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- 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 04/09/2025
Article
Carmignac Portfolio China New Economy fund performance
Our monthly comments
Data as of: Aug 29, 2025.
Performance commentary
Over the month, our strategy delivered an excellent performance, outperforming significantly its reference indicator.
The portfolio benefited significantly from its exposure to the technology sector, particularly through Montage Technology (semiconductors) and Horizon Robotics (chips and intelligent driving solutions), both of which reported outstanding results.
Our industrial holdings (Didi, CATL, Zhejiang Sanhua Intelligent) also contributed meaningfully to alpha generation during the period.
Conversely, our Taiwanese positions, notably TSMC, Lotes, and Mediatek, were somewhat disappointing, though their impact on overall performance remained limited.
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.
Our trip to China confirmed two encouraging trends: the growing emphasis on tech innovation and renewed interest in Hong Kong markets. There are a few areas in which we see continued growth support, these include: AI enablers, the experience economy, wellness, future mobility, education, financialisation and ‘can’t live without’ platforms
Even though some of the recent performance in China may have run too far, too fast at the index level, and this is a market in which we expect alpha rather than beta to remain key, retaining high selectivisim in the opportunities we invest in.
We are therefore selectively positioned in themes like innovation (Montage Technology, CATL, Horizon Robotics) and future mobility (Didi), while focusing on high yielding stocks with shareholder-friendly policies (VIPSHOP). With lower confidence in a near-term economic recovery these companies offer resilience and attractive shareholder returns.
During the month, we took profits on Montage Technology following its strong rally in August and increased our position in Gaotu Techedu.
Finally, we initiated a new position in Qfin Technology, a technology platform specializing in credit.
Performance Overview
Data as of: Sep 4, 2025.Carmignac Portfolio 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 August, Chinese equities performed strongly, particularly Shanghai-listed stocks (CSI 300 +8.8%, Hang Seng -0.3%).
Economic activity indicators remained in expansionary territory, with the NBS General PMI at 50.5 and July trade data surprising to the upside (exports up +7.2% year-on-year), while retail sales disappointed (+3.7% versus +4.6% expected).
Despite these mixed macro signals, the market performed well overall—especially A-shares, which rebounded sharply.
Furthermore, Chinese government measures aimed at boosting equity market investment continue to strengthen investor confidence, enhance stability, and increase the attractiveness of domestic markets, thereby supporting equity prices.