“And so the saga of this troubled company continues.” Few letters to shareholders start with such candour, but the latest communication from London Asia Capital reads as a cautionary tale for private investors seeking exposure to unquoted Chinese stocks.

　　“这家身处困境的公司麻烦还没有结束。”致股东的信很少如此开门见山。对寻求投资于中国非上市股票的私人投资者来说，伦敦亚洲基金股份有限公司(London Asia Capital)最新的致股东信，读来有如一个发人警醒的故事。

　　After seeing 13 of its investments in small Chinese companies written down to nil-value, and its London Stock Exchange listing cancelled, the company was to have its future decided at an emergency general meeting this week. Its largest shareholder, a Singapore-based investment entity called Richpoint Overseas Group, was hoping to win a vote to restructure the company around one of it last remaining valuable assets: a small Chinese private company called Zhongying, which owns land near the town of Wuhan. London Asia’s new board opposed the vote, but it has now been postponed until February.

　　伦敦亚洲基金在小型中国企业身上的投资中，有13笔的价值已经被归零。该公司还被伦敦证券交易所摘牌。原定本周召开的临时股东大会，本来要就公司今后的命运作出决定。最大的股东、总部设在新加坡的投资机构Richpoint Overseas Group原本希望在会上表决通过以下事项：围绕该公司所剩无几的有价值资产之一——中盈长江(Zhongying)——对该公司进行重组。中盈长江是中国一家小型民营企业，拥有武汉近郊的地皮。伦敦亚洲基金的新董事会反对这一提议。但如今投票已被推迟到2月份。

　　But the dispute over Zhongying highlights the failings of London Asia’s strategy of investing in tiny Chinese private companies and then floating them on western stock markets. Zhongying may have some residual value – the directors estimate it could be worth as much as ￡12m – but London Asia was valued at more than ￡50m when its shares were listed.

　　然而，这起围绕中盈长江的纷争表明，伦敦亚洲基金专事投资中国小型民营企业、然后促成它们在西方上市的策略是失败的。中盈长江或许有一些剩余价值（董事们估计最多为1200万英镑），然而，伦敦亚洲基金上市时的估值在5000万英镑以上。

　　In autumn 2008, a new management team led by the Earl of Cromer was brought in by disgruntled institutional investors keen to find out what had happened to their investments in China. New chief executive Keith Nagel found the company’s London bank account had no cash in it, while no reports and accounts had been presented for three years.

　　2008年秋季，在心怀不满的机构投资者促成下，克罗默伯爵(Earl of Cromer)带领一个新管理团队走马上任。机构投资者希望查清自己在中国的投资究竟出了什么问题。新首席执行官基思?内格尔(Keith Nagel)发现，公司在伦敦的银行账户里没有现金，而且公司已3年没有提交任何报告和账簿。

　　By early 2010, Nagel and his fellow directors had established that 13 of the Chinese companies in which the group had invested were worthless.

　　2010年初，内格尔和其他董事们确认了一点：集团所投资的中国企业中，有13家毫无价值。

　　Back in the middle of the last decade, the prospects for London Asia looked very different. Led by Simon Littlewood, chief executive, and Viktor Ng, chairman, London Asia was leading the charge of Chinese capitalism into the London markets. Backed by a team of non-executives that included a former Mayor of London, Sir David Brewer (currently head of the China British Business Council) and Jack Wrigglesworth (founder and former chairman of the London International Financial Futures Exchange), London Asia was the “go to” adviser for small-cap Chinese companies seeking a UK stock market listing – including China Education Group, China Biotech and China Mobilnet. Early investors included private individuals and City institutions such as Rathbones.

　　在2005年前后，伦敦亚洲基金的前景与现在大不相同。在当时的首席执行官西蒙·利特尔伍德(Simon Littlewood)和董事长维克多·吴(Viktor Ng)领导下，伦敦亚洲基金堪称将中国式资本主义带到伦敦市场上的先锋。非执行董事阵容中包括前伦敦金融城市长、现任英中贸易协会主席白乐威爵士(David Brewer)，以及伦敦国际金融期货交易所创始人及前董事长杰克?维格勒沃斯(Jack Wrigglesworth)。对于中国小型企业来说，要去英国上市，自然应当咨询伦敦亚洲基金。这些企业包括网大教育集团(China Education Group)、China Biotech和China Mobilnet等。初期投资者包括一些个人投资者以及Rathbones等坐落在金融城的机构。

　　Since the new management took over last year, only ￡5m in cash has been recovered – and any hope of recouping more appears to rest on the prospects for the land owned by Zhongying.

　　新管理团队从去年接手以来，到目前只收回了500万英镑资金。未来能否收回更多资金，似乎取决于中盈长江名下地皮的前景。

　　Some shareholders believe London Asia’s troubles should serve as a warning that China is still a high-risk territory to invest in. “With the increased visibility of China as a key market, there is a belief that it is safer – this belief may be unfounded,” says Doug Steen, a private shareholder. “Unless the UK authorities sit up and take action, foreign markets will see the UK as a soft touch and investors will continue to be at risk.”

　　一些股东认为，对于伦敦亚洲基金遇到的问题，人们应当引以为鉴，明白中国仍然是一个高风险的投资地。“由于中国这个重要市场的透明度有所提高，有人认为它现在比较安全——这种观点可能毫无依据。”一名私人股东道格·斯蒂恩(Doug Steen)表示，“除非英国政府当局着手采取行动，否则外国市场仍会以为在英国好忽悠，投资者也仍将置身于危险之中。”

　　Another shareholder, John Slater, says the London Asia affair highlights the need for UK company directors to “understand the way business is done in China and have good advice on local laws and customs”.

　　另一位股东约翰·斯莱特(John Slater)表示，伦敦亚洲基金之事，表明英国企业的董事们有必要去“理解中国人的行事方式，充分了解当地法律和习俗”。

　　Evidence from the US suggests these problems are not unique. Dozens of small Chinese companies are listed on Amex and Nasdaq – but a growing number are being targeted by short sellers convinced that the curse of London Asia Capital will strike. In the view of one Chinese national who now advises western investment funds on Chinese small caps: “2011 is the year it’s all going to come tumbling down.”

　　美国的情况表明，这些问题并非只存在于英国。Amex和纳斯达克市场有许多小型中国企业，但它们正越来越多成为卖空者的目标。卖空者确信，它们也无法逃过伦敦亚洲基金遭遇的魔咒。一位为西方投资基金提供有关中国小型企业建议的中国人认为：“2011年里，这一切都将土崩瓦解。”