Core Viewpoint - The article discusses the challenges and strategies of foreign asset management firms, particularly Fidelity, in navigating the Chinese market, emphasizing the need for localization and long-term investment strategies [1][2]. Group 1: Market Environment - Since the approval of the first wholly foreign-owned public fund company in June 2021, foreign public funds have begun to localize their operations in China [1]. - The Chinese market's institutional environment and investment behaviors are highly localized, making it difficult for international experiences to be directly applied [2]. Group 2: Strategic Framework - Fidelity has proposed a "two markets, two systems" strategy, focusing on the local market through partnerships with banks, brokers, and e-commerce platforms, while also catering to international investors seeking exposure to Chinese assets [4]. - The "two systems" include a product system and a research system, ensuring that global research resources are effectively aligned with the specific needs of the Chinese market [4]. Group 3: Investment Approach - Fidelity emphasizes the importance of understanding the genuine needs of the Chinese market, which is still evolving compared to more mature markets dominated by index products [5]. - The firm leverages its expertise in active management and multi-asset strategies, which are crucial for capitalizing on the structural alpha present in the A-share market [5][6]. Group 4: Long-term Commitment - Fidelity aims to maintain a long-term investment philosophy amidst the high volatility and emotional nature of the A-share market, avoiding short-term trends and thematic speculation [7]. - The company has established a stable investment framework and long-term evaluation for fund managers to ensure consistency in investment styles [7][8].

Core Viewpoint - The article discusses the challenges and strategies of foreign asset management firms, particularly Fidelity, in navigating the complexities of the Chinese market, emphasizing the need for a localized approach and long-term investment strategies [1][2][6]. Group 1: Market Challenges - Since the establishment of the first wholly foreign-owned public fund in China in 2020, foreign public funds have faced difficulties due to the highly localized market environment, which makes it challenging to apply international experiences directly [2][3]. - Foreign asset management firms are currently in a "positioning phase," where they are learning from the market and adjusting their organizational structures to meet unique local demands [2][3]. Group 2: Strategic Framework - Fidelity has proposed a strategic framework of "two markets and two systems," focusing on the local market through partnerships with banks, brokers, and e-commerce platforms, while also addressing international market needs for Chinese asset allocation [2][3]. - The "two systems" include a product system and a research system, ensuring that global research resources are effectively aligned with the specific needs of the Chinese market [3][4]. Group 3: Local Adaptation - Fidelity emphasizes understanding the true needs of the Chinese market, which is still evolving, providing opportunities for sustainable growth through active investment strategies and multi-asset approaches [4][5]. - The company aims to develop localized products based on the unique requirements of the Chinese market rather than simply replicating existing models from abroad [5][6]. Group 4: Long-term Commitment - In the context of the volatile A-share market, Fidelity stresses the importance of maintaining a long-term investment philosophy and a stable underlying structure to navigate short-term fluctuations [6][7]. - The firm has implemented a long-term evaluation system for fund managers, allowing them to adhere to their investment styles despite market changes, thereby fostering trust among investors [6][7].