Total above‐ and below‐ground biomass across fenced and unfenced quadrats increased with increasing altitude up to 4950–5100 m, and then decreased above 5100 m. Altitudinal trends in leaf δ13C and water potential of dominant species also showed a unimodal pattern corresponding to that of vegetation biomass. Total above‐ and below‐ground biomass as well as sedge above‐ground biomass all showed a quadratic relationship with mean temperatures and the ratio of growing season precipitation (GSP) to ≥5 °C accumulated temperature (AccT; R2 = 0.83−0.88, P < 0.001). In general, above‐ and below‐ground biomass increased with increasing water availability when the GSP/AccT ratio was lower than the threshold level of 0.80–0.84, but decreased when the GSP/AccT ratio was higher than this threshold level. No significant relationship was found between residuals of above‐ground biomass and species richness after removing the effects of climate factors on both stand variables.