This investment trust aims to generate returns by investing in shares in Chinese companies.
This fund has changed its name - can you please update
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I changed the title…
Doesn’t seem to have affected the in app link (discourse remembers them) but @Freetrade_Team the stock still needs updating
Is there a way in app we could flag bad stock information?
Baillie Gifford China Growth Trust aims to produce long term capital growth by investing predominantly in shares of, or depositary receipts representing the shares of, Chinese companies.
Sector: Country Specialist Asia Pacific - Ex. Japan
| Top 10 | ||
|---|---|---|
| 1 | Alibaba | 13.1% |
| 2 | Tencent | 10.4% |
| 3 | Meituan Dianping | 4.3% |
| 4 | Ping An Insurance | 4.3% |
| 5 | Kweichow Moutai | 3.0% |
| 6 | JD.com | 2.3% |
| 7 | China Merchants Bank | 2.1% |
| 8 | Li Ning | 1.8% |
| 9 | Ping An Bank | 1.8% |
| 10 | CATL | 1.8% |
There seems to be a lot of thought that China will do really well. Large economy, seemingly largly unaffected by COVID, and not laden in as much debt as the west from the pandemic response.
Very high premium on this trust at the moment though
They are meeting today to approve the issue of new shares
Fixing it now, thanks.
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I joined a webinar hosted by the manager of this trust recently - very interesting. I like the fact that they can invest circa 10% in unlisted companies.
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Yeah the ability to invest into some unlisted companies makes it interesting.
Fyi they now have their full portfolio listing (wasn’t available when I’d previously looked)
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Thanks for this - Interesting that they’ve got 31.4% liquid assets, so a lot of firepower for the year ahead! And nice to see the spread companies, with only Alibaba over 5% and Tencent. CATL is one company they spoke a lot about on the call.
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What were there views on it out of curiosity?
Pretty positive overall - they are supplying battery components to Tesla as well as well as other electric car companies, and as we know globally the electric car industry is only going to grow as gov and private investment will ramp up across the board to meet EV targets. So the suppliers like this should be well positioned in the years ahead.
They’ve just announced a new plant in Indonesia EV Battery Giant CATL to Invest $5.1b for a Factory in Indonesia - which makes sense given a lot of the raw materials come from there.
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Ah that’s interesting. I was considering this one once the agree (or not) to issue new shares. I don’t hold any of it at the moment.
It looks like they voted to approve both resolutions to allot more shares and to (if I read it right) allot future shares without a vote until the next agm
Baillie Gifford China Growth Trust plc (the “Company”) is pleased to announce that at a general meeting of the Company held earlier today the resolutions to allot ordinary shares in the capital of the Company and to disapply the statutory pre-emption rights on the allotment or sale of treasury shares, as set out in the Circular dated 9 November 2020, were duly approved by shareholders.
Details of the proxy votes lodged before the general meeting, which should be read alongside the notice contained in the Circular will be available shortly at www.bailliegiffordchinagrowthtrust.com.
The Board notes the significant vote against Resolution 2. As explained fully in the Circular, Resolution 2 sought approval to renew the Company’s shareholder authority to issue further Ordinary Shares on a non pre-emptive basis prior to the Company’s next annual general meeting. The Directors will only use the authority to disapply pre-emption rights and issue Ordinary Shares at a premium to NAV. The Company will be contacting relevant shareholders to re-iterate the context in which the Resolution was proposed.
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So when do we think they will issue new shares? Anyone know how quick these things happen?
I’m not sure. Theres no specific date, and im not sure how long that kind of thing normally takes. I imagine well see an announcement of it before they issue them perhaps.
They did release 380k shares from their treasury today, but that’s not the same thing London Stock Exchange | London Stock Exchange
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So they’re steadily releasing shares from treasury. I think I misunderstood what the vote was about and it seems to be with releasing existing shares not creating new ones which would make some sense.
They’ve been releasing shares almost daily.
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Topping up for a variety of reasons:
•Valuations have derated significantly and are now barely double digit. I checked Bytedance’s multiple and it’s currently on something like 12x EBITDA.
•China’s technology leadership in strategic sectors seems to continue unabated (e.g recent EU protectionism imo is a clear sign).
•China’s energy security has been significantly strengthened in recent years through the Russian relationship and renewables expansion.
•May be contrarian, but FDI turning negative will make policymakers more desperate to secure investment. I see further policy changes as very unlikely because the goals have been clearly demarcated for several years now.
•This complicated environment requires active selection driven by on the ground research.
This is looking relatively cheap nowadays.
It wasn’t that long ago BGCG was on a big ol’ premium. The share price has since more than halved and you can get it at an 11% discount.
Not one for me though. China plus the gung-ho investment style is far too risky for my tastes.