China is at the crossroads of innovation and growth, according to Fidelity Portfolio Manager Di Chen, who says the evolutionary pace of change in the Middle Kingdom – fueled by government strategy, human capital and industrial ecosystems – has cultivated a promising landscape for investors.
“The world is evolving rapidly and nowhere is this transformation more evident than in China, where cutting-edge technology and groundbreaking advancements in health care are leading the charge as the nation works to close the gap between need and availability,” says Chen, who manages Fidelity® Emerging Asia Fund (FSEAX).
In helming the regional equity strategy, Chen favors companies with strong, stable growth characteristics that, alongside sound risk management, can enhance the potential for long-term value creation.
China’s vast human capital is a major asset and a second key pillar, says Chen, who highlights the country’s immense pool of technical talent, including millions of scientists and engineers and roughly 3 million new engineering graduates every year. “This constant influx of expertise is the bedrock of innovation, driving progress at an unprecedented pace,” she explains.
Chen also points to another advantage in China’s thousands of industrial clusters – ecosystems where suppliers, manufacturers and innovators operate side by side to foster collaboration, efficiency and intense competition, while accelerating innovation.
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Chen believes the convergence of these three key pillars is best exemplified in China’s health care sector. “The nation’s aging population, coupled with lifestyle factors like diet and stress, have exposed a significant gap between medical needs and available treatments, the latter of which is well below the global average,” she says. “This gap between need and availability creates what I consider a compelling prospect for investors.”
Specifically, she believes this disparity presents an opportunity in disguise, driven by a growing workforce of medical professionals – many with valuable experience gained abroad – who are contributing to the rapid commercialization of new drugs and devices.
Meanwhile, she also highlights the importance of regulatory reform in accelerated approvals. For instance, clinical trials that could take five years or longer in the U.S. might take only six months in China, according to Chen.
Among illustrative holdings in the portfolio as of April 30, 2026, Chen cites WuXi XDC as a company that has leveraged China’s unique environment to deliver groundbreaking solutions. She notes that the firm has recently strengthened its global leadership position as a contract research, development and manufacturing organization for the bioconjugates industry.
Chen says the fund’s stake in Zylox-Tonbridge Medical Technology, a prominent medical device firm and a leading player in peripheral and neurovascular interventional devices, reflects its strong track record of rolling out new products.
“I genuinely believe this isn’t just a narrative about progress – it’s a story of potential,” Chen concludes. “China is on the cusp of an innovation boom that could reshape global markets.”
For specific fund information, including full holdings, please click on the fund trading symbol above.
Di Chen is a portfolio manager and research analyst in the Equity division at Fidelity Investments.
Prior to assuming her current role, Di was a research scientist at Transform Pharmaceutical. Di joined Fidelity in 2010 and has been in the financial industry since 2009.
Di earned her Bachelor of Science from Tsinghua University, her Master of Science from University of Michigan, and her Master of Business Administration from Massachusetts Institute of Technology.