FR0013467024
- Investing with conviction : seeking companies in China's New Economy, which benefit from the country's economic transition and long-term reform.
- Investing with selectivity : favoring domestic quality companies which have high income visibility, while avoiding those linked to external demand.
- Investing sustainably : analysing companies according to their financial profile but also according to their environmental, social and governance (ESG) practices.
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To 02/09/2025
Article
Carmignac China New Economy fund performance
Our monthly comments
Data as of: Jul 31, 2025.
Performance commentary
In July, the fund delivered a very strong performance, in line with its reference indicator.
Our strategy benefited significantly from its exposure to the Taiwanese market, particularly through positions in Elite Material, Vnet Group, Gold Circuit Electronics, and TSMC.
In addition, within our healthcare portfolio, WuXi Biologics delivered a very strong performance, supported by a sharp increase in revenue.
Our investments in the industrials, consumer discretionary, and communication services sectors also contributed positively to the strategy’s performance.
Finally, despite the absence of exposure to state-owned enterprises, our portfolio still delivered a solid performance.
Outlook strategy
We remain constructive on China, supported by a gradual shift in investor perception. While geopolitical tensions continue to weigh on Beijing, they do not undermine the country’s economic fundamentals.
Several factors support this view: First, the government is placing increasing emphasis on science and technology, and DeepSeek’s breakthrough in the field of AI reinforces confidence in local innovation. Second, Hong Kong’s equity market is experiencing a form of revival, driven by concerted reform efforts aimed at attracting international capital through IPOs of innovative companies.
In this context, we identify opportunities in promising sectors such as AI enablers, well-being, future mobility, education, and high-yield stocks. The latter category includes high-quality, undervalued companies with shareholder-friendly policies (attractive dividends, share buyback programs).
We closely monitor the valuation of each of our Chinese positions and made portfolio adjustments following our most recent on-the-ground research trip.
Over the month, we reduced our position in VIPShop and exited our position in Tuya.
Performance Overview
Data as of: Sep 2, 2025.Carmignac China New Economy Portfolio overview
Geographical Breakdown
Data as of: Jul 31, 2025.| Asia | 100.0 % |
Key figures
Exposure Data
Data as of: Jul 31, 2025.The strategy in a nutshell
Through an active conviction and sustainable approach, we focus on domestic companies in China's new economy that can benefit from the country's economic transition and long-term reforms.
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Market environment
In July, Chinese equity markets continued their rebound, supported by a gradual return of investor confidence and targeted inflows into large-cap stocks, particularly in the technology and consumer sectors.
China–U.S. relations fluctuated between conciliatory gestures (tariff truce, renewed talks) and ongoing tensions (coercive measures, geopolitical disputes), without reaching any concrete agreement.
Economic growth exceeded expectations, with GDP rising by +5.2% in the second quarter, driven by domestic consumption and private investment.
Beijing rolled out several support measures: backing for export-oriented companies, incentives to boost consumption (notably through childcare subsidies to encourage birth rates), local debt restructuring, and tax relief.