Vision Opportunity China Fund Limited
Vision Opportunity China Fund Limited is a closed-ended investment company. The Company will primarily invest by negotiating direct investments in companies, which are listed or soon to be listed on a stock exchange. The Company will primarily target investment into companies whose annual revenues are between $10 million and $100 million and whose net annual income is, or is projected by the potential Investee Company for the next financial year to reach between $1 million and $10 million. Vision Opportunity China Fund Limited may also invest in private companies which are not expected to be listed on a stock exchange but which may gain a quotation on a stock exchange by way of a reverse takeover of an existing listed company whose assets are predominantly cash. The Company may also invest in partnership interests and financial instruments relating to its target investments. Vision Capital Advisors will act as the Company's investment manager.
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Vision Opportunity China says NAV up 125pct, expects further growth
China focused investment fund Vision Opportunity China Fund Limited (AIM: VOC) said its unaudited net asset value (NAV) as at 30 September was US$138.65 million, or US$2.0947 per share, marking a 125 percent year on year improvement.
The fund, which invests in companies operating in China and listed in the United States, has benefitted from increases in US exchanges, where the Dow Jones industrial average rose 11 percent and the S&P 500 index improved 17 percent over the past year. The Halter USX China index, comprising US listed China operating companies, rose 54 percent.
Some of VOC's investments, supermarket chain QKL Stores (OTC:QKLS), ceramic valve manufacturer Shengkai Innovations (OTC:SKII) and copped-clad aluminium manufacturer Lihua (NASDAQ:LIWA), which represent a total of 5 percent of the fund's NAV, achieved year on year revenue growth ranging from 21.5 percent to 120.9 percet.
The increases were due to the overall growth in Chinese economy and the government's stimulus package that boosted the industrial activity in the country. China's GDP rose 7.9 percent year on year during the second quarter (Q2), also marking a quarter on quarter improvement from 6.1 percent in Q1 as consumption and investments kept growing to offset the negative impact from the slumping exports, which slid for the eighth consecutive month.
The country's Purchasing Managers Index (PMI) rose to 54.3 percent in September, reflecting an increase in industrial activity, while direct foreign investment rose 7 percent year on year.
VOC said China was on track to deliver the targeted 8 percent GDP (gross domestic product) growth this year and carry the momentum into 2010.
