T. Rowe Price China fund targets AI supply chain makers over chipmakers
In brief
- China Evolution Equity Fund increased exposure to lower-tier AI supply chain manufacturers in Greater China
- Fund posted 19.66% YTD return and 41.74% one-year return as of July 31, 2026
- Holdings include Kingboard Laminates (6.3%), Unimicron Technology (3.7%), WUS Printed Circuit Kunshan (2.8%)
- Strategy targets PCB makers, chip equipment manufacturers, and power component suppliers over headline chipmakers
The overlooked tier
The fund's portfolio reflects a deliberate thesis. As of June 30, 2026, Kingboard Laminates held 6.3% of assets, Unimicron Technology 3.7%, and WUS Printed Circuit Kunshan 2.8%. These aren't the names you see on CNBC. They're the firms manufacturing the industrial plumbing that AI infrastructure literally cannot function without.
Manager Wenli Zheng steers clear of the largest publicly listed firms in Greater China, instead hunting for companies positioned at chokepoints in the supply chain. The rationale is straightforward: when everyone's rushing to build data centers and train models, the bottlenecks aren't always at the headline layer.
Returns that outpace the index
The strategy's performance speaks for itself. As of July 31, 2026, the China Evolution Equity Fund posted a year-to-date return of 19.66%, a one-year return of 41.74%, and a three-year annualized return of 14.81%. These figures significantly outperformed the MSCI China All Shares Index over the same periods.
Portfolio specialist Agnes Ng framed the opportunity plainly: the broader Chinese equity market remains subdued, but these specific holdings are positioned to benefit from supply bottlenecks as AI capital expenditures ramp up across the region. The bet isn't on breakthrough innovation. It's on scarcity.
Expanding the distribution footprint
On September 8-9, 2026, T. Rowe Price announced a distribution partnership with Bank of East Asia to broaden its reach into retail and private banking channels in Hong Kong. The move signals confidence in the Asia-focused fund suite and reflects a broader push to deepen the firm's presence in the region's wealth management ecosystem.
