9th Jun 2026 10:16
(Alliance News) - Fidelity China Special Situations PLC on Tuesday said the long-term opportunity in China remains "compelling" as it reported an increase in full-year net asset value per share.
The Surrey, England-based investment trust, which focuses on long-term growth opportunities in China said the net asset value total return was 10.7% in the financial year ended March 31, outperforming the benchmark MSCI China Index, which returned 1.6% over the same period.
"This was the result of good stock picking, particularly in the IT and consumer discretionary sectors," the trust explained.
NAV per share improved 7.1% to 306.12 pence from 285.71p the year before. The share price returned 9.5% over the same period, with the discount to NAV widening slightly to 8.5% from 7.3%.
On Tuesday, shares in Fidelity China Special Situations traded up 0.5% at 279.50p each in London.
Reflecting the performance, the trust declared a final dividend of 9.00p per share, up 13% year-on-year from 8.00p per share.
Looking ahead, the "steady-as-it-goes" approach by the Chinese government to its own economy and international relations are both positive factors for the outlook for investments in the world's second largest economy, the trust said.
There has not been the "surge" in initial public offers that would suggest an "overheating" market, and valuations remain "reasonable" by international standards, with good earnings growth projected for this year, it added.
The long-term opportunity remains "compelling", in the trust's view.
It said China's 15th five-year plan, covering the period from 2026 to 2030, "aims to provide a blueprint for continued growth in the face of demographic change. Much of the recent growth has come from exports and investment in infrastructure, but the government is keen for consumers to pick up the baton to create a more self-sustaining model that is less dependent on exports, government spending and debt finance."
By Jeremy Cutler, Alliance News reporter
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