#USA #Boston #Stockholders #Liquidation #China Fund

The China Fund, Inc. to Liquidate and Dissolve

On October 21, 2025, The China Fund, Inc. (listed on the NYSE as CHN) held a pivotal special meeting to discuss its future. In a decisive vote, stockholders approved the proposal for the liquidation and dissolution of the Fund, marking a significant step in its operational strategy.

The liquidation process will unfold as outlined in the Plan of Liquidation and Dissolution that was previously adopted by the Fund's Board of Directors. As part of the plan, The China Fund will start liquidating its investment portfolio, which entails selling off its assets to eventually distribute cash to its stockholders. This means the Fund will no longer be able to engage in its usual investment activities and will focus solely on winding down its business and settling its liabilities.

As the next step, the Fund has informally notified its transfer agent to freeze the share records at the end of the business day on October 29, 2025. This date has been designated as the 'Determination Date.' From this point, stockholders' individual interests in the Fund's assets will be calculated based on their holdings prior to that deadline. This is crucial for determining the amount each stockholder will receive following the liquidating process.

Additionally, the shares of the Fund will cease secondary market trading also on October 29, 2025. This means that prior to the market opening on October 30, 2025, trading of the Fund's shares on the NYSE will officially come to an end. Consequently, stockholders are encouraged to complete any intended share transactions before this critical granularity in the schedule. The initial distribution of proceeds from the liquidation is anticipated to occur on October 31, 2025, providing stockholders with timely access to their respective payouts.

The total funds available to stockholders will equate to the Fund's net asset value following the deduction of all operational costs, taxes, and liabilities associated with the liquidation. Furthermore, there may be additional distributions made after the initial payouts, depending on the continuation of the winding-up process. A significant aspect of this process is that upon final distribution of liquidating funds, all existing shares of the Fund will be redeemed without incurring any fees for this transaction.

It’s important to note that for stockholders subject to U.S. federal income tax, the liquidation will result in a taxable event. Generally, stockholders receiving distribution during this process will either gain or incur losses based on the difference between the total distributions received and their adjusted basis in the shares. Due to the tax implications, stockholders are advised to seek guidance from tax professionals regarding the specific consequences applicable to their situations.

Until the Determination Date, stockholders will have the option to trade their Fund shares in the open market. However, they should be mindful that, similar to any other share transaction, the selling or purchasing of these shares will also be treated as a taxable event. Traditional brokerage fees might apply to these transactions as well. Post-Determination Date, it is expected that the shares will not be traded actively, which could affect market availability for purchasing or selling the Fund's shares moving forward.

The China Fund, Inc. operates as a closed-end management investment company, with its shares traded on the NYSE. Its investment management is overseen by Matthews International Capital Management, LLC. For detailed insights about the Fund’s financials and operations, stakeholders are encouraged to reach out at (888)-CHN-CALL or visit the official website at www.chinafundinc.com. Note that the website content is not included as part of this announcement. Any interested parties should always keep in mind that investments carry risks, including the potential loss of principal, and should seek professional advice for informed decision-making.

Conclusion

The approval for dissolution and liquidation marks a transformative chapter for The China Fund, Inc. Stockholders and stakeholders alike are gearing up for a series of critical financial transitions as the Fund proceeds with its planned liquidation. Stakeholders are encouraged to stay updated on further announcements regarding distribution timelines and procedures as the situation evolves.