Since the start of February Chinese stocks have rallied significantly, outperforming even US tech stocks over the period.
The month-long rally has pushed China’s stock market indices higher as the nation sets a bullish target of 5% GDP growth for 2024.
But the world’s second largest economy has been struggling with a downturn in its property market and stubborn deflation both serving as a drag on economic growth.
Although some fund managers have been hesitant to re-enter Chinese stocks on fears that the market has yet to bottom out, some China strategies have posted double digit gains over the past month.
Below are the five top-performing actively managed funds from 2 February 2024 which at the time of writing, 6 March 2024, marked a temporary bottom in Chinese stocks.
ChinaAMC New Horizon China A Share
This fund, run by China Asset Management, is up 20.9% over the recent month-long period, but down 38.61% over the past year.
The strategy invests in Chinese A-Shares listed on the SSE and SZSE, in companies with significant exposure to mainland China, with over half of its portfolio currently invested in the IT sector, versus 16.51% in its benchmark.
BOCIP China-A Small and Mid Cap
This strategy offered by Bank of China International, is managed by Prudential Asset Management. It is up 20.74% over the past month or so, but down 11.92% over a one-year period.
This strategy predominantly invests in small and mid-cap Chinese stocks, which include the likes of Suzhou TFC Optical, Eoptolink Technology and Shenyang Xingqi Pharmaceuticals.
JPMorgan China Emerging Power
This fund offered by J.P. Morgan Asset Management is run by Du Meng. It is up 17.83% over the past month or so, but down 17.66% over a one-year period.
It invests in stocks in industries with new impetus for growth. Its largest holdings include Zhongji Innolight, Zhejiang Dahua Technology and Suzhou TFC Optical Communication.
Schroder ISF China A All Cap
This fund is run by Maggie Zheng, it is up 17.42% over the recent month-long period, but over the past year it is down 22.15%.
The all-cap strategy invests across all market capitalization but its largest holdings are in the large-cap Chinese stocks which include the likes of Kweichow Moutai and Ping An Insurance Group.
Pictet Asset Management China Environmental Opportunities
This fund, managed by Pictet’s Yi Du, invests in Chinese environmental solutions providers. It has rallied 17.38% over the past month or so, but since it launched in April 2023, it is down 26.11%.
Its largest holdings are in Nari Technology Development, Zhejiang Shangfeng Industrial and Hangzhou First Applied Material.
*The top-performing funds were measured in USD currency terms. The performance figures are based on data from FE fundinfo between 2/2/2024 to 6/3/2024. The data only included actively managed funds that fall under the China, Greater China and Hong Kong equity sectors within the Hong Kong SFC Authorised Mutual and Singapore Mutual fund categories as classified by FE fundinfo.
