China funds enjoyed strong returns to close out Q3 2024, driven by stimulus measures introduced at the end of the quarter. Despite an average rise of 18.7%, over two-thirds of the funds in our analysis underperformed the iShares MSCI China ETF, with a net underperformance of -2%.

Returns ranged from a high of +30.14% to a low of +9.94%, with most funds landing between 14% and 24%. While all style groups underperformed the benchmark on average, Growth and Aggressive Growth strategies fared better than their Value counterparts.

Tencent’s moderate underperformance generated some outperformance for active managers, but a large net cash position and underweights in Alibaba, Meituan and JD.Com caused a combined -2.6% of net losses versus the benchmark.