China’s export growth, overseas business expansion and stock market valuations are drawing attention as investors assess the outlook for the world’s second-largest economy. September exports grew at their fastest pace since early 2021, while Chinese companies continue to pursue international growth and value investors identify potential opportunities in listed shares.
China’s exports rose 36.3% year on year in September to US$447.18 billion, while imports increased by 31% to US$313.65 billion. The trade surplus widened to a record US$133.53 billion for the month, highlighting the continued importance of overseas markets to Chinese businesses.
At the same time, Chinese companies are seeking to increase their presence in international markets as they look for new sources of revenue and opportunities to improve profitability. Overseas expansion is becoming an important consideration for businesses facing intense domestic competition and pressure on margins.
Investors are also assessing whether Chinese equities offer value following their relative underperformance against US shares. Supporters of the value-investing approach argue that selected companies trade below their underlying worth, although valuations need to be considered alongside earnings prospects, competition and regulatory risks.
Employment remains another measure of domestic economic conditions. China created 10.52 million urban jobs in the first nine months of 2026, reaching 87.7% of its annual target of 12 million.
The combination of strong exports, international expansion and potentially attractive valuations provides several areas for investors to assess. However, the outlook will depend on the sustainability of overseas demand, companies’ ability to protect profit margins and the strength of domestic economic activity.
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.
