Morgan Stanley China A Share Fund, Inc. Announces 2026 Tender Offer and Change to Performance-Related Conditional Tender Offer Policy

Core Viewpoint - Morgan Stanley China A Share Fund, Inc. has announced a tender offer to acquire up to 20% of its outstanding shares at a price of 98.5% of the Fund's net asset value per share, set to commence on March 3, 2026, and end on March 31, 2026, unless extended [2][11] Group 1: Tender Offer Details - The 2026 Tender Offer will be executed at a price equal to 98.5% of the Fund's NAV, minus related costs and expenses [2][3] - If more than 20% of the Fund's shares are tendered, purchases will be made on a pro rata basis [3][6] - The Fund will not conduct the 2026 Tender Offer if shares are trading at a premium to NAV on the commencement date [2] Group 2: Conditional Tender Offer Policy - The Board has changed the measurement period for the performance-related conditional tender offer policy from five years to three years [4] - A Conditional Tender Offer will occur if the Fund's total return performance is less than that of the MSCI China A Onshore Index over the three-year period from July 1, 2025, to June 30, 2028, and if shares are trading at or below NAV at the end of this period [4] - If triggered, the Conditional Tender Offer will allow for the purchase of up to 25% of the Fund's outstanding shares at 98.5% of NAV [5][6] Group 3: Share Repurchase Program - The Fund has a share repurchase program aimed at enhancing stockholder value, having repurchased 302,038 shares at an average discount of -16.57% from NAV between January 1, 2025, and October 31, 2025 [7] - Since the inception of the program, a total of 664,960 shares have been repurchased at an average discount of -17.87% from NAV [7] - The Fund may suspend open market purchases during the Tender Offer period [8] Group 4: Fund Overview - The Fund is a non-diversified, closed-end management investment company that invests at least 80% of its assets in A-shares of Chinese companies listed on the Shanghai and Shenzhen Stock Exchanges [9] - As of September 30, 2025, Morgan Stanley Investment Management manages $1.8 trillion in assets [9]