The China Fund, Inc. Confirms Completion of Liquidation Process and Distribution Plans

The China Fund, Inc. Completes Liquidation Process

On October 29, 2025, The China Fund, Inc. (NYSE: CHN) implemented its planned liquidation. This marks a significant milestone in the Fund's long history, which has lasted over 40 years. On this date, the proportionate interests of the shareholders in the Fund's remaining assets were calculated, leading up to the cessation of trading shares on the New York Stock Exchange (NYSE) on the next business day, October 30, 2025.

The announcement indicated that the principal liquidating distribution is set to be made in cash and will occur on October 31, 2025. According to the disclosed figures, each shareholder will receive approximately $18.34 per share in this distribution.

While this is the primary distribution expected, the Fund also mentioned the possibility of one or more smaller distributions in the future. These may occur if it's deemed impractical to distribute all assets in the main distribution.

It's crucial for shareholders to understand that the liquidation process is generally considered a taxable event under U.S. federal law. As a result, stockholders who receive liquidation distributions may realize capital gains or losses, determined by the difference between the amount received and their adjusted basis in the shares. Therefore, consulting a tax advisor is advisable to comprehend the specific implications of this event on individual tax situations.

The Board expressed gratitude to all shareholders for their support during the prolonged operation of the Fund, conveying best wishes for the future. It's an important reminder that investment carries inherent risks, including the potential loss of principal. Thus, investments should only be made with a clear understanding of these risks.

Shareholders are reminded that distribution rates are not guaranteed and might fluctuate due to various factors. These factors include changes in actual or anticipated investment income and undistributed net investment income. Hence, current distributions shouldn't necessarily be seen as a reflection of the Fund's investment performance.

The China Fund operates as a closed-end management investment company, distinct from open-end funds, as its shares are not continuously offered. After their issuance, the shares are traded in the open market at prices that could be lower than their net asset value (NAV), which is calculated by subtracting total liabilities from total assets and dividing the result by the number of shares outstanding.

The Fund is managed by Matthews International Capital Management, LLC, known for its commitment to transparency and investor education. For shareholders and potential investors seeking more information regarding The China Fund, they can reach out by calling (888)-CHN-CALL or visiting the Fund's official website. Here, interested parties can also request free copies of the Fund's complete audited financial statements.

As this chapter closes for The China Fund, Inc., it serves as a case study for investors navigating the complexities of closed-end funds and the broader investment landscape. Understanding liquidation processes and their implications remains crucial for informed investment decisions.