Chinesische Aktien verzeichneten ein erfolgreiches viertes Quartal und profitierten von der Ankündigung eines Handelsabkommens zwischen den USA und China. Auch die Bekanntgabe neuer Infrastruktur-Massnahmen durch die chinesische Regierung sowie die Senkung der Zinssätze durch die Zentralbank wirkten sich positiv auf den Fidelity China Focus Fund A Acc EUR (WKN A0M94A, ISIN LU0318931192) aus. FondsManagerin Jing Ning analysiert in ihrem aktuellen Marktbericht Portfoliostruktur und Performance des auf günstig bewertete Unternehmen aus dem “Reich der Mitte” fokussierten FondsProduktes. In ihren Managersichten erhalten SJB Investoren die neuesten Informationen über den in der Strategie SJB Substanz enthaltenen Fidelity-Fonds.
Market Environment
Chinese equities rebounded sharply over the quarter amid receding US-China trade tensions and policy stimulus measures implemented by the government. In key developments, a partial trade truce was reached between the US and China, with the ‘phase one’ trade deal likely to be signed in January. The US also indefinitely delayed new tariffs that were set to take effect on 15 December on over $160 billion of Chinese imports. On the economic front, shifting dynamics of the US-China trade war and weaker domestic demand weighed on the Chinese economy, which grew at its slowest pace in nearly three decades in the third quarter. Against this backdrop, China announced its plans to step up investments in infrastructure, including railways, highways, waterways and civil aviation, and brought forward its local government bond issuance quota for 2020 worth 1 trillion yuan. China’s central bank reduced the interest rate on its one-year medium-term loan, 7-day and 14-day reverse repurchase agreements, and the new benchmark one-year loan prime rate. It also guided commercial banks to convert old benchmark lending rates into loan prime rates for existing and new loan books. Value lagged growth during the quarter as investors continued to pursue stocks they believed would offer earnings consistency and thus were willing to pay a premium valuations for such names.
Fund Performance
The fund posted healthy returns but underperformed the index over the quarter as value names lagged growth stocks. At a sector level, an underweight stance in consumer discretionary negatively impacted relative returns. Security selection in the information technology (IT) and industrial sectors held back gains and offset the contribution from rewarding stock picking in financials and consumer staples.
Short-term concerns weighed on selected holdings
Chinese train manufacturer Zhuzhou CRRC Times Electric declined due to disappointing earnings. State-owned telecommunication services provider China Mobile slid amid concerns over weak revenue and margin pressure from the rollout of fifth-generation (5G) technology. Meanwhile, automobile manufacturer Dongfeng Motor detracted from returns amid concerns that the company would not increase its dividend payout.
Bias against ADRs hampered relative returns
An underweight holding in Alibaba hampered relative performance. The company reported healthy earnings and its listing in Hong Kong was received well by investors.
Robust sales boosted preferred holdings
Cement producer Anhui Conch Cement advanced on strong sales and expectations of higher product prices. Property developer China Overseas Land and Investment gained due to favourable liquidity in the broader economy and policy relaxation to release more home purchase quota. Merger and acquisition activity lifted selected staples holdings such as China Agri-Industries and Springland International.
Fund Positioning
I continued to adhere to my long-standing investment style, with exposure to companies that provide earnings visibility over a three to five-year horizon. I remain focused on wellmanaged businesses that have a long runway of growth and are beneficiaries of the structural shifts in China.
Retain conviction holdings
China Life Insurance is an attractively valued beneficiary of long-term structural growth in the Chinese insurance industry. Its management is strategically focussed on enhancing its product mix and improving agent productivity. I retain conviction in Lenovo as the personal computer cycle remains strong. The replacement cycle also has more room to grow, while the company is focusing on higher growth premium segments. The outlook for its datacentre business is also encouraging.
Favour state-owned enterprises (SOE)
China Overseas Land and Investment is a leading residential developer in China. As an SOE, it is a beneficiary of low financing cost and easy access to credit versus its private sector peers. The company is well positioned in tier 2 cities and has a solid pipeline of un-booked contracted sales. Its management is considering a second round of share incentives, which will potentially include mid-level employees. Exploration and production (E&P) company CNOOC is another key position in the portfolio. The company raised its five-year production target, maintains an excellent cost profile and is likely to retain a consistent dividend strategy. It is one of the very few global E&P companies to offer both growth and yield opportunity
