[SCHEDULE 13G/A] MORGAN STANLEY CHINA A SHARE FUND, INC SEC Filing
City of London Investment Management Company Limited reports beneficial ownership of 5,950,321 shares of common stock of Morgan Stanley China A Share Fund, Inc., representing 35.0% of the class. The filing states CLIM has sole voting and sole dispositive power for all reported shares, meaning it can both vote and direct the sale of these shares without sharing authority.
The shares are owned directly by the City of London Funds and certain segregated accounts for which CLIM exercises discretionary authority; one segregated account is identified as having the right to receive dividends or sale proceeds for more than 5% of the reported shares. CLIM describes itself as a UK investment adviser controlled by City of London Investment Group plc but cites informational barriers that prevent attribution of ownership to the parent. The filing certifies the holdings are held in the ordinary course of business and not for the purpose of changing or influencing control.
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Insights
TL;DR: CLIM holds a substantial 35.0% stake (5,950,321 shares) with sole voting and dispositive power, filed as a passive Schedule 13G/A.
CLIM's reported position is material relative to the shareholder base: ownership of 35.0% creates a concentrated ownership profile. The filing characterizes the position as held in the ordinary course and not for control, consistent with a Schedule 13G/A disclosure. Key metrics are clear: 5,950,321 shares, 35.0%, and sole voting/dispositive power. For market participants, such concentration can affect trading liquidity and proxy dynamics even if the holder asserts passive intent.
TL;DR: A single investment manager reports sole authority over a 35% block, but the filer certifies passive intent and cites informational barriers to parent attribution.
From a governance standpoint, CLIM's sole voting and dispositive power over a >35% block means it legally controls shareholder votes for this stake, which is significant for corporate actions. The filing also notes ownership is through multiple City of London Funds and segregated accounts, and that one segregated account has dividend/proceeds rights exceeding 5% of the reported shares. CLIM's statement about informational barriers to its parent and the certification that holdings are not intended to change control are relevant governance disclosures that stakeholders will review when assessing potential influence.