These three Chinese stocks are set to profit from strong tailwinds

Professional investor Dale Nicholls of the Fidelity China Special Situations Trust picks three of his favourite Chinese stocks.

Bronze statue of a bull on the Bund Shanghai China
China has maintained a loose monetary policy, which tends to be good for markets
(Image credit: © Islemount Images / Alamy)

Rising inflation and economies on the brink of recession are dominating headlines across most global markets. But it is crucial to maintain a long-term perspective during volatile times. I remain focused on companies with strong long-term prospects trading at reasonable valuations. Good risk-reward opportunities often emerge during periods of volatility.

The US and European countries have begun tightening monetary policy to counter inflation, but China has maintained an easing stance, which history shows often supports markets. This monetary policy, combined with structural tailwinds such as growing self-sufficiency, increasing disposable incomes and rising domestic consumption, provides investment opportunities in the Chinese market.

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Dale Nicholls

Dale Nicholls is manager of the Fidelity China Special Situations Trust.