#United States #Boston #Matthews International #The China Fund #Stifel Nicolaus

The China Fund, Inc. Announces New Developments in Discount Management

The China Fund, Inc. (NYSE: CHN), a notable investment company focused on gaining long-term capital appreciation through investments primarily in Chinese equities, has recently made important updates regarding its management and financial strategies. On December 18, 2024, the Fund's Board of Directors confirmed the appointment of Stifel, Nicolaus & Company, Incorporated as its new agent for its Discount Management Program, effective January 1, 2025.

Background on the Discount Management Program

This Discount Management Program is crucial for enhancing shareholder value by allowing the Fund to repurchase up to 10% of its common shares annually, contingent upon their market performance. Specifically, the Fund is proactive in repurchasing shares that are trading above a predetermined discount threshold. The parameters that define how these repurchases occur are detailed in the Share Purchase Procedures established by the Board.

Key to the Program's integrity is its adherence to Rule 10b-18 of the Securities Exchange Act of 1934, which protects companies from accusations of market manipulation when they buy back their shares under specific conditions. All repurchases will be conducted on national securities exchanges at the current market price, and ongoing reports of these repurchases will be made available to shareholders, enhancing transparency.

Management Fee Waiver Continues

In a separate but related announcement, the Board has also reported that Matthews International Capital Management, LLC, the Fund's investment adviser, will continue to waive a portion of its management fee. This decision is strategically designed to reduce the Fund's total expense ratio, thereby lessening the financial burden on its shareholders at a time when market conditions present various challenges for Chinese securities.

The management fee, previously set at 0.80% when the Fund's average assets are under $150 million, will be reduced to 0.75%. This waiver will remain in effect for one year starting February 1, 2025, or until the Fund's performance outstrips that of the MSCI China All Shares Index, its primary benchmark. The fee waiver is a strategic move to promote shareholder interests amid shifting economic landscapes.

Goals and Performance Monitoring

The overall goal of the China Fund is to invest in equity securities tied to companies primarily engaged in trade within China or associated markets, while ensuring strict compliance with investment mandates. However, it currently holds no direct equity investments in companies organized in China. Instead, its strategy reflects a focus on understanding broader market trends and their implications for shareholder value.

As the Board regularly evaluates the effectiveness of the Discount Management Program and the fee waiver, it's crucial for shareholders to remain informed about how these developments can potentially impact their investments. Ongoing assessments and adjustments to the Share Purchase Procedures can be made at any time as the Board strives to ensure these measures benefit both the Fund and its investors.

Conclusion

Investors looking into the China Fund can expect a commitment to transparency and value creation through the implementation of new management strategies and ongoing fee waivers. As always, potential investors should carefully consider the Fund's objectives alongside the associated risks and expenses. For further details, prospective investors and shareholders are encouraged to reach out directly or visit the Fund's official website for current updates and information.

For more insights and press releases pertaining to developments in the China Fund, please call (888)-CHN-CALL or navigate to www.chinafundinc.com.