The never-easy question of whether to invest in China has been brought into renewed focus by the impending merger of Abrdn China Investment Company and Fidelity China Special Situations, two of the four UK-quoted investment trusts devoted to that country.
The other two are Baillie Gifford China Growth Trust and JP Morgan China Growth & Income. Fidelity, already by far the biggest of the quartet with net assets of over £1 billion, will dominate even more once it absorbs Abrdn China Investment’s £270 million portfolio.
Abrdn shareholders will have to decide if they should take as much as a third of their holding in cash, in what will be formulated as a so-called Guernsey scheme of reconstruction involving a voluntary liquidation of Abrdn China Investment.
