Die chinesischen Aktienmärkte zeigten im Oktober eine freundliche Kursentwicklung, da es Hoffnung auf Fortschritte im Handelsstreit zwischen den USA und der Volksrepublik China gab. Jing Ning, FondsManagerin des Fidelity China Focus Fund A Acc EUR (WKN A0M94A, ISIN LU0318931192), gibt in ihrem Marktbericht Einblicke in die 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 FondsStrategie SJB Substanz enthaltenen Fidelity-Aktienfonds.
Market Environment
Chinese equities advanced in October, aided by a tentative truce in the US-China trade dispute. However, downbeat economic data releases in China limited gains. In key developments, the US and China were close to reaching an agreement on ‘Phase One’ of their trade deal, and the US suspended the October 15 tariff increase on Chinese goods. In addition, US President Donald Trump indicated that he could sign a trade deal with Chinese President Xi Jinping in November. At the sector level, solid earnings attracted investors towards health care and consumer discretionary stocks. Conversely, weak oil prices and tepid earnings weighed on energy stocks. Sentiment towards the communication services sector weakened amid disappointing earnings. On the economic front, China’s third quarter GDP was slightly slower than expected and exports continued to decline. Meanwhile, retail sales met expectations and new bank lending beat consensus estimates in September. Fixed asset investment was also in line with market estimates for the January–September period.
Fund Performance
The fund delivered positive returns but underperformed the index in October. Security selection in industrial, energy and communication services sector limited gains. Chinese train manufacturer Zhuzhou CRRC Times Electric detracted from returns. The company declared disappointing earnings amid weaker revenue growth and an increase in operating expenses. Resource company CNOOC came under pressure due to volatility in oil prices. Nonetheless, the company announced solid results supported by growth in production and successful execution of exploration activities. The allocation to state-owned telecommunication services provider China Mobile held back returns due to a decline in services revenue. Conversely, the underweight stance in internet services company Tencent added relative value. Expectations of weak advertisement revenue weighed on sentiment towards Tencent. The position in China Life Insurance also contributed to returns. Solid earnings result driven by high growth in the value of new business, healthy investment returns, improving agent productivity and tax-refund benefits buoyed investor confidence.
Fund Positioning
The manager has a value and contrarian style that is reflected in the fund’s positioning. Her bottom-up approach focuses on determining the intrinsic value of a company rather than pursuing themes. As an aggregate of the manager’s security selection process, the fund remains notably overweight in the energy, financials and materials sectors. Among key overweight holdings, China Life Insurance is a beneficiary of long-term structural growth in the Chinese insurance industry. Its new management is focussed on bolstering growth through a favourable product mix and higher agency productivity. Exploration and production company CNOOC is another key position in the portfolio. The company’s cost control and robust production growth supports its long-term outlook. The manager retained exposure to state-owned banks, Industrial & Commercial Bank of China and China Construction Bank. The latter has a solid balance sheet, good asset quality and benefits from steady earnings growth. China Mobile, the largest telecommunications operator in China, is preferred for its steady free cash flow generation and high dividend yield.
