1
2
3
4
5
6
7
The main contributors to this outperformance were our Taiwanese stocks, TSMC and Elite Material, buoyed by continued strong demand for semiconductors.
VNET Group, a data centre services provider, saw its share price rise following an upward revision of its earnings guidance for the 2025 financial year.
Finally, our selection of consumer discretionary stocks, such as VIPSHOP and New Oriental Education, also contributed positively to the strategy's performance.
Moreover, technological advancements—particularly in artificial intelligence and productivity—are expected to further support economic momentum.
In the short term, however, we are adopting a cautious approach due to ongoing uncertainty surrounding the U.S. tariffs initiated under the Trump administration, their potential repercussions on China’s economy, and the government's still-limited visibility on supportive policy measures.
While the recent announcements from the Chinese government may not yet be sufficient to spark a full-fledged economic recovery, they represent a significant shift: President Xi Jinping appears to be prioritizing domestic consumption, innovation, and technological development as central pillars of the country’s long-term strategy.
We are maintaining strict discipline in assessing the valuation of each Chinese holding, ensuring careful calibration of our exposure.
This month, we initiated a position in Zhejiang Sanhua Intelligent, a company specializing in the research, design, manufacture, and distribution of thermal management components and solutions.
We also invested in AIA Group, a leading life insurance company in Asia, headquartered in Hong Kong.
Asia | 91.7 % |
Europe | 8.3 % |
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.
Market environment
On the trade front, China and the US resumed talks in Geneva and London, resulting in a reduction in tariffs to 30% and an agreement on rare earth exports to the US.
Chinese GDP growth slowed slightly compared with the first quarter (5.4%) but remains robust, above 5%.
Retail sales surprised on the upside in May, rising 6.4% year-on-year, compared with 5.0% in April; however, a slowdown is expected in June.
Finally, trade negotiations appear to be supporting a moderate recovery in activity, as evidenced by the slight rise in the composite PMI index from 50.4 to 50.7 in June.