Quarterly Review and Sale (2286F)

TIDMVOC

RNS Number : 2286F

Vision Opportunity China Fund Ltd

20 April 2011

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART INTO THE UNITED STATES, CANADA, AUSTRALIA, SOUTH AFRICA OR JAPAN

20 April 2011

Vision Opportunity China Fund Limited

(the "Company" or "VOC")

Quarterly Review and Sale of Substantially all of Holding in China Integrated Energy

Vision Opportunity China Fund Limited (AIM: VOC.L) announces that the Quarterly Review for the period ended 31 March 2011 will be available on its website later today and incorporates the Investment Manager's commentary on recent developments in the Company's portfolio, including details concerning the sale of substantially all of its position in China Integrated Energy Inc (Nasdaq:CBEH). The Investment Manager's commentary, which was prepared as at 19 April 2011, is replicated below:

Investment Manager Commentary

This past quarter was particularly challenging for investors in US listed Chinese companies, such as VOC. While most of our portfolio companies reported strong results, several highly-critical research reports on US-listed Chinese companies weighed heavily on the sector. Our portfolio was deeply affected by this crisis and as such suffered its worst performance since the autumn of 2008, with the share prices of our investee companies falling 32.2% over the quarter on a weighted average basis and trading in the range of about 4.9 times 2011 projected net income as at 31 March 2011.

The NAV per VOC share fell by some 37% over the 3 months ended 31 March. A major contributor to this decline was China Integrated Energy (CBEH), an integrated biodiesel manufacturing and distribution company which was our third largest portfolio holding at the beginning of the quarter (representing 17% of the NAV). Two separate research reports issued by private individuals raised serious allegations of misconduct and fraud against CBEH. CBEH has strongly denied the allegations and its Board has commissioned an independent review of its activities by Deloitte and Pillsbury Winthrop Shaw Pittman (a major international full-service law firm). In view of the nature and extent of the allegations, it is unsurprising that they have had a devastating effect on the price of CBEH, which ended the quarter down 61.9%.

Even if the most significant of the allegations against CBEH prove to be ill-founded, we would expect that CBEH's share price will not recover for some time. Accordingly, as liquidity in CBEH shares has risen substantially in recent weeks, we were able to significantly reduce our position through a series of on-market transactions during March and April 2011. The total investment in CBEH by VOC was $14.6 million. Through 15 April 2011, we have realised total proceeds of $11.7 million. We continue to hold approximately 533,000 CBEH shares in the portfolio valued at approximately $1.06 million as at 15 April 2011.

As noted in VOC's announcement on 14 April 2011, since the quarter end we have also sold our entire investment in China Security & Surveillance Technologies (CSR). We invested a total of $8 million at $4.00 per share in CSR last May and our total sale proceeds were $10.2 million, representing an IRR of 39.8%.

It is expected that the net proceeds from both the CBEH and CSR sales will be held in cash or near-cash investments in the short-term.

For further information, please contact:

Vision Opportunity China Fund Limited Tel: [phone]

David Benway / Adam Benowitz

Canaccord Genuity Limited Tel: [phone]

Guy Blakeney / Sue Inglis

Financial Dynamics Tel: [phone]

Ed Gascoigne-Pees / Ed Berry

NOTE TO EDITORS

Vision Opportunity China Fund Limited is a closed-ended fund traded on AIM. VOC primarily invests directly in listed companies with operations principally within Greater China.

Greater China is a collective term for the territories administered by the People's Republic of China, those administered by the Republic of China and Singapore.

This information is provided by RNS

The company news service from the London Stock Exchange

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