Baillie Gifford China Gr... Share Discussion Threads

[vacendak] 09/2/2021 09:38

@SpectoAcc
Latest RNS says 15.4% of the shares are held in treasury:
10,175,169/(10,175,169 + 55,768,831)

This they can drop at any time in the market before the next AGM. The authorisation will likely be renewed. They are selling like hot cakes, but there is still some way to go before reaching zero. The call for the extra 20% placing seems premature.

[vacendak] 08/2/2021 11:09

Still a few treasury shares but the reserve is indeed far below what it was when the switch from WPC happened.

[spectoacc] 01/2/2021 13:02

I read it as 20% and a placing on top, but not sure on the rules - another 9.99% without a vote, or are they going for even more? Premium isn't as crazy as it was (c.30%).

[vacendak] 01/2/2021 12:43

It is still a small-ish IT when it comes to market cap, so it makes sense to go for that. 20% seems big, but we are not talking 20% of a multi-billion fund either.

Now, does it make sense for people to buy into this at a silly premium is another question. I am only holding, so just enjoying the show and the popcorn.

[spectoacc] 01/2/2021 10:29

Planning an equity raise over & above the 20% for buybacks. Presumably going to be issued at a premium or not worth doing, but could be on the large side?


"Intention to raise equity


The Board of Baillie Gifford China Growth Trust plc (the "Company") is pleased to announce it is contemplating an equity raise in response to strong demand for the Company's shares.


Since seeking Shareholder approval on 9 November 2020 to renew the authorities to allot an additional 20% of the Company's issued share capital (as at 5 November 2020), the Board is mindful that this authority alone may not be sufficient to satisfy the continued demand for the Company's shares. It is envisaged that an equity raise would help satisfy further market demand and support the Company's growth."

[kiwi2007] 24/1/2021 01:13

FT - The Long View...23/1/21

'...BlackRock estimates China A shares will average annualised returns of 6.4 per cent versus a figure of 4.1 per cent from owning US large-cap ..'

'..More Chinese equities and bonds are being included in global benchmarks overseen by large index groups such as MSCI and FTSE Russell...'

'..Deutsche Bank, said while Beijing would aim to slow the pace of appreciation, the exchange rate should strengthen.'

[arja] 05/1/2021 18:14

you are welcome sport .

[jockthescot75] 05/1/2021 16:46

Thanks Arja

[arja] 05/1/2021 16:15

about 12% based on NAV on 4.1.21 Jock . But based on bid price of 516 at the moment

[jockthescot75] 04/1/2021 15:58

Afternoon all.

Just looking at this. I assume at the current share price of £5.15, it's trading at a c. 14% premium to the last announced NAV on 31st Dec?

thanks

Jock

[godin] 30/12/2020 10:05

iash tracks csi300 index but at a more reasonable premium to nav.

[andyj] 30/12/2020 10:00

I agree the premium is off putting. Now a hard to justify 20%. I feel like every time I go to a shop to buy a coat the price keeps going up, but the product stays the same.

[arja] 29/12/2020 11:37

but such a big premium to NAV is a real concern if the chinese indices suddenly took a decisive turn southwards, holders would then be hammered I suspect . BUT lovely uptrending chart and odds are that the aforementioned situation will not arise in near future .

[andyj] 18/12/2020 09:30

Personally I would not be too concerned with the movement of the NAV at this point. This is all about potential growth and over the last decade few have beaten BG in finding growth companies.

[vacendak] 17/12/2020 17:57

I meant the flare-up at the start came from some nice momentum in the NAV.
Now the NAV is not moving so fast.
I did not expect the premium to stay above 20%, which was totally irrational.

[ali47fish] 17/12/2020 17:49

vacendak and andy-in plain english this share is volatile- does the share price to come down further to then benefit from a discount and are the managers fulfilling their promise! would appreciate your comments

[vacendak] 17/12/2020 17:20

Nice to see the hot air leave the balloon, but I would not like it to become a lead balloon... The shape of the share price curve is not reassuring! :(

[andyj] 17/12/2020 13:46

Currently 7% premium at the time of posting, a little bit further down please

[lilly 01] 17/12/2020 12:34

Thank you very much Vacendak,it was puzzling.

[vacendak] 17/12/2020 12:11

Good question. I picked that up on one of the latest factsheets too.
Not sure myself, but it could be related to the deal they had with JP Morgan (I think it was them) to hoover the shares from people exiting Witan Pacific in cash.

These were counted officially as treasury, but assuming some accounting wizardry they could be a debt of some sort. Again, just wild speculations on my part, but the order of magnitude of the "missing" market cap could align with that.

Another explanation would be a lot of cash hoarding; but then it would not make sense to issue shares and do that (it costs money to hold large amounts of cash nowadays with negative rates).

So, indeed, good question.

[lilly 01] 17/12/2020 11:10

Hi,
Could anyone tell me, with so many new shares being issued, why does the market cap remain unaltered?

[vacendak] 14/12/2020 17:02

The NAV is ticking up again. The premium carries on falling towards 10%, another 5% to shave and this would become reasonable.

[uapatel] 10/12/2020 16:25

Snap,

Still keeping an eye on a re entry, but would like the NAV to catch up a bit or the share price to pull back.

At least there is more detailed list of holdings now.

[vacendak] 10/12/2020 16:21

Premium still bonkers at 20% but not as silly at it used to be.

The NAV growth has been anemic, even flat lining, for about a month now.
I am kind of old school when it comes to ITs, I like to see the NAV go up... and right now it does not seem to do so.

[uapatel] 25/11/2020 10:32

Checked the website, unfortunately still no full list of holdings.

Still keeping an eye on the SP/NAV premium before reinvesting.