Whoever is writing the news items for this stock is confusing the fund
run by the Chinese government with this private stock fund that
invests in Chinese stocks.

good for them then, at least taiwan mkt is not a bubble, may not move
like a rock but will grow steady..

You can find all the info on there website:     http://www.chinafundinc.com/
They do do have quite some holdings in Taiwan.
What they want now is the ok to invest in other countires in the
region to. I am for this but will not register my shares to vote, to
much off a hassle.

ASSET ALLOCATION  % OF NET ASSETS
Hong Kong 28.3
China B  1.8
Singapore  5.9
Hong Kong 'H' shares  19.3
Taiwan  36.8
United Kingdom  1.6
United States  6.3
Equity linked securities ('A' shares)   14.3
Direct  2.9
Other assets & liabilities   (17.2)
Source: State Street Corporation/Martin Currie Inc. Figures to
December 31, 2007.

greine12 schreef:

I believe they allocated a significant portion of their portfolio to
Taiwan.

Hi

Miissed several phine call from CHN , finally when i got then they
were seeking shareholders vote- waht's up with this fund? - i mean
outlook wise. If they think they are falling in ditch like rest of
shanghai market- can they sell holdings to buy FXP?

 I thought they had significant investments in HK shares, and not
necessarily in China A shares- right?

Thanks
SC

thank you! --this was very insightful...

Yes, this is an excellent opportunity to buy.  I saw some posts on NAV
getting diluted and I don't think that is true.  The simple answer is
that NAV will drop very little, but it depends on what it is on that
day and at what price they issue shares.

Here is the math - they have about 15M shares outstanding and with
today's stock price of $36 and the dividend of $12, that gives 12/36 =
1/3 => which would mean 1/3 of 15M = 5M more shares in the market.

But remember that the money, 5M * $36 = $180M which is going back to
the CHN fund and will count towards the NAV.  Given today's NAV of
$45, if the new shares are issued at $36, then then new NAV will fall
by this difference which should be about $2.25 => you can calculate
this as 45-36 = $9 * 5M new shares = $45M shortfall for the new total
of 20M shares (15M + 5M).  So, $45M/20M = $2.25 per share.

So, the new NAV = $45 - $2.25 = $42.75  giving it a new total NAV of
20M shares * $42.75 = $855M.   And this number is the same as old 15M
shares * $45 + new 5M shares * $36 = 675 + 180 = $855M

***  Note I rounded all numbers to make calculations convenient -
current stock price is $36.28, outstanding shares is 14.39M and
current NAV is $44.72

If you take a look at the intra-day chart, you will realize that some
one has been selling heavily today. It looks like the selling is
stopped and the time to do some buying is now.

They announced a special dividends with the ex-dividend date of today.

Can someone explain why this stock / ETF fell by $ 10 in one day ?

The CHN is selling at a 16% discount to NAV. But what really interests
me is the prospect that anyday now that might declare a $5.00 or $7.00
cash distribution. They have paid out nothing this calender year, and
they have $22.00 in realized and unrealized capital gains on the
books. So I don't know why the stock is $51.50 because it should be
$65.00.

CHN and GCH is actually well controlled by good managers.  Just
because of Closed - ETF and not that famous compared to FXI.

They are now deep - undervalued.        Will suddenly jump to catch
up.     Hold it tight, tight and tighter