Hong Kong Undervalued Stocks: Three Picks From Fidelity’s China Fund

ANTA Sports, Contemporary Amperex Technology and China Resources Land represent three Hong Kong undervalued stocks that Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, believes the market has systematically mispriced, each carrying a distinct long-term growth case that current valuations do not reflect.

Chinese and Hong Kong equities have had a turbulent year to date. Geopolitical friction, elevated energy costs and inflation concerns have weighed on sentiment, while domestically, consumer confidence remains subdued as the property market works through a prolonged downturn. The result is that many companies are trading at meaningful discounts to global peers, even where underlying fundamentals remain intact.

Why These Hong Kong Undervalued Stocks Are Drawing Attention

The macro backdrop has created a divergence between price and value across several sectors. Semiconductor and power-equipment companies tied to AI infrastructure have held up on earnings momentum. Internet platforms have lagged. Nicholls argues that advanced manufacturing, property and domestic consumption all contain pockets of durable value that the market has not yet correctly priced.

Contemporary Amperex Technology (HK: 3750) is the world’s largest battery manufacturer, with leadership across the electrification value chain built on manufacturing scale and sustained investment in technology. Electric-vehicle batteries remain a core revenue source, but the business is broadening. Energy storage systems are emerging as a second growth engine, driven by renewable-power buildout, grid-security requirements and the sharp rise in electricity demand from AI data centres. Commercial-vehicle electrification and international EV penetration, both at early stages in many markets, add further optionality.

ANTA Sports: A Multi-Brand Platform With NYSE Reach

ANTA Sports Products (HK: 2020) has built one of China’s more complex sportswear structures. The DBS Bank equity research note on the group shows that in FY24, the ANTA brand contributed 47.3% of group sales, FILA accounted for 37.6%, and all other brands made up 15.1%. The portfolio spans ANTA, FILA, DESCENTE, KOLON SPORT and MAIA ACTIVE, and extends into global markets through the group’s position as the largest shareholder of Amer Sports (NYSE: AS), whose stable includes Arc’teryx, Salomon and Wilson.

The FY23 numbers from ANTA’s own annual results announcement illustrate the cadence. The ANTA segment grew revenue by 9.3% year on year to RMB30.31 billion. FILA rose 16.6% to RMB25.10 billion. All other brands surged 57.7% to RMB6.95 billion. Dividend growth was equally assertive: total ordinary dividends per share reached HK197 cents, up 47.0% year on year, with the ordinary payout ratio at 50.7%.

Anta International Group Holdings held 42.95% of ANTA Sports as of 31 March 2026, giving the founding family effective strategic control while the free float trades at a discount Nicholls considers unjustified.

China Resources Land: Recurring Income in a Distressed Sector

China Resources Land (HK: 1109) occupies an unusual position in China’s battered property market. As a subsidiary of state-owned China Resources Holdings, the group carries a balance-sheet credibility that most domestic peers cannot match. According to Morningstar’s data, revenue and operating profit declined 28% and 31% year on year respectively in the first half of 2026. The headline numbers look difficult. What they obscure is a margin story running in the opposite direction: gross margin improved to 25.4% from 24.0% a year earlier, driven by a mix shift toward higher-margin investment-property income as residential completions fell.

The investment-property book is anchored by the MixC mall portfolio. A DBS Bank research note on CR Land highlights plans to open 29 new shopping malls by end-2030, a programme designed to compound the recurring earnings base over time. CR Land also holds a 70% stake in China Resources Mixc Lifestyle Services, the separately listed property-management arm, reinforcing the group’s exposure to recurring fee income.

Nicholls’ argument is straightforward: weaker developers have exited, leaving CR Land to accumulate market share in both residential and commercial property. The market, he contends, is not pricing the quality of the investment-property portfolio correctly. Whether that re-rating arrives in 2025 or takes longer will depend partly on whether Chinese consumer spending recovers enough to sustain mall traffic. That, in turn, is the next test for the entire thesis.