Capital at risk

Investment strategy

China

We aim to navigate China’s complex markets by identifying the most exciting growth firms, regardless of where they’re listed, their size or weight in an index. 

The speed and scale of China’s development make it a rich hunting ground for opportunities. 

A differentiated approach in an inefficient, under-researched and short-term market can add significant value. 

Aerial Photo Shots of Spring Blossom Bridge in Shenzhen, China.

Short-term market meets long-term investor

A deliberately selective investment approach, helping our clients benefit from China’s engines of growth for the next decade.

China: our philosophy

Investment manager Sophie Earnshaw introduces the China Strategy, reflecting on the exciting opportunities ahead.

Hunting for growth in a growing market

To deliver long-term capital gains, we look for businesses that enjoy sustainable competitive advantages and which we believe will grow their earnings significantly faster than the market average. This requires fundamental research, active engagement and an ability to ignore large parts of the index. 

Active management is critical for assessing the risks and opportunities. China is a poorly researched investment universe dominated by short-termism, which makes it an exciting one for patient, curious stock pickers. 

Diverse perspectives

An active and engaged approach allows us to navigate over 6,000 companies and deliver a portfolio of just 40-80 Chinese growth stocks.  

We benefit from global and local knowledge with a team based across Edinburgh and Shanghai.  

Our differentiated horizons, perspectives and relationships provide insights that help us spot opportunities early and exploit persistent inefficiencies.  

We have been investing in China since 1994 with a philosophy focused on long-term returns. Our dedicated China Strategy was launched in 2006. 

We have always been interested in disruption, no matter where it might occur. It’s this intellectual curiosity that continues to draw us to China’s innovative companies.
Sophie Earnshaw

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. 

Invest in this strategy

You can invest in this strategy through the following fund(s).

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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 April 2024

#Holding% of portfolio
1Tencent9.7%
2Kweichow Moutai6.0%
3Meituan5.5%
4Alibaba4.9%
5PDD Holdings3.7%
6China Merchants Bank3.4%
7CATL3.3%
8Midea2.9%
9NetEase2.9%
10Zijin Mining2.8%

Strategy holdings by sector

All figures up to: 30 April 2024

1Consumer Discretionary32.20%
2Industrials15.40%
3Communication Services14.70%
4Consumer Staples9.90%
5Information Technology7.60%
6Financials7.50%
7Health Care5.10%
8Materials4.50%
9Utilities1.40%
10Real Estate1.30%
11Cash0.40%
Total 100%

Strategy holdings by sector

All figures up to: 30 April 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.

Invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Insights

Key articles, videos and podcasts relating to the strategy:

Filters

Insights

Viewing 14 of 14
  1. China Q4 update

    The China Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video12 minutes
  2. China: fear or FOMO?

    Ben Buckler on how investors should steer between the twin poles of risk in China.
    December 2023
    Article5 minutes
  3. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  4. China Q3 update

    The China Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video11 minutes
  5. Finding China’s A-share jewels

    The country’s domestic markets are rich in companies with the know-how to become global leaders.
    September 2023
    Article
  6. China Strategy

    Investment manager, Sophie Earnshaw, discusses the Baillie Gifford China Strategy.
    September 2023
    Video3 minutes
  7. China Q2 update

    The China team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video15 minutes
  8. China’s energy paradox

    How should you consider the country – carbon culprit or climate saviour?
    June 2022
    Article
  9. 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.
    December 2021
    Video41 minutes
  10. The real case for China

    Willingness to change gives Chinese firms an innovation advantage.
    November 2021
    Article
  11. China’s gen Z+

    How the digital natives’ wants and needs create opportunities for forward-thinking Chinese companies.
    October 2021
    External link
  12. China - adjusting the lens

    The future is inherently uncertain, but the acceleration of disruption, developments in innovation and shifts in consumption patterns will create winners and losers. China will play a critical role.
    September 2020
    Document
  13. 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.
    February 2020
    Document
  14. Changing China

    Ben Buckler explores the A share opportunity in China.
    October 2019
    Document

China: our philosophy

Investment manager Sophie Earnshaw introduces the China Strategy, reflecting on the exciting opportunities ahead.

  1. China Q4 update

    The China Team reflects on recent performance, portfolio changes and market developments.
    January 2024
    Video12 minutes
  2. China: fear or FOMO?

    Ben Buckler on how investors should steer between the twin poles of risk in China.
    December 2023
    Article5 minutes
  3. Why growth, why now?

    Tough times play to the partnership’s strengths: analysing what enables us to adapt and thrive amid rapid change.
    December 2023
    Article17 minutes
  4. China Q3 update

    The China Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video11 minutes
  5. Finding China’s A-share jewels

    The country’s domestic markets are rich in companies with the know-how to become global leaders.
    September 2023
    Article
  6. China Strategy

    Investment manager, Sophie Earnshaw, discusses the Baillie Gifford China Strategy.
    September 2023
    Video3 minutes
  7. China Q2 update

    The China team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video15 minutes
  8. China’s energy paradox

    How should you consider the country – carbon culprit or climate saviour?
    June 2022
    Article
  9. 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.
    December 2021
    Video41 minutes
  10. The real case for China

    Willingness to change gives Chinese firms an innovation advantage.
    November 2021
    Article
  11. China’s gen Z+

    How the digital natives’ wants and needs create opportunities for forward-thinking Chinese companies.
    October 2021
    External link
  12. China - adjusting the lens

    The future is inherently uncertain, but the acceleration of disruption, developments in innovation and shifts in consumption patterns will create winners and losers. China will play a critical role.
    September 2020
    Document
  13. 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.
    February 2020
    Document
  14. Changing China

    Ben Buckler explores the A share opportunity in China.
    October 2019
    Document

Invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

How to invest in this strategy

You can invest in this strategy through the following fund(s).

Explore further

Curious to learn more about our products and what we can offer you? Please get in touch.

Important information

The content of this website is intended exclusively for professional investors in accordance with MiFID legislation. ’Professional investors’ are potential investors who are deemed to have the status of “professional clients”, within the meaning of MiFID (2004/39/EC), as transposed in Ireland. It is not intended for retail investors.

Baillie Gifford Investment Management (Europe) Limited is authorised and regulated by the Central Bank of Ireland (Reference number C182354) as an Alternative Investment Fund Manager and UCITS Manager to Baillie Gifford Worldwide Funds plc. Its registered office is 4/5 School House Lane East, Dublin 2, D02 N279, Ireland.

This website is informative only and the information provided should not be considered as investment or other advice or a recommendation to buy, sell or hold a particular investment. Read our Legal and regulatory information for further details.