The manager of AllianzGI China Equity Fund D focuses on large firms, but she also sees good deals in small and midsize stocks. Thinkstock By Miriam Cross, Associate Editor From Kiplinger's Personal Finance, August 2015 Call it the latest chapter of the Great Leap Forward. The Chinese government is in the midst of a new round of efforts to reboot its decelerating economy, including cutting interest rates, boosting spending on infrastructure and opening up the Shanghai stock exchange to overseas investors. Investors have responded enthusiastically. Over the past year, the Hong Kong and Shanghai markets soared 34% and 146%, respectively.See Also: Emerging Markets Stage a Comeback AllianzGI China Equity Fund D (ALQDX) has participated in the rally more than most China funds. The fund, which invests mostly in Hong Kong–listed shares, benefited from holdings in industrial stocks, such as rail maker CRRC Corp. Exposure to small and midsize firms helped as well. Among Hong Kong–traded stocks, smaller companies are generally more attractive than larger ones, says manager Christina Chung. “And these companies can grow at similar or better growth rates than large-cap companies.” That said, three-fourths of the fund’s assets are in big outfits, says Morningstar. Among the fund’s well-known holdings at last report were China Mobile and Bank of China. The fund’s Class D shares don’t levy sales charges. And though yearly fees of 1.77% are high, they’re average for China mutual funds. If China Equity intrigues you, use it to spice up your portfolio; it shouldn’t represent more than 5% or so of your stock investments. @Rankings exclude share classes of this fund with different fee structures or higher minimum initial investments. †For all share classes combined. rMaximum redemption fee. sFront-end load; redemption fee may apply. Sources: Morningstar Inc., Vanguard.