Fidelity China Special Situations (LON:FCSS) has announced its monthly summary for September 2025.
Portfolio Manager Commentary
China’s stimulus measures reflect a strong commitment to boosting domestic demand, aiming to drive earnings growth and economic recovery. Accelerated policy support and fiscal spending, alongside some improvement in consumer sentiment aided performance. Enhanced liquidity and increased market participation by retail investors also lifted sentiment. However, challenges persisted, particularly in the real estate sector. Announcement of high tariffs by the US on Chinese goods led to retaliatory measures from China. Nevertheless, subsequent willingness of the US administration to engage in negotiations helped ease tensions in the last a few months.
Hesai Group saw significant growth after announcing plans to scale its production to meet rising demand for LiDAR technology. LexinFintech also contributed notably amid interest from institutional investors and solid earnings. An underweight position in Meituan proved rewarding as the stock declined due to intense price wars and falling margins. Conversely, relative performance was affected by the lack of exposure to Xiaomi, as we prefer more supply chain and components name in electric vehicle theme. An underweight position in Alibaba also dragged as Chinese technology stocks had a good run with the artificial intelligence enthusiasm. Over the 12 months to 30 September 2025, the Trust’s NAV increased by 46.9%, outperforming its reference index, which delivered 30.3% over the same period. The Trust’s share price increased 54.3%.
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.
