8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

March 31, 2010

Date of Report (Date of earliest event reported)

The China Fund, Inc.

(Exact name of registrant as specified in its charter)

Maryland	811-05749	000000000
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

c/o State Street Bank and Trust Company
2 Avenue de Lafayette,
P.O. Box 5049, Boston, Massachusetts	02206-5049
(Address of principal executive offices)	(Zip Code)

1(888)246-2255

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Table of Contents

Item 7.01. Regulation FD Disclosure

Item 9.01. Financial Statements and Exhibits

Signatures

Exhibit Index

March 2010 Monthly Insight Report

Item 7.01. Regulation FD Disclosure.

Pursuant to Regulation FD Rules 100-103, The China Fund, Inc. (the “Fund”) furnishes the Monthly Insight Report of the Fund’s Investment Manager.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99	March 2010 Monthly Insight Report of the Fund’s Investment Manager

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	The China Fund, Inc. (Registrant)
Dated: April 21, 2010	/s/ Elizabeth A. Watson
	Name: Elizabeth A. Watson
	Title:   Secretary

Exhibit Index

Exhibit No.	Description
99	March 2010 Monthly Insight Report of the Fund’s Investment Manager

EX-99

THE CHINA FUND, INC. (CHN)

The Martin Currie
Shanghai team

IN BRIEF
Net asset value per share	US$ 30.80
Market price	US$ 27.91
Premium/(discount)	(9.38%)
Fund size	US$ 701.6m
Source: State Street Bank and Trust Company

At 31 March 2010			US$ returns
	China Fund NAV		MSCI Golden Dragon*
	%		%
One month		4.9		5.8
Year to date		3.5		(1.5	)
One year		81.2		59.9
Three years %pa		15.8		5.4

Past performance is not a guide to future returns.

Source: State Street Bank and Trust Company. NAV performance.

*Source for index data: MSCI.

MANAGER’S COMMENTARY

Stock market volumes remained thin in March, but there was a sense of confidence returning by the month-end. The National People’s Congress concluded safely, without any new measures to curb the property market. Cross-strait free-trade talks resumed, with every sign of a successful conclusion by the summer. The results season has so far featured more pleasant surprises than unpleasant. Economic statistics have reflected the strong start to the year that we also hear about in our company visits, albeit somewhat flattered by the low-base comparison with the bleak start to 2009. House prices in 70 cities rose by 10.7% in January and February, and the gross floor area of new starts rose by 37.5%. Electricity consumption rose by 26% year on year. Exports soared 45.7%, though it should be noted that the trade surplus has halved this year and it looks as though China ran a trade deficit in March. The timing of the deficit will, we hope, help China to escape being named a ‘currency manipulator’ by the US in mid-April.

Trade protectionism seems to be the main risk to the China story at this time, rather than the domestic ‘bubble’ so beloved of Western commentators. A small revaluation of the yuan, just after the ‘currency manipulator’ deadline has passed, would be timely. Chinese business is now surely well prepared for such a move, which would help to remove the dangerous temptation for companies to borrow in US dollars and lend in renminbi.

We expect the fear of inflation (2.7% in February) and a harsh government reaction to diminish once the low-base effect fades into the summer. There are already signs of a loosening of the labor market in China’s coastal exporting areas after the Chinese New Year, which may be an indication of the slowing of stimulus spending in inland provinces.

INVESTMENT STRATEGY

The Fund is 95.7% invested with holdings in 62 companies. Of this, 20.9% is invested in Taiwan and 13.6 % in A-shares.

The proportion of the fund invested in unlisted companies fell sharply during March to 6.8%, for good and bad reasons. The good reason is the successful listing in Hong Kong of our largest direct holding, the rural appliance retailer Huiyin Household Appliances (1280 HK). The IPO was hugely oversubscribed, and the stock has traded up since the listing. We will continue to invest in the company as part of our listed portfolio. The bad reason is that the value of our holding in China Silicon has declined. Evidence of fraud by local management has emerged. The company has been placed into the Chinese equivalent of Chapter 11. The new management has developed a plan to repair/complete the company’s furnaces with a limited injection of new capital, but we feel that the appropriate course is to reduce the value of the holding until progress of the plan becomes clearer.

In the listed portfolio we crystallised substantial profits, reducing our healthcare weighting by selling the now highly valued Shandong Weigao and China Shineway Pharmaceuticals. We also sold our abalone farmer, Dalian Zhangzidao Fishery, after a strong run, and China Yangtse Power (drought is not good for hydroelectric companies), switching into the A-share of Ping An Insurance, which was trading at a 15% discount to its H-share. Other purchases were the unloved Taiwanese smartphone designer HTC and the control-maker Hollysys.

Chris Ruffle, Martin Currie Inc*

*Martin Currie Ltd and Heartland Capital Management Ltd (HCML) have established MC China Ltd (MCCL), as a joint venture company, to provide investment management or investment advisory services to the range of China investment products managed by Martin Currie.

MCCL has appointed Martin Currie Investment Management Ltd (MCIM), or its affiliates, as investment manager of Martin Currie’s China investment products. HCML has seconded both Chris Ruffle and Shifeng Ke to MCIM, or its affiliates, on a full time basis with the same roles and responsibilities as if they were full time employees.

31 MARCH 2010

FUND DETAILS
Market cap		US$ 635.8m
Shares outstanding		22,781,762
Exchange listed	NYSE
Listing date	July 10, 1992
Listed and direct investment manager	Martin Currie Inc

Source: State Street Bank and Trust Company.

SECTOR ALLOCATION
	The China			MSCI Golden
	Fund, Inc			Dragon
Healthcare		20.8	%		0.3	%
Consumer discretionary		16.3	%		6.1	%
Consumer staples		16.2	%		2.7	%
Financials		15.3	%		35.2	%
Industrials		10.6	%		7.3	%
Information technology		8.5	%		21.7	%
Materials		2.6	%		6.6	%
Energy		2.2	%		8.7	%
Utilities		1.9	%		3.9	%
Telecommunications		1.3	%		7.4	%
Other assets & liabilities		4.3	%		—

Source: State Street Bank and Trust Company. Source for index data: MSCI

ASSET ALLOCATION

Source: State Street Bank and Trust Company

PERFORMANCE	(US$ RETURNS)
	NAV		Market price
	%		%
One month		4.9		4.0
Year to date		3.5		(1.1	)
Three years %pa		15.8		17.3

Past performance is not a guide to future returns.

Three year returns are annualized.

Source: State Street Bank and Trust Company

15 LARGEST HOLDINGS (46.9%)

Huiyin Household Appliances	Consumer discretionary	7.1%
Sinopharm Medicine Holding	Healthcare	5.0%
Wumart Stores	Consumer staples	4.3%
China Medical	Healthcare	3.7%
Ugent Holdings, Ltd	Industrials	3.2%
China Shineway Pharmaceutical	Healthcare	2.9%
Shandong Weigao Group	Healthcare	2.7%
China Fishery Group	Consumer staples	2.7%
Ruentex Development Co	Financials	2.6%
Ping An Insurance (expiration 04/01/13)	Financials	2.4%
Far Eastern Department Stores	Consumer discretionary	2.2%
Hsu Fu Chi International	Consumer staples	2.1%
Shenzhen Agricultural Products	Consumer staples	2.1%
WuXi PharmaTech Cayman	Healthcare	2.0%
China Metal Products	Materials	1.9%

DIRECT INVESTMENTS (6.8%)

Ugent Holdings	Industrials	3.2%
HAND Enterprise Solutions	Information technology	1.8%
Qingdao Bright Moon	Industrials	1.3%
Highlight Tech	Industrials	0.5%
China Silicon (Series A Preferred)	Information technology	0.0%
China Silicon	Information technology	0.0%
China Silicon warrants	Information technology	0.0%
TECO Optronics	Information technology	0.0%

Source: State Street Bank and Trust Company.

FUND PERFORMANCE (BASED ON NET ASSET VALUE)									(US$ RETURNS)
	One		Three			Calendar			One		Three		Five		Since
	month		months			year to date			year		years		years		launch
	%		%			%			%		% pa		% pa		% pa
The China Fund, Inc.		4.9		3.5			3.5			81.2		15.8		22.1		12.3
MSCI Golden Dragon		5.8		(1.5	)		(1.5	)		59.9		5.4		12.8		10.2
Hang Seng Chinese Enterprise		7.4		(3.2	)		(3.2	)		53.3		9.1		21.0		21.2
Shanghai Stock Exchange 180		2.7		(6.3	)		(6.3	)		30.8		8.9		31.9		n/a

Past performance is not a guide to future returns.

Source: State Street Bank and Trust Company. Launch date 10 July 1992. Three, five year and since launch returns are all annualized.

Source for index data: MSCI for the MSCI Golden Dragon and Copyright 2010 Bloomberg LP for the Hang Seng China Enterprise and the Shanghai Stock Exchange 180. For a full description of each index please see the index descriptions section.

PERFORMANCE IN PERSPECTIVE

Past performance is not a guide to future returns.

Source: Martin Currie Inc as at 31 March 2010.

THE CHINA FUND INC. PREMIUM/DISCOUNT

Past performance is not a guide to future returns.

Source: Martin Currie Inc as at 31 March 2010.

10 YEAR DIVIDEND HISTORY CHART

	2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
Total		0.00		0.13		0.21		1.78		3.58		2.51		4.01		12.12		5.82		0.26
Income		0.00		0.13		0.06		0.07		0.20		0.22		0.30		0.28		0.48		0.26
Long-term capital		0.00		0.00		0.00		0.67		3.27		2.29		2.73		9.00		5.34		0.00
Short-term capital		0.00		0.00		0.15		1.04		0.11		0.00		0.98		2.84		0.00		0.00

Past performance is not a guide to future returns.

Source: State Street Bank and Trust Company.

31 MARCH 2010

Sector	Company (BBG ticker)		Price	Holding		Value US$	% of portfolio
Hong Kong							22.8
Huiyin Household Appliances	1280	HK	HK$2.4	160,413,750	$	49,788,101	7.1
China Shineway Pharmaceutical Group	2877	HK	HK$21.4	7,372,000	$	20,412,242	2.9
Xinao Gas Holdings	2688	HK	HK$19.8	5,084,000	$	12,990,149	1.9
Intime Department Store Group	1833	HK	HK$7.5	12,568,629	$	12,172,301	1.7
Ports Design	589	HK	HK$19.7	4,549,500	$	11,483,828	1.6
Chaoda Modern Agriculture (Holdings)	682	HK	HK$8.3	10,507,357	$	11,190,924	1.6
Fushan International Energy Group	639	HK	HK$5.9	12,018,000	$	9,131,690	1.3
Golden Meditech Co	801	HK	HK$2.0	35,040,000	$	8,799,655	1.3
Natural Beauty Bio-Technology	157	HK	HK$1.4	47,710,000	$	8,417,767	1.2
China Pharmaceutical Group	1093	HK	HK$4.8	12,918,000	$	7,985,525	1.1
Shangri-La Asia	69	HK	HK$15.2	3,061,555	$	5,985,229	0.9
Yorkey Optical International Cayman	2788	HK	HK$1.6	7,758,926	$	1,608,771	0.2
FU JI Food & Catering Services	1175	HK	HK$0.0	5,462,000	$	0	0.0
Hong Kong 'H' shares							15.7
Sinopharm Medicine Holding	297	HK	HK$34.9	7,786,000	$	34,995,061	5.0
Wumart Stores	8277	HK	HK$15.7	14,888,000	$	29,910,790	4.3
Shandong Weigao Group Medical Polymer	8199	HK	HK$32.4	4,588,000	$	19,144,118	2.7
ZTE Corp.	763	HK	HK$47.1	1,461,926	$	8,858,332	1.3
China Pacific Insurance	2601	HK	HK$34.4	1,463,442	$	6,502,218	0.9
Anhui Expressway	995	HK	HK$5.3	8,426,300	$	5,762,333	0.8
Zijin Mining Group	2899	HK	HK$6.1	6,402,000	$	5,029,357	0.7
Singapore							5.8
China Fishery Group	CFG	SP	SG$2.0	13,255,000	$	18,855,177	2.7
Hsu Fu Chi International	HFCI	SP	SG$2.2	9,484,000	$	14,541,749	2.1
Financial One Corp	FIN	SP	SG$0.5	12,030,000	$	4,127,667	0.6
CDW Holding	CDW	SP	SG$0.1	54,708,000	$	2,932,986	0.4
Taiwan							20.9
Ruentex Development Co	9945	TT	NT$45.0	12,694,000	$	17,986,964	2.6
Far Eastern Department Stores	2903	TT	NT$26.3	19,066,931	$	15,790,046	2.2
China Metal Products	1532	TT	NT$45.4	9,200,278	$	13,152,359	1.9
HTC Corp	2498	TT	NT$371.0	1,027,900	$	12,008,027	1.7
Cathay Financial Holdings	2882	TT	NT$53.0	6,454,000	$	10,770,892	1.5
Uni-President Enterprises Corp.	1216	TT	NT$36.2	9,112,638	$	10,372,878	1.5
WPG Holdings Co	3702	TT	NT$51.9	6,320,000	$	10,328,358	1.5
FamilyMart	5903	TT	NT$64.0	4,501,652	$	9,071,910	1.3
Lien Hwa Industrial	1229	TT	NT$15.5	16,476,881	$	8,015,864	1.1
KGI Securities	6008	TT	NT$14.9	16,984,780	$	7,968,802	1.1
Taiwan Secom	9917	TT	NT$50.8	4,017,000	$	6,425,581	0.9
Yuanta Financial Holdings	2885	TT	NT$19.1	10,520,593	$	6,310,766	0.9
Taiwan Life 4percent Conv Bond			NT$100.0	200,000,000	$	6,297,626	0.9
Synnex Technology	2347	TT	NT$70.0	2,809,240	$	6,192,040	0.9
Fubon Financial Holdings	2881	TT	NT$38.6	4,948,000	$	6,014,006	0.9
United Kingdom							3.7
China Medical System Holdings	CMSH	LN	£4.7	3,623,188	$	25,579,211	3.7
United States							6.4
WuXi PharmaTech Cayman	WX	US	US$15.6	883,490	$	13,755,939	2.0
Hollysys Automation Technologies	HOLI	US	US$11.5	808,200	$	9,302,382	1.3
Mindray Medical International	MR	US	US$36.4	191,700	$	6,981,714	0.9
Far East Energy	FEEC	US	US$0.4	14,565,477	$	6,263,155	0.9
Sina Corp.	SINA	US	US$37.7	162,700	$	6,132,163	0.9
The9	CMED	US	US$7.0	358,900	$	2,523,067	0.4
Equity linked securities ('A' shares)							13.6
Ping An Insurance (expiration 04/01/13)		n/a	US$7.4	2,287,100	$	16,887,128	2.4
Shenzhen Agricultural Products		n/a	US$2.1	6,800,000	$	14,444,982	2.1
Shanghai International Airport		n/a	US$2.7	4,326,700	$	11,746,379	1.7
Shanghai Yuyan Tourist		n/a	US$4.1	238,502,000	$	9,867,264	1.4
Ping An Insurance (expiration 01/17/12)		n/a	US$7.4	1,230,000	$	9,153,045	1.3
Suning Appliance		n/a	US$2.7	2,874,013	$	7,912,158	1.1
Shanghai Qiangsheng		n/a	US$1.6	4,800,000	$	7,552,411	1.0
Daqin Railway		n/a	US$1.4	4,807,000	$	6,760,603	1.0
Wuliangye Yibin		n/a	US$4.1	1,403,507	$	5,792,273	0.8
Zhejiang Guyuelongshan		n/a	US$1.5	3,658,900	$	5,521,130	0.8

Sector	Company (BBG ticker)		Price	Holding		Value US$	% of portfolio
Direct							6.8
Ugent Holdings		n/a	US$100.0	177,000,000	$	22,795,031	3.2
HAND Enterprise Solutions		n/a	US$25.5	500,000	$	12,735,000	1.8
Qingdao Bright Moon		n/a	US$0.3	31,827,172	$	9,198,053	1.3
Highlight Tech Corp		n/a	US$1.8	1,683,447	$	3,000,000	0.5
China Silicon Corp. Common Stock		n/a	US$0.0	1,234,405		—	0.0
China Silicon Corp. Warrants		n/a	US$0.0	685,450		—	0.0
China Silicon Corp., Series A Preferred		n/a	US$0.0	27,418		—	0.0
Hand Enterprise Solutions Preferred Stock		n/a	US$0.0	8,027,241		—	0.0
teco Optronics Corp		n/a	US$0.0	1,861,710		—	0.0
Other assets & liabilities					$	30,400,626	4.3

INDEX DESCRIPTIONS

MSCI Golden Dragon Index

The MSCI Golden Dragon is a free float-adjusted market capitalization index that is designed to measure equity market performance in the China region. As of May 2005 the MSCI Golden Dragon Index consisted of the following country indices: China, Hong Kong and Taiwan.

Hang Seng China Enterprise Index

The Hang Seng China Enterprise Index is a capitalization-weighted index comprised of state-owned Chinese companies (H-shares) listed on the Hong Kong Stock Exchange and included in Hans Seng Mainland China index.

Shanghai Stock Exchange 180 Index

The Shanghai Stock Exchange 180 'A' Share Index is a capitalization-weighted index. The index tracks the daily price performance of the 180 most representative 'A' share stocks listed on the Shanghai Stock Exchange.

OBJECTIVE

The investment objective of the Fund is to achieve long term capital appreciation. The Fund seeks to achieve its objective through investment in the equity securities of companies and other entities with significant assets, investments, production activities, trading or other business interests in China or which derive a significant part of their revenue from China.

The Board of Directors of the Fund has adopted an operating policy of the Fund, effective 30 June 2001, that the Fund will invest at least 80% of its assets in China companies. For this purpose, 'China companies' are (i) companies for which the principal securities trading market is in China; (ii) companies for which the principal securities trading market is outside of China or in companies organized outside of China, that in both cases derive at least 50% of their revenues from goods or services sold or produced, or have a least 50% of their assets in China; or (iii) companies organized in China. Under the policy, China will mean the People's Republic of China, including Hong Kong, and Taiwan. The Fund will provide its stockholders with at least 60 days' prior notice of any change to the policy described above.

The Fund is subject to the Investment Company Act of 1940 which limits the means in which it can access the 'A' share market. The Fund will continue to seek the most efficient way in which to increase its 'A' share exposure ensuring ongoing compliance with its legal and regulatory obligations.

CONTACTS

The China Fund, Inc.

c/o State Street Bank and Trust Company

2 Avenue de Lafayette

PO Box 5049

Boston, MA02206-5049

Tel: (1) 888 CHN-CALL (246 2255)

www.chinafundinc.com

Important information: This document is issued and approved by Martin Currie Inc (MC Inc), as investment adviser of The China Fund Inc (the Fund). MC Inc is authorised and regulated by the Financial Services Authority (FSA) and incorporated under limited liability in New York, USA. Registered in Scotland (No BR2575), registered address Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES. Information herein is believed to be reliable but has not been verified by MC Inc. MC Inc makes no representation or warranty and does not accept any responsibility in relation to such information or for opinion or conclusion which the reader may draw from the newsletter.

Martin Currie Ltd and Heartland Capital Management Ltd (HCML) have established MC China Ltd (MCCL), as a joint venture company, to provide investment management or investment advisory services to our China product. MCCL has appointed Martin Currie Investment Management Ltd (MCIM), or its affiliates, as investment manager of our China funds. HMCL has seconded both Chris Ruffle and Shifeng Ke to MCIM or its affiliates on a full time basis with the same roles and responsibilities as if they were full time employees.

The Fund is classified as a 'non-diversified' investment company under the US Investment Company Act of 1940 as amended. It meets the criteria of a closed ended US mutual fund and its shares are listed on the New York Stock Exchange. MC Inc has been appointed investment adviser to the Fund.

Investors are advised that they will not generally benefit from the rules and regulations of the United Kingdom Financial Services and Markets Act 2000 and the FSA for the protection of investors, nor benefit from the United Kingdom Financial Services Compensation Scheme, nor have access to the Financial Services Ombudsman in the event of a dispute. Investors will also have no rights of cancellation under the FSA's Conduct of Business Sourcebook of the United Kingdom.

This newsletter does not constitute an offer of shares. MC Inc, its ultimate and intermediate holding companies, subsidiaries, affiliates, clients, directors or staff may, at any time, have a position in the market referred to herein, and may buy or sell securities, currencies, or any other financial instruments in such markets. The information or opinion expressed in this newsletter should not be construed to be a recommendation to buy or sell the securities, commodities, currencies or financial instruments referred to herein.

The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account's portfolio at the time you receive this report or that securities sold have not been repurchased.

It should not be assumed that any of the securities transactions or holdings discussed here were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Investing in the Fund involves certain considerations in addition to the risks normally associated with making investments in securities. The value of the shares issued by the Fund, and the income from them, may go down as well as up and there can be no assurance that upon sale, or otherwise, investors will receive back the amount originally invested. There can be no assurance that you will receive comparable performance returns, or that investments will reflect the performance of the stock examples contained in this document. Movements in foreign exchange rates may have a separate effect, unfavorable as well as favorable, on the gain or loss otherwise experienced on an investment. Past performance is not a guide to future returns. Accordingly, the Fund is only suitable for investment by investors who are able and willing to withstand the total loss of their investment. In particular, prospective investors should consider the following risks:

à The companies quoted on Greater Chinese stock exchanges are exposed to the risks of political, social and religious instability, expropriation of assets or nationalisation, rapid rates of inflation, high interest rates, currency depreciation and fluctuations and changes in taxation, which may affect income and the value of investments.

à At present, the securities market and the regulatory framework for the securities industry in China is at an early stage of development. The China Securities Regulatory Commission (CSRC) is responsible for supervising the national securities markets and producing relevant regulations. The Investment Regulations, under which the Fund invests in the People's Republic of China (PRC) and which regulate repatriation and currency conversion, are new. The Investment Regulations give CSRC and State Administration of Foreign Exchange (SAFE) wide discretions and there is no precedent or certainty as to how these discretions might be exercised, either now or in the future. The Fund may, from time to time, obtain access to the securities markets in China via Access Products. Such products carry additional risk and may be less liquid than the underlying securities which they represent.

à During the past 15 years, the PRC government has been reforming the economic and political systems of the PRC, and these reforms are expected to continue, as evidenced by the recently announced changes. The Fund's operations and financial results could be adversely affected by adjustments in the PRC's state plans, political, economic and social conditions, changes in the policies of the PRC government such as changes in laws and regulations (or the interpretation thereof), measures which may be introduced to control inflation, changes in the rate or method of taxation, imposition of additional restrictions on currency conversion and the imposition of additional import restrictions.

à PRC's disclosure and regulatory standards are in many respects less stringent than standards in certain Organisation for Economic Co-operation and Development (OECD) countries, and there may be less publicly available or less reliable information about PRC companies than is regularly published by or about companies from OECD countries.

à The Shanghai Stock Exchange and Shenzhen Stock Exchange have lower trading volumes than most OECD exchanges and the market capitalisations of listed companies are small compared to those on more developed exchanges in developed markets. The listed equity securities of many companies in the PRC are accordingly materially less liquid, subject to greater dealing spreads and experience materially greater volatility than those of OECD countries. These factors could negatively affect the Fund's NAV.

à The Fund invests primarily in securities denominated in other currencies but its NAV will be quoted in US dollars. Accordingly, a change in the value of such securities against US dollars will result in a corresponding change in the US dollar NAV.

à The marketability of quoted shares may be limited due to foreign investment restrictions, wide dealing spreads, exchange controls, foreign ownership restrictions, the restricted opening of stock exchanges and a narrow range of investors. Trading volume may be lower than on more developed stockmarkets, and equities are less liquid. Volatility of prices can also be greater than in more developed stockmarkets. The infrastructure for clearing, settlement and registration on the primary and secondary markets may be underdeveloped. Under certain circumstances, there may be delays in settling transactions in some of the markets.

Martin Currie Inc, registered in Scotland (no BR2575)

Registered office: Saltire Court, 20 Castle Terrace, Edinburgh EH11 2ES Tel: 44 (0) 131 229 5252 Fax: 44 (0) 131 228 5959 www.martincurrie.com/china North American office: 1350 Avenue of the Americas, Suite 3010, New York, NY 10019, USA Tel: (1) 212 258 1900 Fax: (1) 212 258 1919

Authorised and registered by the Financial Services Authority and incorporated with limited liability in New York, USA.

Please note: calls to the above numbers may be recorded.