BOSTON, Jan. 24,
2023 /PRNewswire/ -- The Board of Directors (the
"Board") of The China Fund , Inc. (NYSE: CHN) (the "Fund")
announces that it has unanimously approved the adoption of a policy
pursuant to which the Fund intends to conduct a performance tender
offer for up to twenty-five percent (25%) of the Fund's then-issued
and outstanding shares of common stock on or before March 31, 2028, and on each fifth-year
anniversary thereafter, if the Fund's investment
performance[1 does not equal or exceed
that of the Fund's performance benchmark, the MSCI China All Shares
Index2, for the period commencing on January 1, 2023 and ending on December 31, 2027 (and for each five-year
performance period thereafter) (the "Performance Policy"). The
offer size, price at which shares are to be tendered, and other
terms and conditions of such performance tender offer would be
determined by the Board in its discretion based on its review and
consideration of market conditions at that time and any other
factors it deems relevant.
The Board would proceed with a performance tender offer pursuant
to the Performance Policy only to the extent it would be consistent
with the best interests of the Fund and its shareholders under
then-current circumstances. The Board will not eliminate or
materially modify the Performance Policy without first notifying
the Fund's shareholders.
The Board's adoption of the Performance Policy does not affect
the continued administration of the Fund's Discount Management
Program.3
The Fund is a closed-end management investment company with the
objective of seeking long-term capital appreciation by investing
primarily in equity securities (i) of companies for which the
principal securities trading market is in 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 revenues 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 is listed on the New York Stock Exchange under the ticker
symbol "CHN". The Fund's investment manager is Matthews
International Capital Management, LLC.
For further information regarding the Fund and the Fund's
holdings, please call (888)-CHN-CALL or visit the Fund's website at
www.chinafundinc.com.
1 For these purposes, the Fund's investment
performance means its total investment returns for the period based
on changes in its net asset value.
2 The MSCI All Shares Index captures large- and
mid-cap representation across China A–shares, B–shares, H–shares,
Red–chips, P–chips and foreign listings (e.g., ADRs). The Index
aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China. It is based on the concept of the
integrated MSCI China equity universe with China A-shares
included.
3 The Fund's Discount Management Program will be
halted temporarily in advance of a dividend payment or in
connection with a tender offer and may be halted, from time to
time, for other reasons. With respect to dividend payments,
the Discount Management Program will be halted only for the period
between the declaration date and ex-date of a dividend. With
respect to tender offers, including any future performance tender
offer, the Discount Management Program will be halted only for the
period between the announcement of the tender offer and 10 business
days after its termination date. The Fund endeavours to
notify stockholders in advance of any such temporary halt to the
extent possible.
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SOURCE The China Fund, Inc.
