China’s accelerating demand signals a wider reach for regional opportunity

Fidelity China Special Situations

China’s economy expanded by 5.3% in the first half of 2025, a figure that surpassed market expectations and reinforced its standing as the anchor of Asian demand. Beyond the headline, the detail matters: electricity consumption passed the one trillion kilowatt-hour mark in a single month, the first time this milestone has been reached. That volume represents a doubling in a decade, signalling not just short-term output but the deepening of industrial intensity. For an investor watching global demand pathways, this level of energy absorption indicates a sustained production cycle capable of supporting export activity, supply chain resilience and capital deployment into associated markets.

Pakistan sits at a critical junction in this dynamic. Its economic fortunes are closely interwoven with China’s, through both bilateral trade and the infrastructure arteries of the China-Pakistan Economic Corridor. The more China grows, the more momentum feeds through pipelines of demand for materials, logistics and services that Pakistan can supply. The numbers suggest this is not an abstract connection but a tangible multiplier. Rising Chinese electricity use, for example, reflects higher factory output, which in turn requires continued inflows of raw and intermediate goods. Pakistan, with geographic advantage and preferential access, is positioned to provide them.

Looking ahead, the significance of China’s forthcoming Five-Year Plan cannot be overstated. Scheduled for release in October 2025, the plan will set priorities for industrial investment, technology, and energy allocation through 2030. For Pakistan, the substance of that blueprint will directly shape the rhythm of bilateral cooperation. Should Beijing emphasise export-led manufacturing, demand for corridor infrastructure and energy connectivity will intensify.

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.

Share on:
Find more news, interviews, share price & company profile here for:

Fidelity China Special Situations factsheet: annual returns rise to 53.9% in July

China’s stimulus measures supported domestic demand and economic resilience in 2025, with strong industrial production and retail sales. Policy support and fiscal spending helped performance, although challenges in real estate and US-China trade tensions remained.

China-focussed UK stock FCSS reports 27% annual share price rise

China’s stimulus drove economic recovery, with stock selection in Hesai Group, LexinFintech and VNET adding value despite underweights in Xiaomi, Xpeng and Tuhu, while over the 12 months to 30 June 2025 the Trust’s NAV rose 28.0% and its share price gained 27.3%, outperforming the reference index’s 23.4%.

Investing in China Funds Offers Most Attractive Entry Point Now

Why current market dislocations may present compelling opportunities for discerning long-term investors.

Top China fund FCSS posts 15.1% share price gain

China’s resilient economic momentum and targeted stimulus provided a constructive backdrop, with standout gains from AI and fintech holdings helping the Trust deliver a strong double-digit NAV rise over the year.

Fidelity China Special Situations (FCSS) Annual Financial Report 2025

Fidelity China Special Situations delivers its strongest annual performance since 2021, increased its ordinary dividend by 25 per cent, and continued to narrow the share-price discount while maintaining a disciplined approach to gearing and costs

Fidelity China Special Situations buoyed by Q1 GDP, policy support and investor sentiment

Fidelity China Special Situations (LON:FCSS) reports on April 2025, highlighting China's economic resilience and the impact of stimulus measures on market trends.

Search

Search