China Growth Opportunities Ltd, which recently changed its name from London Asia Chinese Private Equity Fund Ltd, said the current financial and economic crisis has affected the group and in autumn 2008 the market deteriorated severely. It swung to a net loss for the first half ended September 30 2008 of £24.5 million from a profit of £1.8 million a year earlier.
Net asset value fell to £47.2 million at the end of the period, equal to 94.4 pence per share, compared with NAV per share of 143.3 pence at the end of March 2008.
On October 20, the group sold its entire 11.11 percent holding in Asia Wind Group Ltd for £2.0 million cash, having decided to dispose of the holding at a loss to free up cash for other purposes. It will retain the cash to ensure ample working capital for the next eighteen months.
Chairman Simon Littlewood said: “I am hopeful that the group's performance will recover in the long-term.
“I believe that China will recover faster than many western economies and that the domestic stimulus package (announced by the Chinese government) will provide opportunities for wisely positioned companies to prosper when we emerge from the current turmoil,” he added.