On July 15, Bloomberg reported that Chinese hedge funds, which have profited significantly this year from heavy investments in AI-related stocks, are beginning to gradually reduce their risk exposure. They have warned investors to remain highly vigilant regarding signals that this rebound may not be sustainable. An investor letter revealed that the 'Growth Strategy No. 3 Fund' under Shanghai Everlead Capital achieved a return of up to 164% as of May 31 this year. The firm has informed investors that they have recently cut back on their positions in optical communication and advanced packaging companies. Additionally, another private equity firm, Hunjin Capital, which manages over 5 billion yuan, indicated in a May investor letter that its 'Yueyang G1 Fund' had increased by one-third in the first five months of this year and has also sold some AI stocks. Their reasoning is based on concerns that the magnitude and speed of this surge are too great. Nevertheless, these funds have not yet issued warnings of an impending 'bubble burst.' Some institutions point out that solid industry fundamentals and real performance are driving this rebound, but they are also closely monitoring potential critical points that could trigger larger-scale cash-out exits. These institutions have identified specific trigger signals that, once reached, will prompt more significant cash-out exits.