Capital at risk
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.
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.
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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 September 2024
| # | Holding | % of portfolio |
|---|---|---|
| 1 | CATL | 10.1% |
| 2 | Midea | 8.5% |
| 3 | Kweichow Moutai | 8.3% |
| 4 | Shenzhen Inovance Technology | 5.1% |
| 5 | Zhejiang Sanhua Intelligent Controls | 4.9% |
| 6 | Anker Innovations | 4.7% |
| 7 | Proya Cosmetics | 3.7% |
| 8 | Sungrow Power Supply | 3.5% |
| 9 | Centre Testing International | 3.5% |
| 10 | Ping An Insurance | 3.4% |
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 A Shares Q1 update
The China A Shares 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 A Shares Strategy
Investment manager, Linda Lin, discusses the Baillie Gifford China A Shares Strategy.
China Q3 update
The China Team reflects on recent performance, portfolio changes and market developments.
China’s urge to innovate
A nation that once adapted others’ technologies is increasingly leading in innovative products and services.
Finding China’s A-share jewels
The country’s domestic markets are rich in companies with the know-how to become global leaders.
China Q2 update
The China team reflects on recent performance, portfolio changes, and market developments.
China A-shares – manager update
Sophie Earnshaw, manager of the China A-share Strategy, shares how she balances opportunity and risk in China.
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.
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 A Shares: our philosophy
Investment manager Linda Lin introduces China A Shares, reflecting on the exciting opportunities ahead.
China A Shares Q1 update
The China A Shares 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 A Shares Strategy
Investment manager, Linda Lin, discusses the Baillie Gifford China A Shares Strategy.China Q3 update
The China Team reflects on recent performance, portfolio changes and market developments.China’s urge to innovate
A nation that once adapted others’ technologies is increasingly leading in innovative products and services.Finding China’s A-share jewels
The country’s domestic markets are rich in companies with the know-how to become global leaders.China Q2 update
The China team reflects on recent performance, portfolio changes, and market developments.China A-shares – manager update
Sophie Earnshaw, manager of the China A-share Strategy, shares how she balances opportunity and risk in China.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.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.
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