Scottish Mortgage said it remained committed to investing in China even though its large stakes in the country’s tech companies dragged on the recent performance of the UK’s largest investment trust.
Positions in Tencent, Alibaba and Meituan hit investment returns at the FTSE 100 trust in the six months to the end of September, the company reported on Monday, as Chinese stocks slumped following an unexpected crackdown by the country’s regulators that wrongfooted many western investors.
Moderna supplanted Tencent as the largest holding for the £21bn investment trust run by Edinburgh-based fund manager Baillie Gifford. The value of Scottish Mortgage’s stake in the US vaccine maker more than tripled in the six months to the end of September, although the company’s stock has stumbled since then.