In this note, we give our view on Chinese government policies, putting into perspective their objectives, the potential risks and upsides, and how fundamentals and sentiment may be affected. We note both negative and positive market reactions to recent events. We also update investors on themes in recent notes, including i) economic forecasts (still showing to be well above developed economies’ growth and resilience), ii) regulatory risk (on hold for a while), and iii) the geopolitical environment (easing most recently). Stock selection is critical to FCSS’s performance, but, as a geared play, FCSS can be affected by market sentiment.
If you'd like to be introduced to the team at Fidelity China Special Situations Plc, get in touch.Request a meeting