Fidelity China Special Situations (LON:FCSS) has announced its monthly summary for June 2026.
Portfolio Manager Commentary
Chinese equities declined over the 12 months. Markets were initially supported by optimism around innovation-led growth themes, but these gains were later reversed amid concerns over renewed regulatory scrutiny, limited exposure to direct artificial intelligence (AI) beneficiaries relative to other regional markets, geopolitical developments, and broader macroeconomic uncertainty. Economic data remained mixed, with inflation returning to positive territory after a prolonged period of deflationary pressure, property activity in top-tier cities stabilising and consumption remaining subdued. Looking ahead, we view the policy backdrop as broadly supportive. Structural and technology reforms, a recovery in domestic demand and gradual policy-led stabilisation in the real estate sector are likely to provide support for Chinese equities.
At the stock level, Zhongji Innolight advanced on rising demand for optical connectivity solutions supporting AI applications. ByteDance gained on optimism around its AI strategy, strong revenue growth and improving sentiment towards TikTok’s US operations. Conversely, HashKey Holdings detracted amid weaker sentiment towards digital assets. Elsewhere, the lack of exposure to Hua Hong Grace Semiconductor held back relative returns as its shares rallied on AI-related themes across the region.
Over the 12 months to 30 June 2026, the Trust’s NAV increased by 0.5%, outperforming the index, which returned -1.9%. The Trust’s share price rose 2.4%.
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.
