Unlocking Value

Alec Tseung, an analyst on SmartKarma.com, has written a penetrating analysis on China Merchants China Direct Investments (133, CMCDI).

He has correctly pointed out how other reputable closed-end funds proactively manage their discount to NAV, through “discount management programs”:

Another possible solution is to follow the example of many other closed-end funds (in the US/UK) by announcing/launching a “discount management program” (e.g. JPMorgan).

That simply means the fund will buy back shares at market if the level of discount exceeds a certain threshold (e.g., 10%). Once a fund announces a credible buyback program, market forces might push the share price towards NAV per share, so discount management programs can almost be self-fulfilling.

We, Argyle Street Management, will write separate post on this subject.

Clarification: we are not acting in concert with any other shareholders of CMCDI.

Visit us:  UnlockValueChinaMerchants.com

Write to us:  ChinaMerchants@asmhk.com

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Alec Tseung是SmartKarma.com上的分析师，他对招商局中国基金（“中国基金”，股票代号：133 HK）进行了深入的分析。

他指出其他知名的封闭式基金是如何通过”折扣管理计划” 积极管理其市价与资产净值之间的折价 :

另一个可能的解决方案是效仿许多其他在美国/英国的封闭式基金的做法，宣布/推出“折扣管理计划”（例如，摩根大通）。

意思是如果市价相对于资产净值折价超过一定的比例（例如折价10%），基金将以市场价格回购股票。一旦基金宣布可靠的回购计划，市场力量可能会将股价推向每股净资产净值，因此折扣管理计划几乎可以“自我实现”。

我们Argyle Street Management将就此话题另外攥写一篇文章。

特此声明：我们没有与任何其他中国基金的股东一致行动。

访问我们:  UnlockValueChinaMerchants.com

电邮我们:  ChinaMerchants@asmhk.com