Fidelity China Special Situations May Factsheet, China equities rally

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

Portfolio Manager Commentary

Chinese equities rallied in the recent months, recouping some of previous losses. Investor sentiment has turned relatively optimistic amidst better-than-expected GDP growth and upbeat tourism data for the May holiday week. Meanwhile, the market has positively responded to the government’s extended policy stimulus to revive demand and reduce housing inventory for the ongoing property slump. Recently introduced measures to encourage Chinese companies to either issue higher dividends or buy back more shares to improve total shareholder returns are now beginning to deliver positive results for shareholders, which has also supported investor confidence. At the same time, valuations in the Chinese equity market still present attractive opportunities, comparing with other major markets.  

Security selection within the consumer discretionary sector enhanced gains and holdings in Hisense Home Appliance and Crystal International advanced. Shares in BC Technology rose amid the overall strength of cryptocurrency prices. Sentiment towards logistics company Sinotrans benefited from its growing revenue amid an increase in export volumes and freight rates. Enhanced shareholder returns also supported sentiment. 

Over the 12 months to 31 May 2024, the Trust’s NAV increased by 8.9%, outperforming its reference index, which delivered 1.5% over the same period. The Trust’s share price advanced 10.1% over the same period.

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

Stocks surge in China on positive economic developments

Stocks in China and Hong Kong experienced a notable rebound on Wednesday, as investor sentiment was buoyed by encouraging reports. A Reuters article revealed that China is preparing for a record budget deficit for 2025, alongside

Fidelity China Special Situations

China’s policy shift sparks market rally

Stocks surged and China’s government bonds saw a significant rally after the Politburo indicated a change in its monetary policy, signalling further easing measures in the near future, similar to strategies used during past crises. The

Fidelity China Special Situations

China’s economic recovery gains momentum

China’s economic landscape as 2024 nears its close reflects a mix of cautious optimism and enduring hurdles. McKinsey’s latest insights highlight both resilience and uncertainty, with the year characterised by consumer spending shifts and Beijing’s stimulus

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