Morgan Stanley China A Share Fund Announces 2026 Tender Plans Morgan Stanley China A Share Fund, Inc. (NYSE: CAF) has unveiled two major tender offer initiatives designed to enhance shareholder value and strengthen alignment with long-term performance. The announcement comes as parent company Morgan Stanley (NYSE: MS) trades near its 52-week high of $176, reflecting a strong market position and a $280.5 billion valuation.
The first tender offer will allow CAF to repurchase up to 20% of its outstanding shares at 98.5% of net asset value (NAV) between March 3 and March 31, 2026. The offer is conditional and will only proceed if shares are trading at a discount to NAV on the start date. The fund also amended its performance-related tender policy by shortening the measurement window from five to three years. Under the updated rules, CAF will launch a conditional 25% tender offer if two criteria are met between July 2025 and June 2028: underperformance versus the MSCI China A Onshore Index and a market price at or below NAV.
The fund continues to buy back shares at sizable discounts, repurchasing 302,038 shares at an average 16.57% discount so far in 2025, reinforcing management’s commitment toward reducing the discount to NAV and supporting shareholder value.
Technical Outlook
CAF’s chart shows a strong long-term bullish structure, with price holding above a well-defined ascending trendline. Recent pullbacks found support near the $16.20–$16.40 zone, which aligns with previous demand and the 9-period SMA around $16.29. As long as price sustains above this support, the next key target sits at the recent swing high of $18.93, with potential continuation toward the $20 psychological level.
RSI remains healthy near 57, indicating room for further upside, while MACD stays positive, signaling sustained momentum. A breakout above $17.00 would likely confirm bullish continuation.
CAF remains technically constructive and fundamentally supported by shareholder-friendly actions.
