Now may not seem the best time to invest in China. But a market rout is exactly the time to pick up bargains, says Dale Nicholls, manager of Fidelity China Special Situations (LSE: FCSS). Last month, he said that the recent correction in stocks was "overdone and creating good buying opportunities" in a long-term bull market. "If I've got a firm I'm very confident about over the long term and the valuation is at a reasonable level, the earnings should come through and the stock prices should follow," he tells Leonora Walters at Investors Chronicle.
Nicholls has managed the investment trust created by Anthony Bolton since 2014. It came under fire during Bolton's stewardship due to poor performance. However, Nicholls has enjoyed a strong first year at the helm delivering a 32% return over the year to July, and beating the fund's benchmark. The trust overall has returned 117% over three years and 76% over five. Its goal is to generate capital growth by investing in Chinese-quoted and Hong Kong-listed stocks. It focuses on firms with decent cash generation and strong management.
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| Tencent Holdings | 8.40% |
| Ping An Insurance Co | 5.90% |
| China Pacific Insurance | 3.50% |
| Shanghai International Airport | 3.50% |
| China Lodgings Group | 2.74% |
| Citic Telecom | 2.40% |
| NetEase Plc | 2.30% |
| Hutchison China Meditech | 2.20% |
| Citic Securities | 2.10% |
| Lee Pharmaceuticals | 2.00% |
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