The Chinese equity market has provoked strong views in recent times. The sudden shift in market sentiment resulted in Chinese stocks tearing ahead, delivering big gains for many Asian equity funds. That was turned on its head in the following two years: first a fierce regulatory crackdown on the internet majors and sectors such as real estate spooked investors. Some dubbed the region uninvestable and even Scottish Mortgage Investment Trust‘s (SMT) managers have rowed back on their enthusiasm for Chinese tech majors (see ‘How cheap is Scottish Mortgage?’ IC, 18 November 2022). Alongside this were the challenges posed by the countries zero-Covid policy and rolling lockdowns.
- Chinese equities are back in fashion but trusts focused on this market continue to trade on discounts
- Fidelity China Special Situations is the largest single-country China investment trust
- It is focused on companies that could benefit from an increase in consumer spending
Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.