The positive experience of holding unlisted Asian firms such as Alibaba has encouraged the board of a listed investment house to ask for more freedom to hold such businesses.

The board of a China-focused investment trust managed by Fidelity International is seeking approval to be able to hold more unlisted companies in Hong Kong and mainland China, encouraged by its experience in holding once unlisted stars such as Alibaba. It wants to hike the current cap on such investments to 10 per cent from 5 per cent of gross assets.

The approval from shareholders is being sought by Fidelity China Special Situations, a London-listed entity. At the end of March, unlisted holdings made up 2 per cent of the gross assets of this fund.

The fund held a position in Chinese e-commerce giant Alibaba ahead of that firm’s $25 billion IPO on the New York Stock Exchange in 2015; it also has taken a stake in Xiaoju Kuaizhi, China and indeed the world’s largest social transportation network.

The proposed change will go to a shareholder vote on 22 July 2016.