The China Fund, Inc. Announces Launch of Discount Management Program, with Revisions

NEW YORK, Feb. 6, 2019 /PRNewswire/ -- The China Fund, Inc. (NYSE: CHN) a closed-end investment company (the "Fund"), announced today that it plans to launch its previously announced Discount Management Program (the "Program") on February 21, 2019.  The Discount Management Program has been revised in several respects, the significant one being that the Fund will disclose the Discount Threshold above which shares will be repurchased.  The Discount Threshold is currently set at 9.5%. The Board or its Discount Management Committee (the "Committee") will regularly monitor the relationship between the market price and NAV of the common shares. The Discount Threshold may be increased or decreased by the Board or Committee at any time.  Under the Program, the Fund is authorized to repurchase in each twelve-month period ended October 31 up to 10% of its common shares outstanding as of the close of business on October 31 of the prior year.  This limit may be increased or decreased by the Board or Committee at any time.  In addition, the Board may elect to take actions other than open market repurchases to address the discount.

Under the Program, the Fund will repurchase its common shares in the open market on any trading day that the Fund's shares are trading above the Discount Threshold. On each day that shares are repurchased, the Fund repurchases its shares to the maximum extent permitted by law unless, in consultation with the Program Manager appointed by the Board, the Committee and the Program Manager determine that such repurchase would be detrimental to the Fund and its stockholders. On any day that shares can be repurchased, in addition to the limits set forth above, the Fund will repurchase shares only at such times that the share price represents a discount from the Fund's closing NAV on the prior day that exceeds the Discount Threshold.  Repurchases will be conducted in accordance with Common Share Repurchase Procedures adopted by the Board and in compliance with the conditions set forth in the safe harbor in Rule 10b-18 under the Securities Exchange Act of 1934, as amended.

The Program is intended to enhance stockholder value, as repurchases made at a discount may have the effect of increasing the per share NAV of the Fund's remaining shares. There is no assurance, however, that the market price of the Fund's shares, either absolutely or relative to NAV, will increase as a result of any share repurchases. There is no assurance that the Fund will purchase shares at any particular discount levels or in any particular amounts. Under certain conditions, regulatory requirements and/or other legal considerations may limit the Fund's ability to repurchase shares These repurchases may be commenced or suspended at any time or from time to time without prior notice. The Fund's repurchase activity will be disclosed in its stockholder reports for the relevant fiscal periods and on its web-site on a weekly basis.

The Fund is a non-diversified closed-end investment company, which seeks long-term capital appreciation primarily through investments in equity securities (i) of companies for which the principal securities trading market is in China, (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 revenues from goods or services sold or produced, or have at least 50% of their assets, in China or (iii) constituting direct equity investments in companies organized in China. Shares of the Fund are listed on the New York Stock Exchange under the ticker symbol "CHN."

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SOURCE The China Fund, Inc.