Capital at risk

Investment strategy

China A Shares

The world’s second-largest stock market offers a unique opportunity set but is inefficient, underexplored and underappreciated.  

Exceptional growth firms are rare, and great long-term returns require participation in disruptive shifts that play out over years, not quarters.  

Our portfolio reflects what we think will be China’s critical growth drivers in the next decades.  

Scientist wearing protective equipment in a laboratory moving a tray of equipment.

Big winners matter

We believe focusing on the upside of selected companies in a purely stock-driven, high-conviction portfolio is the best way to unlock the China opportunity in the long run.

China A Shares: our philosophy

Investment manager Linda Lin introduces China A Shares, reflecting on the exciting opportunities ahead.

Use time to your advantage

We seek to deliver long-term returns by investing in companies that can grow to a multiple of their current size over a 5-10-year horizon. 

Our process deliberately focuses on company fundamentals. This not only frees us up from reacting to short-term market volatility and backward-looking macroeconomic data, but also allows us to think deeply about the opportunities that come from the disruptive, transformational trends that China and the world are going through.  

This timeframe requires a radically different approach and perspective. We must invest with patience and give good decisions time to prove themselves.  

A different approach

We own just 25-40 companies. Our stock-driven, unconstrained equity strategy is differentiated in three ways: 

  • Timescale: unlike the average market participant, we have exceptionally long holding periods.  
  • Upside focus: our philosophy centres on the asymmetry of returns and focuses on the upside of an investment case. This requires an ability to be imaginative about the potential of China’s best businesses.  
  • Perspectives: we balance global perspectives and local knowledge, seeking sources of insight beyond the financial world. 
Fighting the instinct to involve ourselves in conventional market short-termism requires important cultural traits. We think independently, and that provides us with opportunities.
Linda Lin

Meet the managers

Portfolio construction group

Documents

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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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
1CATL10.1%
2Midea8.6%
3Kweichow Moutai7.8%
4Shenzhen Inovance Technology5.3%
5Ping An Insurance3.5%
6Centre Testing International3.4%
7Proya Cosmetics3.3%
8Zhejiang Sanhua Intelligent Controls3.1%
9S.F. Holding Co., Ltd.3.1%
10Sinocare3.1%

Strategy holdings by sector

As at: 30 November 2024

1Industrials35.50%
2Information Technology16.20%
3Consumer Staples16.00%
4Consumer Discretionary13.40%
5Health Care7.50%
6Financials3.50%
7Materials3.30%
8Cash4.70%
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.

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

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Insights

Key articles, videos and podcasts relating to the strategy:

China A Shares: our philosophy

Investment manager Linda Lin introduces China A Shares, reflecting on the exciting opportunities ahead.

Invest through other vehicles

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

  • Separate account

Invest through other vehicles

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

  • Separate account