The China Fund, Inc. Announces Reduced Management Fee Due to Adviser's Fee Waiver

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The China Fund, Inc. announces a reduced management fee due to the Adviser's fee waiver. The Fund's investment adviser, Matthews International Capital Management, LLC, has agreed to waive a portion of the management fee, reducing the total expense ratio for shareholders. The fee waiver will be effective for a year, lowering the management fee rate when the Fund's assets are under $150 million. The Fund aims for long-term capital appreciation by investing in Chinese securities and companies deriving revenue from China.

BOSTON, March 4, 2024 /PRNewswire/ -- The Board of Directors (the "Board") of The China Fund, Inc. (NYSE: CHN) (the "Fund"), is pleased to announce that the Fund's investment adviser, Matthews International Capital Management, LLC (the "Adviser"), has agreed to waive a portion of the management fee paid to it by the Fund, which will reduce the Fund's total expense ratio and the indirect cost to shareholders of investing in the Fund. In light of current economic and market conditions affecting the performance of Chinese securities generally, the Board and the Adviser believe it is appropriate and in the best interest of the Fund and its shareholders to consider all available measures to reduce the expenses of the Fund. After reviewing the Fund's operating expenses and investment performance, the Board requested that the Adviser consider reducing its management fee. The Adviser has since agreed to voluntarily waive for a year from February 1, 2024, a portion of the management fee it receives from the Fund by reducing the management fee rate applied when the Fund's monthly average assets are less than $150 million from 0.80% to 0.75%. Thereafter, the fee waiver will terminate without further notice, unless the Adviser, in its sole discretion, agrees to continue the waiver.

The Fund is a closed-end investment company, the shares of which are listed on the New York Stock Exchange under the ticker symbol "CHN." The Fund's investment objective is to seek long-term capital appreciation by investing primarily in equity securities (i) of companies for which the principal securities trading market is 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 revenue 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's investment manager is Matthews International Capital Management, LLC.

Investment in shares of the Fund involve investment risk, including possible loss of principal, and there is no assurance that the Fund will achieve its investment objective. The Fund is also subject risks associated with international investing, such as currency fluctuation, government regulations, economic changes, and differences in liquidity. Foreign securities markets generally exhibit greater price volatility and are less liquid than the U.S. market. Additionally, this Fund focuses its investments in Chinese securities, thereby increasing its vulnerability to developments in that region. All of these factors may subject the shares of the Fund to greater price volatility and adversely affect Fund performance. In addition, similar to other exchange-traded funds, the Fund's shares generally are purchased at their market price and not at the Fund's net asset value ("NAV") per share. The market price of the Fund's shares may be more (i.e., premium) or less (i.e., discount) than their NAV per share. Shares of closed-end funds frequently trade at a discount to their NAV per share. Both the market price of the Fund's shares and the Fund's NAV per share tend to fluctuate with the value of its underlying securities. This material is not intended as a recommendation or as investment advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell shares of the Fund. All content has been provided for informational purposes only and is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

Investments in the Fund are subject to additional risks and considerations not described above. Investors should consider these additional risks and considerations, as well as the Fund's investment objective, investment policies, and expenses before investing. Please refer to the most recent annual or semi-annual report and visit www.chinafundinc.com for this and more information (or call 888.CHN.CALL).

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SOURCE The China Fund, Inc.

FAQ

What is the reason behind The China Fund, Inc. announcing a reduced management fee?

The Fund's investment adviser, Matthews International Capital Management, LLC, agreed to waive a portion of the management fee to reduce the total expense ratio for shareholders.

What is the new management fee rate after the Adviser's fee waiver?

The management fee rate applied when the Fund's assets are less than $150 million has been reduced from 0.80% to 0.75% for a year from February 1, 2024.

What is the investment objective of The China Fund, Inc.?

The Fund aims for long-term capital appreciation by investing primarily in equity securities of companies deriving at least 50% of their revenue from China.

What risks are associated with investing in The China Fund, Inc.?

Investment in the Fund involves risks such as possible loss of principal, currency fluctuation, government regulations, economic changes, and differences in liquidity.

Where can investors find more information about The China Fund, Inc.?

Investors can refer to the most recent annual or semi-annual report and visit www.chinafundinc.com for more information or call 888.CHN.CALL.