China investment trust buoyed by strong consumption recovery (LON:FCSS)

Fidelity China Special Situations PLC (LON:FCSS) January factsheet for the period ended 31 January 2023.

Portfolio Manager Commentary

Sentiment towards the Chinese equities market was somewhat dire over the past year due to concerns over the property sector and the continuation of its Zero-COVID policy. The conclusion of the 20th Party Congress also led to widespread sell-off, which seemed to be overdone. Nonetheless, a faster and earlier-than-anticipated border re-opening is well underway and investor sentiment in China has rapidly turned around on expectation of a strong consumption recovery. A shift towards a pro-growth stance by the Chinese policymakers also improves the country’s economic outlook.

The peak of new regulatory reforms is now behind us. Authorities have laid out the framework around areas such as anti-monopoly, data protection, data sharing and cross-selling within an online ecosystem. Valuations for many such companies have moved to historical lows and look compelling versus their global peers.

Tanker transportation companies benefitted from tailwinds associated with oil demand recovery as air and road traffic regained momentum, thus positions in COSCO Shipping Energy Transportation and China Merchants Energy Shipping advanced. Consumer names also advanced amid hopes of consumption recovery and holdings in MINISO and Luk Fook added value.

Over the 12 months to 31 January 2023, the Trust’s NAV fell by 1.2%, outperforming its reference index, which delivered -2.0% over the same period. The Trust’s share price fell 2.1% over the same period.

Fidelity China Special Situations (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.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Fidelity International

More articles like this

Fidelity China Special Situations

China’s AI revolution: Exploring opportunities in AI stocks

Delve into China’s AI revolution and discover the driving forces behind the rapid surge in AI stocks. From government support to groundbreaking technologies, explore the opportunities and challenges in investing in China’s vibrant AI sector. As

Fidelity China Special Situations

China stock markets rise on upbeat travel data

Stock markets in China rose as traders returned from a long holiday on Monday to upbeat travel data, while Hong Kong stocks fell. The CSI 300 added 0.5% as trading resumed following the Lunar New Year

Fidelity China Special Situations

China stocks rebound as US Fed signals slower rate cuts

China stocks reversed losses on Monday, rebounding off five-year lows, while most Asia markets kickstarted the holiday-shortened week largely lower on fears of higher-for-longer interest rates. The U.S. Federal Reserve Chair Jerome Powell said the central bank

Fidelity China Special Situations

Chinese stocks Gain as confidence returns to investors

Chinese stocks gained again on Thursday as confidence returned to investors in Hong Kong and Shanghai amid positive signs of government stimulus. Meanwhile, Tokyo stocks steadied after slipping lower in recent days. Hong Kong’s Hang Seng

Fidelity China Special Situations

China stocks rebound after a five-day losing streak

China stocks rebounded slightly on Tuesday, after a five-day losing streak, with tourism companies leading the gains amid rising enthusiasm for winter travel, and as some investors bought the dip after blue-chip shares hit a nearly

Fidelity China Special Situations

Investors getting tempted by cheap China stocks

China’s stock markets have been in a slump since early 2021, losing nearly two-thirds of their value — which is making some investors very, very tempted. Almost one-third of 417 respondents to Bloomberg’s weekly Markets Live

Fidelity China Special Situations

China stocks get a new look

A New York-based emerging markets equities fund that has outperformed most of its peers has been adding to its Chinese stock holdings in recent months, as it deemed this year’s relentless selling to be overdone. Pzena

Fidelity China Special Situations

Hong Kong stocks surge in best week since July

Hong Kong stocks surged, heading for their best week in more than four months, after China took measures to spur home sales in top-tier cities. Optimism about an imminent end to global rate hikes also fanned gains. The

Fidelity China Special Situations

China stocks rebound

Chinese stocks staged a sharp recovery in afternoon trading, with a spike in volumes for an exchange-traded fund tracking state-owned shares fueling speculation of buying by state funds.   The CSI 300 Index reversed all of

Fidelity China Special Situations

China stocks rise as cautious investors await policy signals

China stocks slightly edged up on Friday, but the blue-chip benchmark still hovered around nearly five-year lows, as investors remained cautious about the country’s weak recovery and awaited clues from upcoming policy meetings. The blue-chip CSI