Fraud accusations hit Bolton China holdings

Anthony Bolton has said he will learn from his mistakes after his Fidelity China Special Situations fund invested in US-listed Chinese companies accused of fraud.

Bolton, manager of the £635m investment trust, told the Financial Times the fund had suffered losses due to investments in two companies accused of fraud, and said he had liquidated other US-listed Chinese holdings at a loss earlier this year. One of the two firms in question, China Integrated Energy, has lost 90% of its value this year following accusations of fraud and the resignation of its auditor KPMG, though it denies the allegations. Bolton did not name the other company. "You learn from your mistakes and move on", he said. The practice of Chinese companies purchasing shell ...