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Performance: APS China A Share fund down 22%, June worst month for China A-Shares, Trident Pacific says Japan to withstand U.S. recession, non residents remain net buyers while prop desks sell, Tokyo fund Moon Light Capital gains going long pharma, short real estate, up 1.99%, Rogers` Japan fund limits June loss as others swoon, down just 85 basis points

Monday, July 14, 2008

Opalesque Exclusive: APS China A Share fund down 22%, June worst month for China A-Shares BVI-based APS Asset Management reported that the APS China A Share Fund was down 22.56% for the month of June and down 35.98% YTD. The fund was incepted in July 2004 and has annualised 49.57% since. The investment objective of the company is to achieve long term capital appreciation through investment in shares of companies established or operating in the PRC which are listed on the A-share markets of the Shanghai Stock Exchange and/or Shenzhen Stock Exchange.

The China A-shares had their worst month during the year, with the Shanghai Stock Exchange A-share Index slumped by 20.3% and Shenzhen down by 23.7%. Both external and internal macro economic concerns have dampened general buying interest…

“The China A-share market is under excessive pressure,” reported the manager in the monthly report. “Many of our holdings with solid fundamentals and strong growth prospect declined in tandem with the market. We believe that the negative news have been more than discounted into their current share prices. Given the overall China A-shares’ valuation at FY08 forward P/E of mid-teens and the earning growth of over 20% in 2008 and 2009, we think the China A-shares are compellingly valued. We have fine-tuned our portfolio and made more concentrated bets on those companies we are more comfortable with, in terms of their valuations, longer term of growth prospect and the manag......................

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