Momentum emerges from a narrow corner of Chinese tech

Fidelity China Special Situations

Chinese equities edged modestly higher at the start of the week, but the real story is not in the indices. A sharp rotation unfolded within the technology complex, with manufacturers tethered to global supply chains moving decisively ahead of the broader market. Gains were most pronounced in a concentrated group of Apple-related suppliers and AI hardware players, several of which triggered limit-up moves on the day.

What stands out is the nature of the move: not thematic, not policy-led, but seemingly catalysed by tangible commercial activity. A surge in demand visibility, underpinned by signals of increased integration with international AI platforms and smartphone cycles, has drawn fresh capital into a segment of the market often treated with caution.

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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