Copy to: | ||
Tracie A. Coop | Leonard B. Mackey, Jr., Esq. | |
Secretary | Clifford Chance US LLP | |
The China Fund, Inc. | 31 West 52nd Street | |
4 Copley Place, 5th Floor | New York, New York 10019-6131 | |
CPH-0326 | ||
Boston, MA 02116 | ||
(Name and Address of Agent for Service) |
2
Page | ||
Key Highlights
|
1 | |
Asset Allocation
|
2 | |
Industry Allocation
|
3 | |
Chairmans Statement
|
4 | |
Investment Managers Statement
|
5 | |
About the Portfolio Manager
|
7 | |
Schedule of Investments
|
8 | |
Financial Statements
|
14 | |
Notes to Financial Statements
|
19 | |
Other Information
|
29 | |
Dividends and Distributions;
Dividend Reinvestment and Cash Purchase Plan |
31 | |
Directors and Officers
|
34 |
FUND DATA | |||
NYSE Stock Symbol
|
CHN | ||
Listing Date
|
July 10, 1992 | ||
Shares Outstanding
|
22,781,762 | ||
Total Net Assets (04/30/11)
|
US$802.7 million | ||
Net Asset Value Per Share (04/30/11)
|
$35.23 | ||
Market Price Per Share (04/30/11)
|
$32.10 | ||
TOTAL RETURN(1) | ||||||||||
Performance as of |
||||||||||
04/30/11: | Net Asset Value | Market Price | ||||||||
1-Year
|
15.91 | % | 20.71 | % | ||||||
3-Year
Cumulative
|
28.99 | % | 35.29 | % | ||||||
3-Year
Annualized
|
8.85 | % | 10.60 | % | ||||||
5-Year
Cumulative
|
158.35 | % | 115.52 | % | ||||||
5-Year
Annualized
|
20.90 | % | 16.60 | % | ||||||
10-Year
Cumulative
|
622.58 | % | 731.10 | % | ||||||
10-Year
Annualized
|
21.87 | % | 23.58 | % | ||||||
DIVIDEND HISTORY | ||||||||||
Record Date | Income | Capital Gains | ||||||||
12/24/10
|
$ | 0.3746 | $ | 1.8996 | ||||||
12/24/09
|
$ | 0.2557 | | |||||||
12/24/08
|
$ | 0.4813 | $ | 5.3361 | ||||||
12/21/07
|
$ | 0.2800 | $ | 11.8400 | ||||||
12/21/06
|
$ | 0.2996 | $ | 3.7121 | ||||||
12/21/05
|
$ | 0.2172 | $ | 2.2947 | ||||||
12/22/04
|
$ | 0.1963 | $ | 3.3738 | ||||||
12/31/03
|
$ | 0.0700 | $ | 1.7100 | ||||||
12/26/02
|
$ | 0.0640 | $ | 0.1504 | ||||||
12/31/01
|
$ | 0.1321 | | |||||||
12/31/00
|
| | ||||||||
12/31/99
|
$ | 0.1110 | | |||||||
12/31/98
|
$ | 0.0780 | | |||||||
12/31/97
|
| $ | 0.5003 | |||||||
12/31/96
|
$ | 0.0834 | | |||||||
12/29/95
|
$ | 0.0910 | | |||||||
12/30/94
|
$ | 0.0093 | $ | 0.6006 | ||||||
12/31/93
|
$ | 0.0853 | $ | 0.8250 | ||||||
12/31/92
|
$ | 0.0434 | $ | 0.0116 | ||||||
1
Ten Largest Listed Equity Investments * | |||||||
1. | China Medical System Holdings, Ltd. | 9.57% | |||||
2. | Huiyin Household Appliances Holdings Co., Ltd. | 4.66% | |||||
3. | Far Eastern Department Stores, Ltd. | 4.30% | |||||
4. | HAND Enterprise Solutions Co., Ltd. | 3.50% | |||||
5. | Hsu Fu Chi International, Ltd. | 3.28% | |||||
6. | Shandong Weigao Group Medical Polymer Co., Ltd. | 3.11% | |||||
7. | FamilyMart Co., Ltd. | 2.80% | |||||
8. | Wumart Stores, Inc. | 2.75% | |||||
9. | Ping An Insurance (Group) Company of China, Ltd. Access Product | 2.67% | |||||
10. | Ruentex Development Co., Ltd. | 2.63% | |||||
Direct Investments * | |||||||
1. | China Bright | 1.87% | |||||
2. | Zong Su Foods | 1.87% | |||||
3. | Qingdao Bright Moon Seaweed Group Co., Ltd. | 1.07% | |||||
4. | China Silicon Corp. Common Stock | 0.00% | |||||
5. | China Silicon Corp., Series A Preferred | 0.00% | |||||
7. | HAND Enterprise Solutions Pte, Ltd. Preferred | 0.00% | |||||
2
Health Care
|
22.7 | |||
Consumer Discretionary
|
20.5 | |||
Consumer Staples
|
17.9 | |||
Financials
|
14.2 | |||
Information Technology
|
7.7 | |||
Industrials
|
5.4 | |||
Utilities
|
3.1 | |||
Materials
|
2.9 | |||
Telecommunications
|
2.6 | |||
Other
|
2.2 | |||
Energy
|
0.8 |
3
4
5
6
7
Name of Issuer and Title of Issue
|
Shares
|
Value (Note A) | ||||||||||
COMMON STOCK AND OTHER EQUITY INTERESTS
|
||||||||||||
CHINA A SHARES
|
||||||||||||
Information Technology (3.5%)
|
||||||||||||
HAND Enterprise Solutions Co., Ltd.#(2)
|
11,238,137 | $ | 28,116,984 | |||||||||
TOTAL CHINA A SHARES
(Cost $3,164,275)
|
3.5 | % | 28,116,984 | |||||||||
HONG KONG
|
||||||||||||
Consumer Discretionary (8.5%)
|
||||||||||||
FU JI Food & Catering Services*^#(2)
|
5,462,000 | | ||||||||||
Huiyin Household Appliances Holdings Co., Ltd.*#
|
160,413,750 | 37,380,207 | ||||||||||
Intime Department Store Group Co., Ltd.(1)
|
5,278,629 | 8,195,774 | ||||||||||
Ports Design, Ltd.(1)
|
4,549,500 | 12,592,839 | ||||||||||
Shangri-La Asia, Ltd.(1)
|
3,316,683 | 9,244,499 | ||||||||||
Yorkey Optical International Cayman, Ltd.#
|
4,862,926 | 788,842 | ||||||||||
68,202,161 | ||||||||||||
Consumer Staples (2.5%)
|
||||||||||||
Chaoda Modern Agriculture (Holdings), Ltd.(1)
|
13,999,357 | 8,741,206 | ||||||||||
Natural Beauty Bio-Technology, Ltd.#
|
47,710,000 | 11,793,214 | ||||||||||
20,534,420 | ||||||||||||
Health Care (1.7%)
|
||||||||||||
China Shineway Pharmaceutical Group, Ltd.(1)
|
3,041,000 | 7,368,135 | ||||||||||
Golden Meditech Co., Ltd.#(1)
|
35,040,000 | 6,180,252 | ||||||||||
13,548,387 | ||||||||||||
Information Technology (1.9%)
|
||||||||||||
SYSCAN Technology Holdings, Ltd.*#
|
146,000,000 | 6,766,700 | ||||||||||
Tencent Holdings, Ltd.(1)
|
291,000 | 8,317,015 | ||||||||||
15,083,715 | ||||||||||||
Telecommunications (1.6%)
|
||||||||||||
China Mobile, Ltd.
|
1,365,500 | 12,569,537 | ||||||||||
Utilities (3.1%)
|
||||||||||||
China Water Affairs Group, Ltd.(1)
|
19,976,000 | 7,560,968 | ||||||||||
Enn Energy Holdings, Ltd.
|
5,084,000 | 17,279,493 | ||||||||||
24,840,461 | ||||||||||||
TOTAL HONG KONG (Cost $111,107,588)
|
19.3 | % | 154,778,681 | |||||||||
HONG KONG H SHARES
|
||||||||||||
Consumer Discretionary (2.0%)
|
||||||||||||
Boshiwa International Holding, Ltd.*#
|
24,932,000 | 16,177,417 | ||||||||||
8
Name of Issuer and Title of Issue
|
Shares
|
Value (Note A) | ||||||||||
COMMON STOCK AND OTHER EQUITY INTERESTS (continued)
|
||||||||||||
HONG KONG H SHARES (continued)
|
||||||||||||
Consumer Staples (3.7%)
|
||||||||||||
Asian Citrus Holdings, Ltd.(1)
|
6,677,000 | $ | 7,607,574 | |||||||||
Wumart Stores, Inc.*#(1)
|
9,810,750 | 22,103,538 | ||||||||||
29,711,112 | ||||||||||||
Health Care (15.3%)
|
||||||||||||
China Medical System Holdings, Ltd.#
|
72,353,760 | 76,848,711 | ||||||||||
Shandong Weigao Group Medical Polymer Co., Ltd.(1)
|
9,176,000 | 24,926,276 | ||||||||||
Sinopharm Group Co., Ltd.(1)
|
6,056,800 | 20,897,751 | ||||||||||
122,672,738 | ||||||||||||
Industrials (0.8%)
|
||||||||||||
Fook Woo Group Holdings, Ltd.*(1)
|
19,836,000 | 6,154,499 | ||||||||||
Telecommunications (1.0%)
|
||||||||||||
ZTE Corp.(1)
|
2,250,826 | 8,084,770 | ||||||||||
TOTAL HONG KONG H SHARES
(Cost $71,923,920)
|
22.8 | % | 182,800,536 | |||||||||
TOTAL HONG KONG (INCLUDING H SHARES)
(Cost $183,031,508)
|
42.1 | % | 337,579,217 | |||||||||
SINGAPORE
|
||||||||||||
Consumer Staples (5.9%)
|
||||||||||||
China Fishery Group, Ltd.#(1)
|
13,594,872 | 20,450,102 | ||||||||||
Hsu Fu Chi International, Ltd.#
|
8,485,084 | 26,359,810 | ||||||||||
46,809,912 | ||||||||||||
Information Technology (0.3%)
|
||||||||||||
CDW Holding, Ltd.#
|
48,208,000 | 2,660,268 | ||||||||||
TOTAL SINGAPORE (Cost $20,637,394)
|
6.2 | % | 49,470,180 | |||||||||
TAIWAN
|
||||||||||||
Consumer Discretionary (8.9%)
|
||||||||||||
FamilyMart Co., Ltd.#
|
4,501,652 | 22,478,001 | ||||||||||
Far Eastern Department Stores, Ltd.(1)
|
19,543,604 | 34,530,662 | ||||||||||
Synnex Technology International Corp.
|
3,088,006 | 7,882,160 | ||||||||||
Test-Rite International Co., Ltd.
|
8,457,000 | 6,762,411 | ||||||||||
71,653,234 | ||||||||||||
9
Name of Issuer and Title of Issue
|
Shares
|
Value (Note A) | ||||||||||
COMMON STOCK AND OTHER EQUITY INTERESTS (continued)
|
||||||||||||
TAIWAN (continued)
|
||||||||||||
Consumer Staples (2.4%)
|
||||||||||||
Lien Hwa Industrial Corp.
|
6,673,148 | $ | 5,114,639 | |||||||||
Uni-President Enterprises Corp.(1)
|
10,023,901 | 14,420,613 | ||||||||||
19,535,252 | ||||||||||||
Financials (8.3%)
|
||||||||||||
Chinatrust Financial Holding Co., Ltd.
|
17,527,288 | 16,065,482 | ||||||||||
Fubon Financial Holdings Co., Ltd.
|
5,195,134 | 7,618,961 | ||||||||||
KGI Securities Co., Ltd.
|
16,984,780 | 8,896,126 | ||||||||||
Ruentex Development Co., Ltd.
|
12,694,000 | 21,143,000 | ||||||||||
Yuanta Financial Holdings Co., Ltd.(1)
|
17,683,593 | 12,287,777 | ||||||||||
66,011,346 | ||||||||||||
Face |
||||||||||||
Amount
|
||||||||||||
Financials (0.8%)
|
||||||||||||
Taiwan Life Insurance Co., Ltd. 4.0% 12/28/14#@
|
NT$ | 200,000,000 | 6,656,773 | |||||||||
Shares
|
||||||||||||
Information Technology (1.2%)
|
||||||||||||
WPG Holdings Co., Ltd.
|
5,335,103 | 9,854,809 | ||||||||||
Materials (1.5%)
|
||||||||||||
China Metal Products Co., Ltd.#
|
11,500,347 | 12,087,241 | ||||||||||
TOTAL TAIWAN (Cost $92,461,808)
|
23.1 | % | 185,798,655 | |||||||||
UNITED STATES
|
||||||||||||
Energy (0.8%)
|
||||||||||||
Far East Energy Corp.*#
|
16,392,823 | 6,557,129 | ||||||||||
Health Care (2.9%)
|
||||||||||||
Mindray Medical International, Ltd., ADR(1)
|
291,700 | 7,797,141 | ||||||||||
WuXi PharmaTech Cayman, Inc., ADR*(1)
|
883,490 | 15,549,424 | ||||||||||
23,346,565 | ||||||||||||
Information Technology (0.8%)
|
||||||||||||
Hollysys Automation Technologies, Ltd.*(1)
|
530,200 | 6,367,702 | ||||||||||
TOTAL UNITED STATES (Cost $33,574,182)
|
4.5 | % | 36,271,396 | |||||||||
TOTAL COMMON STOCK AND OTHER EQUITY INTERESTS
(Cost $332,869,167)
|
79.4 | % | 637,236,432 | |||||||||
10
Name of Issuer and Title of Issue
|
Shares
|
Value (Note A)
|
||||||||||
EQUITY LINKED SECURITIES
|
||||||||||||
Consumer Discretionary (1.1%)
|
||||||||||||
Shanghai Yuyuan Tourist Mart Co., Ltd. Access Product
(expiration 03/26/14) 144A,*(4)
|
4,293,036 | $ | 8,855,915 | |||||||||
Consumer Staples (1.5%)
|
||||||||||||
Wuliangye Yibin Co., Ltd. Access Product (expiration 12/11/13)
144A,*(4)
|
931,000 | 4,728,867 | ||||||||||
Wuliangye Yibin Co., Ltd. Access Product (expiration 01/20/15)
144A,*(3)
|
1,403,507 | 7,084,903 | ||||||||||
11,813,770 | ||||||||||||
Financials (5.2%)
|
||||||||||||
Ping An Insurance (Group) Company of China, Ltd. Access Product
(expiration 01/17/12) 144A,*(3)
|
1,114,259 | 8,965,914 | ||||||||||
Ping An Insurance (Group) Company of China, Ltd. Access Product
(expiration 04/01/13) 144A,*(4)
|
2,661,500 | 21,415,829 | ||||||||||
Zhejiang China Commodities City Group Co., Ltd. Access Product
(expiration 01/17/12) 144A,*(3)
|
2,771,970 | 11,209,846 | ||||||||||
41,591,589 | ||||||||||||
Health Care (0.9%)
|
||||||||||||
Jiangsu Yuyue Medical Equipment Co., Ltd. Access Product
(expiration 02/01/16) 144A,*(4)
|
1,210,000 | 7,521,722 | ||||||||||
Industrials (3.6%)
|
||||||||||||
China Railway Construction Corp., Ltd. Access Product
(expiration 01/17/12) 144A,*(3)
|
3,932,600 | 4,085,971 | ||||||||||
China Railway Construction Corp., Ltd. Access Product
(expiration 12/16/13) 144A,*(4)
|
2,650,000 | 2,755,738 | ||||||||||
Qinghai Salt Lake Potash Co., Ltd. Access Product (expiration
01/20/15) 144A,*(3)
|
178,729 | 1,487,435 | ||||||||||
Shanghai Qiangsheng Holding Co., Ltd. Access Product (expiration
01/17/12) 144A,*(3)
|
4,237,252 | 4,824,107 | ||||||||||
Shanghai Qiangsheng Holding Co., Ltd. Access Product (expiration
11/13/14) 144A,*(4)
|
6,245,400 | 7,110,382 | ||||||||||
Suning Appliance Co., Ltd. Access Product (expiration 01/20/15)
144A,*(3)
|
4,311,019 | 8,604,794 | ||||||||||
28,868,427 | ||||||||||||
11
Name of Issuer and Title of Issue
|
Shares
|
Value (Note A)
|
||||||||||
EQUITY LINKED SECURITIES (continued)
|
||||||||||||
Materials (1.4%)
|
||||||||||||
Tangshan Jidong Cement Co., Ltd. Access Product (expiration
01/20/15) 144A,*(3)
|
987,700 | $ | 3,969,566 | |||||||||
Tangshan Jidong Cement Co., Ltd. Access Product (expiration
08/11/15) 144A,*(4)
|
1,849,387 | 7,441,994 | ||||||||||
11,411,560 | ||||||||||||
TOTAL EQUITY LINKED SECURITIES
(Cost $90,945,698)
|
13.7 | % | 110,062,983 | |||||||||
DIRECT INVESTMENTS(5)
|
||||||||||||
Consumer Staples (1.9%)
|
||||||||||||
Zong Su Foods (acquired 09/21/10)*#(2)
|
2,677 | 15,000,034 | ||||||||||
Health Care (1.9%)
|
||||||||||||
China Bright (acquired 08/27/10)*#(2)(6)
|
14,665,617 | 14,991,407 | ||||||||||
Industrials (1.0%)
|
||||||||||||
Qingdao Bright Moon Seaweed Group Co., Ltd., (acquired
02/28/08)*#(2)(6)
|
31,827,172 | 8,561,509 | ||||||||||
Information Technology (0.0%)
|
||||||||||||
China Silicon Corp. Common Stock, (acquired
01/08-09/10)*#(2) |
2,301,863 | | ||||||||||
China Silicon Corp., Series A Preferred (acquired
11/30/07)*#(2) |
27,418 | | ||||||||||
HAND Enterprise Solutions Pte, Ltd. Preferred (acquired
02/01/07)*#(2)
|
500,000 | | ||||||||||
TOTAL DIRECT INVESTMENTS (Cost $45,102,636)
|
4.8 | % | 38,552,950 | |||||||||
COLLATERAL FOR SECURITIES ON LOAN
|
||||||||||||
State Street Navigator Prime Portfolio
|
92,948,281 | 92,948,281 | ||||||||||
TOTAL COLLATERAL FOR SECURITIES ON LOAN (Cost
$92,948,281)
|
11.6 | % | 92,948,281 | |||||||||
SHORT TERM INVESTMENTS
|
||||||||||||
UNITED STATES
|
||||||||||||
Repurchase Agreement with State Street Bank and Trust, 0.01%,
05/02/11(7)
|
1,260,000 | 1,260,000 | ||||||||||
TOTAL UNITED STATES (Cost $1,260,000)
|
0.1 | % | 1,260,000 | |||||||||
TOTAL INVESTMENTS (Cost $563,125,782)
|
109.6 | % | 880,060,646 | |||||||||
OTHER ASSETS AND LIABILITIES
|
(9.6 | )% | (77,379,444 | ) | ||||||||
NET ASSETS
|
100.0 | % | $ | 802,681,202 | ||||||||
12
(1) | A portion or all of the security was held on loan. As of April 30, 2011, the market value of the securities loaned was $86,344,134. |
(2) | Security valued at fair value using methods determined in good faith by or at the direction of the Board of Directors. |
(3) | Equity linked securities issued by Citigroup Global Markets Holdings. |
(4) | Equity linked securities issued by Credit Lyonnais (CLSA). |
(5) | Direct investments are generally restricted as to resale and do not have a readily available resale market. On the date of acquisition of each direct investment, there were no market quotations on similar securities, and such investments were therefore valued in good faith by the Board of Directors at fair market value. The securities continue to be valued in good faith by Board of Directors at fair market value as of April 30, 2011. |
(6) | The Fund holds a put option which allows the Fund to sell the investment for a value at least equal to the purchase price under certain circumstances. |
(7) | Repurchase agreement, dated 04/29/11, due 05/02/11 with repurchase proceeds of $1,260,001 is collateralized by US Treasury Note 1.00% due 04/30/12 with a market value of $1,285,641. |
144A Securities restricted for resale to Qualified Institutional Buyers. At April 30, 2011, these restricted securities amounted to $110,062,983, which represented 13.71% of total net assets. | |
ADR American Depositary Receipt. |
13
ASSETS
|
||||
Investments in securities, at value (cost $458,878,501)
(securities on loan $86,344,134) (Note A)
|
$ | 689,844,753 | ||
Investments in affiliated investments, at value (cost
$104,247,281) (Notes A and F)
|
190,215,893 | |||
Total Investments
|
880,060,646 | |||
Cash
|
220 | |||
Foreign currency, at value (cost $14,528,580)
|
14,561,968 | |||
Receivable for securities lending income
|
86,736 | |||
Dividends and interest receivable
|
758,008 | |||
Prepaid expenses
|
141,902 | |||
Other asset (Note I)
|
8,277,782 | |||
TOTAL ASSETS
|
903,887,262 | |||
LIABILITIES
|
||||
Payable for investments purchased
|
6,698,205 | |||
Payable upon return of collateral for securities loaned
|
92,948,281 | |||
Investment management fee payable (Note B)
|
521,970 | |||
Administration and custodian fees payable (Note B)
|
158,456 | |||
Payable for taxes on dividends
|
47,788 | |||
Contingent liability (Note A)
|
717,795 | |||
Accrued expenses and other liabilities
|
113,565 | |||
TOTAL LIABILITIES
|
101,206,060 | |||
TOTAL NET ASSETS
|
$ | 802,681,202 | ||
COMPOSITION OF NET ASSETS:
|
||||
Paid in capital (Note C)
|
454,100,635 | |||
Distributions in excess of net investment income
|
(4,230,426 | ) | ||
Accumulated net realized gain on investments and foreign
currency transactions
|
35,917,705 | |||
Net unrealized appreciation on investment and foreign currency
translations
|
316,893,288 | |||
TOTAL NET ASSETS
|
$ | 802,681,202 | ||
NET ASSET VALUE PER SHARE
|
||||
($802,681,202/22,781,762 shares of common stock outstanding)
|
$35.23 | |||
14
INVESTMENT INCOME:
|
||||
Dividend income (including dividends of $1,309,922
from non-controlled affiliates, net of tax withheld of $63,625)
(Note F)
|
$ | 3,356,320 | ||
Securities lending income
|
289,661 | |||
Interest income (including interest of $(101,974)
from non-controlled affiliates, net of tax withheld of $37,827)
(Note F)
|
136,757 | |||
TOTAL INVESTMENT INCOME
|
3,782,738 | |||
EXPENSES
|
||||
Investment Management fees (Note B)
|
2,670,767 | |||
Custodian fees (Note B)
|
615,533 | |||
Administration fees (Note B)
|
324,175 | |||
Directors fees and expenses (Note B)
|
174,788 | |||
Legal fees
|
62,623 | |||
Printing and postage
|
49,934 | |||
Shareholder service fees
|
35,365 | |||
Insurance
|
23,918 | |||
Audit and tax service fees
|
53,632 | |||
Stock exchange listing fee
|
20,700 | |||
Transfer agent fees
|
11,933 | |||
Chief Compliance Officer fee
|
27,982 | |||
Miscellaneous expenses
|
17,173 | |||
TOTAL EXPENSES
|
4,088,523 | |||
Less: Management fee reimbursement
|
(758,146 | ) | ||
NET EXPENSES
|
3,330,377 | |||
NET INVESTMENT INCOME
|
452,361 | |||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS |
||||
Net realized gain on investments
|
48,361,271 | |||
Net realized loss on non-controlled affiliate transactions
(Note F)
|
(11,135,979 | ) | ||
Net realized gain on foreign currency transactions
|
570,473 | |||
37,795,765 | ||||
Net change in unrealized appreciation/(depreciation) on
investments
|
31,617,123 | |||
Net change in unrealized appreciation/ (depreciation) on foreign
currency transactions
|
(375,895 | ) | ||
31,241,228 | ||||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
|
69,036,993 | |||
NET INCREASE IN NET ASSETS FROM OPERATIONS
|
$ | 69,489,354 | ||
15
Six Months Ended |
Year Ended |
|||||||
April 30, 2011 | October 31, 2010 | |||||||
(Unaudited) | ||||||||
INCREASE IN NET ASSETS FROM OPERATIONS
|
||||||||
Net investment income
|
$ | 452,361 | $ | 4,688,085 | ||||
Net realized gain on investments and foreign currency
transactions
|
37,795,765 | 52,268,820 | ||||||
Net increase in unrealized appreciation/(depreciation) on
investments and foreign currency transactions
|
31,241,228 | 113,403,614 | ||||||
Net increase/(decrease) in net assets from operations
|
69,489,354 | 170,360,519 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM:
|
||||||||
Net investment income
|
(8,534,134 | ) | (5,825,297 | ) | ||||
Capital gains
|
(43,276,235 | ) | | |||||
Total distributions to shareholders
|
(51,810,369 | ) | (5,825,297 | ) | ||||
NET INCREASE IN NET ASSETS
|
17,678,985 | 164,535,222 | ||||||
NET ASSETS:
|
||||||||
Beginning of year
|
785,002,217 | 620,466,995 | ||||||
End of period
|
$ | 802,681,202 | $ | 785,002,217 | ||||
(Distributions in excess of) undistributed net investment
income, end of period
|
$ | (4,230,426 | ) | $ | 3,851,347 | |||
16
Increase (decrease) in cash -
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||
Net increase in net assets resulting from operations
|
$ | 69,489,354 | ||
Adjustments to reconcile net increase in net assets from
operations to net cash provided from operating activities:
|
||||
Purchases of investment securities
|
(92,653,367 | ) | ||
Proceeds from disposition of investment securities
|
128,074,312 | |||
Net proceeds of short-term investments
|
22,168,000 | |||
Proceeds from foreign cash transactions
|
197,667 | |||
Increase in collateral for securities loaned
|
(9,728,210 | ) | ||
Increase in dividends and interest receivable
|
(143,079 | ) | ||
Increase in receivable for securities lending income
|
(24,632 | ) | ||
Decrease in receivable for investments sold
|
5,610,194 | |||
Increase in prepaid expenses and miscellaneous assets
|
(8,368,396 | ) | ||
Increase in payable for securities purchased
|
1,199,678 | |||
Increase in payable upon return of collateral for securities
loaned
|
9,728,210 | |||
Decrease in accrued expenses and other liabilities
|
(207,831 | ) | ||
Net change in unrealized (appreciation)/depreciation on foreign
currency contracts
|
375,895 | |||
Net change in unrealized (appreciation)/depreciation on
investments
|
(31,617,123 | ) | ||
Net realized gain from investments and foreign currency
transactions
|
(37,795,765 | ) | ||
Net cash provided by operating activities
|
56,304,907 | |||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||
Cash distributions paid
|
(51,810,369 | ) | ||
Net cash used for financing activities
|
(51,810,369 | ) | ||
NET INCREASE IN CASH
|
4,494,538 | |||
CASH AT BEGINNING OF PERIOD
|
10,067,650 | |||
CASH AT END OF PERIOD
|
$ | 14,562,188 | ||
17
Six |
||||||||||||||||||||||||
Months |
||||||||||||||||||||||||
Ended |
||||||||||||||||||||||||
April 30, |
Year Ended October 31, | |||||||||||||||||||||||
2011 | 2010(1) | 2009(1) | 2008 | 2007(2) | 2006 | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Per Share Operation Performance*
|
||||||||||||||||||||||||
Net asset value, beginning of period
|
$ | 34.46 | $ | 27.24 | $ | 21.72 | $ | 60.50 | $ | 31.40 | $ | 23.25 | ||||||||||||
Net investment income
|
0.02 | 0.21 | 0.29 | 0.49 | 0.28 | 0.30 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments and
foreign currency transactions
|
3.02 | 7.27 | 11.24 | (25.66 | ) | 32.83 | 10.36 | |||||||||||||||||
Total income (loss) from investment operations
|
3.04 | 7.48 | 11.53 | (25.17 | ) | 33.11 | 10.66 | |||||||||||||||||
Less dividends and distributions:
|
||||||||||||||||||||||||
Dividend from net investment income
|
(0.37 | ) | (0.26 | ) | (0.48 | ) | (0.28 | ) | (0.30 | ) | (0.22 | ) | ||||||||||||
Distributions from net realized capital gains
|
(1.90 | ) | 0.00 | (5.34 | ) | (11.84 | ) | (3.71 | ) | (2.29 | ) | |||||||||||||
Total dividends and distributions
|
(2.27 | ) | (0.26 | ) | (5.82 | ) | (12.12 | ) | (4.01 | ) | (2.51 | ) | ||||||||||||
Capital Share Transactions:
|
||||||||||||||||||||||||
(Dilution) to net asset value, resulting from issuance of shares
in stock dividend
|
0.00 | 0.00 | (0.19 | ) | (1.49 | ) | 0.00 | 0.00 | ||||||||||||||||
Net asset value, end of period
|
$ | 35.23 | $ | 34.46 | $ | 27.24 | $ | 21.72 | $ | 60.50 | $ | 31.40 | ||||||||||||
Per share market price, end of period
|
$ | 32.10 | $ | 33.45 | $ | 25.25 | $ | 19.87 | $ | 51.67 | $ | 30.40 | ||||||||||||
Total Investment Return
(Based on Market Price) |
2.99 | %(3) | 33.70 | % | 73.37 | % | (48.06 | )% | 90.97 | % | 37.20 | % | ||||||||||||
Ratios and Supplemental Data
|
||||||||||||||||||||||||
Net assets, end of year (000s)
|
$ | 802,681 | $ | 785,002 | $ | 620,467 | $ | 394,357 | $ | 881,856 | $ | 455,206 | ||||||||||||
Ratio of expenses net of management fee reimbursement to average
net assets
|
0.85 | %(5) | 1.14 | % | 1.44 | % | 1.20 | % | 1.08 | % | 1.26 | % | ||||||||||||
Ratio of gross expenses to average net assets
|
1.04 | %(4) | 1.14 | % | 1.44 | % | 1.23 | % | 1.08 | % | 1.26 | % | ||||||||||||
Ratio of net expenses to average net assets, excluding stock
dividend tax expense
|
0.85 | %(4) | 1.08 | % | 1.42 | % | 1.11 | % | 1.04 | % | 1.23 | % | ||||||||||||
Ratio of net investment income to average net assets
|
0.12 | %(4) | 0.67 | % | 1.36 | % | 1.28 | % | 0.67 | % | 1.09 | % | ||||||||||||
Portfolio turnover rate
|
12 | %(3) | 29 | % | 34 | % | 49 | % | 46 | % | 50 | % |
(1) | The fund was audited by Ernst & Young LLP for the years ended October 31, 2009 and 2010. The previous periods were audited by another independent registered public accounting firm. |
18
NOTE A | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
19
Value of |
||||||||||||||
Value of |
Cash |
Total |
||||||||||||
Securities | Collateral | Collateral | ||||||||||||
$ | 86,344,134 | $ | 92,948,281 | $ | 92,948,281 |
20
21
Security
|
Acquisition Date | Cost | Value | |||||||||
China Bright
|
08/27/2010 | $ | 14,969,436 | $ | 14,991,407 | |||||||
China Silicon Corp., Series A Preferred
|
11/30/2007 | 6,552,875 | | |||||||||
China Silicon Corp. Common Stock
|
01/08 - 09/10 | 1,458,811 | | |||||||||
HAND Enterprise Solutions Pte, Ltd. Preferred*
|
02/01/2007 | | | |||||||||
Qingdao Bright Moon Seaweed Group Co., Ltd.
|
02/28/2008 | 7,121,480 | 8,561,509 | |||||||||
Zong Su Foods
|
09/21/2010 | 15,000,034 | 15,000,034 | |||||||||
$ | 45,102,636 | $ | 38,552,950 | |||||||||
* | HAND Enterprise Solutions Co., Ltd., Common shares became a listed security as of February 1, 2011. |
22
NOTE B | ADVISORY FEE AND OTHER TRANSACTIONS |
23
NOTE C | CAPITAL STOCK |
NOTE D | INVESTMENT TRANSACTIONS |
NOTE E | INVESTMENTS IN CHINA |
24
NOTE F | INVESTMENTS IN NON-CONTROLLED AFFILIATES*: |
Gain/(Loss) |
||||||||||||||||||||||||||||
Balance of |
Gross |
Gross |
Balance of |
Income |
Realized |
|||||||||||||||||||||||
Shares Held |
Purchases |
Sales |
Shares Held |
Value |
From |
on Sale of |
||||||||||||||||||||||
October 31, |
and |
and |
April 30, |
April 30, |
Non-Controlled |
Shares as of |
||||||||||||||||||||||
Name of Issuer | 2010 | Additions | Reductions | 2011 | 2011 | Affiliates | April 30, 2011 | |||||||||||||||||||||
CDW Holding, Ltd.
|
51,458,000 | | 3,250,000 | 48,208,000 | $ | 2,660,268 | $ | | $ | 119,321 | ||||||||||||||||||
China Bright
|
14,665,617 | | | 14,665,617 | 14,991,407 | | | |||||||||||||||||||||
China Medical System Holdings, Ltd.
|
72,353,760 | | | 72,353,760 | 76,848,711 | 940,599 | | |||||||||||||||||||||
China Silicon Corp. Common Stock
|
2,301,863 | | | 2,301,863 | | | | |||||||||||||||||||||
China Silicon Corp., Series A Preferred
|
27,418 | | | 27,418 | | | | |||||||||||||||||||||
China Silicon Corp. Warrants
|
685,450 | | 685,450 | | | | | |||||||||||||||||||||
Far East Energy Corp.(1)
|
17,529,277 | | 1,136,454 | 16,392,823 | 6,557,129 | | (185,255 | ) | ||||||||||||||||||||
HAND Enterprise Solutions Co., Ltd. Common(2)
|
8,027,241 | 11,238,137 | 8,027,241 | 11,238,137 | 28,116,984 | 369,323 | | |||||||||||||||||||||
HAND Enterprise Solutions Pte., Ltd. Preferred
|
500,000 | | | 500,000 | | | | |||||||||||||||||||||
Huiyin Household Appliances Holdings Co., Ltd.
|
160,413,750 | | | 160,413,750 | 37,380,207 | | | |||||||||||||||||||||
Qingdao Bright Moon Seaweed Group Co., Ltd.
|
31,827,172 | | | 31,827,172 | 8,561,509 | | | |||||||||||||||||||||
Taiwan Life Insurance Co., Ltd.
|
200,000,000 | | | 200,000,000 | 6,656,773 | 131,276 | | |||||||||||||||||||||
Ugent Holdings, Ltd.(3)
|
177,000,000 | | 177,000,000 | | | (233,250 | ) | (11,070,045 | ) | |||||||||||||||||||
Zong Su Foods
|
2,677 | | | 2,677 | 15,000,034 | | |
* | Affiliated issuers, as defined in the 1940 Act as amended, include issuers in which the Fund held 5% or more of the outstanding voting securities. | |
(1) | Not Affiliated as of April 30, 2011. | |
(2) | Additional shares acquired resulting from a corporate action. | |
(3) | Income was written off at the direction of Martin Currie. |
NOTE G | FAIR VALUE MEASUREMENT |
| Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date; |
25
| Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; | |
| Level 3 Inputs that are unobservable. |
ASSETS VALUATION INPUT | ||||||||||||||||
Description
|
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
COMMON STOCK AND OTHER EQUITY INTERESTS
|
||||||||||||||||
China A Shares
|
||||||||||||||||
Information Technology
|
$ | 28,116,984 | $ | | $ | | $ | 28,116,984 | ||||||||
Total China A Shares
|
28,116,984 | | 28,116,984 | |||||||||||||
Hong Kong
|
||||||||||||||||
Consumer Discretionary
|
68,202,161 | | | 68,202,161 | ||||||||||||
Consumer Staples
|
20,534,420 | | | 20,534,420 | ||||||||||||
Health Care
|
13,548,387 | | | 13,548,387 | ||||||||||||
Information Technology
|
15,083,715 | | | 15,083,715 | ||||||||||||
Telecommunications
|
12,569,537 | | | 12,569,537 | ||||||||||||
Utilities
|
24,840,461 | | | 24,840,461 | ||||||||||||
Total Hong Kong
|
154,778,681 | | | 154,778,681 | ||||||||||||
Hong Kong H Shares
|
||||||||||||||||
Consumer Discretionary
|
16,177,417 | | | 16,177,417 | ||||||||||||
Consumer Staples
|
29,711,112 | | | 29,711,112 | ||||||||||||
Health Care
|
122,672,738 | | | 122,672,738 | ||||||||||||
Industrials
|
6,154,499 | | | 6,154,499 | ||||||||||||
Telecommunications
|
8,084,770 | | | 8,084,770 | ||||||||||||
Total Hong Kong H Shares
|
182,800,536 | | | 182,800,536 | ||||||||||||
Singapore
|
||||||||||||||||
Consumer Staples
|
46,809,912 | | | 46,809,912 | ||||||||||||
Information Technology
|
2,660,268 | | | 2,660,268 | ||||||||||||
Total Singapore
|
49,470,180 | | | 49,470,180 | ||||||||||||
Taiwan
|
||||||||||||||||
Consumer Discretionary
|
71,653,234 | | | 71,653,234 | ||||||||||||
Consumer Staples
|
19,535,252 | | | 19,535,252 | ||||||||||||
Financials
|
66,011,346 | | 6,656,773 | 72,668,119 | ||||||||||||
Information Technology
|
9,854,809 | | | 9,854,809 | ||||||||||||
Materials
|
12,087,241 | | | 12,087,241 | ||||||||||||
Total Taiwan
|
179,141,882 | | 6,656,773 | 185,798,655 | ||||||||||||
26
ASSETS VALUATION INPUT | ||||||||||||||||
Description
|
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
United States
|
||||||||||||||||
Energy
|
$ | 6,557,129 | $ | | $ | | $ | 6,557,129 | ||||||||
Health Care
|
23,346,565 | | | 23,346,565 | ||||||||||||
Information Technology
|
6,367,702 | | | 6,367,702 | ||||||||||||
Total United States
|
36,271,396 | | | 36,271,396 | ||||||||||||
TOTAL COMMON STOCK AND OTHER EQUITY INTERESTS
|
630,579,659 | | 6,656,773 | 637,236,432 | ||||||||||||
EQUITY LINKED SECURITIES
|
||||||||||||||||
Consumer Discretionary
|
| 8,855,915 | | 8,855,915 | ||||||||||||
Consumer Staples
|
| 11,813,770 | | 11,813,770 | ||||||||||||
Financials
|
| 41,591,589 | | 41,591,589 | ||||||||||||
Health Care
|
| 7,521,722 | | 7,521,722 | ||||||||||||
Industrials
|
| 28,868,427 | | 28,868,427 | ||||||||||||
Materials
|
| 11,411,560 | | 11,411,560 | ||||||||||||
TOTAL EQUITY LINKED SECURITIES
|
| 110,062,983 | | 110,062,983 | ||||||||||||
DIRECT INVESTMENTS
|
||||||||||||||||
Consumer Staples
|
| | 15,000,034 | 15,000,034 | ||||||||||||
Health Care
|
| | 14,991,407 | 14,991,407 | ||||||||||||
Industrials
|
| | 8,561,509 | 8,561,509 | ||||||||||||
TOTAL DIRECT INVESTMENTS
|
| | 38,552,950 | 38,552,950 | ||||||||||||
COLLATERAL FOR SECURITIES ON LOAN
|
| 92,948,281 | | 92,948,281 | ||||||||||||
SHORT TERM INVESTMENTS
|
||||||||||||||||
UNITED STATES
|
| 1,260,000 | | 1,260,000 | ||||||||||||
TOTAL INVESTMENTS
|
$ | 630,579,659 | $ | 204,271,264 | $ | 45,209,723 | $ | 880,060,646 | ||||||||
27
Change in |
||||||||||||||||||||||||||||||||
Unrealized |
||||||||||||||||||||||||||||||||
Appreciation |
||||||||||||||||||||||||||||||||
(Depreciation) |
||||||||||||||||||||||||||||||||
from |
||||||||||||||||||||||||||||||||
Change in |
Investments |
|||||||||||||||||||||||||||||||
Balance as of |
Net |
Realized |
Unrealized |
Transfers |
Transfers |
Held at |
||||||||||||||||||||||||||
Investments in |
October 31, |
Purchases |
Gain |
Appreciation |
in to |
out of |
Balance as of |
April 30, |
||||||||||||||||||||||||
Securities
|
2010 | (Sales) | (Loss) | (Depreciation) | Level 3 | Level 3 | April 30, 2011 | 2011 | ||||||||||||||||||||||||
COMMON STOCK AND OTHER EQUITY INTERESTS
|
||||||||||||||||||||||||||||||||
Consumer Discretionary
|
$ | 44,491,832 | $ | | $ | | $ | | $ | | $ | (44,491,832 | ) | $ | | $ | | |||||||||||||||
Financials
|
7,936,254 | | | (1,279,481 | ) | | 6,656,773 | (1,279,481 | ) | |||||||||||||||||||||||
52,428,086 | | | (1,279,481 | )) | | (44,491,832 | ) | 6,656,773 | (1,279,481 | ) | ||||||||||||||||||||||
DIRECT INVESTMENTS
|
||||||||||||||||||||||||||||||||
Consumer Discretionary
|
15,000,034 | | | | | | 15,000,034 | | ||||||||||||||||||||||||
Health Care
|
15,021,769 | | | (30,362 | ) | | | 14,991,407 | (30,362 | ) | ||||||||||||||||||||||
Industrials
|
9,293,534 | | | (732,025 | ) | | | 8,561,509 | (732,025 | ) | ||||||||||||||||||||||
Information Technology
|
14,192,162 | (3,164,274 | ) | | (11,027,888 | ) | | | | | ||||||||||||||||||||||
53,507,499 | (3,164,274 | ) | | (11,790,275 | ) | | | 38,552,950 | (762,387 | ) | ||||||||||||||||||||||
$ | 105,935,585 | $ | (3,164,274 | ) | $ | | $ | (13,069,756 | ) | $ | | $ | (44,491,832 | ) | $ | 45,209,723 | $ | (2,041,868 | ) | |||||||||||||
NOTE H | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
NOTE J | SUBSEQUENT EVENT |
28
1.) | Election of Directors The stockholders of the Fund elected William C. Kirby and Nigel S. Tulloch as Class III directors to serve for a term expiring on the date on which the annual meeting of stockholders is held in 2014. |
For | Withheld | |||||||
William C. Kirby
|
18,305,366 | 313,324 | ||||||
Nigel S. Tulloch
|
16,474,326 | 2,144,364 |
29
30
31
32
33
Number of |
||||||||||||
Funds in the |
||||||||||||
Name (Age) and |
Director |
Complex(1) |
Other Directorships/ |
|||||||||
Address of Directors or |
Position(s) |
Since |
Principal Occupation(s) |
Overseen by |
Trusteeships in |
|||||||
Nominees for |
Held with |
(Term |
or Employment During |
the Director |
Publicly Held |
|||||||
Director
|
Fund | Ends) | Past Five Years | or Nominee | Companies | |||||||
James J. Lightburn (67)
13, Rue Alphonse de Neuville 75017 Paris, France |
Chairman of the Board and Director | 1992 (2012) | Retired; Attorney, Nomos (law firm) (2004-2006); Attorney, member of Hughes Hubbard & Reed (law firm) (1993-2004). | 1 | Fromageries Bel S.A. | |||||||
Michael F. Holland (66)
375 Park Avenue New York, New York 10152 |
Director | 1992 (2013) | Chairman, Holland & Company L.L.C. (investment adviser) (1995-present). | 1 | The Holland Balanced Fund, Inc.; Reaves Utility Income Fund; The Taiwan Fund, Inc.; State Street Master Funds and State Street Institutional Investment Trust; Blackstone GSO Floating Rate Fund, Inc. | |||||||
William C. Kirby (60)
Harvard University CGIS South Building 1730 Cambridge Street Cambridge, MA 02138 |
Director | 2007 (2014) | Director, John K. Fairbank Center for Chinese Studies, Harvard University (2006-present); Chairman, Harvard China Fund (2006-present); Harvard University Distinguished Service Professor (2006-present); Dean of the Faculty of Arts and Sciences Harvard University (2002-2006). | 1 | ||||||||
Joe O. Rogers (62)
2477 Foxwood Drive Chapel Hill, NC 27514 |
Director | 1992 (2012) | Principal, Rogers International LLC (investment consultation) (July 2001-present); Visiting Professor Fudan University School of Management (August 2010-present). | 1 | The Taiwan Fund, Inc. (1986-present) | |||||||
Nigel S. Tulloch (65)
7 Circe Circle Dalkeith WA6009 Australia |
Director | 1992 (2014) | Director, The HSBC China Fund Limited (1992-2005). | 1 |
(1) | The term Fund Complex means two or more registered investment companies that share the same investment adviser or principal underwriter or hold themselves out to investors as related companies for the purposes of investment and investor services. |
34
Position(s) |
||||||
Name (Age) and |
Held with |
Officer |
Principal Occupation(s) or |
|||
Address of Officers
|
Fund | Since | Employment During Past Five Years | |||
Jamie Skinner (49)
Martin Currie Investment Management Saltire Court 20 Castle Terrace Edinburgh, EH12ES Scotland |
President | September 2009 | Director, Head of Client Services, Martin Currie Investment Management Limited (October 2004-present); President, The Taiwan Fund, Inc. (May 2010-present); President, Martin Currie Business Trust (December 2010-present). | |||
Chris Ruffle (52)
Martin Currie Investment Advisers Saltire Court 20 Castle Terrace Edinburgh, EH12ES Scotland |
Vice President | December 2008 | Director, MC China Limited (2006-present); Director, Heartland Capital Management Limited, (2006-present); Director, Martin Currie Investment Management Limited (1995-2006). | |||
Shifeng Ke (45)
Martin Currie Investment Advisers Saltire Court 20 Castle Terrace Edinburgh, EH12ES Scotland |
Vice President | December 2008 | Director, MC China Limited, (2006-present); Director, Heartland Capital Management Limited, (2006-present); Director, Martin Currie Investment Management Limited (2004-2006). | |||
Bill Royer (45)
Foreside Compliance Services, LLC Three Canal Plaza, Suite 100, Portland, ME 04101 |
Chief Compliance Officer | January 2010 | Managing Director, Alternative Investments and Chief Compliance Officer Services, Foreside Compliance Services, LLC (November 2009-present); Acting General Counsel, Baring Asset Management, Inc. (December 2007-May 2008) and General Counsel and Member, Grantham, Mayo, Van Otterloo & Co., LLC (February 1995-March 2005). | |||
Laura F. Dell (47)
2 Avenue de Lafayette, Boston, MA 02111 |
Treasurer | December 2008 | Vice President, State Street Bank and Trust Company (July 2007-present); Senior Director, Investors Bank and Trust Company (January 2002-July 2007). | |||
Tracie A. Coop (34)
4 Copley Place, Boston, MA 02206 |
Secretary |
June 2010 |
Vice President and Senior Counsel, State Street Bank and Trust Company (October 2007-present); Associate Counsel and Manager, Natixis Asset Management Advisors L.P. (2006-2007); Associate Counsel, Natixis Asset Management Advisors L.P. (2005-2006). | |||
Brian OSullivan (36)
801 Pennsylvania Ave Kansas City, MO 64105 |
Assistant Treasurer |
March 2009 |
Vice President, State Street Bank and Trust Company (December 2006-present); Assistant Vice President, State Street Bank and Trust Company (March 2004-December 2006). | |||
Francine S. Hayes (43)
4 Copley Place, Boston, MA 02206 |
Assistant Secretary | June 2005 | Vice President and Managing Counsel, State Street Bank and Trust Company (2004-present); Assistant Vice President and Counsel, State Street Bank and Trust Company (2001-2004). |
35
a. | Schedule of Investments is included as part of Item 1 of the Form N-CSR. | ||
b. | Not applicable. |
(a) | The registrants principal executive and principal financial officers have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-CSR based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the 1934 Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). | |
(b) | There were no changes in the registrants internal control over financial reporting (as defined in |
3
Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrants second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. |
(a)(1) | Not required for this filing. | |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-2(a)) are attached hereto. | |
(a)(3) | Not required for this filing. | |
(b) | The certifications required by Rule 30a-2(b) of the 1940 Act (17 CFR 270.30a-2(b)) and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
4
By:
|
/s/ Jamie Skinner
|
|||
President of The China Fund, Inc. | ||||
Date:
|
June 30, 2011 |
By:
|
/s/ Jamie Skinner
|
|||
President of The China Fund, Inc. | ||||
Date:
|
June 30, 2011 | |||
By:
|
/s/ Laura F. Dell
|
|||
Treasurer of The China Fund, Inc. | ||||
Date:
|
June 30, 2011 |
5
1. | I have reviewed this report on Form N-CSR of The China Fund, Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
6
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date:
|
June 30, 2011 | |||
By:
|
/s/ Jamie Skinner
|
|||
President (principal executive officer) of The China Fund, Inc. |
7
1. | I have reviewed this report on Form N-CSR of The China Fund. Inc.; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
8
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date:
|
June 30, 2011 | |||
By:
|
/s/ Laura F. Dell
|
|||
Treasurer (principal financial officer) of The China Fund, Inc. |
9
1. | This Form N-CSR filing for the Fund (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. |
By:
|
/s/ Jamie Skinner
|
|||
Chief Executive Officer of The China Fund, Inc. | ||||
Date:
|
June 30, 2011 | |||
By:
|
/s/ Laura F. Dell
|
|||
Chief Financial Officer of The China Fund, Inc. | ||||
Date:
|
June 30, 2011 |
10
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