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Fidelity China Special Situations PLC

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Source: Morningstar PLC. Share price is delayed by 15 minutes. Net Asset Value (NAV) and discount/premium are estimated.*

Important information: please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a reliable indicator of future results. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Proposed Combination with abrdn China Investment Company Limited

The Board of Fidelity China Special Situations PLC is pleased to announce that it has agreed heads of terms with the Board of abrdn China Investment Company Limited in respect of a proposed combination of ACIC with the Company. The combination, if approved by the companies' respective shareholders, will be effected by way of a Guernsey scheme of reconstruction and winding up of ACIC and the associated transfer of part of the cash, assets and undertaking of ACIC to the Company in exchange for the issue of new ordinary shares in the Company.

Following implementation of the Proposals, the enlarged FCSS will continue to be managed, in accordance with its existing investment objective and policy, by FIL Investment Management (Hong Kong) Limited with Dale Nicholls continuing as the named portfolio manager.

The Board of the Company believes that, if the Proposals are implemented, FCSS shareholders will benefit from, amongst other things, the economies of scale that are expected to result from the enlarged asset base, including improved market liquidity in FCSS shares (including in relation to its existing share buyback policy) and cost efficiencies.

The Proposals will be subject to approval by the shareholders of both FCSS and ACIC in addition to regulatory and tax approvals.

See here for further details


A market too big to ignore

China is set to become the world’s largest economy within the next decade, according to the Centre for Economics and Business Research. An expanding middle class, rising incomes and technological innovation should drive its growth, creating a strong backdrop for companies to thrive. An effective globally diversified portfolio may need to have exposure to this growth. 

Fidelity China Special Situations PLC provides focused exposure to companies benefiting from this growth opportunity. New consumer spending power and increasing aspirations underpin many of the portfolio’s investments, alongside fast-growing industries such as the internet, e-commerce and healthcare.

What sets us apart


One stop shop

If you’re looking for broad exposure to the long-term potential of Chinese equities, we believe the trust offers the 'one stop shop' many investors might be looking for.


Feet on the ground

We have deep research capabilities and locally based experts; to truly 'get under the bonnet' of the stocks we invest in.


Unlisted expertise

We tirelessly look to identify and invest in companies that are best placed to capitalise on China’s incredible transformation; ahead of any potential public listing.

  • ‘One stop shop’ - gain broad exposure to the opportunity China offers through this one portfolio

The sheer size of China’s economy and its growing importance on the world stage make it a market that’s difficult to ignore. Since its launch in 2010, Fidelity China Special Situations PLC has offered direct exposure to China’s growth story; from tech giants through to entrepreneurial small and medium-sized companies, and even new businesses yet to launch on the stock market. Portfolio manager, Dale Nicholls, finds more opportunities among small and medium-sized companies, where fewer investors leave greater scope for mispricing. However, the Trust has a flexible approach and may invest in larger companies if they fit his criteria.

What’s more, the liquidity offered by the investment trust structure makes it well-suited to holding both listed and unlisted companies. So, if you’re looking for broad exposure to the long-term potential of Chinese equities, Fidelity China Special Situations PLC might be the ‘one stop shop’ investment for your portfolio.

  • ‘Feet on the ground’ - a locally based research team offering deep research capabilities

To find these exciting businesses, Fidelity has deep research capabilities and locally based experts - focusing on those companies with good long-term growth prospects, whose strength has been underestimated by the wider market.

Fidelity’s analysts are Chinese speaking and able to meet with companies in person to truly “get under the bonnet” of the stocks they invest in and provide unparalleled insight into a complex country, rich with opportunity. The portfolio comprises around 100 hand-picked growth stories that best harness the country’s long-term potential.

  • Unlisted expertise - investing in tomorrow’s potential winners

Making use of the closed ended nature of an investment trust, the trust can also invest up to 15% of the portfolio in unlisted companies.

The portfolio manager looks to identify and invest in companies that are best placed to capitalise on China’s incredible transformation, taking advantage of their early-stage growth before they become listed on public markets. These are often beneficiaries of growing domestic consumption and the rising middle class, but also technological innovation, healthcare or the green economy.

News & Insights - China Special Situations PLC

Measuring China’s recovery

Sentiment towards China remains weak, but the fundamental backdrop is improving and could represent an opportunity as we go through the year ahead given low valuations. Fidelity China Special Situations PLC’s Dale Nicholls looks past the macro headlines and analyses the key risks and opportunities facing investors in China in the year ahead.

Read more

China: Opportunities in a re-opening economy

On his recent visit to the UK from China, Dale Nicholls, portfolio manager of Fidelity Special Situations, explains to Citywire’s Gavin Lumsden where he is currently finding exciting opportunities at a time when China is cheap against both its own history and compared with other markets.

Watch now

A bumpy return to normality for China

Expectations were high for the reopening of China. It had been assumed that significant pent-up demand and accumulated savings would see Chinese consumers roar back into action. This has not completely materialised. While services data has been relatively strong, demand for goods has remained mixed. While this has prompted some hand-wringing, we would argue that initial expectations were too high and the recent data is simply part of a bumpy return to normality for the Chinese economy.

Read more

China is volatile but the future for stock investors is bright

Dale Nicholls joins Interactive Investor’s Kyle Caldwell for a two-part interview, sharing his unique outlook on investing in China. He gives insights into how he took advantage of low sentiment and valuations to add to the portfolio and his opinion on the regulatory headwinds that held the market back in 2022.

In the second video, you can discover two of Dale’s favourite shares from the tech and industrial sectors. And furthermore, what opportunities lie ahead for two key trends: the rise of the middle class and China’s shift towards a more consumption-driven economy.

View now

Benefiting from China’s consumption growth strategy

The Lunar New Year brought with it a change of direction for China, now focusing on driving demand and increasing consumer spending in nearly every sector of the economy.

On his recent visit to London, portfolio manager Dale Nicholls shared his thoughts on the great reopening of the Chinese economy and the exciting prospects it brings for a number of particular companies and sectors.


Fidelity China Special Situations added to AJ Bell Select List

Fidelity China Special Situations Trust is one of only 20 investment companies selected by AJ Bell’s investment specialists for their Investment Trust Select List. In their interview with Shares Magazine, portfolio manager Dale Nicholls discusses the trust’s investment process, how this differentiates it from its wider peer group, and how it has performed over the last 5 years.

Read more
Dale Nicholls, Portfolio Manager

Dale Nicholls joined Fidelity in 1996 as a Research Associate in our Tokyo office. It was during his tenure as an analyst that Dale first began to take an interest in the dynamics of the Chinese market. He regularly visited Chinese companies to get a clear view of the key supply and demand chains of the industries he covered. In 2003, he was promoted to portfolio manager of the Fidelity Pacific Fund and retains management of that portfolio today. In his current role, Dale spends much of his time traveling within China to meet with the management teams and competitors of companies in which he may, or already does, invest, visiting well over 100 companies a year.

Prior to joining Fidelity, Dale worked at Bankers Trust Asia Securities in Tokyo and as a Market/Business Analyst at Sony Corporation, also in Tokyo. He graduated from the Queensland University of Technology in Australia.


Past Performance (%)

Oct 2018 -
Oct 2019

Oct 2019 -
Oct 2020

Oct 2020 -
Oct 2021

Oct 2021 -
Oct 2022

Oct 2022 -
Oct 2023

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MSCI China Index (Net)






Past performance is not a reliable indicator of future returns.
Source: Morningstar as at 31.10.2023, bid-bid, net income reinvested. ©2023 Morningstar Inc. All rights reserved. The MSCI China Index (Net) is a comparative index of the investment trust.

Investment objective

The investment objective of the Company is to achieve long-term capital growth from an actively managed portfolio made up primarily of securities issued by companies in China, both listed and unlisted, as well as Chinese companies listed elsewhere. The Company may also invest in companies with significant interests in China.

Summary of the key aspects of the Investment policy

The Portfolio Manager will focus on identifying companies which are most likely to benefit from China’s growth and changing economy.

The Company is not restricted in terms of size or industry of companies included in the portfolio and may invest in unlisted securities.

The Company may also invest into other transferable securities, collective investment schemes, money market instruments, cash and deposits and is also able to use derivatives for gearing purposes and efficient portfolio management.

The Company has adopted a variable management fee which is calculated by referencing performance relative to the MSCI China (N) Index.

ESG Policy

ESG in China
Our approach to Environmental, Social and Governance (ESG) considerations
ESG Investment process

Your Board of Directors

Mike Balfour


Vanessa Donegan

Senior Independent Director

Alastair Bruce

Chairman of the Audit Committee

Georgina Field

Non-Executive Director

Dr Edward Tse

Non-Executive Director

Gordon Orr

Non-Executive Director

Reports & Literature

Latest monthly factsheet

Contains the latest portfolio manager commentary, performance data and breakdown of the trust’s holdings.

Annual report

The latest annual report includes an update on the trust’s strategy, governance and financial performance.

Half-yearly report

The half-yearly report includes the Portfolio Manager’s review, financial highlights and latest portfolio holdings.

Key Information Document

This document provides you with key information about this investment product. It is not marketing material.

Additional Information

Historical reports and announcements

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Company Research

Government controls put into perspective
The Peking duck is not burning to a crisp

News & Insights - China Special Situations PLC

Measuring China’s recovery

Sentiment towards China remains weak, but the fundamental backdrop is improvi…

Dale Nicholls

Dale Nicholls

Portfolio Manager

Half Yearly Results Announced

The Company has announced Half-Yearly Results for the year ended 30 September…



Research team

China: Opportunities in a re-opening economy

Watch Dale’s recent broadcast with Citywire

Dale Nicholls

Dale Nicholls

Portfolio Manager

*The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Important information

Overseas investments are subject to currency fluctuations. This Investment Trust invests in emerging markets which can be more volatile than other more developed markets. This trust invests more heavily than others in smaller companies, which can carry a higher risk because their share prices may be more volatile than those of larger companies and the securities are often less liquid. This trust uses financial derivative instruments for investment purposes, which may expose it to a higher degree of risk and can cause investments to experience larger than average price fluctuations. The shares in the investment trust are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility.