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.
Sophie Earnshaw

Meet the managers

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Philosophy and process

Explore our investment philosophy and the processes around how the team constructs the portfolio.

Quarterly update

Get the latest investment commentary, portfolio overview, transactions and performance information alongside governance engagement and voting. 

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You can invest in this strategy through the following fund(s).

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Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 30 November 2024

#Holding% of portfolio
1Tencent9.8%
2Meituan7.7%
3Alibaba5.6%
4Kweichow Moutai4.6%
5CATL4.0%
6Ping An Insurance3.9%
7PDD Holdings3.5%
8China Merchants Bank3.3%
9Midea2.7%
10BYD Company2.7%

Strategy holdings by sector

As at: 30 November 2024

1Consumer Discretionary33.80%
2Industrials14.40%
3Communication Services14.00%
4Information Technology10.80%
5Consumer Staples7.70%
6Financials7.10%
7Materials3.90%
8Health Care3.80%
9Real Estate1.60%
10Utilities1.10%
11Energy1.00%
12Cash0.90%
Total 100%

Strategy holdings by sector

All figures up to: 30 November 2024

Total: 100%

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.

Invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account

Insights

Key articles, videos and podcasts relating to the strategy:

China: our philosophy

Investment manager Sophie Earnshaw introduces the China Strategy, reflecting on the exciting opportunities ahead.

Invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account

How to invest in this strategy

You can invest in this strategy through the following fund(s).

Invest through other vehicles

Get in touch to learn about the other ways to invest, including:

  • Separate account