Closed end listed fund appears to be discounted heavily. Probably due to QFII restriction on liquidity. Trying to see how other fund performed and found this one in the US: MS China A Share:CAF.
It appears when market surge, the discount widen.
I think this is just Metage trying to make some money by closing the gap between NAV and market price. The discount is not an issue for some shareholders if it kept at the current 20% level. It's been like this for years so you get the same discount whether you buy or sell. Only investor since inception are suffering.
If Metage is serious, they could well buy up the shares themselves and this would no doubt boost share price.
At an average trading volume of 1M, it would take about 4 weeks to acquire additional 5% holding. And if they do this, share price will replicate the movement of Thurday and keep going up. This would achieve what they demand but wouldn't be the real goal they want to achieve. The want small investors to foot the bill so they can make $$$. And when the discount narrowed, it's time for them to sell and it's not hard to tell who is the real loser here.
Buy back would probably be a good outcome if they can push that. AMP may not have the incentive to do so if this reduces management fee charged.
Very interesting indeed.
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