A local investment firm is almost back to business as usual after it stopped some functions in the light of the share market turmoil in China in recent weeks.
Singapore-based APS Asset Management had halted redemptions in two of its funds - APS China A-Share Fund and the APS Greater China Long/Short Fund - last Monday. It followed the rout in China's stock market that led to the suspension of more than 1,300 companies on mainland exchanges. Redemptions and subscriptions, which refer to investors cashing out or buying into the funds respectively, resumed on Thursday.
The directors of the two funds said that the suspensions were fair as investors would have been significantly exposed to the A-share listed firms that halted trading. Calculations of the funds' net asset values (NAV) will resume today.
APS founder and chief investment officer Wong Kok Hoi said in a statement on Thursday: "It was not possible to fairly determine the funds' net asset value and, therefore, it was impossible to fairly price these two funds. We felt we must do what is sensible and fair for our investors."
According to a Bloomberg report, APS had US$3.7 billion (S$5 billion) worth of assets last month. The A-share fund and related strategies had assets under management of US$2.9 billion as of July 3 while the long/short fund had US$75 million.
Bloomberg data showed that hundreds of counters resumed trading on Tuesday, with about 27 per cent of firms listed on the mainland stock exchanges still suspended. That means the two funds' exposure to the A-shares that halted trading was significantly reduced.