Baillie Gifford China Growth Trust (BGCG) H1 2026 earnings summary

Executive summary

• Net asset value (NAV) per share fell 0.9% over six months to 31 July 2026, outperforming the MSCI China All Shares Index, which declined 5.6%.

• Share price total return was -3.3%, also ahead of the benchmark, despite an increased discount to NAV.

• Portfolio remains concentrated in high-conviction growth stocks, with significant exposure to AI, advanced manufacturing, semiconductors, and energy transition.

• Private holdings ByteDance and RedNote, representing 16.7% of assets, were revalued upwards, contributing materially to performance.

Financial highlights

• Total assets decreased to £192.5m from £205.3m at 31 January 2026.

• Shareholders' funds declined to £184.7m from £197.6m.

• NAV per share at 31 July 2026 was 338.93p, down from 344.44p.

• Revenue earnings per share rose to 3.04p from 2.45p year-over-year.

• Ongoing charges ratio was 1.06% for the year ended 31 January 2026.

Outlook and guidance

• Chinese economy remains bifurcated: strong growth in advanced manufacturing and exports, but weak property and consumer sectors.

• Portfolio expected to benefit from continued AI and advanced manufacturing growth, with policy support targeting these sectors.

• Valuations remain attractive relative to global equities, with the portfolio trading at 12.4x forward earnings and expected one-year earnings growth of 17%.

• Policy support likely to remain targeted and incremental, not broad-based stimulus.