Investment trust news: Fidelity China Special Sits, Abrdn Property Income & more

Investment trusts that focus on China have soared over the past week after the country announced a package of economic stimulus. We also report on a bid for a property trust and the demise of two other listed funds.

China trusts soar as Xi unleashes stimulus package

Shares in London’s three China-focused investment trusts have soared following a huge stimulus package from President Xi Jinping’s government. Shares in Fidelity China Special Situations have gained 24.1% since the measures were announced on 24 September, while shares in Baillie Gifford China Growth have risen by 21.4% and those in JPMorgan China Growth & Income have gained 24.9%.

The People’s Bank of China said it would lower borrowing costs and inject more funds into the economy.

Some analysts predicted that further stimulus would be needed, however. Julian Evans-Pritchard, head of China economics at Capital Economics, a consultancy, said: ‘In a departure from their previous approach of drip-feeding piecemeal support measures, China’s financial regulators have just announced a coordinated package of stimulus measures. This is a step in the right direction. But it will probably be insufficient to drive a turnaround in growth unless followed up with greater fiscal support.’

• Read more: China’s stock market surge - can it continue?

Abrdn property fund accepts bid

The board of Abrdn Property Income Trust has accepted a bid for its property portfolio that values the trust at an estimated 64p a share. The sale comes after a shareholder vote in May that approved a winding up of the fund. The estimated value represents a discount of 12.7% to the trust’s most recent net asset value of 73.3p as at 30 June but a premium of 20.1% to the share price on the day the winding up was approved.

Keystone Positive Change confirms its demise

Keystone Positive Change is to be wound up and shareholders are to be given the choice of transferring their investment to a similar open-ended fund or taking cash at a ‘modest’ discount to net asset value. We reported that the trust was considering its options two weeks ago.

Triple Point Social Housing gets new manager

The board of Triple Point Social Housing REIT has sacked its existing manager, Triple Point, and appointed Atrato Partners, which already manages Supermarket Income REIT and Atrato Onsite Energy, in its place.

PRS REIT joins FTSE 250

PRS REIT, which was recently the subject of a shareholder rebellion, has entered the FTSE 250 index of medium-sized companies. Entry into the index is typically followed by inclusion in tracker funds and could therefore provide a boost to the shares, which have enjoyed a good run since late June.

Witan shareholders approve Alliance Trust merger

Investors in Witan have overwhelmingly agreed to its merger with Alliance Trust.

Aquila European Renewables to be wound up

Shareholders in Aquila European Renewables have voted in favour of its discontinuation. The board said it intended to appoint a third party ‘to oversee the sale of the portfolio as part of the managed wind down process’.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Investment trust shares are listed on the London Stock Exchange and their price is affected by supply and demand. The investment trust can gain additional exposure to the market, known as gearing, potentially increasing volatility. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.