China Evolution Equity Fund

Capital en riesgo. El rendimiento pasado no es un indicador fiable de los resultados actuales o futuros y no debe ser el único factor a tener en cuenta a la hora de seleccionar un producto o una estrategia.

Los fondos listados no son una enumeración exhaustiva de los fondos disponibles. Visite www.funds.troweprice.com para acceder a la gama completa de fondos de T. Rowe Price, incluidos aquellos que tienen en cuenta características medioambientales y sociales en su proceso de inversión. Para obtener información actualizada sobre la estrategia de inversión de cualquier fondo de T. Rowe Price, consulte el KID y el folleto del respectivo fondo.

Descripción general

Manager's Outlook

We are positive on the outlook for Chinese equities in 2021 for three key reasons. First, China is expected to lead the recovery of Asia Pacific economies thanks to successful early control of the virus as many nations still struggle to emerge from the pandemic. Vaccine rollouts as well as the promotion of vaccine passports will likely accelerate the reopening of borders, providing a strong case for a pickup in economic activities. Second, the World Bank forecasts China's economy to expand by more than 8% in 2021, compared with 2.3% in the previous year, implying rapid expansion from multiple growth engines Third, despite being the world's second-largest economy, Chinese equities are still underrepresented in global indices. The equity market is poised to gain as the index weightings gradually normalize.

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In our view, China has done enough to successfully reflate its own economy. One consequence of China's early recovery is that expectations of fresh stimulus have been dampened. At the same time, there is no sign that the government will tighten policy prematurely. Rather, it appears to be taking a "wait and see" approach that could prevail for the next couple of quarters.

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The durability of the recovery in 2021 will require a shift in the sources of growth toward the consumer, including those consumer services that suffered most from the pandemic. The prospects for consumer demand look good: Auto sales, a key gauge of consumer confidence, ended last year above 2019 levels. Successive holidays and consumer festivals saw improving consumer confidence and pent-up demand. Residential property has rebounded, supported by a recovery in household income.

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The positive fundamental outlook for Chinese equities in 2021 is even more attractive in relative terms given the still uncertain outlook for many other economies, both developed and emerging. We expect the consumer to play a bigger role in driving China's economic growth next year.

Estrategia

Resumen del fondo

Nuestro enfoque se centra en descubrir empresas cuyos procesos de transformación y potencial de crecimiento están infravalorados o por descubrir. Aprovechando nuestro largo historial de inversiones en China, tratamos de identificar empresas innovadoras más allá de los valores de gran capitalización que ofrecen un potencial de crecimiento duradero o acelerado a largo plazo o una revalorización fundamental. El gestor no está limitado por el índice de referencia del fondo, que se utiliza únicamente a efectos de comparación de la rentabilidad.

Rentabilidad (después de comisiones)

Los resultados pasados no predicen rentabilidades futuras.

31-ene.-2022 - Wenli Zheng, Gestor de carteras,

La renta variable china arranco 2022 con mal pie ante la preocupación por la subida de los tipos de interés en Estados Unidos y las tensiones geopolíticas en Ucrania. Esto se sumó al temor a la desaceleración económica, las incertidumbres regulatorias y los brotes de coronavirus de China. En respuesta, el gobierno intensificó las medidas de flexibilización monetaria y afinó sus políticas para sanear el atribulado sector inmobiliario. En este contexto, el fondo se vio superado en rentabilidad por su índice de referencia debido a una desacertada selección de valores. También influyó negativamente el no estar invertidos en una plataforma de redes sociales, que se recuperó en bolsa después de tres trimestres consecutivos de caídas. Evitamos este valor al invertir fuera de este espacio de títulos populares de mega capitalización. Nuestra falta de exposición al sector financiero, también dominado por valores de gran capitalización, penalizó adicionalmente el comportamiento del fondo, al decantarse los inversores por los títulos orientados al valor en detrimento de los que tienen características de crecimiento. Nuestra sobreponderación del sector de la salud, que sufrió una recogida de beneficios, también detrajo rentabilidad, al igual que nuestra selección de valores en el mismo. Nuestra posición en una compañía biofarmacéutica restó valor, pero dada su cartera global de posibles fármacos, vemos potencial de revalorización conforme mejore la confianza de los inversores en el sector de salud. En cambio, nuestra sobreponderación y apuestas de valores en el sector inmobiliario influyeron positivamente en el comportamiento del fondo. También añadieron rentabilidad una gestora inmobiliaria de alta calidad y una promotora estatal, dos posiciones en cartera que consideramos ganadoras de cuota de mercado.

31-ene.-2022 - Wenli Zheng, Gestor de carteras,

Industriales y servicios empresariales era la mayor sobreponderación sectorial a finales de enero. Aquí, estamos invertidos en fabricantes de equipos eléctricos que, nuestro juicio, podrían beneficiarse de la transición ‘verde’ de China y de las perspectivas de un gran aumento de las inversiones en energías limpias. También deberían verse impulsadas por la tendencia a la electrificación de los vehículos. Estamos expuestos igualmente a un constructor naval bien gestionado en un sector que está entrando en una fase alcista del ciclo de actividad. Invertimos en un fabricante de herramientas para la construcción que vemos ganando cuota de mercado en un sector fragmentado. Recientemente, abrimos una posición en una empresa de transporte de mercancías, que ofrece servicios inteligentes de almacenamiento y transporte.

31-mar.-2021 - Wenli Zheng, Gestor de carteras,

We bought Shenzhen Megmeet Electrical, a supplier of industrial power sources, industrial automation products, and electric control products for smart home appliances. The firm has accelerated its production capacity expansion, R&D, and team building with the aim of realizing its 2025 revenue target of RMB 12 billion. We believe Megmeet new product launches are the start of a new chapter of long-term and steady growth for the company.
We bought Arctech Solar, which we view as a play on the solar theme as well as a penetration story. The company is a market leader in its field in China and one of the world's leading manufacturers and solution providers of solar tracking and racking systems. In our view, its differentiated technology and pricing power also gives the company lots of room to increase its penetration in the solar space.
We initiated a position in Yangzijiang Shipbuilding. We believe this is a value play on a global demand recovery; both shipping orders as well as the current idle fleet ratio are at record lows since the global financial crisis (GFC). Combined with a record-high freight rate, shipping lines could potentially accelerate their replacement processes and start a big order upswing cycle. Meanwhile, we believe the supply side has also improved tremendously after a decade-long consolidation process. With both strong demand and a disciplined supply, we could potentially be looking at one of the longest upswings since the GFC.
We bought Autel Intelligent Technology as a play on China's automotive aftermarket, which in our view has significant growth potential. The company is a leading supplier in China's high-profitability automotive intelligent diagnosis and detection industry. It launched a new product last year with a higher price point that is proving very popular, and further new product launches with large opportunity sets are anticipated. We also expect increased software revenue given requirements for updates post purchase.
We own a large position in JS Global Lifestyle, a leading producer of small household appliances, and continued to add to our exposure over the quarter. We believe that new product cycles, combined with deleveraging, can drive gains following several years of modest growth.
In contrast, we trimmed our position in Bafang Electric Suzhou, which is a leading manufacturer and distributor of electric bicycle driving components. During the quarter, we took advantage of share price strength to manage our exposure; however, we still find the business attractive long term given increasing penetration of e-bikes globally.

31-mar.-2021 - Wenli Zheng, Gestor de carteras,

Country Garden Services (CGS), one of China's leading property management companies, posted robust gains. The company reported a strong set of 2020 results and, more importantly, it provided a very bullish 2025 sales target that, in our view, implies�a six-fold increase in net profit over the next five years.
Shares of SITC International, a shipping logistics company, also made substantial returns. The company has benefited from favorable supply dynamics, which was reflected in solid 2020 earnings while the dividend payout surprised on the upside. We believe the company is run by a very high-quality management team with an excellent track record of capital allocation.
NARI Technology, a leading electrical equipment company that produces digital equipment that is used in China's grid, was another area of strength for the portfolio. During the review period, China's state-controlled power network operator the State Grid released a plan to achieve peak emissions and carbon neutrality. This confirmed our investment thesis, namely that Nari will be a main beneficiary as China shifts its focus to environmental efficiency.
However, those positives were offset to an extent by our position in Beijing Enterprise Urban Resources, an integrated waste management solution provider. The company listed last year amid high market expectations; however, preannounced 2020 numbers were below expectations and the stock price underdelivered.
Shares of JS Global Lifestyle, which specializes in small appliances such as blenders, rice cookers, and soymilk makers, rose significantly over the quarter. The company reported consensus-beating results, which were attributed to strong product momentum as well as optimization of the group's operational and supply chain efficiency.
Vipshop, which is the largest online apparel inventory clearance platform in China using a flash-sale model, added further value. An effective merchandising strategy and a steady expansion in its customer base have supported revenue growth, demonstrated by a solid set of fourth-quarter results.
Our position in HOPE Education, a leading private higher education provider in China, also boosted performance amid news of the company's commitment to ongoing mergers and acquisitions (M&A) activity. During the quarter, the company raised capital, earmarked for six domestic schools. HOPE's track record of acquisitions has so far been solid and prudent, in our view, as it tends to buy schools with smaller scale but with higher growth potential.
Shares of STAAR Surgical, the industry leader of the emerging refractive lens marketplace, registered solid gains. Myopia is a common issue in China. The mainstream method of treating it is with laser, but this is irreversible, while STAAR uses a reversible procedure, which is very popular in the country. During the review period, the company reported a good set of fourth-quarter results, which showed that its business has rebounded strongly from its initial COVID slump, with strength across all major markets.
Qingdao Haier Biomedical added further value. The company is independently run despite being part of the Haier Group state-owned enterprise, but it is benefiting from Haier Group's technology; for example, storage equipment for medical use. Qingdao Haier Biomedical is one of the few companies producing equipment for transporting the Pfizer vaccine.
However, our position in Shandong Weigao Group Medical Polymer, a medical device company, worked against the portfolio's performance. Pricing pressures for various business segments as well as industrywide concerns on price cuts held back the share price. However, the company continues to produce robust results, and we believe that its earnings will remain resilient in the face of potential policy changes given its diversified product offering.
Shares of Beijing Shunxin Agriculture, a market leader in China's attractive mass-market bajiu segment, fell sharply over the review period. Its shares pulled back, along with the white liquor industry, following strong share price performance. However, we still like the company as its distillery announced price adjustment plans; we think that the stock will benefit from this while still having room for further price hikes amid a recovery in consumption.
Despite reporting a good set of results, an improvement in its product mix, and profit delivery in a tough year, shares of Tsingtao Brewery fell over the review period. Instead, investors appeared to focus more on the risks from rising package costs and competition from other premium beer producers. We still like this leading Chinese brewery, which is a value play on the beer industry profit pool expansion thesis.

El rendimiento pasado no es un indicador fiable del rendimiento futuro.

Los Fondos son subfondos de T. Rowe Price Funds SICAV, una sociedad de inversión luxemburguesa con capital variable registrada en la Commission de Surveillance du Secteur Financier y que califica como un organismo de inversión colectiva en valores mobiliarios (“OICVM”). Los detalles completos de los objetivos, las políticas de inversión y los riesgos se encuentran en el folleto que está disponible con los documentos de información clave para el inversor y/o el documento de información clave (KID) en inglés y en un idioma oficial de las jurisdicciones en las que están registrados los Fondos. venta pública, junto con el contrato social y los informes anual y semestral (en conjunto, los “Documentos del Fondo”). Cualquier decisión de invertir debe tomarse sobre la base de los Documentos del Fondo que están disponibles de forma gratuita en el representante local, el agente de información/pagos local o los distribuidores autorizados. También se pueden encontrar junto con un resumen de los derechos de los inversores en inglés en www.troweprice.com. La Sociedad Gestora se reserva el derecho de rescindir los acuerdos de comercialización.

Las clases de acciones cubiertas (indicadas por 'h') utilizan técnicas de inversión para mitigar el riesgo cambiario entre la(s) moneda(s) de inversión subyacente del fondo y la moneda de la clase de acciones cubierta. Los costes de hacerlo correrán a cargo de la clase de acciones y no hay garantía de que dicha cobertura sea efectiva.

Antes de decidir invertir en el fondo, debe leer el documento/folleto de oferta (incluidos sus objetivos de inversión, políticas y cualquier advertencia de riesgo) que está disponible y puede obtenerse de cualquier distribuidor designado.
Los valores específicos identificados y descritos en este sitio web no representan todos los valores comprados, vendidos o recomendados para el subfondo y no se debe asumir que los valores identificados y discutidos fueron o serán rentables.

Puede obtenerse, de forma gratuita y previa solicitud, en el domicilio social de la Sociedad una lista completa de las Clases de Acciones actualmente emitidas, incluidas las Categorías de Distribución, Cobertura y Acumulación.

Índice de referencia: los inversores pueden utilizar el índice de referencia para comparar el rendimiento del fondo. Se ha seleccionado el índice de referencia porque es similar al universo de inversión utilizado por el gestor de inversiones y, por tanto, actúa como un comparador adecuado. El gestor de inversiones no está limitado por ningún país, sector y/o ponderaciones de valores individuales en relación con el índice de referencia y tiene total libertad para invertir en valores que no forman parte del índice de referencia.

La información sobre los índices de proveedores se puede encontrar aquí.

Riesgos

Inversor típico