Fidelity China Special Situations PLC — Fund Information / Factsheet 2011

Mar 31, 2011

FIDELITY INVESTMENT TRUSTS 31 MARCH 2011

FIDELITY CHINA SPECIAL SITUATIONS PLC

Fidelity China Special Situations PLC is focused on the long-term growth potential of China. The portfolio is made up primarily of securities issued by companies listed in China or Hong Kong and Chinese companies listed elsewhere. It may also invest in listed companies with significant interests in China and Hong Kong.

TOP 10 SECURITY HOLDINGS AS AT 31.03.11

	Fund (% of
	Total Gross Benchmark
	Assets)	Weight
CHINA UNICOM HONG KONG	4.9	1.4
BANK OF CHINA HONG KONG	4.9	0.0
HSBC HOLDINGS (HK)	3.9	0.0
TENCENT HOLDINGS	3.2	3.5
ZHAOJIN MINING INDUSTRY 'H'	2.8	0.3
GOME ELECTRICAL APPLIANCES HOLDINGS	2.7	0.5
CHINA MERCHANTS BANK A (ELN)	2.2	0.0
SOFTBANK	2.2	0.0
PING AN INSURANCE A (ELN)	2.2	0.0
UNITED LABORATORY INTERNATIONAL HOLDINGS	2.1	0.0

Source: FIL Ltd, 31 March 2011. Benchmark is MCSI China Index (Net Luxembourg tax).

Please remember that past performance is not a guide to what may happen in the future. The value of investments can go down as well as up and you may not get back the amount invested. Overseas investments may be subject to currency fluctuations. Investments in small and emerging markets may be more volatile than more established markets. Please remember the eligibility to invest in an ISA depends on individual circumstances and tax rules may be subject to change.

PORTFOLIO MANAGER

As I had expected, fund flows into Asia have started turning positive despite concerns about the impact of Japan's natural disaster and subsequent nuclear problems. I do not see a major impact of this crisis on Chinese corporates, although certain electronics and automobile manufacturers that source key components from Japan might experience near term supply shortages. Meanwhile, inflation in China is expected to peak in coming quarters, which may help regulators adopt a more neutral monetary policy.

Anthony Bolton, Portfolio Manager

INVESTMENT HIGHLIGHTS

Everything points towards consumption, services and high-end manufacturing taking over as the main drivers of growth in China for many years to come. The latest five year plan reinforces this. As a result, roughly a third of the portfolio is invested in consumption plays, such as retailers, travel and entertainment, internet, luxury cars and personal products; a third in services, such as healthcare, mobile telephone, media and education. The rest is exposed to financials, such as banks, insurance and estate agents, and other areas such as value added manufacturers. There is a focus on small and mid sized companies, a space that is less well researched and largely privately owned.

SHARE TYPE BREAKDOWNS AS AT 31.03.11

	Fund (% of Total Gross Benchmark
	Assets)	Weight
A' & 'B' Share	8.6	1.2
H-Share	5.1	51.1
Red Chips*	12.3	24.2
Other Stocks Listed in HK**	48.5	23.5
China Stocks Listed in US	14.7	-
China Stocks Listed elsewhere	5.3	-
Others	5.5	-
Total	100	100

Source: FIL Ltd, 31 March 2011. Benchmarkis MCSI China Index (Net Luxembourg tax). *As classified in the website of HKEx **Non-H-share and non-red-Chip companies listed in Hong Kong, held by the fund or as part of MCSI China

GLOSSARY

NAV

The total value of a company's assets less the total value of its liabilities is its net asset value (NAV). For valuation purposes it is common to divide net assets by the number of shares in issue to give the net assets per share. NAV calculations can include or exclude current financial year income. For the purposes of this factsheet, they are valued with assets including income and costs and with debt valued at the market.

GEARING EXPOSURE

Investment trusts have the ability to borrow additional money to invest, known as gearing. The trust has the ability to use bank loans, bank overdrafts and Contracts for Difference (CFDs) to increase its exposure to stocks. CFDs are used as a way of gaining exposure to the price movements of shares without buying the underlying shares directly.

PREMIUM

If the share price of an investment company is higher than the net asset value (NAV) per share, the company is said to be trading at a premium. The premium is shown as a percentage of the NAV.

TOP 10 SECURITY HOLDINGS

Top holdings are those securities in which the latest percentage of trusts total assets are invested. They do not include FX forwards, derivative positions and deposits. A full list of holdings, including derivatives, can be found in the fund's annual and/or semi-annual report and accounts. The attribution analysis similarly does not include contributions from derivatives.

CHINA H SHARES

China H Shares are shares of the People's Republic of China (PRC) companies incorporated in the PRC which are listed on the Hong Kong Stock Exchange. China H Shares are available to non- Chinese investors and are traded in Hong Kong Dollars on the Hong Kong Stock Exchange.

CHINA A SHARES

China A Shares are traded on the Chinese Stock Exchanges in Renminbi. Foreign investors had historically been unable to participate in the China A Share market. However, following China's introduction of the QFII program in 2002, a legal framework has been provided for licensed QFIIs to invest in China A Shares on the Chinese Stock Exchanges and certain other securities previously not eligible for investment by foreign investors.

CHINA B SHARES

China B Shares are traded on the Shenzhen Stock Exchange and Shanghai Stock Exchange in Hong Kong Dollars and US Dollars, respectively. China B Shares were originally intended to be available only to foreign individual and institutional investors. However, since February 2001, China B Shares have been available to domestic individual investors who trade through legal foreign currency accounts.

RED CHIPS

Red Chip is the term used to describe companies incorporated outside China but which are based in mainland China. Red Chips are listed on, and are required to observe the filing and reporting requirements of, the Hong Kong Stock Exchange. Red Chips typically have a significant portion of their business interests located in mainland China and many are owned, either directly or indirectly, by organisations or enterprises controlled by the Chinese state, provinces or municipalities.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment. If you are unsure of the suitability of an investment, please contact a financial adviser.

For more information contact us on 0800 41 41 10, 9am – 6pm Monday to Saturday or go to www.fidelity.co.uk/chinaspecial