This Chinese Hedge Fund Is Unearthing Potential In Chinese Biotech

For all of 2025, Apeiron Capital’s Global Opportunities Fund returned 16.2%, versus the MSCI ACWI’s return of 23.1% and the S&P 500’s 17.9% gain. The hedge fund has returned 58.2% over the last three years and 34.3% over the last five. Apeiron’s annualized return since its inception in February 2017 stands at a healthy 19.9%, versus 15% for the S&P 500 and 12.5% for the MSCI ACWI.

In her 2025 year-end letter to investors, Wanyi Yao cited “AI’s siren call” as a key problem for her fund during the year, as it lifted the broader market indexes. Although Apeiron underperformed versus the indexes due to “tech euphoria,” Yao said her fund’s performance reflects their focus on durability of returns over time.

“As in 2022's reflections on resilience or 2020's lessons from unprecedented times, 2025 challenged me personally to bridge our strengths in consumer, internet and manufacturing with emerging megatrends like AI — even as we prioritized conviction over chase,” she wrote.

Also see: 2025 Sohn Hong Kong Conference: How Wanyi Yao Of Apeiron Capital Constructs a Portfolio of Her ‘Intellectual Brainchildren’

Top contributor: Century Huatong

Yao established Apeiron’s position in Century Huatong in 2024. Describing it as one of their “bolder bets” from the year, she also said it paid off well in 2025. Yao bought shares of Century Huatong during an unusual time. The Shanghai Stock Exchange had slapped a Special Treatment warning on the company in April 2024 following its 2023 annual report, which received a denial of opinion on internal controls.

As a result of that situation, trading restrictions began on May 7, making this the first time Apeiron has invested in an ST-designated stock. Although that red flag was a concern, Yao noted that it created a rare entry point as the company’s valuation plummeted.

She said she was “captivated” by Century Huatong’s subsidiary Diandian Interactive, which she described as a “hidden gem.” Diandian’s robust track record in strategy simulation games had made it a juggernaut in mobile gaming. The company’s games are known not only for their depth but also their high average revenue per user and long lifecycles. However, Diandian’s games have also historically held just a niche within the broader gaming ecosystem.