce its position in New Oriental Education & Technology Group. Positions were reduced by 19.83% and 35.78% respectively in the second and third quarters of 2019. Positions were further reduced by 85.20% in the third quarter of 2020 and cleared in the fourth quarter of 2020.

It is worth mentioning that from 2019 to 2021, the share price of New Oriental Education & Technology Group rose sharply, and Jinglin's operation for New Oriental Education & Technology Group at that time, or out of Fenggao reduction.

Although the "double reduction" policy was introduced only in July, it has passed the reporting period of the second quarterly report. However, in May this year, the relevant signals have emerged:

On May 24 this year, an educational self-media in Beijing released a message that the Beijing Haidian Education Commission held a meeting and asked training institutions not to open courses during the summer vacation, discipline and quality education and training institutions not to be listed, and education and training institutions not to make any advertisements. Although the article was quickly deleted, it had a significant impact on the education unit:

On May 25, the Hong Kong online education sector fell across the board, with New Oriental Education & Technology Group down nearly 15%, Tianli Education down 10%, and New Oriental Education & Technology Group online and Excellence Education down more than 5%.

Overnight, Chinese education stocks also tumbled: Meten EdtechX Education led the decline, down more than 30%, Puxin Ltd down 22.44%, New Oriental Education & Technology Group down 18.29%, TAL Education Group down 17.14%, Gaotu Techedu Inc. down 12.05%.

On May 21, the Central Committee for comprehensively deepening Reform's statement dealt a more accurate blow to out-of-school training institutions-- the meeting pointed out that one of the most prominent problems in compulsory education is that the burden on primary and secondary school students is too heavy, and the problems of shortsightedness and utilitarianism have not been fundamentally solved. The development of out-of-school training institutions is disorderly, and the phenomenon of "reducing the burden inside the school and increasing the burden outside the school" is prominent.

However, although Jinglin increased its holdings or newly joined general education stocks in the second quarter, it accounted for a very low proportion. The market value of the three stocks accounted for only 1.13% of the positions in US stocks, and the possibility that they had been sold in the third quarter could not be ruled out.

As for the impact of the double reduction policy, Gao Yuncheng, general manager of Jinglin, said that the fundamentals of the education industry are a great change, but in fact, there are no fundamental changes in most industries.

Going back to the nature of investment, it depends on how these enterprises will make profits in the next year or two, and whether their business model will change in the next three or five years.

Gao Yuncheng further pointed out that everyone's regulatory policy on the industry, the first reaction is to "crack down." However, if we take a longer-term view, after these industries are more standardized and there are more rules, the intensity of competition may decline. The competitive landscape will become stable.

The new takeout platform Doordash has entered the top ten positions, which can be called accurate bottom copying.

The increased holdings of more American takeout platform DoorDash, jumped into the top ten positions in Jinglin, ranking eighth.

DoorDash will be listed on the New York Stock Exchange on December 9, 2020. This is an Internet company that provides takeout delivery services in the United States. its three founders are all Chinese, and the youngest is less than 30 years old.

Six months after going public, DoorDash's shares fell to their lowest level of $112.99 in mid-May after a period of share price volatility. But in the months that followed, the share price soared. The layout of Jinglin DoorDash may be an accurate bottom copy.

Significantly reduced holdings of Taiwan Semiconductor Manufacturing Co Ltd, Amazon.Com Inc, So-young International Inc, Donghai Group after the reduction is still the largest position

In the second quarter, Jinglin reduced its holdings but did not clear its holdings, namely, SEA, ZTO Express, Microsoft Corp, Taiwan Semiconductor Manufacturing Co Ltd, Amazon.Com Inc, So-young International Inc, NVIDIA Corp, UBER TECHNOLOGIES INC and Concord Medical Services Holdings Ltd.

Among them, Donghai Group, ZTO Express and Microsoft Corp are still Jinglin's first, fourth and seventh positions after reduction.

Among them, Donghai Group is a Southeast Asian Internet giant headquartered in Singapore, founded by Chinese entrepreneur Li Xiaodong in 2009. Tencent is its largest shareholder, and the main business of Donghai Group also coincides with Tencent. Across games, e-commerce and digital finance.

Donghai Group is not inferior to Tencent and BABA in Southeast Asia, and is also known as "Southeast Asia Little Tencent". Although the recent domestic anti-monopoly wave has put heavy pressure on a number of domestic Internet platforms, such as Tencent, BABA, Meituan, and so on, Southeast Asia, which is still in the stage of barbaric growth of platform giants, has not been greatly affected.

Although Donghai's share price has fluctuated a lot since the beginning of this year, it has risen more than 50% so far this year, so even though Jinglin reduced its holdings by 78000 shares in the second quarter, it still ranks first with a market capitalization of more than $600m.

The companies with a large proportion of holdings reduction are Taiwan Semiconductor Manufacturing Co Ltd, Amazon.Com Inc and So-young International Inc; the first two stocks are both reduced by more than 30 per cent, while on So-young International Inc, they are reduced by nearly 50 per cent.

In the third quarter of last year, Jing Lin newly joined Taiwan Semiconductor Manufacturing Co Ltd and held more than 2.6 million shares of Taiwan Semiconductor Manufacturing Co Ltd by the end of last year. In the first quarter, Taiwan Semiconductor Manufacturing Co Ltd's stock price began to wobble sideways after its innovative high. Jinglin substantially reduced its holdings in the first and second quarters, leaving only 226500 shares at the end of the second quarter.

In addition, Jinglin held 113500 shares in Taihe Cheng Medical in the first quarter, and its share price fell all the way in the second quarter. Jinglin lost 96100 shares in the second quarter, leaving a market capitalization of only $50, 000 at the end of the second quarter.

Apple Inc and KE Holdings Inc., who reduced their positions in the first quarter, avoided the sharp fall of KE Holdings Inc. in the third quarter but short of Apple Inc's recent rise.

Apple Inc is one of the stocks that Jing Lin pays close attention to continuously.

In the third quarter of last year, Jinglin entered Apple Inc again, buying 558800 shares with a market capitalization of 54.71 million US dollars, making it the 11th largest stock in that quarter.

Apple Inc's share price rose all the way in the second half of last year. In the fourth quarter, Jinglin continued to increase its position in Apple Inc; as of the end of last year, Jinglin held 1.76 million shares of Apple Inc, with a market capitalization of 233 million US dollars.

After the high point, the share price of Apple Inc traded horizontally after adjustment. Jinglin did not stick to it. In the first quarter, Jinglin reduced its positions by more than 90%, leaving only 169000 shares, and all these shares were cleared in the second quarter.

In addition, for KE Holdings Inc., Jinglin also continued to reduce its holdings until clearance on the basis of the first quarter.

Prior to this, Jinglin bought KE Holdings Inc. as soon as he went public. KE Holdings Inc. went public in August 2020. In the third quarter of last year, Jing Lin held 703800 shares of KE Holdings Inc. and continued to increase his position in the fourth quarter.

At the end of 2020, Jing Lin held 872700 shares of KE Holdings Inc., with a market capitalization of US $53.7 million. KE Holdings Inc. 's share price began to weaken after it reached an all-time high of $79.40 in the fourth quarter of 2020.

In the first quarter, Jinglin reduced its holdings of KE Holdings Inc. shares by more than 90%, leaving only 58600 shares, which were also cleared in the second quarter.

By the end of the second quarter, KE Holdings Inc. 's share price was $47.68. In the third quarter, KE Holdings Inc. 's share price fell sharply again. By the close of August 15, KE Holdings Inc. 's share price had fallen to US $17.80, falling below the issue price. KE Holdings Inc., who cleared the stock in Jinglin in the second quarter, avoided this sharp fall.

With regard to KE Holdings Inc., Gao Yuncheng expressed his understanding of such platform enterprises in October last year.

First of all, high-frequency, low-cost, standard goods or standard services are easy to platform, while low-frequency, high-priced, non-standard things are difficult to platform.

And real estate is a typical low-frequency, high price, non-standard, KE Holdings Inc. made such a low-frequency thing into a platform, in fact, from the perspective of agent, because from the seller's broker, real estate transactions are high-frequency.

Gao Yuncheng thought at that time that this entry point might be right, but he did not come to a final conclusion. This successive reduction and clearance is undoubtedly correct in terms of the stock price trend, but does it mean that KE Holdings Inc. 's logic has been completely broken by platform anti-monopoly? it still needs to be further verified by the market.

The following is the total position data of US stocks in Jinglin in the second quarter: