Abrdn’s investment trust range continues to shrink with Abrdn China (ACIC ) announcing a merger with its largest rival Fidelity China Special Situations (FCSS ).

Two years after the company was formed by the merger of Abrdn Emerging Markets and Abrdn New Thai, the board of the £212m single country portfolio has called it a day deciding its shareholders are best served throwing in their lot with Fidelity’s £1.2bn sector leader.

Chair Helen Green said despite the relaunch as a China fund and share buybacks, its stock had continued to trade at a wide discount of 18% below net asset value at last week’s close. The company had failed to attract new investors with 70% of its shares held by three organisations, she said.

‘After a very thorough review process, including consultation with the company’s major shareholders, the board has concluded that the best practicable option to address the company’s over-concentrated register and to provide significantly improved liquidity to our shareholders is to merge with Fidelity China, which is both sizeable and the clear leader in the China investment company sector,’ Green said.

ACIC shareholders will have the opportunity to withdraw up to a third of the company’s capital at a 2% discount to its formula asset value.