China Tech 6
Calibrated launch value from the rulebook. This basket carries no order panel today.
Why this basket exists
What the construction is trying to capture, who it is built for, and how it is meant to be sized inside a wider allocation.
Chinese consumer-internet with a discount embedded for regulatory risk. Alibaba on e-commerce and cloud, PDD on lower-tier-city consumption and Temu, Baidu on search and the local LLM stack, Bilibili on Gen-Z video, Trip.com on the Asian travel rebound, Grab on the Southeast Asia super-app. All trade well below US peers on every multiple. A contrarian sleeve, not a core holding.
- Equities family · Growth risk tier
- Rule-based, divisor-method NAV
No committee note is published for this basket yet. The text above is its catalogue description; the framing beside it is derived from the mandate and the risk tier.
6 holdings, drawn to scale
Each tile's area is its weight in the basket, so the picture and the table below it are the same data read two ways.
| Holding | Share | Weight | |
|---|---|---|---|
| 01BABAon | 28% | ||
| 02PDDon | 22% | ||
| 03BIDUon | 18% | ||
| 04BILIon | 12% | ||
| 05TCOMon | 12% | ||
| 06GRABon | 8% | ||
| Total | 100% |
Why each name earned its seat
Research notes per constituent: the case for the asset, the regime that suits it, and the risk the seat carries.
- BABAon28%Tactical
Alibaba is the largest Chinese e-commerce and cloud franchise. Discount embedded for regulatory and geopolitical risk.
Performs in China-stimulus and US-China-rapprochement phases. Underperforms in regulatory-tightening cycles and during dollar-strength periods.
China regulatory riskdelisting tail risk - PDDon22%Tactical
PDD Holdings operates Pinduoduo and Temu, the highest-growth Chinese e-commerce platforms.
Performs in China-stimulus and international e-commerce share-gain cycles. Sensitive to tariff and trade-policy news.
tariff exposurecompetitive intensity - BIDUon18%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
- BILIon12%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
- TCOMon12%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
- GRABon8%Growth
Research note pending for this holding. Its weight and its role in the mandate are published above.
What the numbers say
Simulated on historical constituent prices. A Sharpe is only published once the measured window clears 90 days, and drawdowns keep their sign.
Every figure above is simulated on historical constituent prices for a basket that has not traded. It describes how the rules would have behaved, not how they will behave. OCHN6 is part of a public preview.
Max expected loss over the horizon · 95% confidence · historical distribution. There is a 5% chance the actual loss is larger.
| Window | Return | Sharpe | vs BTC |
|---|---|---|---|
| Full window | −23.9% | −0.14 | −0.48 |
| 1 year | +3.6% | 0.14 | +0.97 |
| 6 months | −14.8% | −1.08 | −0.41 |
| 3 months | −11.9% | Not graded | · |
Returns are simulated over each window. A Sharpe is published only once that window clears 90 days, so the shorter rows read Not graded and carry no comparison with bitcoin. Short windows flatter and punish at random; read the full window first and treat the rest as texture.
What could go wrong
Priced off this basket's own weights rather than off a generic disclaimer, so every figure below can be checked against the table above.
Higher beta than the broad market. Drawdowns of 40 to 60% during risk-off regimes are within historical range. Size accordingly.
- Top-name weightLow
BABAon is the largest position at 28%. Capped by methodology but still drives index direction.
- Short price historyHigh
BABAon, PDDon, BIDUon and 3 more have under a year of usable history. Backtest metrics carry wider error bars.
- Routing dependenceMedium
Routes through Dinari (stocks) and Backed Finance (ETFs). Settles on the EVM rail. KYC at the OLTA layer, not available in the US today.
- Deep historical drawdownMedium
Max drawdown reached −70% in the backtest window. Size accordingly.
| Scenario | Loss on net asset value |
|---|---|
| BABAon loses half its valueLargest holding, 28.0% of the basket | −14.0%Mechanical |
| The three largest holdings fall 30%BABAon, PDDon, BIDUon · 68.0% of the basket together | −20.4%Mechanical |
| The deepest simulated fall repeatsRecorded once in the window, 482 days to recover | −69.8%Recorded |
| A bad month, one in twenty95% historical value at risk over 30 days | −18.6%Measured |
The mechanical rows hold every other holding still, which is the optimistic case. This basket measured 0.24 correlation to bitcoin over its window, which is loose enough that the holdings can move apart. Even so, a shock rarely lands on one name alone. Read the figures as a floor on the damage, never a ceiling.
The research behind the construction
Tokenized equity execution is not open yet
Single stocks route through Dinari and ETF coverage through Backed Finance, settling on the EVM rail once identity checks clear. The execution surface for this family arrives with the next release. Composition, weights and the measured record above are current.