# Investing in Chinese stocks: sentiment “optimistic” on upbeat data (LON:FCSS)

- Link: https://www.directorstalkinterviews.com/investing-in-chinese-stocks-sentiment-optimistic-on-upbeat-data-lonfcss/4121158317
- Published: 2024-05-22T10:17:14+01:00
- Author: Amilia Stone

**[Fidelity China Special Situations](https://www.directorstalkinterviews.com/company/fidelity-china-special-situations/fcss.l)**(
LON:FCSS) has announced its monthly summary for April 2024.

**Portfolio Manager Commentary**

China is at a different point in the economic cycle compared to the West. Risks 
of an economic slowdown have increased in the US and Europe amid higher interest
rates. Inflation has not been a problem in China and the government is taking measures
to stimulate investment and consumption. Investor sentiment towards Chinese markets
has turned somewhat optimistic amidst better-than-expected GDP growth and upbeat
travel and economic activity data over the Chinese New Year holiday pointing towards
a continued recovery in growth. Consumer confidence remains soft, mainly due to 
a weakened property market, but the government is addressing this by implementing
various measures. A substantial amount of household savings sets the stage for an
upswing in consumer spending once confidence is restored. Valuations in the Chinese
equity market are very compelling both in historical terms and vs other markets.

Security selection within the consumer discretionary sector enhanced gains and holdings
in Hisense Home Appliance and Crystal International advanced. Shares in BC Technology
rose amid the overall strength of cryptocurrency prices. Logistics company Sinotrans
benefited from stable earnings and improved dividends.

Over the 12 months to 30 April 2024, the Trust’s NAV decreased by 4.5%, outperforming
its reference index, which delivered -6.4% over the same period. The Trust’s share
price declined 3.7% over the same period.

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**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.

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