Fidelity China Special Situations advances on robust stock selection (LON:FCSS)

Fidelity China Special Situations (LON:FCSS) has announced its monthly summary for June 2024.

Portfolio Manager Commentary

Chinese equities retreated in June, giving back some previous gains early this year. Investor enthusiasm was initially supported by an upbeat first-quarter GDP reading, strong tourism data, real estate policy support and reforms rewarding shareholders. However, the market reversed following a slew of recent softened economic data. Overall, performance has broadly been led by large-cap national champions with more stable earnings and cash flows, that provide a higher share of their returns through dividends. Thus, state-owned enterprises (SOEs) prevalent in the ‘old economy sectors’ such as utilities, energy, and banks have led market gains. Meanwhile, ‘high-growth’ sectors, such as technology, health care and consumer-focused industries, have lagged.

Nonetheless, despite market headwinds, robust security selection across consumer names, industrials, health care and information technology contributed to the Trust’s outperformance. Notable contributors within the consumer discretionary sector included long-term positions in Hisense Home Appliance, Crystal International, JNBY Design, while industrials holdings in Sinotrans also added value.

Over the 12 months to 30 June 2024, the Trust’s NAV remained unchanged and outperformed its reference index, which delivered -1.1% over the same period. The Trust’s share price advanced 2.3%.

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

More articles like this

Fidelity China Special Situations

Positive momentum in Hong Kong’s stock market

Hong Kong stocks advanced for a second consecutive day, driven by optimism about China’s support for the city’s financial market. This has reinforced its position as a key financial hub. The Hang Seng Index gained 0.4

Fidelity China Special Situations

China stocks rise as traders brace for a key week

China’s stock markets saw a positive trend on Monday, as traders prepared for an eventful week. With a US election looming, potential changes in interest rates, and a significant policy meeting set to take place in

Fidelity China Special Situations

Modest gains for China’s stock market as tech shares lead

China’s stock market experienced modest gains on Monday, driven primarily by technology shares. This followed Beijing’s announcement of new initiatives aimed at supporting innovative tech companies. Additionally, the country cut its benchmark lending rates, contributing to

Fidelity China Special Situations

Chinese stocks surge amid aggressive stimulus measures

Chinese stocks experienced a remarkable surge, marking their largest single-day gains in 16 years, driven by new stimulus measures from Beijing. The domestic A-shares reached record turnover as investors rushed to capitalise on the ongoing rally.

Fidelity China Special Situations

China’s economic stimulus sparks Asian stock surge

China’s stock market experienced its strongest week since 2008, driving Asian shares to their highest level in two and a half years. This surge was largely attributed to Beijing’s launch of a substantial stimulus package aimed

Fidelity China Special Situations

China’s growing influence in global investment and cooperation

China’s efforts to attract and utilise foreign capital are strengthening, leading to new developments in two-way investment. Amid global challenges and declining cross-border investment, the country has been actively promoting its attractiveness in opening up and

Fidelity China Special Situations

Optimism grows for China’s market recovery

Sumitomo Mitsui DS Asset Management recently expressed confidence that China has passed its most challenging period, despite ongoing concerns in the property sector. The firm believes that Chinese equities now present an attractive investment opportunity, given

Fidelity China Special Situations

Positive developments in Chinese markets as stimulus hopes rise

Speculation around potential new economic policies from Beijing gained momentum on Monday, sparking optimism in the Chinese markets. Reports from China Daily highlighted insights from three economists affiliated with government-backed think tanks, who urged Beijing to

Fidelity China Special Situations

China to enhance reform efforts with new focus

China is set to implement targeted strategies to increase the impact of its ongoing reform initiatives, aiming for significant progress in the future, according to a State Council official. During its third plenary session from July

Fidelity China Special Situations

China stocks see modest gains amid robust import growth

China stocks experienced a modest rise on Wednesday, driven by robust import growth according to the country’s trade data, although gains were tempered by weaker-than-expected export figures. Hong Kong shares also saw an increase. In July,

Fidelity China Special Situations

China’s Politburo endorses long-term economic strategy

China’s Politburo has endorsed the Communist Party’s long-term economic strategy, emphasising increased consumer spending and the elimination of unproductive companies to foster a “survival of the fittest” environment. Following a meeting with the party’s top 24