An unprecedented reform programme that will open up the Chinese economy may be on the cards, says Fidelity China Special Situations portfolio manager Dale Nicholls.

Nicholls explains that economic and social reforms that are often overlooked by the majority are making steady progress.

“I continue to believe the course is set for an unprecedented reform programme that will open up the Chinese economy and its markets," said Nicholls.

"There are many ongoing economic and social reforms that address issues such as reducing government intervention, allowing markets to determine prices and improved welfare. These changes tend to take baby steps forward, so can often slip under the radar, but in aggregate they are really changing the investment landscape in China to one where private entrepreneurs and companies can thrive.”

Nicholls acknowledged that macro challenges exist but maintained that these are often overstated. China's changing economic model and slower growth is the 'new norm'. This actually provides a good environment for innovative companies to operate.

"Reform is a broad concept, but it is a key driver of progress in China and it will create investment opportunities across an array of industries," he said.

"From a stock picking perspective, the opening up of the A‑Share market is really exciting and I look forward to continuing the search in this market for the many opportunities it offers. At the heart of it all, I still believe stock prices follow earnings and cash flows – and I see strong opportunities for growth in both.”

Over the year to March 31 2015, the net asset value of Nicholl's fund was up 45.3%, against a 39.3% rise in the MSCI China index. Nicholls attributes performance to his preference for "new" investments in areas such as e-commerce and non-bank financials, as well as significant holdings in China mainland stocks or A shares.