LONDON (Alliance News) - JP Morgan Chinese Investment Trust PLC said Friday it had outperformed its benchmark in the half year to end-March.
The trust posted a total return on net asset value of 23.0%, compared with its benchmark the MSCI Golden Dragon Index in sterling terms, which saw a total return of 21.6%.
"The economic fundamentals for the economy in our view remain strong despite the modest valuations in so many cases which leads us to believe that the recent rally in the shares of listed Chinese companies is sustainable. The market should continue therefore to re-rate," the trust said in a statement.
The company said it expects strong near-term momentum in Hong Kong equities, but noted that domestic Hong Kong is likely to lag "this liquidity-driven rally due to the structural slowdown in retail spending and Macau gaming."
The trust also notes the "spectre of rising interest rates in the US" as a dampener, even if the pace of rate increases is very gradual.
It believes Taiwan may be able to catch up with peers in 2015 given an improved macroeconomic backdrop.
"Strong fundamentals and continuous positive earnings revisions should be supportive for re-ratings, with the technology sector remaining the key driver," the trust said.
Shares in JP Morgan Chinese Investment Trust are untraded Friday. It last traded at 1.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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