Morgan Stanley China fund announces 2026 tender offer, policy changes

Morgan Stanley China A Share Fund (NYSE: CAF) announced its board approved a tender offer to repurchase up to 20% of outstanding shares at 98.5% of net asset value, scheduled to commence March 3, 2026 and terminate March 31, 2026.

The fund stated the 2026 tender offer will not proceed if shares trade at a premium to net asset value on the commencement date. If more than 20% of shares are tendered, the fund will purchase shares on a pro rata basis.

The board also approved changes to the fund's performance-related conditional tender offer policy, reducing the measurement period from five years to three years. Under the revised policy, the fund will conduct a tender offer for up to 25% of outstanding shares at 98.5% of net asset value only if two conditions are met during the three-year period from July 1, 2025 to June 30, 2028.

The conditional tender offer will be triggered if the fund's total return performance on a net asset value basis underperforms the MSCI China A Onshore Index benchmark and shares trade at or below net asset value at the measurement period's conclusion. The conditional tender offer would occur on or before September 30, 2028, with subsequent three-year measurement periods thereafter.

The fund reported repurchasing 302,038 shares from January 1, 2025 to October 31, 2025 at an average discount of 16.57% from net asset value. Since the share repurchase program's inception through October 31, 2025, the fund has repurchased 664,960 shares at an average discount of 17.87% from net asset value.

Morgan Stanley China A Share Fund is a closed-end investment company that invests at least 80% of its assets in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges under normal circumstances.

You May Also Be Interested In

• Goldman Sachs Starts Excelerate Energy Inc (EE) at Buy
• OFS Credit estimates June 2026 NAV per share at $3.28 to $3.38
• Goldman Sachs Starts NextDecade Corp. (NEXT) at Neutral