Fidelity China trust to boost unlisted exposure

Fidelity China trust to boost unlisted exposure

The Fidelity China Special Situations trust board have set out plans to double the fund’s limit on unlisted company holdings to 10 per cent.

The £764m investment trust had 2 per cent in unlisted companies at the end of March but is seeking to increase its 5 per cent cap because Chinese companies are increasingly seeking initial fund raising from private markets.

The plans will go to a shareholder vote in July and aim to help the trust capitalise on these opportunities in private markets, trust chairman John Owen said.

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“Following the successful initial public offering of Alibaba, in which the company [China Special Situations] invested from an early stage, there has been a trend for companies to raise capital in private markets and to list on a public stock exchange after their development has progressed,” he explained.

“The board is seeking to revise the limit as this would allow us to react if investment opportunities occur.”