Unlocking Value

China Merchants China Direct Investments (CMCDI, 133 HK) trades at much larger discount to its net asset value (NAV) than many other reputable China-focused closed-end funds.

For example:

Name	Ticker	NAV (US$m)*	Price-to-NAV ratio*
Morgan Stanley China A Share Fund	CAF US	258	0.81x
Templeton Dragon Fund Inc	TDF US	236	0.84x
HSBC China Dragon Fund	820 HK	61	0.77x
JPMorgan China Growth & Income	JCGI LN	240	0.89x
Fidelity China Special Situations PLC	FCSS LN	1,457	0.90x
China Merchants China Direct Investments	133 HK	590	0.30x

We, Argyle Street Management, recognize that CMCDI owns a combination of listed equities and non-listed investments, while these peers mostly own listed equities.

On the other hand, the current market cap of CMCDI is US$ 190m (on 26 April 2024), while the combined value of CMCDI’s listed investments and cash (which account for 48% of CMCDI’s total assets) are worth US$ 349m as at 31 March 2024. As such, CMCDI is trading at a large discount to its cash and listed investments alone.

There is a simple way for CMCDI to narrow the discount, for the benefit of all shareholders and the manager: sell assets and return capital to shareholders. Read our 26-page proposal to find out how that works.

Visit us:  UnlockValueChinaMerchants.com

Write to us:  ChinaMerchants@asmhk.com

招商局中国基金（“中国基金”，股票代号：133 HK）的交易市值与其净资产价值（NAV）的折扣比许多其他由知名国际基金管理公司管理的、专注于中国的封闭式基金要大得多。

例如：

基金名称	代码	净资产 (百万美元)*	市值与净资产的比例*
Morgan Stanley China A Share Fund	CAF US	258	0.81x
Templeton Dragon Fund Inc	TDF US	236	0.84x
HSBC China Dragon Fund	820 HK	61	0.77x
JPMorgan China Growth & Income	JCGI LN	240	0.89x
Fidelity China Special Situations PLC	FCSS LN	1,457	0.90x
招商局中国基金	133 HK	590	0.30x

我们，Argyle Street Management，认识到中国基金所持资产包括上市公司股票和非上市公司投资，而这些同类基金大多持有上市公司股票。

另一方面，中国基金目前的市值为1.9亿美元(4月26日)，而截至2024年3月31日，中国基金的上市公司投资和现金（占中国基金总资产的48%）的总价值为3.49亿美元。因此，中国基金的市值与其现金和上市公司投资部分单独相比，交易折扣仍旧很大。

中国基金有一个简单的方法可以缩小折扣，以造福所有股东和管理者：出售资产并将资本返还给股东。

阅读我们26页的提议，了解如何实现上述目标。

访问我们：UnlockValueChinaMerchants.com

电邮我们：ChinaMerchants@asmhk.com