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 Strategy

Investment manager, Sophie Earnshaw, discusses the Baillie Gifford China Strategy.

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

Strategy portfolio holdings

A list of the top 10 holdings that the representative portfolio invests in.

All figures up to: 31 January 2024

#Holding% of portfolio
1Tencent9.9%
2Alibaba7.2%
3Kweichow Moutai5.9%
4PDD Holdings5.2%
5China Merchants Bank3.2%
6Zijin Mining3.0%
7Ping An Insurance2.9%
8Midea2.8%
9NetEase2.6%
10Meituan2.6%

Strategy holdings by sector

All figures up to: 31 January 2024

1Consumer Discretionary32.40%
2Industrials14.90%
3Communication Services13.80%
4Consumer Staples8.60%
5Information Technology8.00%
6Health Care7.60%
7Financials7.50%
8Materials5.20%
9Utilities1.40%
10Real Estate1.30%
11Cash-0.70%
Total 100%

Strategy holdings by sector

All figures up to: 31 January 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.

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

Please remember that all investment strategies have the potential for profit and loss and your or your clients’ capital may be at risk.
The information on this website is intended for institutional investors (as defined in the Securities and Futures Act, Chapter 289 of Singapore, as amended) and consultants in Singapore only. It is not intended for use by any other persons including members of the general public or investors from other jurisdictions.
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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. You can read details of our Legal and Important Information here.