China is a market that investors simply cannot ignore. Despite being the epicentre of the pandemic and at the helm of geopolitical tensions, it had the best performance of any major stock market last year and innovation is proceeding in some Chinese companies at a rate second to none. But there are concerns about bubbles forming in some sectors.
In this interview, Dale Nicholls, manager of Fidelity China Special Situations, says there are still plenty of companies with great growth potential at reasonable prices - albeit not as attractive as they were a year ago, since when the fund’s share price has doubled.
Mr Nicholls describes how he offers broad access to the Chinese economy by focussing on companies that serve the enormous power of China's growing middle classes. He talks about why he is not concerned about frenetic private investor trading in China driving a bubble, and how the Chinese stock market has matured since the 2015 market crash.
He also divulges how he navigates social and governance considerations in China and shares his thoughts on how regulation might fall on the country’s largest internet companies.