Fidelity China Special Situations (LON:FCSS) has announced its monthly summary for May 2026.
Portfolio Manager Commentary
Over the past 12 months, Chinese equities experienced volatility amid trade frictions before rebounding on renewed optimism around innovation-led growth. A temporary US-China tariff truce and increased global interest in China’s technology ecosystem supported sentiment, although geopolitical developments and broader macroeconomic uncertainty continued to influence markets. Mixed economic data, particularly across consumption, property activity and industrial production, remained a headwind. Looking ahead, structural reforms and continued policy support, alongside a gradual recovery in domestic consumption and stabilisation in the real estate sector, are expected to underpin Chinese equities.
At the stock level, Zhongji Innolight advanced on rising demand for optical connectivity solutions linked to artificial intelligence, while Impro Precision Industries benefited from strong earnings momentum driven by data centre demand. Conversely, Pony AI declined following weaker results, reflecting elevated research and development spending. Elsewhere, HashKey Holdings detracted amid ongoing profitability concerns.
Over the 12 months to 31 May 2026, the Trust’s NAV increased by 15.1%, outperforming the index, which returned 6.2% over the same period. The Trust’s share price increased by 17.1%.
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.
