China stocks gain as investors reassess risk outlook

Fidelity China Special Situations

Chinese equity markets advanced on Tuesday, with major indices recovering lost ground as investor risk appetite returned following recent volatility. The rebound comes amid growing confidence that domestic policy support and improving macro data could help stabilise growth through the first quarter.

The Shanghai Composite Index closed up 1.29% at 4,067.74, while the Shenzhen Component Index rose 2.19% to 12,806.54. Gains were broad-based, with strength in metals, resources, and technology leading the upside.

The improved tone follows a period of heightened uncertainty in January, where policy speculation, weak earnings momentum, and global economic concerns had weighed on Chinese shares. Tuesday’s session marked a return of dip-buying, especially in sectors aligned with cyclical recovery and structural themes such as artificial intelligence and new energy.

Precious metals firms, in particular, gained traction amid stabilising commodity prices and improved demand expectations, while industrials and upstream material stocks also found support.

Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.

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