BOC-Prudential China Equity Fund
BOC-Prudential Easy-Choice Mandatory Provident Fund Scheme
Data as of 2026-06-30
Straight talk on this fund
- Up 7.7% over the past year — 4 out of 10 China equity MPF funds. But the 5-year record is still negative (-4.4% a year) — the rebound hasn't filled the hole yet.
- Fund expense ratio 1.71% a year — 36 bps above the median China equity fund (1.35%), near the top (peers: 0.88%–1.71%). The cheapest rival's fund expense ratio is 0.88%; over a decade that gap compounds to around 9% of your money. The extra fee has to earn its keep every single year.
- Risk class 6, near the top of the scale. Worst calendar year on record: 2022 (-21.5%). That kind of drawdown separates the patient from the panicked.
- Top 10 holdings (ALIBABA GROUP HOLDING LTD, TENCENT HOLDINGS LTD, CHINAAMC CSI 300 INDEX ETF…) are 41.3% of the fund — concentrated in a handful of names rather than spread across the market. The top three (ALIBABA GROUP HOLDING LTD, TENCENT HOLDINGS LTD, CHINAAMC CSI 300 INDEX ETF) alone are 23.3%: when those names move, the fund moves with them. That 7.7% one-year gain didn't come from owning the whole market — it came from those big concentrated bets paying off.
- In its best calendar year (2025) it made 30.5%; in its worst (2022) it lost 21.5% — that range tells you what you're signing up for.
- For monthly contributors, volatility can be a friend (buy more when down). Near retirement, that ride needs a second thought. When markets are choppy, position size itself is a decision.
Manager's LensWhat the portfolio reveals about the manager's thinking
Top-10 holdings are 41.3% of the fund. Alibaba Group Holding at 8.4% is the largest single position. The top three together are 23.3%. This is a concentrated portfolio. High conviction — or high concentration risk, depending on your view. Within the top 10, by sector: tech and internet 19.0%, banks 9.0%, China Equity ETF 6.6%. Within the top 10, by geography: HK-listed China 30.3%, Mainland China 11.0%. 5 of the top 10 holdings overlap with peers — selective differentiation from the category.
With this much China exposure in the top 10, China policy is the swing factor. Stimulus measures support domestic banks and consumption names, while property-sector overhang remains the drag. This portfolio rises or falls with Beijing's policy follow-through. One caveat: concentration amplifies macro moves. When funding liquidity tightens, concentrated portfolios tend to chop harder than diversified ones.
Alibaba Group Holding at 8.4% means one company's earnings matter more than the rest combined. It is a great company — that does not automatically make it a good stock at this weight. Selective deviations from peers include Chinaamc CSI 300 Index ETF (6.6%), Ind & Comm Bk Of China (3.0%), Meituan-W-Class B (2.3%).
Balanced with no dominant style; top-10 concentration 41.3%. Manager makes selective deviations from peers (5/10 top holdings overlap). No strong cyclical tilt — stock selection, not macro rotation, will drive returns. Note: near-term liquidity tightening amplifies concentrated-portfolio volatility. Diversified portfolios have manageable volatility — suitable as a foundation; aggressive investors can add thematic satellites.
Investment Objective
The BOC-Prudential China Equity Fund is an equity fund which aims to provide investors with long-term capital growth by investing at least 70% of the BOC-Prudential China Equity Fund's non-cash assets in the China equity sub-fund of the Umbrella Unit Trust. It is the current intention of the Investment Manager that the sub-fund will, under normal circumstances, invest primarily in Hong Kong listed equities and equity-related securities (including warrants and convertible securities) of companies whose activities and business are closely related to the economic development of the People’s Republic of China, as permitted under Schedule 1 to the Regulation and the relevant codes and guidelines issued by the MPFA from time to time. The sub-fund may seek to gain exposure to the stock markets of the People’s Republic of China. The sub-fund may also invest in other China related securities listed or quoted outside Mainland China and Hong Kong if such securities are issued by companies whose activities and business are closely related to the economy development of the People’s Republic of China. These securities may be listed on the stock exchanges in New York, London or Singapore, such as ADRs (American depository receipts) and GDRs (global depository receipts). The Investment Manager may adjust the geographic allocation of the investment as it deems appropriate from time to time. The sub-fund may also invest in ITCIS and Other Permitted Securities. Where appropriate, cash, time deposits, money market or fixed income securities may be considered. The risk level of the BOC-Prudential China Equity Fund is generally regarded as high.
Trailing Returns ⓘ
| 3 Months | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception | Year to Date | |
|---|---|---|---|---|---|---|---|
| Cumulative | -5.30% | -1.78% | +24.46% | -27.13% | +25.80% | -17.76% | -11.28% |
| Annualised | — | -1.78% | +7.57% | -6.13% | +2.32% | -1.04% | — |
Calendar Year Returns ⓘ
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Return (%) | +30.47% | +19.65% | -16.27% | -21.49% | -16.17% |
Returns are net of fees. Past performance is not indicative of future returns.
Fund Commentary
In 2Q26, Chinese Mainland stock markets posted divergent performance with onshore market outperforming offshore. In April, Chinese Mainland markets staged a solid rebound following US-Iran cease fire talk. Onshore market benefited more from the outperforming AI supply chain themes, while offshore market lagged amid soft earnings outlooks by heavyweight tech names. In May, Chinese Mainland markets posted mixed performances with return concentrated in AI supply chain themes amid sample liquidity. Domestic economic activities data slowed down broadly while export growth stayed strong in April. President Xi hosted President Trump and US delegation in Beijing with focus on stabilizing relations and high-level framework across key issues. In June, AI related themes extended its outperformance and contributed most of the return in Chinese Mainland markets. A more hawkish Fed stance, soft domestic economic activities in June, and step up of cross border capital controls have led to negative sentiments impacts on non-Tech sectors and offshore markets. Shanghai Composite, Shenzhen Composite, CSI300, and ChiNext Index changed by +5.2%, +12%, +11.9%, and +36.4% respectively in the second quarter, while HSCEI and HSTECH Index changed by -9.7% and -3.8% respectively. Information Technology and Industrials were the best performing sectors while Consumption related and Energy related were the worst.In 2Q26, April Politburo meeting focused on the implementation of existing policies amid external uncertainty while macro activities data were weakening sequentially. During Lujiazui forum, financial regulators signalled new directions on monetary policy, a reduced emphasis on aggregate credit extension, and opening up STAR board for unprofitable AI firms. Financial regulators further tightened rules regarding unlicensed cross-border securities activities. Reuters reported that banks in Hong Kong, China are tightening rules for Chinese Mainland client offshore investment accounts. Shanghai Stock Exchange has reviewed the IPO application for top memory chipmaker CXMT. DeepSeek-V4 released its new open-source V4 AI model and can be powered by domestic compute capability such as Huawei chips. Bloomberg reported that Chinese Mainland is planning to invest RMB2tn on AI data centre, which is in line with the plan laid out in the 15th Five-Year Plan. Shenzhen further eased homebuying curbs and relaxed relevant lending terms.The Fund registered a loss in the second quarter, led by the losses in Consumption related and Energy related. The Fund expects upside with volatility for Chinese Mainland equity markets in 3Q26. AI related themes remain well supported by fundamental outlook and ample domestic liquidity, while index heavy macro sensitive sectors continue to see pressures from weakening macro conditions. Private business sentiment stays weak due to softening domestic macro outlook and a lack of strong fiscal stimulus measures. And extended property downtrend could lead to conservative household spending. Policy stance in July politburo meeting and liquidity impact from upcoming mega tech IPO will be key to watch in 3Q26.
Portfolio Allocation
Top 10 Holdings
| # | Security name | Holdings Weight |
|---|---|---|
| 1 | CHINAAMC CSI 300 INDEX ETF | 9.8% |
| 2 | TENCENT HOLDINGS LTD | 8.8% |
| 3 | ALIBABA GROUP HOLDING LTD | 7.3% |
| 4 | CHINA CONSTRUCTION BANK-H | 3.7% |
| 5 | IND & COMM BK OF CHINA-H | 2.7% |
| 6 | NETEASE INC | 1.9% |
| 7 | XIAOMI CORP-CLASS B | 1.8% |
| 8 | MEITUAN-W-CLASS B | 1.8% |
| 9 | PING AN INSURANCE GROUP CO-H | 1.7% |
| 10 | BANK OF CHINA LTD-H | 1.7% |
| Total | 41.2% |
Fees & Charges
The fund expense ratio shows the total annual cost of running this fund as a percentage of its assets. It is already reflected in the fund price and returns. When comparing similar funds, fees are one of the few factors you can control.
FER is a backward-looking figure from the fund's financial year, taken from provider fact sheets and audited annual reports. It may not yet reflect announced fee cuts.
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