**Summary of Baillie Gifford China Growth Trust Interim Results (September 24, 2025):**
1. **Financial Performance Highlights**
**Total Assets** Increased to £179.5 million (from £159.2 million in January 2025).
**Shareholders Funds** Rose to £171.5 million (from £153.1 million).
**Net Asset Value (NAV) per Share** Grew by 13.7% to 294.53p (from 259.07p).
**Share Price** Increased by 14.4% to 265.50p (from 232.00p).
**Total Returns** NAV total return of 14.6% and share price total return of 15.5%, outperforming the benchmark (MSCI China All Shares Index) by 4.3% and 5.2%, respectively.
2. **Investment Performance**
**Top Contributors** Pop Mart, Zhongji Innolight, Tencent, and Zijin Mining, along with the unlisted investment ByteDance.
**Main Detractors:** MeituanZhejiang Sanhua Intelligent ControlsXiaomiand China Construction Bank.
**Portfolio Changes** Purchases of ANTA Sports Products and Yangtze Power
reduction in Meituan.
**Gearing** Remained prudent at 4% (up from 3% in January 2025).
3. **Discount and Premium Management**
Bought back 0.87 million shares at an average discount of 10.6%, marginally enhancing NAV total return.
The discount to NAV reduced slightly to 9.9% (from 10.4% in January 2025).
4. **Strategic Initiatives**
**Conditional Tender Offer (CTO)** Announced in November 2024, based on performance over four years to 2028. NAV TR has outperformed the benchmark by 4.7% since the CTO announcement.
**Share Premium Account** Cancelled in August 2025, with proceeds credited to distributable reserves, providing flexibility for future shareholder distributions.
5. **Market and Macroeconomic Context**
**China-US Trade Deal** Supported growth investing conditions.
**Government Stimulus** Stabilized the economy and supported the private sector.
**AI and EVs** Chinese companies are leading in AI, e-commerce, and electric vehicles, with portfolio holdings like BYD, ByteDance, and CATL achieving global recognition.
**Geopolitical Risks** Volatility caused by US-China tensions remains a concern.
6. **Outlook**
The Board remains optimistic about long-term growth prospects, citing Chinas leadership in high-growth sectors, attractive valuations, and the portfolios strong earnings growth potential.
The portfolio trades at a significant discount to global equities, offering an attractive entry point for long-term investors.
7. **Key Performance Indicators (KPIs)**
All KPIs (NAV TR, share price TR, discount, and ongoing charges ratio) showed positive progress, with NAV TR and share price TR outperforming the benchmark.
**Conclusion**
Baillie Gifford China Growth Trust delivered strong performance in the first half of 2025, driven by strategic investments in high-growth Chinese companies and prudent management of gearing and discounts. Despite geopolitical risks, the Trust remains well-positioned to capitalize on Chinas structural growth opportunities, particularly in AI, EVs, and e-commerce.