JPMorgan China Fund reports mixed half-year results

Published 02/06/2025, 12:34
JPMorgan China Fund reports mixed half-year results

LONDON - JPMorgan China Growth & Income PLC (LSE:JCGI) disclosed its unaudited half-year results for the six months ending March 31, 2025, revealing a net asset value (NAV) total return of +4.2% in sterling terms, trailing the MSCI China Index’s +10.4% return. The company’s share price return fared better, posting a +9.4% increase, with the discount to NAV narrowing from -13.1% to -9.1%.

Over a ten-year cumulative period ending March 31, 2025, JCGI’s NAV total return was +60.9%, outperforming the benchmark’s +53.4% return. Share price return over the same period was +67.9%. The board intends to declare a fourth interim dividend of 2.73p on July 1, 2025, which would bring the annual dividend for the year ending September 30, 2025, to 10.92p.

During the reporting period, the company neither repurchased nor issued any shares. However, since the period’s end, 93,699 shares have been bought back into Treasury at an average discount of 11.3%. Additionally, the Board announced the appointment of Mr. Nick Bannerman on January 24, 2025.

Despite underperforming against the benchmark in the short term, the company’s chairman, Alexandra Mackesy, emphasized the long-term outperformance and positive absolute returns. She attributed the short-term underperformance to the company’s focus on quality growth companies, which lagged behind value stocks, particularly state-controlled financial companies.

Portfolio Managers Rebecca Jiang, Howard Wang, and Li Tan noted the challenges posed by geopolitical tensions, particularly the US administration’s tariff policies, but maintained a cautiously optimistic outlook for the Chinese economy and equities. They highlighted the portfolio’s adaptation to new realities, focusing on domestically focused businesses and exporters with strong pricing power and diversified supply chains.

The managers also pointed to China’s evolving regulatory landscape, which now favors entrepreneurs and equities, as well as the resilience of entrepreneurial innovation, especially in technology-driven sectors. These factors, combined with policymakers’ efforts to foster growth while addressing excess capacity, are seen as supporting a constructive trajectory for growth-oriented equities.

This report is based on a press release statement from JPMorgan China Growth & Income PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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