BOSTON, March 4,
2024 /PRNewswire/ -- The Board of Directors (the
"Board") of The China Fund, Inc. (NYSE: CHN) (the "Fund"), is
pleased to announce that the Fund's investment adviser, Matthews
International Capital Management, LLC (the "Adviser"), has agreed
to waive a portion of the management fee paid to it by the Fund,
which will reduce the Fund's total expense ratio and the indirect
cost to shareholders of investing in the Fund. In light of current
economic and market conditions affecting the performance of Chinese
securities generally, the Board and the Adviser believe it is
appropriate and in the best interest of the Fund and its
shareholders to consider all available measures to reduce the
expenses of the Fund. After reviewing the Fund's operating expenses
and investment performance, the Board requested that the Adviser
consider reducing its management fee. The Adviser has since agreed
to voluntarily waive for a year from February 1, 2024, a portion of the management fee
it receives from the Fund by reducing the management fee rate
applied when the Fund's monthly average assets are less than
$150 million from 0.80% to 0.75%.
Thereafter, the fee waiver will terminate without further notice,
unless the Adviser, in its sole discretion, agrees to continue the
waiver.
The Fund is a closed-end investment company, the shares of which
are listed on the New York Stock Exchange under the ticker symbol
"CHN." The Fund's investment objective is to seek long-term capital
appreciation by investing primarily in equity securities (i) of
companies for which the principal securities trading market is
the People's Republic of China
("China"), or (ii) of companies
for which the principal securities trading market is outside of
China, or constituting direct
equity investments in companies organized outside of China, that in both cases derive at least 50%
of their revenue from goods and services sold or produced, or have
at least 50% of their assets, in China. While the Fund is permitted to invest
in direct equity investments of companies organized in China, it presently holds no such investments.
The Fund's investment manager is Matthews International Capital
Management, LLC.
Investment in shares of the Fund involve investment risk,
including possible loss of principal, and there is no assurance
that the Fund will achieve its investment objective. The Fund is
also subject risks associated with international investing, such as
currency fluctuation, government regulations, economic changes, and
differences in liquidity. Foreign securities markets generally
exhibit greater price volatility and are less liquid than the U.S.
market. Additionally, this Fund focuses its investments in Chinese
securities, thereby increasing its vulnerability to developments in
that region. All of these factors may subject the shares of the
Fund to greater price volatility and adversely affect Fund
performance. In addition, similar to other exchange-traded funds,
the Fund's shares generally are purchased at their market price and
not at the Fund's net asset value ("NAV") per share. The market
price of the Fund's shares may be more (i.e., premium) or
less (i.e., discount) than their NAV per share. Shares of
closed-end funds frequently trade at a discount to their NAV per
share. Both the market price of the Fund's shares and the Fund's
NAV per share tend to fluctuate with the value of its underlying
securities. This material is not intended as a recommendation or as
investment advice of any kind. This material is not provided in a
fiduciary capacity, may not be relied upon for or in connection
with the making of investment decisions, and does not constitute a
solicitation of an offer to buy or sell shares of the Fund. All
content has been provided for informational purposes only and is
not intended to be and should not be construed as legal or tax
advice and/or a legal opinion. Always consult a financial, tax
and/or legal professional regarding your specific situation.
Investments in the Fund are subject to additional risks and
considerations not described above. Investors should consider these
additional risks and considerations, as well as the Fund's
investment objective, investment policies, and expenses before
investing. Please refer to the most recent annual or semi-annual
report and visit www.chinafundinc.com for this and more information
(or call 888.CHN.CALL).
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SOURCE The China Fund, Inc.
