Chinese authorities have announced plans to conduct an assessment of H200 chip purchases made by local companies, marking a notable development in the country's semiconductor sector oversight.

Assessment Initiative Overview

The assessment will focus on evaluating the quantity of H200 chips that have been acquired by domestic companies. This initiative represents a systematic approach to monitoring advanced semiconductor acquisitions within China's local business ecosystem.

Implications for Local Companies

The assessment process will require local companies to provide information regarding their H200 chip purchases. This evaluation mechanism demonstrates China's commitment to maintaining comprehensive oversight of advanced semiconductor transactions involving domestic firms.

Semiconductor Sector Focus

The H200 chips, being advanced semiconductor components, represent a significant focus area for Chinese authorities. This assessment initiative underscores the strategic importance placed on tracking the distribution and acquisition of high-performance computing chips within the domestic market.

The announcement signals China's continued emphasis on monitoring semiconductor supply chains and ensuring comprehensive visibility into advanced chip acquisitions by local enterprises.

Axis Greater China Equity Fund of Fund has reached a significant milestone, completing five years since its launch in January 2021. The scheme has demonstrated robust growth, achieving a fund size of ₹1,696 crore as of December 31, 2025, while continuing to attract investor inflows.

Fund Performance and Growth Trajectory

The fund has delivered impressive returns for investors, with the one-year return standing at 38.92% on a CAGR basis as of December 31, 2025. This performance comes at a time when several other domestic mutual funds have halted investments in overseas schemes due to category limits, positioning the Axis scheme favorably in the market.

The fund maintains substantial growth potential with approximately ₹1,500 crore of available headroom under the overseas investment category, providing ample scope for future expansion.

Investment Strategy and Market Access

The Axis Greater China Equity Fund of Fund provides Indian investors with exposure to Greater China markets, including China, Taiwan, and Hong Kong, through a single India-domiciled fund. The scheme accepts investments through both SIP and lump-sum routes in Indian rupees, making it accessible to a wide range of investors.

The fund invests in Schroder ISF Greater China Class X Acc, which follows an active investment strategy. This active management approach is particularly relevant for Greater China markets due to their sensitivity to policy and sentiment shifts.

Portfolio Composition and Geographic Allocation

As of December 31, 2025, the fund's geographic allocation demonstrates a well-diversified approach across the Greater China region:

Sector Diversification and Top Holdings

The fund maintains a balanced sector exposure strategy, with information technology leading the allocation at 25.10%, followed by consumer discretionary at 18.70%. Other significant sectors include communication services (12.70%), financials (11.00%), and industrials (9.80%).

The fund's portfolio reflects exposure to leading companies across the Greater China region, providing investors with access to established market leaders and growth opportunities in key sectors. With its competitive expense structure and strategic positioning in a constrained category, the fund continues to offer Indian investors a viable avenue for international diversification.