Capital at risk
China
We aim to navigate China’s complex markets by identifying the most exciting growth firms, regardless of where they’re listed, their size or weight in an index.
The speed and scale of China’s development make it a rich hunting ground for opportunities.
A differentiated approach in an inefficient, under-researched and short-term market can add significant value.
Short-term market meets long-term investor
A deliberately selective investment approach, helping our clients benefit from China’s engines of growth for the next decade.
China: our philosophy
Investment manager Sophie Earnshaw introduces the China Strategy, reflecting on the exciting opportunities ahead.
Hunting for growth in a growing market
To deliver long-term capital gains, we look for businesses that enjoy sustainable competitive advantages and which we believe will grow their earnings significantly faster than the market average. This requires fundamental research, active engagement and an ability to ignore large parts of the index.
Active management is critical for assessing the risks and opportunities. China is a poorly researched investment universe dominated by short-termism, which makes it an exciting one for patient, curious stock pickers.
Diverse perspectives
An active and engaged approach allows us to navigate over 6,000 companies and deliver a portfolio of just 40-80 Chinese growth stocks.
We benefit from global and local knowledge with a team based across Edinburgh and Shanghai.
Our differentiated horizons, perspectives and relationships provide insights that help us spot opportunities early and exploit persistent inefficiencies.
We have been investing in China since 1994 with a philosophy focused on long-term returns. Our dedicated China Strategy was launched in 2006.
We have always been interested in disruption, no matter where it might occur. It’s this intellectual curiosity that continues to draw us to China’s innovative companies.
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Portfolio construction group
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Strategy portfolio holdings
A list of the top 10 holdings that the representative portfolio invests in.
All figures up to: 31 October 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | Tencent | 9.5% |
| 2 | Meituan | 7.9% |
| 3 | Alibaba | 6.1% |
| 4 | Kweichow Moutai | 4.5% |
| 5 | Ping An Insurance | 3.9% |
| 6 | PDD Holdings | 3.9% |
| 7 | CATL | 3.6% |
| 8 | China Merchants Bank | 3.4% |
| 9 | BYD Company | 2.9% |
| 10 | Midea | 2.7% |
Please note
The information contained on this page is intended as a guide only and should not be relied upon when making investment decisions. All holdings information is unaudited. Source Baillie Gifford & Co. Please note that totals may not add due to rounding.
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Insights
Key articles, videos and podcasts relating to the strategy:
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Insights
China Strategy: manager update
An update on the investment landscape in China, portfolio changes, and key risks and opportunities on our radar.
China Q3 update
The China Team reflects on recent performance, portfolio changes and market developments.
Kweichow Moutai: spirit of China
The fiery spirit that’s a profitable symbol of Chinese culture and luxury.
China Q2 update
The China Team reflects on recent performance, portfolio changes and market developments.
China Q4 update
The China Team reflects on recent performance, portfolio changes and market developments.
China: fear or FOMO?
Ben Buckler on how investors should steer between the twin poles of risk in China.
Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
China Q3 update
The China Team reflects on recent performance, portfolio changes and market developments.
Finding China’s A-share jewels
The country’s domestic markets are rich in companies with the know-how to become global leaders.
China Strategy
Investment manager, Sophie Earnshaw, discusses the Baillie Gifford China Strategy.
China Q2 update
The China team reflects on recent performance, portfolio changes, and market developments.
China’s energy paradox
How should you consider the country – carbon culprit or climate saviour?
The ‘S’ of ESG: intangible value
ESG experts Marianne Harper Gow, Ed Whitten and Abhi Parajuli talk about the Social aspect of ESG in the context of investing.
The real case for China
Willingness to change gives Chinese firms an innovation advantage.
China’s gen Z+
How the digital natives’ wants and needs create opportunities for forward-thinking Chinese companies.
China - adjusting the lens
The future is inherently uncertain, but the acceleration of disruption, developments in innovation and shifts in consumption patterns will create winners and losers. China will play a critical role.
Governance in China: risk or opportunity?
Growing familiarity with China’s markets invites closer examination of governance at a country and corporate level. A company by company approach is vital to limit the risks and find the opportunities, writes Ben Lloyd.
Changing China
Ben Buckler explores the A share opportunity in China.
China: our philosophy
Investment manager Sophie Earnshaw introduces the China Strategy, reflecting on the exciting opportunities ahead.
China Strategy: manager update
An update on the investment landscape in China, portfolio changes, and key risks and opportunities on our radar.China Q3 update
The China Team reflects on recent performance, portfolio changes and market developments.Kweichow Moutai: spirit of China
The fiery spirit that’s a profitable symbol of Chinese culture and luxury.China Q2 update
The China Team reflects on recent performance, portfolio changes and market developments.China Q4 update
The China Team reflects on recent performance, portfolio changes and market developments.China: fear or FOMO?
Ben Buckler on how investors should steer between the twin poles of risk in China.Why growth, why now?
Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.China Q3 update
The China Team reflects on recent performance, portfolio changes and market developments.Finding China’s A-share jewels
The country’s domestic markets are rich in companies with the know-how to become global leaders.China Strategy
Investment manager, Sophie Earnshaw, discusses the Baillie Gifford China Strategy.China Q2 update
The China team reflects on recent performance, portfolio changes, and market developments.China’s energy paradox
How should you consider the country – carbon culprit or climate saviour?The ‘S’ of ESG: intangible value
ESG experts Marianne Harper Gow, Ed Whitten and Abhi Parajuli talk about the Social aspect of ESG in the context of investing.The real case for China
Willingness to change gives Chinese firms an innovation advantage.China’s gen Z+
How the digital natives’ wants and needs create opportunities for forward-thinking Chinese companies.China - adjusting the lens
The future is inherently uncertain, but the acceleration of disruption, developments in innovation and shifts in consumption patterns will create winners and losers. China will play a critical role.Governance in China: risk or opportunity?
Growing familiarity with China’s markets invites closer examination of governance at a country and corporate level. A company by company approach is vital to limit the risks and find the opportunities, writes Ben Lloyd.Changing China
Ben Buckler explores the A share opportunity in China.
Explore further
Curious to learn more about our products and what we can offer you? Please get in touch.
Important information
The information provided does not constitute an offer of or solicitation for purchase or sale of securities or provision of any investment services. Baillie Gifford does not currently have any funds that offer securities under a simplified prospectus for general offer or sale within Canada. No securities regulatory authority in Canada has reviewed or in any way passed upon this website or the merits of any investment available, and any representation to the contrary is an offence.
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Trade Matching Statement
This Trade-Matching Statement is being provided in accordance with National Instrument 24-101 -"Institutional Trade Matching and Settlement" and Companion Policy 24-101 CP (the "National
Instrument"). It applies to all trades that are subject to the National Instrument. View the whole statement.