# Fidelity Emerging Markets Limited: Chinese equities rose in December (LON:FEML)

- Link: https://www.directorstalkinterviews.com/fidelity-emerging-markets-limited-chinese-equities-rose-in-december-lonfeml/4121105082
- Published: 2023-02-09T07:39:47+00:00
- Author: Amilia Stone

**[Fidelity Emerging Markets Limited](https://www.directorstalkinterviews.com/company/fidelity-emerging-markets-limited/feml.l)**(
[LON:FEML](https://www.directorstalkinterviews.com/company/fidelity-emerging-markets-limited/feml.l))
has published its fact sheet for the period to 31 December 2022.

**Portfolio Manager Commentary **

Emerging markets declined in December after a strong rebound in November. However,
they outperformed developed markets. Sentiment turned negative after the Fed reinforced
its hawkish stance on inflation-fighting monetary policy and delivered a 50- basis-
point rate hike. 

At the regional level, emerging Asia was the best performer with Chinese equities
rising on the back of the easing of COVID-19 restrictions in more cities. On the
commodity front, oil prices fell during a volatile month, as recessionary fears 
were replaced by hopes of the positive effects of China reopening. The portfolio’s
positioning in China dragged on performance, although there were many Chinese stocks
among the key contributors to relative returns. These were dominated in areas such
as ecommerce, travel, and a series of consumer stocks. 

At the sector level, IT stocks weighed on performance, with both South Korean and
Taiwanese stocks among the detractors. Market participants worried about the Fed’s
desire to tackle inflation, while the outlook for the tech sector was marred by 
concerns that the industry could be loss making. While these remain challenging 
times for the industry, we believe that those concerns are largely reflected in 
the price, and overall, this highly consolidated industry has robust prospects when
taking a medium-term view. 

On a rolling 12-month basis, the Company recorded NAV and share price returns of-
24.1% and -25.0% respectively, compared to -10.0% for the index

[FEML-Dec-fact-sheet](https://www.directorstalkinterviews.com/wp-content/uploads/2023/02/FEML-Dec-fact-sheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2023/02/FEML-Dec-fact-sheet.pdf)

**Fidelity Emerging Markets Limited** (LON:FEML) is an investment trust that aims
to achieve long-term capital growth from an actively managed portfolio made up primarily
of securities and financial instruments providing exposure to emerging markets companies,
both listed and unlisted.

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