There are only two investment companies that focus solely on China: the £1.2 billion Fidelity China Special Situations trust (FCSS) and the £180 million JPMorgan Chinese Investment Trust (JMC).
JMC has performed well over the past year, returning 56% in net asset value (NAV) terms and 65% in share price terms. By contrast, FCSS grew its NAV by 53% in and saw its share price rise by 58% over the same period. These impressive gains might cause investors to wonder how much longer the party can go on for.
The first thing to note is that both funds trade on fairly wide discounts to NAV, 13% in the case of FCSS and 14% in the case of JMC. Those discounts aren’t…
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