- The Fund is actively managed and invests mainly in a diversified portfolio of shares of Chinese companies and may have significant exposure to smaller capitalisation companies.
- Investment in the Fund involves risks, including general investment risk, equity market risk, geographic concentration risk, small and mid-capitalisation shares risk, risks associated with SME board, ChiNext market and STAR board, risks associated with the Stock Connect, emerging markets risk, risk associated with high volatility of equity markets in emerging countries (including China), risk associated with regulatory/exchanges requirements of the equity markets in emerging countries (including China), renminbi (RMB) currency and conversion risks, PRC tax risk, risks associated with depositary receipts and currency risk which may result in loss of a part or the entire amount of your investment.
T. Rowe Price Funds SICAV
China Evolution Equity Fund
Seeking to identify rising stars in China’s sea change with a differentiated solution that goes beyond the top 100 China mega-cap companies.
Key features
Full flexibility
- No limit on A/H share or American depositary receipt (ADR), with MSCI China All Shares Index Net as benchmark.
Potential future winners
- Identifies beneficiaries of domestic consumption, AI adoption, import substitution, green transition, industrial upgrade, and many more.
- We believe mispricing could arise in areas where future fundamentals will be different from the past.
Differentiated solution
- Seeks to go beyond the obvious top 100 mega-cap names and focus on the less efficient part of the market.
- Results in little overlap with other China equity funds.
Portfolio Manager Wenli Zheng explains how the strategy creates value and opportunities for investors.
Q1: Why should investors consider the China Evolution Equity Strategy?
China Evolution Strategy looks to create value from two angles.
The first one is to identify companies with high growth potential: the companies that can grow from small-cap / mid-cap to large-cap over time.
China is a deep market with some of the best growth opportunities, but we think most of the investors, they concentrate on a very few crowded pockets.
China Evolution looks to go beyond the obvious and identify the under-discovered gems.
Second, China Evolution aims to capitalise on the mispriced opportunities created by this relatively inefficient market.
We believe our fundamental-driven, long-term approach positions us very well for such opportunities.
We believe that having this multi-dimensional framework allows us to go after the best opportunities and navigate through different market cycles.
Q2: What characteristics do you look for in a stock for the China Evolution Equity Strategy?
China Evolution mainly focuses on three types of opportunities.
The first is long-term compounders that can offer durable growth over the medium-to-long term.
The second is the business fundamentals that are improving, driven by product cycles or driven by operational turnaround.
The third bucket contain quality businesses that are trading at attractive valuation due to temporary but fixable issues.
In all these three situations, we look for good or improving fundamentals. At the same time, we emphasise on understanding the factors that drive the disconnect between the fundamentals and valuation.
We believe that a good business can only become a good investment at the right price.
Key takeaway
The strategy looks to create value from two angles: discovering hidden gems and capitalising on opportunities from market inefficiency. When looking for stocks in the strategy, we focus on three key areas:
- Long-term compounders
- Improving fundamentals
- Attractively valued quality businesses
Fund at a glance
China Evolution Equity Fund
The Fund is actively managed and invests mainly in a diversified portfolio of shares of Chinese companies and may have significant exposure to smaller capitalisation companies.
| Inception date | 10 August 2020 |
| Base currency | USD |
| Annual management fee* | Up to 1.70% (Class A) |
| ISIN code | Class A (USD): LU2187417386 Class A (HKD): LU2351347211 Class An (CNH): LU2351347138 Class A6p (USD): LU2929501877 |
| Bloomberg code | Class A (USD): TCEEAUI LX Class A (HKD): TCEEAHK LX Class An (CNH): TCEEAHC LX Class A6p (USD): TRPCA6P LX |
| Benchmark^ | MSCI China All Shares Net Index |
Documents
More about this fund
* Full details of the fees payable by investors are available within the offering document.
^ This benchmark is shown for comparison purposes only.
Why T. Rowe Price for equities?
Always on, because the world never stays still.
Markets are constantly changing, so we have built an equity investment ecosystem that's designed to evolve with them. Our broad range of equity products are driven by teams of experts applying their individual intellect while leveraging the collective wisdom of our global investment teams.
Latest equities insights
China 2026: A new cycle emerges
Chinese equities outperformed other markets in 2025. We expect a stable/improving economic backdrop in 2026.
Important Information
Unless otherwise stated, all data is sourced from T. Rowe Price. Certain numbers in this website may not add due to rounding and/or the exclusion of cash.
This website is being furnished for general informational purposes only. The website does not constitute or undertake to give advice of any nature, including fiduciary investment advice. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
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Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources’ accuracy or completeness. There is no guarantee that any forecasts made will come to pass.
Investment involves risks. Investors should refer to the offering documents for full details including the objectives, investment policies and risks factors.
4450779
- The Fund is actively managed and invests mainly in a diversified portfolio of shares of Chinese companies and may have significant exposure to smaller capitalisation companies.
- Investment in the Fund involves risks, including general investment risk, equity market risk, geographic concentration risk, small and mid-capitalisation shares risk, risks associated with SME board, ChiNext market and STAR board, risks associated with the Stock Connect, emerging markets risk, risk associated with high volatility of equity markets in emerging countries (including China), risk associated with regulatory/exchanges requirements of the equity markets in emerging countries (including China), renminbi (RMB) currency and conversion risks, PRC tax risk, risks associated with depositary receipts and currency risk which may result in loss of a part or the entire amount of your investment.
- The Fund may use derivatives for hedging and efficient portfolio management and is subject to derivatives risk. Exposure to derivatives may lead to a risk of significant loss by the Fund.
- Dividend of certain share class(es) may be paid directly out of capital and/or effectively out of the capital which amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distribution may result in an immediate reduction of net asset value per share (Note 1).
- Investments in share class(es) with fixed annual percentage rate are not an alternative to a savings account or fixed interest paying investment. The fixed annual percentage rate may be subject to adjustment. The percentage of distributions paid is unrelated to the actual or expected income or returns of these share classes or the Fund. Distribution will continue even the Fund has negative returns or is making losses, which further reduces the net asset value. A positive distribution yield does not imply a high or positive return.
- The value of the Fund can be volatile and could go down substantially.
- Investors should not invest in the Fund solely based on this website.