IN BRIEF: Fidelity China Special underperforms benchmark; ups payout

Fidelity China Special Situations PLC - Surrey, England-based investment trust, which focuses on long-term growth opportunities in China - Net asset value per share jumps 28% to 285.71 pence as at March 31, from 223.71p a year prior, the FTSE 250-listed company reports Tuesday. Net asset value total return was 31.5% in the financial year ended March 31, underperforming against its benchmark, the MSCI China index in sterling terms, which had a total return of 37.5%. Fidelity China Special recommends a final and total dividend of 8.00p per share, up 25% from 6.40p a year ago. Further, it recommends a special dividend of 1.00p, compared to none a year prior.

Looking ahead, Chair Mike Balfour notes the rising popularity in Europe of China-made cars like BYD, and appliances from Chinese companies such as Haier and Hisense. Balfour says: ‘This shows both the quality of the products and the confidence of their manufacturers, both of which are shared by your board and the manager. There will be bumps in the road and the Chinese stock market will remain volatile but at the micro economic or company level in China there are positive longer-term trends in place, which your company is well placed to benefit from.’

Current stock price: 259.50 pence for a market capitalisation of £1.28 billion

12-month change: up 21%

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