Capital at risk

Investment strategy

China A Shares

The world’s second largest stock market offers a unique opportunity set but is inefficient, underexplored and under-appreciated.  

Exceptional growth firms are rare and great long-term returns require participation in disruptive shifts that play out over years, not quarters.  

Our portfolio reflects what we think will be China’s critical growth drivers in the next decades.  

Scientist wearing protective equipment in a laboratory moving a tray of equipment.

Big winners matter

We believe focusing on the upside of selected companies in a purely stock-driven, high conviction portfolio is the best way to unlock the China opportunity in the long run.

China A Shares: our philosophy

Investment manager Linda Lin introduces China A Shares, reflecting on the exciting opportunities ahead.

Use time to your advantage

We seek to deliver long-term returns by investing in companies that can grow to a multiple of their current size over a 5-10-year horizon. 

Our process deliberately focuses on company fundamentals. This not only frees us up from reacting to short-term market volatility and backward-looking macroeconomic data, but also allows us to think deeply about the opportunities that come from the disruptive, transformational trends that China and the world are going through.  

This timeframe requires a radically different approach and perspective. We must invest with patience and give good decisions time to prove themselves.  

A different approach

We own just 25-40 companies. Our stock-driven, unconstrained equity strategy is differentiated in three ways: 

  • Timescale: unlike the average market participant, we have exceptionally long holding periods.  
  • Upside focus: our philosophy centres on the asymmetry of returns and focuses on the upside of an investment case. This requires an ability to be imaginative about the potential of China’s best businesses.  
  • Perspectives: we balance global perspectives and local knowledge, seeking sources of insight beyond the financial world. 
Fighting the instinct to involve ourselves in conventional market short-termism requires important cultural traits. We think independently, and that provides us with opportunities.
Linda Lin

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. 

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Strategy portfolio holdings

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

All figures up to: 31 March 2024

#Holding% of portfolio
1CATL8.6%
2Midea8.0%
3Kweichow Moutai7.6%
4Shenzhen Inovance Technology6.7%
5Zhejiang Sanhua Intelligent Controls6.6%
6Asymchem Laboratories 3.8%
7Anker Innovations3.7%
8Proya Cosmetics3.5%
9Guangzhou Kingmed Diagnostics Group3.3%
10Centre Testing International3.3%

Strategy holdings by sector

All figures up to: 31 March 2024

1Industrials42.10%
2Information Technology16.90%
3Health Care13.30%
4Consumer Staples13.10%
5Consumer Discretionary9.80%
6Financials2.70%
7Materials1.50%
8Cash0.60%
Total 100%

Strategy holdings by sector

All figures up to: 31 March 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.

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Insights

Key articles, videos and podcasts relating to the strategy:

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Insights

Viewing 17 of 17
  1. China A Shares Q1 update

    The China A Shares Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video15 minutes
  2. 왜 지금 성장인가?

    어려운 시기에 발휘되는 파트너십 지배구조의 강점: 급격한 변화 속에서 적응하고 성장할 수 있는 이유에 대해 분석합니다.
    2024년 3월
    Document17분
  3. China Q4 update

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

    Ben Buckler on how investors should steer between the twin poles of risk in China.
    December 2023
    Article5 minutes
  5. 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
  6. China A Shares Strategy

    Investment manager, Linda Lin, discusses the Baillie Gifford China A Shares Strategy.
    October 2023
    Video4 minutes
  7. China Q3 update

    The China Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video11 minutes
  8. China’s urge to innovate

    A nation that once adapted others’ technologies is increasingly leading in innovative products and services.
    September 2023
    Article
  9. 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
  10. China Q2 update

    The China team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video15 minutes
  11. China A-shares – manager update

    Sophie Earnshaw, manager of the China A-share Strategy, shares how she balances opportunity and risk in China.
    November 2022
    Video18 minutes
  12. 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
  13. The real case for China

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

    How the digital natives’ wants and needs create opportunities for forward-thinking Chinese companies.
    October 2021
    Magazine
  15. 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
  16. 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
  17. Changing China

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

China Q1 investment update

Investment manager Linda Lin and investment specialist Ben Buckler give an update on the China and China A Shares strategies covering Q4 2023.

Related insights

  1. China A Shares Q1 update

    The China A Shares Team reflects on recent performance, portfolio changes and market developments.
    April 2024
    Video15 minutes
  2. 왜 지금 성장인가?

    어려운 시기에 발휘되는 파트너십 지배구조의 강점: 급격한 변화 속에서 적응하고 성장할 수 있는 이유에 대해 분석합니다.
    2024년 3월
    Document17분
  3. China Q4 update

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

    Ben Buckler on how investors should steer between the twin poles of risk in China.
    December 2023
    Article5 minutes
  5. 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
  6. China A Shares Strategy

    Investment manager, Linda Lin, discusses the Baillie Gifford China A Shares Strategy.
    October 2023
    Video4 minutes
  7. China Q3 update

    The China Team reflects on recent performance, portfolio changes and market developments.
    October 2023
    Video11 minutes
  8. China’s urge to innovate

    A nation that once adapted others’ technologies is increasingly leading in innovative products and services.
    September 2023
    Article
  9. 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
  10. China Q2 update

    The China team reflects on recent performance, portfolio changes, and market developments.
    July 2023
    Video15 minutes
  11. China A-shares – manager update

    Sophie Earnshaw, manager of the China A-share Strategy, shares how she balances opportunity and risk in China.
    November 2022
    Video18 minutes
  12. 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
  13. The real case for China

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

    How the digital natives’ wants and needs create opportunities for forward-thinking Chinese companies.
    October 2021
    ExternalLink
  15. 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
  16. 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
  17. Changing China

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

Explore further

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

Explore further

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

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