- Our review of 65 Chinese equity funds found that only 10 achieved consistent top tier performance across 1, 3, and 5 year periods, with more than 72% underperforming their sector average.
- Chinese equities have rebounded sharply over the past year, with the sector delivering average 12 month growth of 25.56%, making it one of the strongest performing investment areas of 2025.
- Technology and consumer focused companies have driven much of this recovery, helping several specialist funds deliver standout results after years of market weakness.
- Long term performance across the region remains highly mixed, illustrating how different investment styles and strategies respond differently to regulatory shifts, economic cycles, and policy intervention.
- These trends highlight the importance of strong diversification and disciplined portfolio oversight, ensuring investors remain well positioned as leadership rotates across global markets.
Chinese equities have experienced a challenging period in recent years, with regulatory changes, slower economic growth, and repeated market volatility. Over the past 12 months the environment has improved. The sector has rebounded, supported by stronger performance from technology and consumer focused companies, making it one of the stronger equity areas this year.
For this report we reviewed 65 Chinese equity funds to assess how they have performed during the recent recovery and across longer timeframes. Only 10 funds delivered consistently competitive returns. Seventy two percent of the funds analysed underperformed their sector average, including 15 that received a 1 star rating.
This analysis highlights the funds that have delivered the strongest results. By comparing each fund with the sector average across multiple periods, we show which funds have produced strong short term performance and which have also maintained competitive returns over the medium and long term.
Chinese Equity Fund Performance Summary
We assessed 65 Chinese equity funds, reviewing their performance and sector ranking over the past 1, 3, and 5 years. Each fund was then assigned a Yodelar rating that reflects how it performed against its sector average.
Only 10 funds achieved a 4 or 5 star Yodelar rating, reflecting consistent outperformance across the timeframes assessed. Most were far less competitive, with 47 funds receiving just 1 or 2 stars. This wide spread in results highlights how uneven returns have been across the China and Greater China fund universe.
The sector is naturally volatile, and performance can swing sharply from one period to the next. Even so, 2025 has marked a notably strong year for the region. The sector recorded average one year growth of 25.56%, placing it among the best performing areas of the market.
10 Top Performing Chinese Equity Funds
Below is a summary of the 10 funds that delivered the strongest results over the past year, supported by competitive longer-term performance and consistent ranking above their sector average.
UBS Solactive China Technology UCITS ETF
This ETF tracks the Solactive China Technology Index. Since launching in 2021, it has become the strongest performer in the Chinese equity sector. It delivered 53.69% over one year, ranking first out of 65 funds and well ahead of the sector average of 25.56%. Its three-year performance of 80.36% also leads the sector. Recent gains have mainly come from large technology holdings such as Tencent, Alibaba, and Xiaomi.
With an OCF of 0.47%, it offers low-cost exposure to China’s fast-expanding technology market.
Invesco ChiNext 50 UCITS ETF Acc
This ETF tracks the ChiNext 50 Capped Index, which focuses on innovative and fast-growing companies listed on the Shenzhen Stock Exchange. Launched in 2024, it returned 46.05% over the past year, ranking second within the sector. Its growth has been driven by strength in technology and industrial companies supported by government policies aimed at improving productivity and innovation. With an OCF of 0.49%, it provides efficient access to this area of the market.
Jupiter China Fund
The Jupiter China I Acc fund aims to achieve long-term growth by outperforming the MSCI China Index over a period of at least five years. It invests a minimum of 70% of its assets in companies based in, or deriving most of their business from, Greater China - including Hong Kong, Macau, and Taiwan.
The fund has been one of the best performers within the IA China/Greater China sector. Over the past year, it returned 42.24%, ranking 3rd out of 65 funds in its sector. Over three years, it gained 62.33%, compared with the sector average of 37.07%, and over five years it delivered 12.03%, placing 2nd among 49 peers, while the sector average fell by -9.09%.
The fund is actively managed and focuses on growth opportunities across Greater China. However, it is considered higher risk due to its regional concentration and the volatility typical of emerging markets.
Jupiter China Equity Fund
This fund invests in companies based in or closely linked to China, including those listed across global markets. It has delivered strong results in recent years, returning 38.39% over the past 12 months and ranking 4th out of 64 funds, well ahead of the sector average of 25.56%. Its three-year return of 49.13% also exceeds the sector average of 37.07%. Although its five-year performance remains negative at -6.13%, it still sits ahead of the sector’s -9.09% result for the same period.
The fund’s recent strength has been supported by exposure to consumer, financial, and communications companies that have rebounded as economic conditions stabilised. Its OCF of 1.06% is higher than many peers, but this has not prevented it from delivering consistently competitive performance across shorter and medium-term timeframes.
RBC Funds (Lux) China Equity B Fund
This fund invests in quality companies that derive substantial revenue from China. Long-term performance has been mixed, with weaker results over three and five years due to economic slowdown and market volatility. However, recent performance has improved significantly, returning 36.17% over the past year and ranking fifth in the sector. The fund’s tilt towards consumer and industrial companies has supported its recovery.
Invesco MSCI China Technology All Shares Stock Connect UCITS ETF
This ETF tracks a broad index of Chinese technology companies. It returned 35.96% over the past year and 49.34% over three years, both ahead of the sector average. By focusing on businesses with strong earnings and competitive positioning, it has balanced growth potential with resilience. With an OCF of 0.49%, it offers cost-effective access to China’s technology sector.
Allianz All China Equity Fund
This fund invests across onshore and offshore Chinese markets. While long-term returns have been affected by regulatory pressures and slower economic growth, the fund delivered 33.58% over the past year, ranking seventh. Recent performance has been driven by renewed strength in consumer and technology companies, supported by policy stimulus and stabilising confidence across the region.
Federated Hermes China Equity Fund
Launched in 2022, this fund has delivered strong results since inception. It returned 32.85% over one year and 56.73% over three years. The strategy is focused on identifying resilient and financially strong companies across China, with sustainability factors integrated into its research and stock selection. Its active approach and broad opportunity set have contributed to steady top-tier results.
Ninety One All China Equity Fund
This fund invests across the full Chinese market and has been one of the few consistent out-performers over each of the three periods analysed. It returned 32.54% over one year, 56.50% over three years, and 5.03% over five years, all ahead of sector averages. Its positioning in technology and consumer companies, including Tencent and Alibaba, has supported its strong performance.
Allianz Hong Kong Equity Fund
This fund invests primarily in companies listed or operating in Hong Kong. It delivered competitive results across all timeframes, including a 31.14% gain over the past year. Its focus on sectors such as consumer discretionary, financials, and communications has helped it maintain steady performance, with core holdings including Tencent, HSBC, and AIA.
Summary
Chinese equities have endured a prolonged period of weak performance, with the sector struggling through regulatory pressures, economic slowdown, and the wider impact of post-pandemic conditions. Of the 65 funds analysed, only 14 delivered a positive return over five years, reflecting how challenging the environment has been for the region.
However, the past 12 months have marked a clear shift in momentum. Chinese equities have staged a strong recovery, with the sector averaging one-year returns of 25.56%, placing it among the best performing sectors this year. The rebound has been driven by renewed strength in technology and consumer-focused companies, as well as improving market sentiment and targeted policy support.
These results highlight how performance across the region can vary significantly over different periods, depending on economic conditions and market trends. They also underline the importance of maintaining a diversified portfolio that can adapt to changing environments, rather than relying on short-term sector leadership.
Building a Portfolio That’s Structured for the Future
China and wider Asian markets can provide valuable growth opportunities within a well-constructed portfolio, but returns across the region can be highly uneven. Funds that lead in one phase of the market can lag in the next, which is why long-term success depends on having a disciplined structure supported by clear objectives, thoughtful asset allocation, and consistent oversight.
A balanced mix of sectors, regions, and fund managers helps reduce the impact of market swings and limits reliance on any single investment style. This broader spread supports steadier long-term results. Yet diversification on its own is not enough. Portfolios need ongoing review and careful adjustments to ensure the original balance of risk and opportunity is maintained as markets change.
This is where professional oversight becomes essential. Through MKC Invest’s discretionary management service, portfolios are monitored daily, with decisions made quickly when market conditions shift. This continuous analysis of performance, risk alignment, and market direction helps keep portfolios efficient, well positioned, and responsive. In an environment where leadership rotates and market trends evolve, disciplined management and genuine diversification remain central to achieving stable outcomes over time.
