Unlocking Value

🆕 Read our new proposal to China Merchants (PDF, 25 pages)

🆕 下载ASM致招商局中国基金的新提案 (PDF, 25页)

We, Argyle Street Management, launched this website (UnlockValueChinaMerchants.com) on 8 January 2024. We published a proposal on China Merchants China Direct Investments (CMCDI, 133 HK), in which we suggested a few ideas on how to maximize value for all shareholders.

Since then, we have talked to numerous shareholders, both institutional and retail. Our website has been viewed several hundred times per day. Our Xueqiu account has garnered even more views. Many shareholders have reached out to us. Almost 30% outstanding shares that are non-China-Merchants have voted against some resolutions at the annual general meeting.

After listening to the views of many shareholders, we have decided to modify our proposal.

In summary, now we would like to propose:

• Buyback offer: CMCDI shall make an offer to buy back 20% of its outstanding shares at 10% discount to net asset value. (There is a precedence of a buyback offer by CMCDI.)
• Discount management program: CMCDI shall implement a multi-stage “discount management program”, to gradually narrow the discount to 30% and eventually 20%. Many other reputable closed-end funds do the same.
• Cutting fees by streamlining the manager: the investment manager shall reduce fees by 45%. Currently, Victor Chu owns 45% shares in CMCDI’s manager. We propose that the manager shall be replaced by one fully owned by China Merchants Group. The existing team (minus Victor Chu and Elizabeth Kan) shall migrate to the new manager. We have written much about the conflict of interest of Victor Chu and Elizabeth Kan.
• Improving investor relations: regular roadshows, better and more frequent disclosure

For details, click here to read our new proposal (PDF, 25 pages). We also have a Chinese version.

We would love to hear your views. Chat with us on WeChat or Whatsapp.

💬 WeChat 微信: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com

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我们Argyle Street Management在2024年1月8日推出了本网站（UnlockValueChinaMerchants.com）。我们向招商局中国基金（“中国基金”，股票代码133.HK）发布了一份提案，并提出了一些关于如何最大化所有股东价值的想法。

自那时以来，我们与众多机构和个人股东进行了沟通。我们的网站每天有数百次浏览量。我们的雪球账号有更多的浏览量。许多股东与我们取得了联系。几乎有30%的总发行股份(招商局集团持股除外)在年度股东大会上就部份议案投了反对票。

在听取股东的意见后，我们决定修订此前的提案并在此发布一个新的提案。

总结起来，我们想提议以下内容：

• 回购要约:  中国基金应该提出回购要约方案，以较净资产折让10%的价格回购中国基金已发行股份的20%。（CMCDI先前有过回购方案的先例）

• 折价管理计划：中国基金应该实施多阶段的“折价管理计划” （Discount Management Program），逐步缩小折价至30%，最终缩小至20%。许多知名的封闭式基金都有明确的“折价管理计划”

• 通过简化管理人员来降低费用：投资经理应该把收费下调45%。目前， 诸立力先生拥有投资经理45%的股份。我们建议将管理人员替换为招商局集团全资拥有的公司，现有团队（除诸立力先生和简家宜女士外）应该迁移到新的管理公司。

• 改善投资者关系：定期路演，更好、更频繁的信息披露。

详细内容，请点击此处阅读我们的新提案（PDF，25页）。我们还有英文版。

我们非常乐意听取您的意见。欢迎随时通过微信或WhatsApp与我们交流。

💬 WeChat 微信: ASM_Argyle

💬 WhatsApp: +852 6317 6371

🖥️ UnlockValueChinaMerchants.com

📧 ChinaMerchants@asmhk.com