SINGAPORE (July 21): An economic recovery in the US and a surge in the country’s equity markets following the US election have hogged the headlines over the past 12 months.

Still, the best-performing Singapore-registered equity funds have been those holding Chinese and European stocks. And these funds appear set to impress further.

According to Morningstar data, Chinese equity funds made up about a third of the top 30 equity funds by performance. European equity funds were the second-best performers, making up about a quarter of the list.

Investec GSF All China Equity A Acc USD — the best-performing Chinese equity fund — recorded a return of 44.9% in the one-year period to July 17.

Another is the Schroder Asian Growth SGD fund, which returned 34.9% in the one-year period to July 17.

Market experts say the rally in the equity markets in China, Hong Kong and Europe has been driven by the recent strength in economic recovery. China, the world’s second-largest economy, grew faster than expected in 2Q17.

Moreover, trading volumes have accelerated, thanks to the Shanghai-Hong Kong Stock Connect established in 2014, allowing investors in the Chinese and Hong Kong markets to trade shares on each other’s markets using their local brokers and clearing houses.

However, some market watchers think the runup in Chinese equities is coming to an end.

To find out what are the best-performing funds, check out our Special Funds Focus in this week’s edition of The Edge Singapore (Issue 789, week of July 24), which is on sale now.