(Alliance News) - abrdn China Investment Co Ltd on Tuesday posted a decline in net asset value in its financial year 2022 that ended on October 31, but emphasised optimism for the future as China shifted away from its zero-Covid strategy.
The Chinese equities-focused investor said NAV per share as at October 31 fell 37% to 512.0 pence from 813.2p a year prior. NAV total return per share underperformed against its benchmark, returning negative 37.0% compared to the MSCI China All Share Index, which returned negative 31.5%. A year ago, the company posted a NAV total return of positive 19.8%.
"The last 12 months have been particularly challenging for investors in Chinese equities. We saw the Hang Seng Index in Hong Kong bottom out below 15,000, touching levels not seen since the aftermath of the Global Financial Crisis in 2008," the firm said. On Tuesday afternoon in Hong Kong, the Hang Seng Index closed at 21,113.76.
abrdn China Investment declared a sharply reduced dividend of 3.2p per share, down from 17.25p a year ago.
Looking ahead, the company said it is well-positioned to "capture China's long-term growth potential", and added that it is pleased about the recent performance of Chinese equity markets.
"The return to the long-term trends of rising levels of urbanisation and the increase in the disposable incomes that the ever-expanding middle classes are able to deploy provides a ready market for high-quality goods and services," said Chair Helen Green.
abrdn China Investment shares were 2.4% lower at 595.68 pence each in London on Tuesday afternoon.
By Tom Budszus, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.