N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05749

THE CHINA FUND, INC.

(Exact name of registrant as specified in charter)

C/O BROWN BROTHERS HARRIMAN & CO.

50 POST OFFICE SQ.

BOSTON, MA 02110

ATTENTION SUZAN BARRON

(Address of principal executive offices)(Zip code)

Copy to:

Suzan Barron Brown Brothers Harriman & Co. 50 Post Office Sq. Boston, MA 02110	Laura E. Flores, Esq. Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004-2541
(Name and Address of Agent for Service)

Registrant’s telephone number, including area code: (888) 246-2255

Date of fiscal year end: October 31

Date of reporting period: April 30, 2019

Item 1. Report to Stockholders.

THE CHINA FUND, INC.

SEMI-ANNUAL REPORT

April 30, 2019 (unaudited)

Beginning on June 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on The China Fund, Inc’s (the “Fund”) website (www.chinafundinc.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary or if you are a direct investor, by calling 1-800-426-5523.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds that you hold through your financial intermediary. If you invest directly with the Fund, you can call 1-800-426-5523 to let the Fund know you wish to continue receiving paper copies of your shareholder reports.

The China Fund, Inc.
Table of Contents
	Page
Key Highlights		1
Asset Allocation		2
Industry Allocation		3
Chairman’s Statement		4
Investment Manager’s Statement		7
About the Portfolio Manager		9
Schedule of Investments		10
Financial Statements		14
Notes to Financial Statements		18
Other Information		26
Dividends and Distributions: Summary of Dividend Reinvestment and Cash Purchase Plan		30

THE CHINA FUND, INC.

KEY HIGHLIGHTS (unaudited)

FUND DATA
NYSE Stock Symbol	CHN
Listing Date	July 10, 1992
Shares Outstanding	10,811,990
Total Net Assets (04/30/19)	$255,472,782
Net Asset Value Per Share (04/30/19)	$23.63
Market Price Per Share (04/30/19)	$21.18

TOTAL RETURN(1)
Performance as of 04/30/19:	Net Asset Value		Market Price
1-Year Cumulative		1.25%		1.70%
3-Year Cumulative(2)		53.89%		58.52%
3-Year Annualized(2)		15.45%		16.60%
5-Year Cumulative(2)		51.46%		53.39%
5-Year Annualized(2)		8.66%		8.93%
10-Year Cumulative(2)		194.97%		187.46%
10-Year Annualized(2)		11.42%		11.14%
DIVIDEND HISTORY
Record Date	Income		Capital Gains
12/21/18		$0.1689		$0.3712
12/19/17		$0.5493		—
12/19/16		$0.4678		—
12/28/15		$0.2133		$1.2825
12/22/14		$0.2982		$3.4669
12/23/13		$0.4387		$2.8753
12/24/12		$0.3473		$2.9044
12/23/11		$0.1742		$2.8222
12/24/10		$0.3746		$1.8996
12/24/09		$0.2557		—

(1) Total investment returns reflect changes in net asset value or market price, as the case may be, during each period and assumes that dividends and capital gains distributions, if any, were reinvested in accordance with the dividend reinvestment plan. The net asset value returns are not an indication of the performance of a stockholder’s investment in the Fund, which is based on market price. Total investment returns do not reflect the deduction of taxes that a stockholder would pay on Fund distributions or the sale of Fund shares. Total investment returns are historical and do not guarantee future results. Market price returns do not reflect broker commissions in connection with the purchase or sale of Fund shares.

(2) The performance has been restated to reflect an adjustment to the dividend reinvestment price applied in 2016, which had the effect of modestly understating performance for the period.

1

THE CHINA FUND, INC.

ASSET ALLOCATION AS OF April 30, 2019 (unaudited)

Ten Largest Listed Equity Investments *
AlibabaGroup Holding, Ltd.	11.5%
TencentHoldings, Ltd.	9.7%
Ping An Insurance Group Company of China, Ltd.	6.9%
ChinaConstruction Bank Corp.	4.0%
Industrial& Commercial Bank of China, Ltd.	4.0%
AgriculturalBank of China, Ltd.	3.9%
New China Life Insurance Co., Ltd.	3.9%
AIA Group, Ltd.	3.1%
WuliangyeYibin Co., Ltd.	2.5%
KweichowMoutai Co., Ltd.	2.4%

* Percentages based on net assets.

2

INDUSTRY ALLOCATION (unaudited)

Industry Allocation (as a percentage of net assets)

Fund holdings are subject to change and percentages shown above are based on net assets at April 30, 2019. A complete list of holdings at April 30, 2019 is contained in the Schedule of Investments included in this report. The most current available data regarding portfolio holdings can be found on our website, www.chinafundinc.com. You may also obtain holdings by calling 1-888-246-2255.

3

THE CHINA FUND, INC.

CHAIRMAN’S STATEMENT (unaudited)

Dear Fellow Stockholders,

It gives me pleasure to provide you both the Interim Report for The China Fund, Inc. (the “Fund”), covering the first half of the Fund’s year from November 1, 2018 to April 30, 2019, and a recent update on its affairs.

Introduction to a Sea Change

At the time of the long-delayed 2018 annual general meeting in May last year, stockholders supported the election of Rich Silver and myself to the Fund’s Board of Directors (the “Board”). Between us we bring approximately 90 years’ experience in the financial services industry both in the US and worldwide, and we very much appreciate the confidence of those supporters in our ability to so help steward the Fund. We are both ‘builders of businesses’ and not as the previous Board’s repetitive rhetoric would have suggested ‘fund busters’. The past twelve months presented a number of challenges for both the Fund and its new directors. I’m proud to report, however, that we have not only overcome each challenge, but we have succeeded in better positioning the Fund to seek to achieve greater success in the future. Suffice to say that despite the continual, totally unfounded suggestions to stockholders in historic documents from the old Board that we, as the nominated directors, had no future plans for your Fund, that the continued retention of the former investment manager was in the best interests of the Fund and that our appointment would lead to its liquidation, we beg to differ and hope that the information provided herein will prove such rhetoric as mere fiction.

I and the other Directors believe that we have set a new and more productive course for the Fund. A sea change has taken place with the implementation of enhanced investment management techniques and the introduction of best practices of corporate governance. Details of the numerous changes that we have instigated over the past year are alluded to herein, but firstly let me outline the primary issue of interest to stockholders, namely recent investment performance.

Investment Performance

As has been reported previously, following an extensive review of a short list of investment managers with a capability in the China space, Matthews International Capital Management, LLC (“Matthews Asia”) was appointed as the investment manager of your Fund effective January 1^st of this year. Matthews Asia, based on the west coast, has a strong capability in both investment research and management within the mainland China market.

In the four-month period ended April 30, 2019, covering the initial period of Matthews Asia’s management, China markets performed well as much due to a reversal in the previous negative sentiment related to the brewing trade conflict between China and the US and some positive easing by the monetary authorities in Beijing. As in any review of historic investment returns, it is imperative to stress that any returns so achieved are historical and in no way can or should guarantee future results. That said and realising that Matthews Asia’s term as manager has only just commenced, the investment results achieved have been encouraging providing alpha over and above both your Fund’s present and previous benchmarks. In this four-month period ended April 30, 2019, your Fund’s net asset value

4

THE CHINA FUND, INC.

CHAIRMAN’S STATEMENT (continued) (unaudited)

(“NAV”) rose 26.16% and the share price rose 25.4% outperforming the Fund’s new benchmark, the MSCI China All Share Index, which gained 24.07% and its previous benchmark, the MSCI Golden Dragon, which gained 18.12%. The report of Matthews Asia follows.

Enhanced Web Site & Investor Relations

May I draw your attention to the Fund’s much enhanced website (www.chinafundinc.com) that not only includes relevant information with regard to all aspects of your Fund, but also includes most interesting, selected pieces from Matthews Asia’s research on the China area.

As a means of further improving investor relations, given the recent appointment of a new investment manager with its own unique ways of managing money in the China space, we have arranged for Matthews Asia to provide investors with more frequent updates of its management of the Fund and the market during this initial year of its appointment. Whilst we fully understand that such conference calls are less personal than one-on-one meetings they will, we believe, achieve the objective of updating all stockholders with the manager’s actions in a more timely manner and simultaneously eliminate selective disclosure concerns.

For your diary future calls are scheduled for Wednesday, September 4, 2019, Monday, December 9, 2019 and Wednesday, February 26, 2020. The announcements of, and dial in details for, these calls will be posted on the Fund’s web site in due course.

Discount Management

As previously announced the Board instigated in mid-February a discount management program that is intended to help manage your Fund’s share price relative to its NAV. Since its commencement almost 200,000 shares have been repurchased and the share price discount to NAV traded between 9.56% and 12.03% and closed the Period at 10.37% while remaining above your Board’s single digit optimum target level, the discount has remained constantly better than the peer group of alternative funds used by the Board for comparative purposes.

Best Practices of Corporate Governance

Your new Board has adopted a differing understanding towards best practices of corporate governance leading it to concentrate on a significant number of perceived shortcomings that it has sought to address at the very earliest. Perhaps the most significant issue related to Fund expenses which, whilst progress to amend was slow, we have now finalised and have set out in a series of press releases and on which I agreed to expand in this correspondence.

We have engaged in considerable research and work, particularly Director Coughlin, aimed at containing such costs and which have culminated in the Board’s transfer of responsibilities with regard to custody, accounting, administration and support relating to securities lending to Brown Brothers Harriman & Co. effective on or about July 1^st, as was announced in a release dated April 24, 2019. When determining whether to pursue the transfer of

5

THE CHINA FUND, INC.

CHAIRMAN’S STATEMENT (continued) (unaudited)

responsibilities, the Board considered the effect of the proposed cost reduction on a period of Fund operations. Specifically, using historic trading numbers over the actual three-month trading period ended December 31, 2018, the Board calculated a savings of approximately $60,000 in each of the three months. Whilst this saving’s estimate is based on the specific trading numbers of that three-month period, and recognizing that such expenses are dependent on a number of variables — most particularly stock turnover, we estimate that savings approximating or exceeding $700,000 per year may be achievable from the change in custody, accounting and administration services combined.

We believe the past Board size and its expenses were excessive given the size of the Fund. We, therefore, acted promptly to reduce the size of the Board from seven to three Directors. We believe the reduced number is appropriate given the dollar-size of the Fund and the significant level of experience of the newly appointed Directors. I am pleased to report that the three-person Board is working well. Further, we intend to significantly reduce travel-related expenses, in part, by eliminating unnecessary trips to Asia and through greater use of technology enabled communications.

Legal fees have been agreed on the basis of an annual contract price for recurrent business and once the present modus operandi is fully established we will work to limit additional, extraordinary expenses to the very minimum.

Thus, based on a full, operational fiscal year with the newly agreed basis of fees in place over the entire period, your Board forecasts achieving an annual, net savings in fund expenses from those services as specifically renegotiated in the service providers review — namely across audit, administration, compliance, custody, directors, insurance, miscellaneous, printing, secretarial, shareholder services and stock exchange fees, of approximately US$2.8 million relative to the level of expenses in 2018 — the year set as the comparator by the former Chairman in a previous release. To be frank, the 2018 expenses were seriously inflated by unnecessary and excessive legal and proxy-related expenses as the then Board fought the competing proxy to both appoint new Directors and to change the investment manager. Thus, perhaps a more realistic expenses comparison might be with fiscal year 2017 which, even then, would represent a net savings for a year of US$1.3 million and which your Board believes still represents a very significant figure.

On behalf of the Directors may I conclude by thanking you for your recent support and please feel free to make contact at any time with ideas you may have for your Fund.

Yours very sincerely,

Julian Reid

Chairman

6

THE CHINA FUND, INC.

INVESTMENT MANAGER’S STATEMENT (unaudited)

Market Environment

During the six months ended April 30, 2019, Chinese equities experienced a sharp drop and rebound. Looking back to November 2018, Chinese equities posted good results as investors focused and speculated on the G-20 meetings and the prospect that President Trump and President Xi could come to a resolution on trade. In December 2018, however, China underperformed broad emerging markets amid volatility in the U.S. and Japan that led global equities lower for the month.

In a sharp reversal, in January 2019, Chinese equities posted some of the strongest performance in the region as local sentiment improved and recent negative economic results stabilized. Chinese business sentiment improved as the government allowed credit to expand and data showed signs that the manufacturing base was holding steady. From February through April, Chinese equities posted gains, as some macro issues seemed to recede and investor sentiment improved.

Other positive news included headlines around index provider MSCI’s expansion of A-shares within its global indices. Valuations remained attractive and some investors began to buy again. We continue to monitor the progress of trade talks, which remains unsettled. Trade conflicts can affect near-term investor sentiment, but have little long-term impact on the types of domestic economy-driven businesses we tend to own.

Performance

The Fund changed investment managers on January 1, 2019 and also changed its benchmark from the MSCI Golden Dragon Index to the MSCI China All-Shares Index. For the six months ended April 2019, the Fund outperformed both benchmarks. In this section, we discuss the performance during the reporting period that falls under the guidance of the new manager, Matthews Asia. For the period from January 1, 2019 to April 30, 2019, the Fund returned 26.65%, outperforming the MSCI China All-Shares Index, which returned 24.07%. From a sector perspective, contributors included communication services, consumer staples and industrials. Detractors included information technology and financials. Additional information about the Fund’s performance, including for periods prior to January 1, 2019, can be found on the Fund’s website.

From a stock perspective, a contributor to performance was insurance provider New China Life Insurance Co. Ltd., which benefited from rising rates of insurance adoption in China. As affluence levels continue to rise in China, there is increasing demand for protection-type insurance products, such as riders that protect family wealth in the event of the death of a spouse or the loss of a home. We increasingly see a shift away from consumers using insurance as purely investment-spread vehicles. These trends benefit insurance companies in general because protection-based insurance products tend to have inherently higher margins than policies designed as investment-spread products. We believe New China Life Insurance Co. is an up-and-coming player in this space, with the potential to gain market share while benefiting from the positive trends above.

A detractor was Shangri-La Asia (no longer held), an operator of five-star hotels in China. Amid an unsettled near-term economic outlook, market participants worried about occupancy rates for luxury hotels, sending Shangri-La

7

THE CHINA FUND, INC.

INVESTMENT MANAGER’S STATEMENT (continued) (unaudited)

Asia’s stock price downward during the reporting period. International chains, such as Marriott, Hilton and Hyatt are also expanding aggressively in China, adding to negative sentiment toward the stock. However, we believe growth in the travel industry is a long-term, secular growth trend and there may be room for both regional and international players. We continue to monitor developments in the travel and leisure sector, with an eye toward selecting the most compelling opportunities from the bottom up.

Outlook

Trade talks between the U.S. and China remain unsettled, but we believe it is in the best interest of both countries to eventually reach a deal. Daily headlines around trade talks tend to have a major impact on sentiment. We expect volatility to continue until a trade deal is reached. The good news is that the services portion of China’s economy has grown larger than its manufacturing portion every year for the past seven years, leaving the economy less impacted by exports. The long-term growth story in China continues to center around how well China can manage its domestic economy.

On the domestic front, Chinese policymakers seem to be making reasonable decisions around various market reforms, as well as in their modest, incremental use of stimulus. Policy initiatives such as the government’s anti-corruption drive, state-owned enterprise reform, supply-side reform and a shift in financing to sectors with lower capital expenditures are all positive signs for the economy. Overall, we continue to position our portfolio according to our long-term beliefs that China’s domestic economy remains healthy, and that there are secular growth opportunities in both China’s new and old economy sectors that stand to benefit from the rising levels of affluence among domestic consumers.

8

THE CHINA FUND, INC.

ABOUT THE PORTFOLIO MANAGER (unaudited)

Matthews Asia, the largest dedicated Asia investment specialist in the United States, is an independent, privately owned firm with a focus on long-term investment performance.

Andrew Mattock serves as the portfolio manager for the Fund’s portfolio of listed securities. Prior to joining Matthews Asia in 2015, he was a Fund Manager at Henderson Global Investors for 15 years, first in London and then in Singapore, managing Asia Pacific equities. Andrew holds a Bachelor of Business majoring in Accounting from ACU. He began his career at PricewaterhouseCoopers and qualified as a Chartered Accountant.

9

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS

April 30, 2019 (unaudited)

Name of Issuer and Title of Issue	Shares				Value (Note A)
COMMON STOCK
CHINA — “A” SHARES
Beverages — 4.9%
Kweichow Moutai Co., Ltd. — A		41,478			$	5,996,849
Wuliangye Yibin Co., Ltd. — A		427,261				6,491,871
						12,488,720
Chemicals — 1.0%
Wanhua Chemical Group Co., Ltd. — A*		374,443				2,513,962
Commercial Banks — 1.5%
Ping An Bank Co., Ltd. — A		1,838,483				3,779,686
Construction Materials — 1.8%
Anhui Conch Cement Co., Ltd. — A		701,371				4,159,211
China Jushi Co., Ltd. — A		298,222				482,517
						4,641,728
Electronic Equipment & Instruments — 2.0%
AVIC Jonhon OptronicTechnology Co., Ltd. — A		419,609				2,591,102
Luxshare Precision Industry Co., Ltd. — A		673,100				2,606,754
						5,197,856
Food Products — 2.0%
Inner Mongolia Yili Industrial Group Co., Ltd. — A		1,119,554				5,151,730
Health Care Equipment & Supplies — 1.0%
Lepu Medical Technology Beijing Co., Ltd. — A		628,900				2,486,922
Hotels, Restaurants & Leisure — 1.5%
China International Travel Service Corp., Ltd. — A		333,197				3,832,596
Household Durables — 2.2%
Midea Group Co., Ltd. — A		725,229				5,640,957
Insurance — 6.9%
Ping An Insurance Group Company of China, Ltd. — A		1,381,928				17,661,798
Media — 0.9%
Focus Media Information Technology Co., Ltd. — A		2,389,400				2,163,540
TOTAL CHINA — “A” SHARES — (Cost $48,101,497)			25.7	%		65,559,495
HONG KONG
Automobiles — 1.7%
Brilliance China Automotive Holdings, Ltd.(1)		4,010,000				4,411,368

See notes to financial statements.

10

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

April 30, 2019 (unaudited)

Name of Issuer and Title of Issue	Shares		Value (Note A)
COMMON STOCK (continued)
HONG KONG (continued)
Diversified Financial Services — 1.9%
Hong Kong Exchanges and Clearing, Ltd.		140,300	$	4,864,573
Electronic Equipment & Instruments — 1.0%
Kingboard Holdings, Ltd.		738,500		2,405,246
Entertainment — 1.8%
iQIYI, Inc. ADR*(1)		45,500		1,006,005
Tencent Music Entertainment Group ADR*(1)		200,200		3,443,440
				4,449,445
Health Care Technology — 0.8%
Ping An Healthcare and Technology Co., Ltd. 144A*(1)		427,600		2,093,086
Hotels, Restaurants & Leisure — 1.5%
Galaxy Entertainment Group, Ltd.		521,000		3,895,147
Insurance — 3.1%
AIA Group, Ltd.		763,600		7,782,202
Interactive Media & Services — 14.9%
58.com, Inc. ADR*		58,600		4,206,894
Momo, Inc. ADR		65,000		2,279,550
Sina Corp.*		46,500		2,926,710
Tencent Holdings, Ltd.		502,200		24,838,568
YY, Inc. ADR*		44,600		3,773,606
				38,025,328
Internet and Direct Marketing Retail — 14.0%
Alibaba Group Holding, Ltd. ADR*(1)		157,601		29,246,018
Ctrip.com International, Ltd. ADR*		89,800		3,955,690
JD.com, Inc. ADR*(1)		86,900		2,630,463
				35,832,171
IT Services — 1.3%
Chinasoft International, Ltd.*(1)		5,880,000		3,350,449
Pharmaceuticals — 1.7%
Sino Biopharmaceutical, Ltd.		4,599,000		4,420,311
Professional Services — 1.0%
51job, Inc. ADR*		28,100		2,594,754
Real Estate Management & Development — 6.4%
China Overseas Property Holdings, Ltd.		5,040,000		2,383,541

See notes to financial statements.

11

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

April 30, 2019 (unaudited)

Name of Issuer and Title of Issue	Shares				Value (Note A)
COMMON STOCK (continued)
HONG KONG (continued)
Real Estate Management & Development (continued) 6.4%
China Resources Land, Ltd.		1,170,000			$	5,093,246
CIFI Holdings Group Co., Ltd.		6,706,000				4,453,684
Times China Holdings, Ltd.(1)		2,445,000				4,444,435
						16,374,906
Semiconductors & Semiconductor Equipment — 0.2%
ASM Pacific Technology, Ltd.		43,900				508,402
Specialty Retail — 1.5%
Zhongsheng Group Holdings, Ltd.(1)		1,496,000				3,928,411
TOTAL HONG KONG — (Cost $98,783,617)			52.8	%		134,935,799
HONG KONG — “H” SHARES
Capital Markets — 3.7%
China International Capital Corp., Ltd. 144A(1)		1,911,600				4,103,526
CITIC Securities Co., Ltd.(1)		2,387,500				5,161,636
						9,265,162
Commercial Banks — 11.9%
Agricultural Bank of China, Ltd.		21,791,000				10,055,504
China Construction Bank Corp.		11,657,000				10,297,651
Industrial & Commercial Bank of China, Ltd.		13,420,000				10,075,949
						30,429,104
Insurance — 3.9%
New China Life Insurance Co., Ltd.		1,808,100				10,014,525
Oil, Gas & Consumable Fuels — 1.5%
China Petroleum & Chemical Corp.		5,024,000				3,861,758
TOTAL HONG KONG — “H” SHARES — (Cost $46,574,325)			21.0	%		53,570,549
TOTAL HONG KONG (INCLUDING “H” SHARES) — (Cost $145,357,942)			73.8	%		188,506,348
TOTAL COMMON STOCK — (Cost $193,459,439)			99.5	%		254,065,843
COLLATERAL FOR SECURITIES ON LOAN — 4.0%
State Street Navigator Securities Lending Government Money Market Portfolio, 2.4179%¥ (Cost $10,237,903)		10,237,903				10,237,903

See notes to financial statements.

12

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

April 30, 2019 (unaudited)

Name of Issuer and Title of Issue	Face Amount				Value (Note A)
SHORT TERM INVESTMENT — 2.6%
Repurchase Agreement with Fixed Income Clearing Corporation, dated 04/30/19, 0.50%, due 05/01/19, proceeds $6,699,093; collateralized by U.S. Treasury Bill, 0.00%, due 04/23/20, valued at $6,833,688, including interest. (Cost $6,699,000 )	$	6,699,000			$	6,699,000
TOTAL INVESTMENTS — (Cost $210,396,342)			106.1	%		271,002,746
OTHER ASSETS AND LIABILITIES			(6.1	)%		(15,529,964	)
NET ASSETS			100.0	%	$	255,472,782

Notes to Schedule of Investments

  ^* Denotes non-income producing security.

  ^¥ Rate shown is the 7-day yield as of April 30, 2019.

⁽¹⁾  Securities (or a portion of the security) is on loan. As of April 30, 2019, the market value of the securities loaned was $20,194,218. The loaned securities were secured with cash collateral of $10,237,903 and non-cash collateral with a value of $11,320,424. The non-cash collateral received consists of short term investments and long term bonds, and is held for the benefit of the Fund at the Fund’s custodian. The Fund cannot repledge or resell this collateral. Collateral is calculated based on prior day’s prices.

144A Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2019, these restricted securities amounted to $6,196,612, which represented 2.4% of total net assets.

ADR American Depositary Receipt

See notes to financial statements.

13

THE CHINA FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES

April 30, 2019 (unaudited)

ASSETS
Investments in securities, at value (cost $210,396,342) (including securities on loan, at value, $20,194,218) (Note A)	$	271,002,746
Cash		1,335
Foreign currency, at value (cost $24,812)		24,733
Receivable for investments sold		1,164
Receivable for securities lending income		25,028
Interest receivable		93
Prepaid expenses and other receivables		97,927
TOTAL ASSETS		271,153,026
LIABILITIES
Payable for investments purchased		5,110,527
Payable upon return of collateral for securities on loan		10,237,903
Investment management fee payable (Note B)		147,956
Administration and custodian fees payable (Note B)		64,211
Chief Compliance Officer fees payable		4,258
Directors’ fees payable (Note B)		1,000
Other accrued expenses and liabilities		114,389
TOTAL LIABILITIES		15,680,244
TOTAL NET ASSETS	$	255,472,782
COMPOSITION OF NET ASSETS:
Par value, 100,000,000 shares authorized, 10,811,990 shares outstanding (Note C)		108,120
Paid in capital in excess of par		191,310,397
Distributable earnings		64,054,265
TOTAL NET ASSETS	$	255,472,782
NET ASSET VALUE PER SHARE
($255,472,782/10,811,990 shares of common stock outstanding)		$23.63

See notes to financial statements.

14

THE CHINA FUND, INC.

STATEMENT OF OPERATIONS

Six Months Ended April 30, 2019 (unaudited)

INVESTMENT INCOME:
Dividend income — (net of tax withheld of $10,569)	$	499,387
Securities lending income		159,007
Interest income		20,248
TOTAL INVESTMENT INCOME		678,642
EXPENSES
Investment Management fees (Note B)		949,369
Custodian fees (Note B)		254,734
Administration fees (Note B)		215,679
Directors’ fees and expenses		194,011
Legal fees		104,179
Shareholder service fees		72,000
Insurance		51,749
Printing and postage		41,450
Audit and tax service fees		34,064
Principal Financial Officer fee		29,753
Chief Compliance Officer fee		29,753
Transfer agent fees		11,895
Stock exchange listing fee		6,393
Miscellaneous expenses		112,337
TOTAL EXPENSES		2,107,366
Less: Expense waiver		(1,990	)
Net Expenses		2,105,376
NET INVESTMENT LOSS		(1,426,734	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investments		8,386,729
Net realized loss on foreign currency transactions		(86,885	)
		8,299,844
Net change in unrealized appreciation/depreciation on investments		59,622,119
Net change in unrealized appreciation/depreciation on foreign currency translations		76,841
		59,698,960
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS		67,998,804
NET INCREASE IN NET ASSETS FROM OPERATIONS	$	66,572,070

See notes to financial statements.

15

THE CHINA FUND, INC.

STATEMENTS OF CHANGES IN NET ASSETS

	Six Months Ended April 30, 2019			Year Ended October 31, 2018
	(unaudited)
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income (loss)	$	(1,426,734	)	$	2,270,647
Net realized gain on investments and foreign currency transactions		8,299,844			33,960,459
Net change in unrealized appreciation/depreciation on investments and foreign currency translations		59,698,960			(95,666,600	)
Net increase (decrease) in net assets from operations		66,572,070			(59,435,494	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Distributable earnings		(8,491,817	)		(8,636,465	)
Total distributions to shareholders		(8,491,817	)		(8,636,465	)
CAPITAL SHARE TRANSACTIONS:
Cost of shares tendered (Note E)		(97,213,310	)		—
Cost of shares repurchased (Note D)		(3,863,233	)		—
Net increase (decrease) in net assets from capital share transactions		(101,076,543	)		—
NET DECREASE IN NET ASSETS		(42,996,290	)		(68,071,959	)
NET ASSETS:
Beginning of Period		298,469,072			366,541,031
End of Period	$	255,472,782		$	298,469,072

See notes to financial statements.

16

THE CHINA FUND, INC.

FINANCIAL HIGHLIGHTS

Selected data for a share of common stock outstanding for the periods indicated

	Six Months Ended April 30, 2019(1)			Year Ended October 31,
				2018			2017			2016			2015			2014
	(unaudited)
Per Share Operating Performance
Net asset value, beginning of period	$	18.98		$	23.31		$	18.78		$	19.91		$	24.21		$	25.77
Net investment income/(loss)*		(0.11	)		0.14			0.18	(2)		0.46	(2)		0.26			0.33
Net realized and unrealized gain (loss) on investments and foreign currency transactions		5.20			(3.92	)		4.82			(0.10	)		(0.79	)		1.43
Total from investment operations		5.09			(3.78	)		5.00			0.36			(0.53	)		1.76
Less dividends and distributions:
Dividends from net investment income		(0.17	)		(0.55	)		(0.47	)		(0.21	)		(0.30	)		(0.44	)
Distributions from net realized gains		(0.37	)		—			—			(1.28	)		(3.47	)		(2.88	)
Total dividends and distributions		(0.54	)		(0.55	)		(0.47	)		(1.49	)		(3.77	)		(3.32	)
Capital Share Transactions:
Accretion (Dilution) to net asset value, resulting from share repurchase program, tender offer or issuance of shares in stock dividend		0.10			—			—			0.00	(3)		—			—
Net asset value, end of period	$	23.63		$	18.98		$	23.31		$	18.78		$	19.91		$	24.21
Market price, end of period	$	21.18		$	16.98		$	21.10		$	16.18		$	17.49		$	21.44
Total Investment Return (Based on Market Price)		28.54	%(4)		(17.53	)%		34.38	%(5)		1.73	%		(1.95	)%		9.71	%
Total Investment Return (Based on Net Asset Value)		28.29	%(4)		(16.55	)%		27.90	%(5)		3.73	%		(1.16	)%		8.93	%
Ratios and Supplemental Data
Net assets, end of period (000’s)	$	255,473		$	298,469		$	366,541		$	295,252		$	312,191		$	379,692
Ratio of gross expenses to average net assets		1.52	%(6)		—	%		—	%		—	%		—	%		—	%
Ratio of net expenses to average net assets		1.52	%(6)		1.91	%		1.49	%		1.51	%		1.34	%		1.31	%
Ratio of net investment income/(loss) to average net assets		(1.03	)%(6)		0.62	%		0.92	%(2)		2.66	%(2)		1.16	%		1.39	%
Portfolio turnover rate		93	%(4)		50	%		31	%		52	%		64	%		67	%

* Per share amounts have been calculated using the average share method.

⁽¹⁾  Effective January 1, 2019, Matthews International Capital Management, LLC became the investment manager. Prior to January 1, 2019, the Fund’s investment manager was Allianz Global Investors.

⁽²⁾  Amount includes a non-recurring receipt of a refund for over-billing of prior years’ custody out of pocket expense which amounted to $0.02 per share and 0.12% of average net assets during 2016 and less than $0.01 per share and less than 0.005% of net assets during 2017.

⁽³⁾  Amount is less than $0.01.

⁽⁴⁾  Not Annualized

⁽⁵⁾  The performance has been restated to reflect an adjustment to the dividend reinvestment price applied in 2016, which had the effect of modestly understating performance for the period.

⁽⁶⁾  Annualized

See notes to financial statements.

17

THE CHINA FUND, INC.

NOTES TO FINANCIAL STATEMENTS

April 30, 2019 (unaudited)

NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The China Fund, Inc. (the “Fund”) was incorporated under the laws of the State of Maryland on April 28, 1992, and is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s investment objective is long-term capital appreciation which it seeks to achieve by investing primarily in equity securities (i) of companies for which the principal securities trading market is the People’s Republic of China (“China”), (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 revenues from goods and services sold or produced, or have at least 50% of their assets, in China and (iii) constituting direct equity investments in companies organized in China (“Direct Investments”). The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The Fund’s investment manager is Matthews International Capital Management, LLC (“Matthews Asia” or the “Investment Manager”).

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board Accounting Standard Codification Topic 946 “Financial Services — Investment Companies.”

The financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Fund:

Security Valuation:    Portfolio securities listed on recognized U.S. or foreign security exchanges are valued at the last quoted sales price in the principal market where they are traded. Listed securities with no such sales price and unlisted securities are valued at the mean between the current bid and asked prices, if any, from brokers. Short-term investments having maturities of sixty days or less are valued at amortized cost (original purchase cost as adjusted for amortization of premium or accretion of discount) which when combined with accrued interest approximates market value. Securities for which market quotations are not readily available or are deemed unreliable are valued at fair value in good faith by or at the direction of the Board of Directors (the “Board”) considering relevant factors, data and information including, if relevant, the market value of freely tradable securities of the same class in the principal market on which such securities are normally traded. Direct Investments, if any, are valued at fair value as determined by or at the direction of the Board based on financial and other information supplied by the Investment Manager regarding each Direct Investment. Forward currency contracts are valued at the current cost of offsetting the contract. Equity linked securities, if any, are valued at fair value primarily based on the value(s) of the underlying security (or securities), which normally follows the same methodology as the valuation of securities listed on recognized exchanges.

Factors used in determining fair value may include, but are not limited to, the type of security, the size of the holding, the initial cost of the security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, the availability of quotations from broker-dealers, the availability of values of third parties other than the Investment Manager,

18

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

information obtained from the issuer, analysts, and/or the appropriate stock exchange (if available), an analysis of the company’s financial statements, an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold, and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which they trade.

Repurchase Agreements:    In connection with transactions in repurchase agreements, it is the Fund’s policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, realization of the collateral by the Fund may be delayed or limited.

	Remaining Contractual Maturity of the Agreements As of April 30, 2019
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Repurchase Agreements
U.S. Treasury and agency securities	$	6,699,000	$	—	$	—	$	—	$	6,699,000
Total Borrowings	$	6,699,000	$	—	$	—	$	—	$	6,699,000

Securities Lending:    The Fund may lend up to 33¹/₃% of the Fund’s total assets held by State Street Bank and Trust Company (“State Street”), as custodian, to certain qualified brokers, except those securities which the Fund or the Investment Manager specifically identifies as not being available. By lending its investment securities, the Fund attempts to increase its net investment income through the receipt of interest on the loan. Any gain or loss in the market price of the securities loaned that might occur and any interest or dividends declared during the term of the loan would accrue to the account of the Fund. Risks of delay in recovery of the securities or even loss of rights in the collateral may occur should the borrower of the securities fail financially. Risks may also arise to the extent that the value of the collateral decreases below the value of the securities loaned. Upon entering into a securities lending transaction, the Fund receives cash or other securities as collateral in an amount equal to or exceeding 100% of the current market value of the loaned securities with respect to securities of the U.S. government or its agencies, 102% of the current market value of the loaned securities with respect to U.S. securities and 105% of the current market value of the loaned securities with respect to foreign securities. Any cash received as collateral is generally invested by State Street, acting in its capacity as securities lending agent (the “Agent”), in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral is not disclosed in the Fund’s Statement of Assets and Liabilities as it is held by the lending agent on behalf of the Fund and the Fund does not have the ability to re-hypothecate those securities. A portion of the dividends received on the collateral may be rebated to the borrower of the securities and the remainder is split between the Agent and the Fund.

19

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

	Remaining Contractual Maturity of the Agreements As of April 30, 2019
	Overnight and Continuous		<30 days		Between 30 & 90 days		>90 days		Total
Securities Lending Transactions
Money Market Fund	$	10,237,903	$	—	$	—	$	—	$	10,237,903
Total Borrowings	$	10,237,903	$	—	$	—	$	—	$	10,237,903
Gross amount of recognized liabilities for securities lending transactions									$	10,237,903

As of April 30, 2019, the Fund had loaned securities which were collateralized by cash, short term investments and long term bonds. The value of the securities on loan and the value of the related collateral were as follows:

Value of Securities		Value of Cash Collateral		Value of Non-Cash Collateral*		Total Collateral
	$20,194,218	$	10,237,903	$	11,320,424	$	21,558,327

* Fund cannot repledge or dispose of this collateral, nor does the Fund earn any income or receive dividends with respect to this collateral.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities		Financial Instrument		Collateral Received(b)			Net Amount
	$10,237,903		—	$	(10,237,903	)	$	0

Foreign currency translations:    The records of the Fund are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at the current exchange rates. Purchases and sales of investment securities and income and expenses are translated on the respective dates of such transactions. Net realized gains and losses on foreign currency transactions represent net gains and losses from the disposition of foreign currencies, currency gains and losses realized between the trade dates and settlement dates of security transactions, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statement of Operations from the effects of changes in market prices of those securities, but are included in realized and unrealized gain or loss on investments. Net unrealized foreign currency gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, as a result of changes in exchange rates.

Forward Foreign Currency Contracts:    The Fund may enter into forward foreign currency contracts to hedge against foreign currency exchange rate risks. A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of the foreign currency relative to the U.S. dollar. The U.S. dollar value of forward currency contracts is determined using forward exchange rates provided by quotation services. Daily fluctuations in the value of such

20

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

contracts are recorded as unrealized gains or losses on the Statement of Assets and Liabilities. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. Such gain or loss is disclosed in the realized and unrealized gain or loss on foreign currency in the Fund’s accompanying Statement of Operations. At April 30, 2019, the Fund did not hold any forward foreign currency contracts.

Option Contracts:    The Fund may purchase and write (sell) call options and put options provided the transactions are for hedging purposes and the initial margin and premiums do not exceed 5% of total assets. Option contracts are valued daily and unrealized gains or losses are recorded on the Statement of Assets and Liabilities based upon the last sale price on the principal exchange on which the options are traded. The Fund will realize a gain or loss upon the expiration or closing of the option contract. Such gain or loss is disclosed in the realized and unrealized gain or loss on options in the Fund’s accompanying Statement of Operations. When an option is exercised, the proceeds on the sale of the underlying security for a written call option, the purchase cost of the security for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid.

The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security decreases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. Risks may also arise from an illiquid secondary market or from the inability of a counterparty to meet the terms of the contract. At April 30, 2019, the Fund did not hold any option contracts.

Equity-Linked Securities:    The Fund may invest in equity-linked securities such as linked participation notes, equity swaps and zero-strike options and securities warrants. Equity-linked securities may be used by the Fund to gain exposure to countries that place restrictions on investments by foreigners. To the extent that the Fund invests in equity-linked securities whose return corresponds to the performance of a foreign securities index or one or more foreign stocks, investing in equity-linked securities will involve risks similar to the risks of investing in foreign securities. In addition, the Fund bears the risk that the issuer of any equity-linked securities may default on its obligation under the terms of the arrangement with the counterparty. Equity-linked securities are often used for many of the same purposes as, and share many of the same risks with, derivative instruments. In addition, equity-linked securities may be considered illiquid. At April 30, 2019, the Fund did not hold any equity-linked securities.

Direct Investments:    The Fund may invest up to 25% of the net proceeds from the offering of its outstanding common stock in Direct Investments; however, the Board of the Fund has suspended additional investments in Direct Investments. Direct Investments are generally restricted and do not have a readily available resale market. Because of the absence of any public trading market for these investments, the Fund may take longer to liquidate these positions than would be the case for publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices on these sales could be less than those originally paid by the Fund. Issuers whose securities are not publicly traded may not be subject to public disclosure and other investor protection requirements applicable to publicly traded securities. At April 30, 2019, the Fund did not hold any Direct Investments.

21

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

Indemnification Obligations:    Under the Fund’s organizational documents, its Officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business the Fund enters into contracts that provide general indemnifications to other parties. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.

Security transactions and investment income:    Security transactions are recorded as of the trade date. Realized gains and losses from securities sold are recorded on the identified cost basis. Dividend income is recorded on the ex-dividend date, or, in the case of dividend income on foreign securities, on the ex-dividend date or when the Fund becomes aware of its declaration. Interest income is recorded on the accrual basis. All premiums and discounts are amortized/accreted for both financial reporting and federal income tax purposes.

Dividends and distributions:    The Fund intends to distribute to its stockholders, at least annually, substantially all of its net investment income and any net realized capital gains. Distributions to stockholders are recorded on the ex-dividend date. Income and capital gains distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value (“NAV”) per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Unless the Board elects to make distributions in shares of the Fund’s common stock, the distributions will be paid in cash, except with respect to stockholders who have elected to participate in the Fund’s Dividend Reinvestment and Cash Purchase Plan.

Federal Taxes:    It is the Fund’s policy to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended (“Code”), and to distribute to stockholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the period ended April 30, 2019, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. For the previous three years the Fund remains subject to examination by the Fund’s major tax jurisdictions, which include the United States of America and the State of Maryland. The Fund may be subject to taxes imposed by governments of countries in which it invests. Such taxes are generally based on either income or gains earned or repatriated. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains as income is earned and/or as gains are realized.

At April 30, 2019, the cost of investments for federal income tax purposes was $210,396,342. Gross unrealized appreciation of investments was $60,980,334 while gross unrealized depreciation of investments was $373,930, resulting in net unrealized appreciation of investments of $60,606,404.

22

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

NOTE B — ADVISORY FEE AND OTHER TRANSACTIONS

Effective January 1, 2019, Matthews Asia is the investment manager for the Fund’s listed assets (“Listed Assets”) and Direct Investments. Matthews Asia receives a fee, computed and accrued daily and paid monthly at a rate of 0.70% if assets exceed $150 million and 0.80% if assets do not exceed $150 million. Prior to January 1, 2019, Allianz Global Investors (“AGI”) was the investment manager for the Fund’s Listed Assets and Direct Investments. AGI received a fee, computed weekly and payable monthly, at the following annual rates: 0.70% of the first US$315 million of the Fund’s average weekly net assets invested in Listed Assets; and 0.50% of the Fund’s average weekly net assets invested in Listed Assets in excess of US$315 million. For the period ended April 30, 2019, the investment management fee rate was equivalent to an annual effective rate of 0.70% of the Fund’s average daily net assets. For the six months ended April 30, 2019, the Investment Manager was paid no fees for Direct Investments as the Fund held no such investments during the period.

No director, officer or employee of Matthews Asia, AGI, or any affiliates of those entities receives any compensation from the Fund for serving as an officer or director of the Fund.

State Street provides or arranges for the provision of certain administrative services for the Fund, including preparing certain reports and other documents required by federal and/or state laws and regulations. The Fund pays State Street a fee that is calculated daily and paid monthly at an annual rate based on aggregate average daily assets of the Fund. The Fund also pays State Street an annual fee for certain legal administration services, including corporate secretarial services and preparing regulatory filings.

The Fund has also contracted with State Street to provide custody and fund accounting services to the Fund. For these services, the Fund pays State Street asset-based fees that vary according to the number of positions and transactions plus out-of-pocket expenses.

NOTE C — FUND SHARES

At April 30, 2019, there were 100,000,000 shares of $0.01 par value capital stock authorized, of which 10,811,990 were issued and outstanding.

For the period ended April 30, 2019, the Fund repurchased 4,910,685 shares of its common stock, valued at $101,076,543, from stockholders participating in the Fund’s tender offer and repurchases under the Fund’s discount management program.

	For Period Ended April  30, 2019
Shares outstanding at beginning of period		15,722,675
Shares repurchased		(193,882	)
Shares tendered		(4,716,803	)
Shares outstanding at end of period		10,811,990

23

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

NOTE D — DISCOUNT MANAGEMENT PROGRAM

On February 6, 2019, the Fund announced that its Board of Directors approved a Discount Management Program (the “Program”) which authorizes management to make open market purchases in an aggregate amount up to 10% of the Fund’s outstanding shares. This limit may be increased or decreased by the Board at any time. Under the Program, the Fund will repurchase its common shares in the open market on any trading day that the Fund’s shares are trading above the discount threshold, which is currently 9.5%. On each day that shares are repurchased, the Fund repurchases its shares to the maximum extent permitted by law unless the Board and the Program Manager determine that such repurchase would be detrimental to the Fund and its stockholders. The Program is intended to enhance stockholder value, as repurchases made at a discount may have the effect of increasing the per share NAV of the Fund’s remaining shares. There is no assurance, however, that the market price of the Fund’s shares, either absolutely or relative to NAV, will increase as a result of any share repurchases. These repurchases may be commenced or suspended at any time or from time to time without any notice. Any repurchases will be disclosed in the Fund’s stockholder reports for the relevant fiscal periods.

For the period ended April 30, 2019, the Fund repurchased 193,882 of its shares at an average price of $20.58 per share (including brokerage commissions) at an average discount of 11.04%. These repurchases had a total cost of $3,863,233. The Board will continue to review the Program and its effectiveness, and, as appropriate, may make further enhancements as it believes are necessary.

NOTE E — TENDER OFFER

On November 9, 2018, the Fund announced that its Board approved in principle a one-time tender offer (the “Tender Offer”). The Tender Offer commenced on January 4, 2019 and expired on February 5, 2019. The Tender Offer was oversubscribed and, pursuant to the terms of the Tender Offer, tendered shares were accepted for payment on a pro rata basis. The Fund accepted 4,716,803 shares for payment on or about February 12, 2019 at $20.61 per share, which is equal to 99% of the Fund’s NAV per share as of the close of regular trading on the New York Stock Exchange on February 6, 2019. The 4,716,803 shares totaling $97,213,310 represented 30% of the Fund’s outstanding shares. On a pro rata basis, approximately 40.71% of the shares so tendered were accepted for payment.

NOTE F — INVESTMENT TRANSACTIONS

For the six months ended April 30, 2019, the Fund’s cost of purchases and proceeds from sales of investment securities, other than short-term securities, were $252,010,081 and $340,158,753, respectively.

NOTE G — INVESTMENTS IN CHINA

The Fund’s investments in Chinese companies involve certain risks not typically associated with investments in securities of U.S. companies or the U.S. Government, including risks relating to (1) social, economic and political uncertainty; (2) price volatility, lesser liquidity and smaller market capitalization of securities markets in which securities of Chinese companies trade; (3) currency exchange fluctuations, currency blockage and higher rates of inflation; (4) controls on foreign investment and limitations on repatriation of invested capital and on the Fund’s ability to exchange local currencies for U.S. dollars; (5) governmental involvement in and control over the

24

NOTES TO FINANCIAL STATEMENTS (continued) (unaudited)

economy; (6) risk of nationalization or expropriation of assets; (7) the nature of the smaller, less seasoned and newly organized Chinese companies, particularly in China; and (8) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and less government supervision and regulation.

NOTE H — FAIR VALUE MEASUREMENT

The Fund has adopted fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

• 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;

• 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.

The following is a summary of the inputs used as of April 30, 2019 in valuing the Fund’s investments carried at value:

ASSETS VALUATION INPUT

Description*	Level 1		Level 2		Level 3		Total
Common Stock	$	254,065,843	$	—	$	—	$	254,065,843
Collateral For Securities On Loan		10,237,903		—		—		10,237,903
Short Term Investments		—		6,699,000		—		6,699,000
TOTAL INVESTMENTS	$	264,303,746	$	6,699,000	$	—	$	271,002,746

* Please refer to the Schedule of Investments for additional security details.

NOTE I — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Fund did not enter into any derivatives transactions or hedging activities for the six months ended April 30, 2019.

NOTE J — SUBSEQUENT EVENT

Management has evaluated the impact of all events or transactions occurring after year end through the date these financial statements were issued, and has determined that there were no subsequent events requiring recognition or disclosure.

25

THE CHINA FUND, INC.

Other Information (unaudited)

Board Deliberations Regarding Approval of Investment Advisory and Management Agreement

General Background

On October 11, 2018, the Board of Directors, all of whom are Independent Directors (the “Board”), voted to approve the Investment Advisory and Management Agreement between the Fund and Matthews International Capital Management, LLC (“Matthews Asia”) (the “Agreement”).

Approval Process

In making this selection the Board noted that Matthews Asia has a singular focus on Asia and employs a fundamental, bottom-up investment process that seeks to identify companies with sustainable long-term growth prospects, strong business models, quality management teams and reasonable valuations. The Board noted that Matthews Asia’s intent is to manage the Fund using an all capitalization universe that includes approximately 5,000 companies. The Board noted that to better reflect the all capitalization universe of this strategy, as well as its focus on China rather than Greater China, the Fund’s benchmark index would change from the MSCI Golden Dragon Index to the MSCI China All Shares Index upon the commencement of Matthews Asia’s management of the Fund.

The Board also considered Matthews Asia’s attention to risk management, which focuses on governance matters, including franchise and management issues, security risk, which includes valuation and liquidity considerations, and macro factors including geopolitical and regulatory issues. The Board noted that Matthews Asia employs an independent risk committee that conducts an autonomous assessment of risk utilizing value-at-risk modeling, liquidity metrics, country and currency exposure and company specific testing for all holdings.

The Board also considered the terms and conditions of the proposed Agreement. The Board noted that the current management Agreement with Allianz Global Investors (the “AGI Agreement”) and the proposed Agreement are substantially similar, with one exception. The proposed Agreement has a tiered advisory fee of 0.70% if assets exceed $150 million and 0.80% if assets do not exceed $150 million and the AGI Agreement has a tiered advisory fee of 0.70% of the first $315 million of the Fund’s average weekly net assets and 0.50% of the Fund’s average weekly net assets in excess of $315 million. At the current and anticipated asset levels of the Fund, the difference in advisory fees rates between the proposed Agreement and the AGI Agreement is expected to be immaterial.

The Board also based its decision on various factors, including (i) the nature, extent and quality of the services to be provided by Matthews Asia under the Agreement, (ii) the investment performance, fees and expenses of the Fund, and (iii) the extent to which economies of scale would be realized if and as the Fund grows and whether the fee levels in the Agreement reflects these economies of scale. The Board did not identify any consideration that was all important or controlling, and each Director may have attributed different weights to the various factors.

Nature, Extent and Quality of the Services provided by the Investment Adviser. The Board reviewed and considered the nature and extent of the investment management services to be provided by Matthews Asia under the proposed Agreement. The Board noted the following:

Matthews Asia, with offices in San Francisco, CA, is an investment adviser registered with the U.S. Securities and Exchange Commission. If Matthews Asia is engaged by the Fund, Andrew Mattock, CFA, of Matthews Asia, would

26

THE CHINA FUND, INC.

Other Information (continued) (unaudited)

become the Fund’s portfolio manager. Mr. Mattock is U.S.-based and has over 19 years of experience investing in the Greater China markets and 23 years of industry experience.

Matthews Asia has not managed a U.S. registered closed-end fund previously. Matthews Asia does, however, manage U.S. registered open-end funds. The Board considered Matthews Asia’s compliance program and compliance capabilities as well as the portfolio manager’s previous experience and concluded that Matthews Asia has a compliance program that appears to be reasonably designed to prevent violations of the Federal securities laws.

The Board determined that Matthews Asia appeared to be capable of providing the Fund with investment management services of above average quality.

Performance, Fees and Expenses of the Fund. The Board considered Matthews Asia’s performance in managing other portfolios with strategies focused, at least in part, on Chinese equity securities, and concluded that there was reason to believe that Matthews Asia could achieve competitive performance over the long term in managing the Fund. The Board also noted that other expenses of the Fund were not expected to increase materially as a result of the retention of Matthews Asia.

Economies of Scale. The Board considered the potential benefits from economies of scale that the Fund’s stockholders could be afforded. The Board noted that, while the management fee rate under the proposed Agreement does not decline as the Fund’s assets grow, fixed operating costs are spread over a larger asset base, resulting in a lower per share allocation of such costs. The Board also considered Matthews Asia’s history of reinvesting its profits in additional resources for providing services to its clients.

Other Benefits of the Relationship. The Board considered whether there were other benefits that Matthews Asia and its affiliates may derive from its relationship with the Fund. The Board noted that, if engaged, as adviser the Fund would compensate Matthews Asia for intended enhancements to the Fund’s website. Based on its review, the Board determined that any “fall-out” benefits or other types of benefits that may accrue to Matthews Asia are fair and reasonable.

Resources of the Proposed Investment Adviser. The Board considered whether Matthews Asia is financially sound and has the resources necessary to perform its obligations under the proposed Agreement. The Board noted that Matthews Asia appears to have sufficient financial resources necessary to fulfill its obligations under the proposed Agreement. The Board also considered the anticipated level of profits to be realized by Matthews Asia in connection with its proposed management of certain of the Fund’s assets, recognizing that such profitability is difficult to ascertain at this point in time. As a result, the Board noted that it periodically would evaluate profitability after Matthews Asia commences management of the Fund and as the Fund’s assets increase over time.

General Conclusions. After considering and weighing all of the above factors, the Board concluded that it would be in the best interest of the Fund and its stockholders to approve the proposed Agreement. In reaching this conclusion, the Board did not give particular weight to any single factor referenced above.

27

THE CHINA FUND, INC.

Other Information (continued) (unaudited)

Results of Special Stockholder Meeting held on December 7, 2018

1. Investment Advisory and Management Agreement — the stockholders of the Fund approved the proposed Investment Advisory and Management Agreement between the Fund and Matthews International Capital Management, LLC.

For	Against		Abstain
10,301,974		479,812		18,980

Results of Annual Stockholder Meeting held on March 13, 2019

1. Election of Director — the stockholders of the Fund elected the following Director to serve for a three year term expiring on the date of which the annual meeting of stockholders is held in 2022.

Director	Votes Cast for		Votes Against/Withheld
Richard A. Silver		13,421,515		499,335

28

THE CHINA FUND, INC.

Other Information (unaudited)

PRIVACY POLICY

Privacy Notice

The China Fund, Inc. collects nonpublic personal information about its stockholders from the following sources:

☐   Information it receives from stockholders on applications or other forms; and

☐   Information about stockholder transactions with the Fund.

The Fund’s policy is to not disclose nonpublic personal information about its stockholders to nonaffiliated third parties (other than disclosures permitted by law).

The Fund restricts access to nonpublic personal information about its stockholders to those agents of the Fund who need to know that information to provide products or services to stockholders. The Fund maintains physical, electronic and procedural safeguards that comply with federal standards to guard its stockholders’ nonpublic personal information.

QUARTERLY PORTFOLIO OF INVESTMENTS

A Portfolio of Investments will be filed as of the end of the first and third quarter of each fiscal year on Form N-Q and will be available on the Securities and Exchange Commission’s website at http://www.sec.gov. Form N-Q was filed as of January 31, 2019 for the first quarter of this fiscal year and is available on the Securities and Exchange Commission’s website at www.sec.gov. Additionally, the Portfolio of Investments may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The quarterly Portfolio of Investments will be made available with out charge, upon request, by calling 1-888-246-2255.

CERTIFICATIONS

The Fund’s chief executive officer has certified to the New York Stock Exchange that, as of March 21, 2019, he was not aware of any violation by the Fund of applicable New York Stock Exchange corporate governance listing standards. The Fund also has included the certifications of the Fund’s chief executive officer and chief financial officer required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 in the Fund’s Form N-CSR filed with the Securities and Exchange Commission, for the period of this report.

29

DIVIDENDS AND DISTRIBUTIONS:

SUMMARY OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN

The Fund will distribute to stockholders, at least annually, substantially all of its net investment income from dividends and interest earnings and expects to distribute any net realized capital gains annually. Pursuant to the Dividend Reinvestment and Cash Purchase Plan (the “Plan”), adopted by the Fund, each stockholder will automatically be a participant (a “Participant”) in the Plan unless Computershare Trust Company, N.A., the Plan Agent, is otherwise instructed by the stockholder in writing, to have all distributions, net of any applicable U.S. withholding tax, paid in cash. Stockholders who do not participate in the Plan will receive all distributions in cash paid by check in U.S. dollars mailed directly to the stockholder by Computershare Trust Company, N.A., as paying agent. Stockholders who do not wish to have distributions automatically reinvested should notify the Fund by contacting Computershare Trust Company, N.A. c/o The China Fund, Inc. at P.O. Box 505000 Louisville, Kentucky 40233-5000, by telephone at 1-800-426-5523 or via the Internet at www.computershare.com/investor.

Whenever the Directors of the Fund declare a capital gains distribution or an income dividend payable only in shares of the Fund’s common stock (including such a declaration that provides an option to receive cash), Participants will take such distribution or dividend entirely in shares of common stock to be issued by the Fund, and the Plan Agent shall automatically receive such shares of common stock, including fractions, for the Participant’s account.

Whenever a dividend or distribution is declared payable in cash or shares of the Fund’s common stock, the Plan will operate as follows: (i) whenever the market price per share of common stock equals or exceeds the net asset value per share at the time shares of common stock are valued for the purpose of determining the number of shares of common stock equivalent to the dividend or distribution (the “Valuation Date”), Participants will be issued shares of common stock by the Fund valued at net asset value or, if the net asset value is less than 95% of the market price on the Valuation Date, then Participants will be issued shares valued at 95% of the market price; and (ii) whenever the net asset value per share of the common stock on the Valuation Date exceeds the market price of a share of the common stock on the Valuation Date, Participants will receive shares of common stock of the Fund purchased in the open market. The Plan Agent will, as purchasing agent for the Participants, buy shares of common stock in the open market, on the New York Stock Exchange (the “Exchange”) or elsewhere, with the cash in respect of such dividend or distribution for the Participants’ accounts on, or shortly after, the payment date.

If the Fund should declare an income dividend or capital gains distribution payable only in cash, the Plan Agent will, as purchasing agent for the Participants, buy shares of common stock in the open market, on the Exchange or elsewhere, with the cash in respect of such dividend or distribution for the Participants’ accounts on, or shortly after, the payment date.

Participants in the Plan have the option of making additional payments to the Plan Agent annually, in any amount from $100 to $3,000 for investment in the Fund’s Common Stock. The Plan Agent will use all funds received from participants (as well as any dividends and capital gains distributions received in cash) to purchase Fund shares in the open market on January 15 of each year or the next trading day if January 15th is not a trading day. Participants may make voluntary cash payments by sending a check (in U.S. dollars and drawn on a U.S. Bank) made payable to “Computershare” along with a completed transaction form which is attached to each statement a Participant receives. The Plan Agent will not accept cash, traveler’s checks, money orders or third party checks. Any voluntary

30

DIVIDENDS AND DISTRIBUTIONS:

SUMMARY OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (continued)

cash payments received more than thirty-five days prior to such date will be returned by the Plan Agent, and interest will not be paid on any such amounts. To avoid unnecessary cash accumulations, and also to allow ample time for receipt and processing by the Plan Agent, participants should send in voluntary cash payments to be received by the Plan Agent approximately two days before January 15. A participant may withdraw a voluntary cash payment by written notice, if the notice is received by the Plan Agent not less than 48 hours before such payment is to be invested. In the event that a Participant’s check for a voluntary cash payment is returned unpaid for any reason, the Plan Agent will consider the request for investment of such funds null and void, and shall immediately remove from the Participant’s account those shares, if any, purchased upon the prior credit of such funds. The Plan Agent shall be entitled to sell shares to satisfy any uncollected amount plus any applicable fees. If the net proceeds of the sale of such shares are insufficient to satisfy the balance of such uncollected amounts, the Plan Agent shall be entitled to sell such additional shares from the Participant’s account as may be necessary to satisfy the uncollected balance.

For all purposes of the Plan: (a) the market price of shares of common stock of the Fund on a particular date shall be the last sales price on the Exchange on the close of the previous trading day or, if there is no sale on the Exchange on that date, then the mean between the closing bid and asked quotations for such stock on the Exchange on such date, (b) Valuation Date shall be the dividend or distribution payment date or, if that date is not an Exchange trading day, the next preceding trading day, and (c) net asset value per share of common stock on a particular date shall be as determined by or on behalf of the Fund.

The open-market purchases provided for above may be made on any securities exchange where the shares of common stock of the Fund are traded, in the over-the-counter market or in negotiated transactions, and may be on such terms as to price, delivery and otherwise as the Plan Agent shall determine. In every case the price to the Participant shall be the weighted average purchase price obtained by the Plan Agent’s broker, net of fees. Funds held by the Plan Agent will not bear interest. In addition, it is understood that the Plan Agent shall have no liability (other than as provided in the Plan) in connection with any inability to purchase shares of common stock within 30 days after the payment date of any dividend or distribution as herein provided or with the timing of any purchases effected. The Plan Agent shall have no responsibility as to the value of the shares of common stock of the Fund acquired for any Participant’s account. Whenever the Plan Agent, as purchasing agent for the Participants, is to buy shares of common stock in the open market, on the Exchange or elsewhere, with the cash in respect of a dividend or distribution, to the extent the Plan Agent is able to do so and, before the Plan Agent has completed its purchases, the market price exceeds the net asset value of the common stock, the average per share purchase price paid by the Plan Agent may exceed the net asset value of the common stock, resulting in the acquisition of fewer shares of common stock than if the income dividend or capital gains distribution had been paid in common stock issued by the Fund. The Plan Agent will apply all cash received as an income dividend or capital gains distribution to purchase shares of common stock on the open market as soon as practicable after the payment date of such dividend or capital gains distributions, but in no event later than 30 days after such date, except where necessary to comply with applicable provisions of the federal securities laws.

The Plan Agent will confirm in writing, each trade for a Participant’s account and each share deposit or share transfer promptly after the account activity occurs. The statement will show the number of shares held, the number

31

DIVIDENDS AND DISTRIBUTIONS:

SUMMARY OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (continued)

of shares for which dividends are being reinvested, any cash received for purchase of shares, the price per share for any purchases or sales, and any applicable fees for each transaction charged the Participant. In the event the only activity in a Participant’s account is the reinvestment of dividends, this activity will be confirmed in a statement on at least a quarterly basis. If the Fund pays an annual dividend and the only activity in a Participant’s account for the calendar year is the reinvestment of such dividend, the Participant will receive an annual statement. These statements are a Participant’s continuing record of the cost basis of purchases and should be retained for income tax purposes.

The Plan Agent will hold shares of common stock acquired pursuant to the Plan in non-certificated form in the name of the Participant for whom such shares are being held and each Participant’s proxy will include those shares of common stock held pursuant to the Plan. The Plan Agent will forward to each Participant any proxy solicitation material received by it. In the case of stockholders, such as banks, brokers or nominees, which hold shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the stockholder as representing the total amount registered in the name of such Participants and held for the account of beneficial owners who participate in the Plan. Upon a Participant’s Internet, telephone or written request, the Plan Agent will deliver to her or him, without charge, a certificate or certificates representing all full shares of common stock held by the Plan Agent pursuant to the Plan for the benefit of such Participant.

Participants will not be charged a fee in connection with the reinvestment of dividends or capital gains distributions. The Plan Agent’s transaction fees for the handling of the reinvestment of dividends and distributions will be paid by the Fund. However, Participants will be charged a per share fee (currently $0.05) incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends or capital gains distributions and with purchases from voluntary cash payments made by the Participant. A $2.50 transaction fee and a per share fee of $0.15 will also be charged by the Plan Agent upon any request for sale. Per share fees include any brokerage commissions the Plan Agent is required to pay.

The automatic reinvestment of dividends and distributions will not relieve participants of any income tax which may be payable on such dividends and distributions. Participants will receive tax information annually for their personal records and to help them prepare their federal income tax return. For further information as to tax consequences of participation in the Plan, Participants should consult with their own tax advisors.

These terms and conditions may be amended or supplemented by the Plan Agent or the Fund at any time or times but, except when necessary or appropriate to comply with applicable law or the rules or policies of the Securities and Exchange Commission or any other regulatory authority, only by mailing to the Stockholders appropriate written notice at least 30 days prior to the effective date thereof. The amendment or supplement shall be deemed to be accepted by the Participants unless, prior to the effective date thereof, the Plan Agent receives written notice of the termination of a Participant’s account under the Plan. Any such amendment may include an appointment by the Plan Agent in its place and stead of a successor Plan Agent under these terms and conditions, with full power and authority to perform all or any of the acts to be performed by the Plan Agent under these terms and conditions. Upon any such appointment of a successor Plan Agent for the purposes of receiving dividends and distributions, the Fund

32

DIVIDENDS AND DISTRIBUTIONS:

SUMMARY OF DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (continued)

will be authorized to pay to such successor Plan Agent, for the Participants’ accounts, all dividends and distributions payable on the shares of common stock held in the Participants’ name or under the Plan for retention or application by such successor Plan Agent as provided in these terms and conditions.

Requests for copies of the Plan, which sets forth all of the terms of the Plan, and all correspondence concerning the Plan should be directed to Computershare Trust Company, N.A., the Plan Agent for The China Fund, Inc., in writing at P.O. Box 505000 Louisville, Kentucky 40233-5000, by telephone at 1-800-426-5523 or via the Internet at www.computershare.com/investor.

33

THE CHINA FUND, INC.

United States Address

The China Fund, Inc. c/o State Street Bank and Trust Company 1 Lincoln St. P.O. Box 5049 Boston, MA 02206-5049 1-888-CHN-CALL (246-2255) On or after July 1, 2019 please send correspondence to: The China Fund, Inc. c/o Brown Brothers Harriman & Co. Fund Administration, 7th Floor 50 Post Office Square Boston, MA 02110

Directors and Officers

Julian Reid, Chairman of the Board, Investment Committee, Discount Management Committee and Governance, Nomination & Compensation Committee and Director

Richard Silver, Chairman of the Audit, Valuation and Compliance Committee and Director

Linda C. Coughlin, Chairman of the Contracts Committee and Director

Frank Wheeler, President

Patrick Keniston, Chief Compliance Officer

Monique Labbe, Treasurer

Brian Link, Secretary

Investment Manager

Matthews International Capital Management, LLC

Shareholder Servicing Agent

AST Fund Solutions

Administrator, Accounting Agent and Custodian

State Street Bank and Trust Company

Transfer Agent, Dividend Paying Agent and Registrar

Computershare Trust Company, N.A.

Independent Registered Public Accounting Firm

Tait, Weller & Baker, LLP

Legal Counsel

Morgan, Lewis & Bockius LLP

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that from time to time the Fund may purchase shares of its common stock in the open market at prevailing market prices.

Item 2. Code of Ethics.

Not required for this filing.

Item 3. Audit Committee Financial Expert.

Not required for this filing.

Item 4. Principal Accountant Fees and Services.

Not required for this filing.

Item 5. Audit Committee of Listed Registrants.

Not required for this filing.

Item 6. Investments.

a. Schedule of Investments is included as part of Item 1.

b. Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Investment Companies.

Not required for this filing.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

a. Not required for this filing.

b. Since the filing of the registrant’s Annual Report dated October 31, 2018, there is a new named portfolio manager of the Fund.

As of July 1, 2019, the portfolio manager of the registrant is as follows:

Andrew Mattock, CFA

Portfolio Manager

Investment experience: 23 Years

Mr. Mattock joined Matthews Asia in 2015. Mr. Mattock is U.S. based and has 20 years of experience investing in Asia and 24 years of industry experience. Prior to joining Matthews Asia, Mr. Mattock was a portfolio manager with Henderson Global Investors for 15 years.

As of April 30, 2019, Mr. Mattock managed and advised 1 mutual fund with a total of approximately US$ 904 million in assets, 1 closed-end fund with a total of approximately US$ 255 million in assets and 1 offshore fund with a total of approximately US$20 million in assets.

Conflicts of Interest:

Matthews Asia has adopted a Code of Ethics (the “Code”) as part of the firm’s Compliance Program in order to mitigate and manage conflicts of interest that may exist or arise in connection with personal securities transactions by our officers and employees.

Below is a brief summary of the Code.

The Code contains restrictions on personal securities transactions applicable to all our officers and employees and includes a standard of business conduct requiring officers and employees:

• To comply with applicable laws;

• To report their personal securities transactions to our compliance department;

• To acknowledge their receipt of, and agreement to, observe the requirements of the Code;

• To report any violations of the Code to our Chief Compliance Officer (“CCO”).

To reduce potential conflicts of interest, the Code prohibits all officers and employees from investing in the securities of Asia Pacific companies. Matthews Asia’s CCO, with the concurrence of its Enterprise Risk and Compliance Committee, may permit an employee to continue holding such securities if they were held prior to joining Matthews Asia. For purposes of the Code, an Asia Pacific security is any security: (1) issued or guaranteed by a company that is organized under the laws of an Asia Pacific country; (2) traded in any market in an Asia Pacific country, or (3) issued or guaranteed by a governmental entity or an agency or instrumentality or political subdivision of an Asia Pacific country. Asia Pacific securities include warrants, options or futures on or related to Asia Pacific securities, but do not include the shares of an open-end investment company registered under the 1940 Act and similarly structured foreign funds.

To further reduce the potential for conflicts of interest between us and clients, the Code requires that all officers and employees: (1) obtain approval prior to making certain trades in their personal accounts; (2) submit regular reports of personal transactions made in personal accounts; and (3) provide an annual report of all personal account holdings. These approvals and reports apply to accounts directly or beneficially held by our officers and employees (as well as certain persons closely related to them).

The firm’s Compliance Department provides guidance to employees concerning the application and interpretation of the firm’s compliance policies, including its Conflicts Policies and will provide training concerning the requirements of these policies to all new employees and to all employees at least annually.

Other Conflicts of Interest Related to Personal Trading and the Professional Activities of our Officers and Employees:

Since we primarily invest in Asia Pacific companies for clients, the prohibitions under our Code significantly reduce, but do not eliminate, conflicts between the personal trading of our officers and employees who are Access Persons and trading for our clients. Nevertheless, our officers’ and employees’ trading and professional activities may give rise to other potential conflicts of interest. These are described below, along with a description of how we manage those potential conflicts of interest.

We act as investment manager to various investment companies and other accounts. We may give advice and take action with respect to any funds or accounts, or for our own account, that may differ from action taken on behalf of other funds or accounts. We are not obligated to recommend, buy or sell, or to refrain from recommending, buying or selling, any security that we or our officers and employees may buy or sell for our or their own account or for the accounts of any other client. While we are not obligated to refrain from investing in securities held by funds or accounts that we manage, we do not ordinarily invest for our own account in Asia Pacific securities. We do sometimes invest for our own account in money market and short-term domestic fixed income securities. Matthews Asia may also provide seed capital to investment companies and similar funds that we sponsor or manage. We manage conflicts with investing for our own account or our officers and employees investing for their accounts by requiring that any transaction be made in compliance with our Code, as discussed above.

Because we manage more than one account, potential conflicts of interest may arise related to the amount of time individuals devote to managing particular accounts. We may also have an incentive to favor accounts in the allocation of investment opportunities or otherwise treat preferentially those accounts that pay us a higher fee level or greater fees overall. However, we do not charge performance-based fees to any client accounts, limiting our incentive to favor certain groups of accounts over others. Moreover, we have adopted procedures for allocation of portfolio transactions and investment opportunities across multiple client accounts on a fair and equitable basis over time.

Potential conflicts of interest may also arise in connection with an employee’s knowledge and the timing of transactions, investment opportunities, broker selection, portfolio holdings and investments, and the valuation of holdings or potential holdings. Some employees who have access to the size and timing of transactions may have information concerning the market impact of transactions, including transactions for the Matthews Asia Funds. Employees may be in a position to use this information to their possible advantage or to the possible detriment of our other client accounts. An investment opportunity may also be suitable for multiple accounts we manage, but not in sufficient quantities for all accounts to participate fully. Similarly, there may be limited opportunity to sell an investment held by multiple accounts. We manage these potential conflicts with employee transactions by requiring that any transaction be made in compliance with our Code, and potential conflicts between client accounts through our procedures for allocating portfolio transactions and investment opportunities.

Employees (including their immediate family members) who invest in one of the funds managed by Matthews Asia, including the Matthews Asia Funds, may have a conflict of interest in that they may have an incentive to treat that fund preferentially as compared to other accounts we manage. However, all portfolio management employees work as a team and share research relevant to other investment mandates and client accounts. With certain exceptions, all accounts have equal access to investment opportunities. These exceptions may provide priority access to limited investment opportunities for accounts that (1) invest in securities of small companies if no account we manage has previously invested in those securities; and (2) focus on a specific country or sector. Some of the accounts that receive priorities may pay us higher fees than accounts that do not have a priority. Our investment team regularly reviews each account (for material dispersion of performance or other indicative factors). These practices help us detect and manage the potential conflict.

The Compliance Department provides guidance to employees concerning the application and interpretation of the firm’s Code of Ethics and will provide training concerning the requirements of this policy to all new employees and to all employees at least annually.

As a matter of policy, Matthews Asia does not comment on specific employee matters related to the personal securities transaction policy.

As a matter of firm policy, we do not disclose the full Code of Ethics to external parties.

Compensation:

Employee compensation may consist of a combination of base salary, fixed and discretionary bonuses, and participation in benefit plans, which are generally available to all salaried employees, including members of the investment team.

Key elements of compensation are detailed below:

• Base Salary. Each employee receives a fixed base salary that takes into account his or her experience and responsibilities and is intended to be competitive with salaries offered by other similar firms. A portfolio manager’s base pay tends to increase with additional and more complex responsibilities.

• Bonus. Matthews Asia emphasizes teamwork and a focus on client needs. Bonuses are structured to emphasize those principles and are based on a number of factors including the profitability of Matthews Asia and the employee’s contributions to the firm. For portfolio managers this includes the performance of accounts managed by the employee. Performance over multiple time periods relative to the strategy’s benchmark and peer group, and absolute performance over periods longer than five years, are typically included in this assessment.

• Benefit Programs. Employees participate in benefit plans and programs available generally to all employees.

• Other Compensation. Portfolio managers may receive compensation in the form of equity interests in Matthews Asia or cash payments based upon a percent of Matthews Asia’s revenues.

Evaluation of portfolio managers and analysts includes quantitative and qualitative metrics centered on the performance of the portfolios they manage. Portfolio managers’ performance is evaluated across multiple time periods with an emphasis on longer term investment periods. A portion of bonus compensation paid to portfolio managers may be in the form of firm equity and shares of Matthews Asia’s funds, in each case subject to deferral over a period of years. All portfolio managers are eligible to receive equity interests in the firm.

Matthews Asia encourages investment professionals to invest in the strategies they manage and other Matthews Asia strategies, as a means to align the interests of employees with the success of the firm and the interests of its clients.

Ownership of Securities: The following table sets forth the aggregate dollar range of the registrant’s equity securities beneficially owned as of April 30, 2019.

Portfolio Manager	Dollar Range of Fund Shares Beneficially Owned
Andrew Mattock	None

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

During the six month period ended April 30, 2019, the following purchases were made by or on behalf of the Fund as that term is defined in Rule 10b-18 under the Exchange Act.

Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or  Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be  Purchased Under the Plans or Programs
November 1, 2018 through November 30, 2018		0		N/A		0		1,100,587
December 1, 2018 through December 31, 2018		0		N/A		0		1,100,587
January 1, 2019 through January 31, 2019		0		N/A		0		1,100,587
February 1, 2019 through February 28, 2019		124,702	$	19.63		124,702		975,885
March 1, 2019 through March 31, 2019		58,758	$	20.15		58,758		917,127
April 1, 2019 through April 30, 2019		10,422	$	21.21		10,422		906,705
Total		193,882	$	20.51		193,882		906,705

Under the Fund’s Discount Management Policy, which was launched on February 21, 2019, the Fund is authorized to repurchase in each twelve-month period ended October 31 up to 10% of its common shares outstanding as of the close of business on October 31 of the prior year. Shares are generally repurchased on any day that the Fund’s shares are trading at a discount that exceeds 9.5% (“Discount Threshold”). The Discount Threshold may be increased or decreased by the Board or its Discount Management Committee at any time. All of the purchases listed above were under the Fund’s Discount Management Policy.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Directors during the period covered by this Form N-CSR filing.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers have concluded that the registrant’s 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 registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

(a)

(1) Gross income from securities lending activities: $298,351

(2) All fees and/or compensation for each of the following securities lending activities and related services:

i. any share of revenue generated by the securities lending program paid to the securities lending agent(s) (“revenue split”): $31,174

ii. fees paid for cash collateral management services (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split: $1,981

iii. administrative fees that are not included in the revenue split: $0

iv. fees for indemnification that are not included in the revenue split: $0

v. rebates paid to borrowers: $81,485

vi. any other fees relating to the securities lending program that are not included in the revenue split, including a description of those other fees: $0

(3) Aggregate fees/compensation: $114,639

(4) Net income from securities lending activities: $183,713

(b) The Fund may lend up to 33 1/3% of the Fund’s total assets held by State Street Bank and Trust Company (“State Street”), as custodian, to certain qualified brokers, except those securities which the Fund or the Investment Manager specifically identifies as not being available. By lending its investment securities, the Fund attempts to increase its net investment income through the receipt of interest on the loan. Any gain or loss in the market price of the securities loaned that might occur and any interest or dividends declared during the term of the loan would accrue to the account of the Fund. Risks of delay in recovery of the securities or even loss of rights in the collateral may occur should the borrower of the securities fail financially. Risks may also arise to the extent that the value of the collateral decreases below the value of the securities loaned. Upon entering into a securities lending transaction, the Fund receives cash or other securities as collateral in an amount equal to or exceeding 100% of the current market value of the loaned securities with respect to securities of the U.S. government or its agencies, 102% of the current market value of the loaned securities with respect to U.S. securities and 105% of the current market value of the loaned securities with respect to foreign securities. Any cash received as collateral is generally invested by State Street, acting in its capacity as securities lending agent (the “Agent”), in the State Street Navigator Securities Lending Government Money Market Portfolio. Non-cash collateral is not disclosed in the Fund’s Statement of Assets and Liabilities as it is held by the lending agent on behalf of the Fund and the Fund does not have the ability to re-hypothecate those securities. A portion of the dividends received on the collateral may be rebated to the borrower of the securities and the remainder is split between State Street, as the securities lending agent, and the Fund.

Item 13. Exhibits.

(a)(1)	Not required for this filing.
(a)(2)	The certifications required by Rule 30a-2 of the 1940 Act are attached hereto.
(a)(3)	The written solicitation under Rule 23c-1 of the 1940 Act is attached hereto.
(a)(4)	Not applicable.
(b)	The certifications required by Rule 30a-2(b) of the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE CHINA FUND, INC.

By:	/s/ Frank Wheeler
	Frank Wheeler
	President of The China Fund, Inc.

Date: July 1, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Frank Wheeler
	Frank Wheeler
	President of The China Fund, Inc.

Date: July 1, 2019

By:	/s/ Monique Labbe
	Monique Labbe
	Treasurer of The China Fund, Inc.

Date: July 1, 2019

EX-99.302CERT

Exhibit 13(a)(2)

I, Frank Wheeler, President of The China Fund, Inc., certify that:

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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 1, 2019

By:	/s/ Frank Wheeler
	Frank Wheeler
	President (principal executive officer) of The China Fund, Inc.

I, Monique Labbe, Treasurer of The China Fund, Inc., certify that:

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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 1, 2019

By:	/s/ Monique Labbe
	Monique Labbe
	Treasurer (principal financial officer) of The China Fund, Inc.

EX-99.RULE23C1

Exhibit 13(a)(3)

OFFER TO REPURCHASE FOR CASH

BY

THE CHINA FUND, INC.

UP TO 30 OF ITS ISSUED AND OUTSTANDING SHARES OF COMMON STOCK

AT 99% OF NET ASSET VALUE PER SHARE

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 11:59 P.M., NEW YORK TIME FEBRUARY 4, 2019, UNLESS THE OFFER IS EXTENDED

THIS OFFER TO REPURCHASE AND THE ACCOMPANYING LETTER OF TRANSMITTAL TOGETHER CONSTITUTE THE “OFFER”. THE OFFER IS BEING EXTENDED TO ALL STOCKHOLDERS OF THE CHINA FUND, INC. AND IS NOT CONDITIONED ON ANY MINIMUM NUMBER OF SHARES BEING TENDERED, BUT IS SUBJECT TO OTHER CONDITIONS AS OUTLINED HEREIN AND IN THE LETTER OF TRANSMITTAL.

THE FUND HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) AN ISSUER TENDER OFFER STATEMENT ON SCHEDULE TO UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED (THE “EXCHANGE ACT”), RELATING TO THE OFFER.

To the Stockholders of The China Fund, Inc.:

The China Fund, Inc., a Maryland corporation (the “Fund”), registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified, closed-end management investment company, hereby offers to purchase up to 30% of the Fund’s issued and outstanding shares of common stock, par value $0.01 per share (the “Shares”), or 4,716,803 Shares in the aggregate (the “Offer Amount”), at a price (the “Purchase Price”) per Share, net to the seller in cash, equal to 99% of the net asset value (“NAV”) per Share in U.S. dollars as of the close of regular trading on the New York Stock Exchange (the “NYSE”) on February 5, 2019, or the next business day following such later date to which the Offer is extended (the “Pricing Date”), upon the terms and subject to the conditions set forth in this Offer to Repurchase and in the related Letter of Transmittal. The Offer will expire at 11:59 p.m., New York time on February 4, 2019 (the “Termination Date”), or such later date to which the Offer is extended (the “Extended Termination Date”). The depositary for the Offer is Computershare Trust Company, N.A. (the “Depositary”) and the information agent for the Offer is AST Fund Solutions, LLC (the “Information Agent”). The Fund mailed materials for the Offer to record holders on or about January 4, 2019.

The Offer is not being made to (nor will tenders be accepted from or on behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction.

As of December 28, 2018, there were 15,722,675 Shares issued and outstanding, and the NAV was $18.57 per Share. The Fund does not expect that the number of Shares issued and outstanding will be materially different on the Termination Date. Stockholders may contact the Information Agent at 888-644-6071 (toll free) or 201-806-7301 (collect call) or contact the Fund directly at 888-246-2255 to obtain current NAV quotations for the Shares.

Any stockholder of the Fund (each a “Stockholder”) desiring to tender any portion of his or her Shares should either (1) complete and sign the Letter of Transmittal or a facsimile thereof in accordance with the instructions in the Letter of Transmittal, and mail or deliver the Letter of Transmittal or such facsimile with his or her certificates for the tendered Shares if such Stockholder has been issued physical certificates, signature guarantees for all Stockholders tendering uncertificated Shares, and any other required documents to the Depositary, or (2) request his or her broker, dealer, commercial bank, trust company or other nominee to effect the transaction for him or her. Stockholders having Shares registered in the name of a broker, dealer, commercial bank, trust company or other nominee must contact such broker, dealer, commercial bank, trust company or other nominee if they desire to tender Shares so registered. The Fund reserves the absolute right to reject tenders determined not to be in appropriate form.

If you do not wish to tender your Shares, you need not take any action.

Tendering Stockholders will not be obligated to pay brokerage fees or commissions to the Fund or Depositary in connection with their participating in the Offer, but they may be charged fees by their broker, dealer, commercial bank, trust company or other nominee for processing their tender. Subject to Instruction 7 of the Letter of Transmittal, tendering Stockholders may be obligated to pay transfer taxes on the purchase of Shares by the Fund; Stockholders may also be subject to other transaction costs, as described in Section 1 of this Offer to Repurchase.

The Offer has been unanimously approved by the Board of Directors of the Fund (the “Board”). However, none of the Fund, its executive officers, the Board, the Fund’s investment adviser, Matthews International Capital Management, LLC (“Matthews Asia””), or any affiliate of the Fund makes any recommendation to any Stockholder regarding his or her participation in the Offer. Members of the Board who are also Stockholders may elect to participate in the Offer. None of the executive officers of the Fund or Matthews Asia intends to participate in the Offer.

No person has been authorized to make any recommendation on behalf of the Fund, its executive officers, the Board or Matthews Asia as to whether any Stockholder should participate in the Offer or to make any representation or to give any information in connection with the Offer other than as contained herein. If made or given, any such recommendation, representation or information must not be relied upon as having been authorized by the Fund, its executive officers, the Board or Matthews Asia. Stockholders are urged to evaluate carefully all information in this Offer to Repurchase and the related documents, consult their own investment and tax advisers and make their own decisions whether to tender their shares for repurchase or refrain from participating in the Offer.

NEITHER THE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THIS OFFER, PASSED UPON THE FAIRNESS OR MERITS OF THE OFFER OR DETERMINED WHETHER THIS OFFER TO REPURCHASE IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIME.

Questions, requests for assistance and requests for additional copies of this Offer to Repurchase and the Letter of Transmittal may be directed to the Information Agent in the manner set forth on the last page of this Offer to Repurchase.

January 4, 2019

CONTENTS

		Page
Summary Term Sheet			1
1.	Terms of the Offer; Termination Date.		4
2.	Acceptance for Payment and Payment for Shares.		4
3.	Procedure for Tendering Shares.		5
4.	Rights of Withdrawal.		7
5.	Source and Amount of Funds; Effect of the Offer.		8
6.	Purpose of the Offer.		10
7.	NAV and Market Price Range of Shares.		12
8.	U.S. Federal Income Tax Consequences of the Offer.		12
9.	Selected Financial Information.		14
10.	Certain Information Concerning the Fund and the Fund’s Investment Adviser.		16
11.	Interest of Directors and Officers; Transactions and Arrangements Concerning the Shares.		17
12.	Certain Legal Matters; Regulatory Approvals.		18
13.	Certain Conditions of the Offer.		19
14.	Fees and Expenses.		20
15.	Miscellaneous.		20
16.	Contacting the Depositary and the Information Agent.		20

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SUMMARY TERM SHEET

This Summary Term Sheet highlights certain information concerning this Offer. To understand the Offer fully and for a more complete discussion of the terms and conditions of the Offer, you should read carefully the entire Offer to Repurchase and the related Letter of Transmittal.

• What is the Offer?

The Fund is offering to purchase up to 30% of its issued and outstanding Shares in the aggregate, for cash at the Purchase Price per Share equal to 99% of the NAV per Share as of the close of regular trading on the NYSE on February 5, 2019 (or, if the Offer is extended, on the following business day after the date to which the Offer is extended) upon specified terms and subject to conditions as set forth in the Offer documents. See Section 1 of this Offer to Repurchase.

• When will the Offer expire, and may the Offer be extended?

The Offer will expire at 11:59 p.m., New York time, on February 4, 2019, unless extended by the Fund. The Fund, in its sole discretion, may extend the period of time the Offer will be open by issuing a press release or making some other public announcement by no later than 9:00 a.m., New York time, on the next business day after the Offer otherwise would have expired. See Section 1 of this Offer to Repurchase.

• What is the NAV per Share as of a recent date?

As of December 28, 2018, the NAV per Share was $18.57. See Section 7 of this Offer to Repurchase for details. During the pendency of the Offer, current NAV quotations can be obtained from the Information Agent by calling 888-644-6071 (toll free) or 201-806-7301 (collect call) or by calling the Fund’s toll free number at 888-246-2255.

• Will the NAV be higher or lower on the date that the price to be paid for tendered Shares is to be determined?

No one can accurately predict the NAV at a future date.

• How do I tender my Shares?

If your Shares are registered in your name, you should obtain the Offer materials, including the Offer to Repurchase and the related Letter of Transmittal, read them, and if you should decide to tender, complete a Letter of Transmittal and submit any other documents required by the Letter of Transmittal. In addition, either the certificate for Shares must be transmitted to and received by the Depositary at one of its addresses set forth on the last page of this Offer, or the tendering Stockholder must comply with the Book-Entry Delivery Procedure. These materials must be received by the Depositary in proper form before 11:59 p.m., New York time, on the Termination Date, unless the Offer is extended by the Fund in which case the Extended Termination Date will be as stated in a public announcement of the extension. If your Shares are held by a broker, dealer, commercial bank, trust company or other nominee (e.g., in “street name”), you should contact that firm to obtain the package of information necessary to make your decision; if you should decide to tender, you can only tender your Shares by directing that firm to complete, compile and deliver the necessary documents for submission to the Depositary by the Termination Date or, if the Offer is extended, the Extended Termination Date. See Section 3 of this Offer to Repurchase.

• Is there any cost to me to tender?

No fees or commission will be payable to the Fund in connection with the Offer. However, brokers, dealers or other persons may charge Stockholders a fee for soliciting tenders for Shares pursuant to this Offer. Stockholders may be obligated to pay transfer taxes on the purchase of Shares by the Fund and other transaction costs. See Instruction 7 of the Letter of Transmittal.

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• May I tender Shares in the Offer held in my Dividend Reinvestment and Cash Purchase Plan account?

Yes. Holders of Shares in the Fund’s Dividend Reinvestment and Cash Purchase Plan may tender their Shares by completing the appropriate section of the Letter of Transmittal or Notice of Guaranteed Delivery. See Section 3 of this Offer to Repurchase.

• May I withdraw my Shares after I have tendered them and, if so, by when?

Yes, you may withdraw your Shares at any time prior to 11:59 p.m. on the Termination Date (or if the Offer is extended, at any time prior to the expiration time on the Extended Termination Date).

Withdrawn Shares may be re-tendered by following the tender procedures before the Offer expires (including any extension period). See Section 4 of this Offer to Repurchase.

• How do I withdraw tendered Shares?

A notice of withdrawal of tendered Shares must be timely received by the Depositary (as described in the previous paragraph), which specifies the name of the Stockholder who tendered the Shares, the number of Shares being withdrawn (which must be all of the Shares tendered) and, as regards Share certificates which represent tendered Shares that have been delivered or otherwise identified to Computershare, the name of the registered owner of such Shares if different than the person who tendered the Shares. See Section 4 of this Offer to Repurchase.

• May I place any conditions on my tender of Shares?

No. See Instruction 2 of the Letter of Transmittal.

• Is there a maximum number of Shares that I may tender?

No. See Section 1 of this Offer to Repurchase.

• What if more than 4,716,803 Shares are tendered (and not timely withdrawn)?

The Fund will purchase duly tendered Shares from tendering Stockholders pursuant to the terms and conditions of the Offer on a pro rata basis (disregarding fractions) in accordance with the number of Shares tendered by each Stockholder (and not timely withdrawn), unless the Fund determines not to purchase any Shares. The Fund’s present intention, if the Offer is oversubscribed, is not to purchase more than 4,716,803 Shares. See Section 1 of this Offer to Repurchase.

• If I decide not to tender, how will the Offer affect the Fund Shares I hold?

Your percentage ownership interest in the Fund will increase after completion of the Offer. The asset size of the Fund will decrease as a result of the Offer, which is likely to result in a higher expense ratio for the Fund, and possibly in less investment flexibility for the Fund, depending on the number of Shares repurchased. Additionally, a reduction in the number of Shares issued and outstanding may reduce the volume of trading in the Shares and make it more difficult to buy or sell significant amounts of Shares without affecting the market price. See Section 5 of this Offer to Repurchase.

• Is the Offer the only way I can sell my Shares?

No. You will continue to be able to sell your Shares, or purchase additional Shares, at the current market price, in cash transactions on the NYSE.

• Does the Fund have the financial resources to make payment?

Yes. The Fund does not expect to borrow money to finance the purchase of any tendered Shares. See Section 5 of this Offer to Repurchase.

- 2 -

• If Shares I tender are accepted by the Fund, when will payment be made?

Payment for tendered Shares, if accepted, will be made promptly after the Termination Date. See Section 2 of this Offer to Repurchase.

• Is my sale of Shares in the Offer a taxable transaction?

For most Stockholders, yes. All U.S. Stockholders other than those who are tax exempt who sell Shares in the Offer will recognize gain or loss for U.S. federal income tax purposes equal to the difference between the cash they receive for the Shares sold and their adjusted basis in the Shares. The sale date for U.S. federal income tax purposes will be the date the Fund accepts Shares for purchase. See Section 8 of this Offer to Repurchase for details, including the nature of the income or loss and the differing rules for U.S. and Foreign Stockholders. Please consult your tax adviser as well.

• Is the Fund required to complete the Offer and purchase all Shares tendered up to the number of Shares tendered for?

Under most circumstances, yes. There are certain circumstances, however, in which the Fund will not be required to purchase any Shares tendered as described in Section 13 of this Offer to Repurchase.

• Is there any reason Shares tendered would not be accepted?

The Fund may extend, amend or terminate the Offer at any time up to and including the Termination Date in its sole discretion. See Section 1 of this Offer to Repurchase. Furthermore, and in addition to those circumstances described in Section 13 of this Offer to Repurchase in which the Fund is not required to accept tendered Shares, the Fund has reserved the right to reject any and all tenders determined by it not to be in appropriate form. Tenders will be rejected if the tender does not include the original signature(s) or the original of any required signature guarantee(s).

• How will tendered Shares be accepted for payment?

Properly tendered Shares, up to the number tendered for, will be accepted for payment by a determination of the Fund followed by notice of acceptance to the Depositary which is thereafter to make payment as directed by the Fund with funds to be deposited with it by the Fund. See Section 2 of this Offer to Repurchase.

• What action need I take if I decide not to tender my Shares?

None.

• Does management encourage Stockholders to participate in the Offer, and will they participate in the Offer?

No. The Fund, the Board and Matthews Asia are not making any recommendation to tender or not to tender Shares in the Offer. Some or all of the members of the Board may elect to participate in the Offer. None of the executive officers of the Fund or Matthews Asia intends to participate in the Offer.

• How do I obtain additional information?

Questions and requests for assistance should be directed to the Information Agent, at 888-644-6071 (toll free) or 201-806-7301 (collect call). Requests for additional copies of the Offer to Repurchase, the Letter of Transmittal and all other Offer documents should also be directed to the Information Agent for the Offer, at 888-644-6071 (toll free) or 201-806-7301 (collect call). If you do not own Shares directly, you should obtain this information and the documents from your broker, dealer, commercial bank, trust company or other nominee, as appropriate.

- 3 -

1. Terms of the Offer; Termination Date.

Upon the terms and subject to the conditions set forth in the Offer, the Fund will accept for payment, and pay for, up to 30% of the Fund’s outstanding Shares validly tendered on or prior to 11:59 p.m., New York time, on the Termination Date, or, if the offer is extended, the Extended Termination Date, and not withdrawn as permitted by Section 4.

If the number of Shares properly tendered and not withdrawn prior to the Termination Date is less than or equal to the Offer Amount, the Fund will, upon the terms and conditions of the Offer, purchase all Shares so tendered. If more than 4,716,803 Shares are duly tendered pursuant to the Offer (and not withdrawn as provided in Section 4), unless the Fund determines not to purchase any Shares, the Fund will purchase Shares from tendering Stockholders, in accordance with the terms and conditions specified in the Offer, on a pro rata basis (disregarding fractions), in accordance with the number of Shares duly tendered by or on behalf of each Stockholder (and not so withdrawn). The Fund does not contemplate extending the Offer and increasing the number of Shares covered thereby by reason of more than 4,716,803 Shares having been tendered.

Stockholders should consider the relative costs of tendering Shares at a 1% discount to NAV pursuant to the Offer or selling Shares at the market price with the associated transaction costs.

The Fund expressly reserves the right, in its sole discretion, at any time or from time to time, to extend the period of time during which the Offer is open by giving oral or written notice of such extension to the Depositary. Any such extension will also be publicly announced by press release issued no later than 9:00 a.m., New York time, on the next business day after the previously scheduled Termination Date. The Fund also expressly reserves the right, at any time and from time to time up to and including the Termination Date, to (a) withdraw the Offer and not to purchase or pay for any Shares or (b) amend the Offer in any respect by making a public announcement thereof. Without limiting the manner in which the Fund may choose to make a public announcement of extension, termination or amendment, the Fund will have no obligation to publish, advertise or otherwise communicate any such public announcement, except as provided by applicable law (including Rule 13e-4(d)(2), Rule 13e-4(e)(3) and Rule 14e-1(d) under the Exchange Act) and the requirements of the NYSE. If the Fund makes a material change in the terms of the Offer or the information concerning the Offer, or if it waives a material condition of the Offer, the Fund will extend the Offer to the extent required by Rules 13e-4(e)(3) and 13e-4(f)(1) under the Exchange Act. During any extension, all Shares previously tendered and not withdrawn will remain subject to the Offer, subject to the right of a tendering Stockholder to withdraw his or her Shares.

Subject to the terms and conditions of the Offer, the Fund will pay the consideration offered or return the tendered securities promptly after the termination or withdrawal of the Offer.

2. Acceptance for Payment and Payment for Shares.

Upon the terms and subject to the conditions of the Offer, the Fund will accept for payment, and will pay for, Shares validly tendered on or before the Termination Date, and not properly withdrawn in accordance with Section 4, promptly after the Termination Date. In all cases, payment for Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by the Depositary of certificates for such Shares (unless such Shares are held in uncertificated form), a properly completed and duly executed Letter of Transmittal (or facsimile thereof), and any other documents required by the Letter of Transmittal. The Fund expressly reserves the right, in its sole discretion, to delay the acceptance for payment of, or payment for, Shares, in order to comply, in whole or in part, with any applicable law.

For purposes of the Offer, the Fund will be deemed to have accepted for payment Shares validly tendered and not withdrawn as provided in Section 4, if and when the Fund gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Payment for Shares accepted for payment pursuant

- 4 -

to the Offer will be made by deposit of the aggregate Purchase Price therefor with the Depositary, which will act as agent for the tendering Stockholders for the purpose of receiving payments from the Fund and transmitting such payments to the tendering Stockholders. Under no circumstances will interest on the Purchase Price for Shares be paid, regardless of any delay in making such payment.

If any tendered Shares are not accepted for payment pursuant to the terms and conditions of the Offer for any reason, or are not paid because of an invalid tender, or if certificates are submitted for more Shares than are tendered (i) certificates for such unpurchased Shares will be returned, without expense to the tendering Stockholder, as soon as practicable following expiration or termination of the Offer, (ii) Shares delivered pursuant to the Book-Entry Delivery Procedure (as defined in Section 3 below) will be credited to the appropriate account maintained within the appropriate Book-Entry Transfer Facility (as defined in Section 3 below) and (iii) uncertificated Shares held by the Fund’s transfer agent pursuant to the Fund’s Dividend Reinvestment and Cash Purchase Plan will be returned to the Dividend Reinvestment and Cash Purchase Plan account maintained by the transfer agent.

If the Fund is delayed in its acceptance for payment of, or in its payment for, Shares, or is unable to accept for payment or pay for Shares pursuant to the Offer for any reason, then, without prejudice to the Fund’s rights under this Offer, the Depositary may, on behalf of the Fund, retain tendered Shares, and such Shares may not be withdrawn unless and except to the extent tendering Stockholders are entitled to withdrawal rights as described in Section 4.

The Purchase Price of the Shares will equal 99% of their NAV (a 1% discount) as of the close of regular trading on the NYSE on the Pricing Date. Tendering Stockholders will not be obligated to pay brokerage fees or commissions to the Fund or Depositary in connection with their participating in the Offer, but they may be charged fees by their broker, dealer, commercial bank, trust company or other nominee for processing their tender. Subject to Instruction 7 of the Letter of Transmittal, tendering Stockholders may be obligated to pay transfer taxes on the purchase of Shares by the Fund; Stockholders may also be subject to other transaction costs, as described in Section 1 of this Offer to Repurchase.

The Fund normally calculates the NAV of its Shares no less frequently than the close of regular trading on the NYSE on the last business day of each week by dividing the value of the net assets of the Fund (the value of its assets less its liabilities) by the total number of Shares outstanding. On December 28, 2018, the NAV was $18.57 per Share. The Shares are listed on the NYSE. On December 28, 2018, the last sales price at the close of regular trading on the NYSE was $16.87 per Share. The NAV of the Fund’s Shares will be available daily through the Termination Date, through the Fund’s Information Agent toll free at 888-644-6071 or through the Fund’s toll free number at 888-246-2255.

3. Procedure for Tendering Shares.

Proper Tender of Shares. Stockholders having Shares that are registered in the name of a broker, dealer, commercial bank, trust company or other nominee should contact such firm if they desire to tender their Shares. For a Stockholder to validly tender Shares pursuant to the Offer, (a)(i) a properly completed and duly executed Letter of Transmittal (or facsimile thereof), together with any required signature guarantees, and any other documents required by the Letter of Transmittal, must be transmitted to and received by the Depositary at one of its addresses set forth on the last page of this Offer to Repurchase, and (ii) either the certificate for Shares must be transmitted to and received by the Depositary at one of its addresses set forth on the last page of this Offer, or the tendering Stockholder must comply with the Book-Entry Delivery Procedure set forth in this Section 3, or (b) Stockholders must comply with the Guaranteed Delivery Procedure set forth in this Section 3, in all cases prior to the Termination Date or, if the offer is extended, the Extended Termination Date.

The Fund’s transfer agent holds Shares in uncertificated form for certain Stockholders pursuant to the Fund’s Dividend Reinvestment and Cash Purchase Plan. Stockholders may tender such uncertificated Shares by completing the appropriate section of the Letter of Transmittal or Notice of Guaranteed Delivery.

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Section 14(e) of the Exchange Act and Rule 14e-4 promulgated thereunder make it unlawful for any person, acting alone or in concert with others, to tender shares in a partial tender offer for such person’s own account unless at the time of the tender, and at the time the shares are accepted for payment, the person tendering (i) has a net long position equal to or greater than the amount tendered in shares, and will deliver or cause to be delivered such shares for the purpose of tender to the person making the offer within the period specified in the offer and (ii) will deliver or cause the Shares to be delivered in accordance with the terms of the Offer. Section 14(e) and Rule 14e-4 provide a similar restriction applicable to the tender or guarantee of a tender on behalf of another person.

The acceptance of Shares by the Fund for payment will constitute a binding agreement between the tendering Stockholder and the Fund upon the terms and subject to the conditions of the Offer, including the tendering Stockholder’s representation that the Stockholder has a net long position in the Shares being tendered within the meaning of Rule 14e-4 and that the tender of such Shares complies with Rule 14e-4.

Signature Guarantees. Signatures on Letters of Transmittal must be guaranteed by a member firm of a registered national securities exchange, a member of the Financial Industry Regulatory Authority, a commercial bank, credit union, savings association or trust company having an office, branch or agency in the United States, or other entity which is a member in good standing of a stock transfer association’s approved medallion program (each an “Eligible Institution”) unless (i) the Letter of Transmittal is signed by the registered holder of the Shares tendered, including those Stockholders who are participants in a Book-Entry Transfer Facility (as defined below) and whose name appears on a security position listing as the owner of the Shares, but excluding those registered Stockholders who have completed either the “Special Payment Instructions” box or the “Special Delivery Instructions” box on the Letter of Transmittal, or (ii) such Shares are tendered for the account of an Eligible Institution. In all other cases, all signatures on the Letter of Transmittal must be guaranteed by an Eligible Institution. See Instruction 6 of the Letter of Transmittal for further information.

Book-Entry Delivery Procedure. The Depositary will establish an account with respect to the Shares at the Depository Trust Company (the “Book-Entry Transfer Facility”) for purposes of the Offer within two business days after the date of this Offer. Any financial institution that is a participant in any of the Book-Entry Transfer Facility’s systems may make delivery of tendered Shares by (i) causing such Book-Entry Transfer Facility to transfer such Shares into the Depositary’s account in accordance with such Book-Entry Transfer Facility’s procedure for such transfer and (ii) causing a confirmation of receipt of such delivery to be received by the Depositary (the “Book-Entry Delivery Procedure”). The Book-Entry Transfer Facility may charge the account of such financial institution for tendering Shares on behalf of Stockholders. Notwithstanding that delivery of Shares may be properly effected in accordance with this Book-Entry Delivery Procedure, the Letter of Transmittal (or facsimile thereof), with signature guarantee, if required, and all other documents required by the Letter of Transmittal must be transmitted to and received by the Depositary at the appropriate address set forth on the last page of this Offer on or before the Termination Date or, if the offer is extended, the Extended Termination Date, or the tendering Stockholder must comply with the Guaranteed Delivery Procedure set forth below. Delivery of documents to a Book-Entry Transfer Facility in accordance with such Book-Entry Transfer Facility’s procedures does not constitute delivery to the Depositary for purposes of this Offer.

Guaranteed Delivery Procedure. If certificates for Shares are not immediately available or time will not permit the Letter of Transmittal and other required documents to reach the Depositary prior to the Termination Date or, if the offer is extended, the Extended Termination Date, Shares may be properly tendered provided that (i) such tenders are made by or through an Eligible Institution and (ii) the Depositary receives, prior to the Termination Date or, if the offer is extended, the Extended Termination Date, a properly completed and duly executed Notice of Guaranteed Delivery substantially in the form provided by the Fund (delivered by mail or telegram) and (iii) the certificates for all tendered Shares, or confirmation of the delivery of Shares into the Depositary’s account in accordance with such Book-Entry Transfer Facility’s procedure for such transfer, together with a properly completed and duly executed Letter of Transmittal and any other documents required by the Letter of Transmittal, are received by the Depositary within three business days after receipt by the Depositary of such Notice of Guaranteed Delivery.

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U.S. Federal Income Tax Withholding. To prevent U.S. federal income tax backup withholding at a rate generally equal to 28% of the gross payments made pursuant to the Offer, each U.S. Stockholder who has not previously submitted a correct, completed and signed Form W-9 to the Fund or does not otherwise establish an exemption from withholding must notify the Depositary of the Stockholder’s correct taxpayer identification number (or certify that the taxpayer is awaiting a taxpayer identification number) and provide certain other information by completing the Substitute Form W-9 included in the Letter of Transmittal. If the Depositary is not provided with the correct taxpayer identification number, the Stockholder may be subject to a $50 penalty imposed by the Internal Revenue Service (“IRS”) in addition to being subject to backup withholding. Certain U.S. Stockholders (including, among others, corporations) are not subject to these backup withholding requirements though they may be required to establish their exempt status.

The Fund will generally withhold 30% of the proceeds otherwise payable to a Foreign Stockholder unless the Foreign Stockholder has established that it is exempt from such withholding (e.g., by providing a Form W-8ECI) or entitled to a reduced rate of withholding (e.g., by providing a Form W-8BEN that claims the benefit of an income tax treaty that reduces the withholding rate on dividends). A Foreign Stockholder may be entitled to a refund from the IRS on all or a portion of any tax withheld (e.g., because the payment to them is not characterized as a dividend for U.S. federal income tax purposes). Foreign Stockholders are urged to consult their own tax advisors regarding the application of federal income tax withholding, including eligibility for a withholding tax reduction or exemption, and the refund procedure.

Determinations of Validity. All questions as to the validity, form, eligibility (including time of receipt), payment and acceptance for payment of any tender of Shares will be determined by the Fund, in its sole discretion, which determination shall be final and binding. The Fund reserves the absolute right to reject any and all tenders of Shares it determines not to be in proper form or the acceptance for payment of which may, in the opinion of its counsel, be unlawful. The Fund also reserves the absolute right to waive any of the conditions of the Offer, in whole or in part, or any defect or irregularity in the tender of any Shares. No tender of Shares will be deemed to have been validly made until all defects and irregularities have been cured or waived. Neither the Fund, Matthews Asia, the Information Agent, the Depositary, nor any other person shall be under any duty to give notification of any defects or irregularities in tenders, nor shall any of the foregoing incur any liability for failure to give any such notification. The Fund’s interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and instructions thereto) will be final and binding. By tendering Shares, you agree to accept all decisions the Fund makes concerning these matters and waive any right you might otherwise have to challenge those decisions.

Payment for Shares validly tendered and accepted for payment pursuant to the Offer will be made, in all cases, only after timely receipt of (i) certificates for such Shares by the Depositary or book-entry confirmation of delivery of such Shares to the account of the Depositary, (ii) a properly completed and duly executed Letter of Transmittal (or facsimile thereof) for such Shares, and (iii) any other documents required by the Letter of Transmittal. The tender of Shares pursuant to any of the procedures described in this Section 3 will constitute an agreement between the tendering Stockholder and the Fund upon the terms and subject to the conditions of the Offer.

The method of delivery of all required documents is at the election and risk of each tendering Stockholder. If delivery is by mail, registered mail with return receipt requested, properly insured, is recommended.

4. Rights of Withdrawal.

Tenders of Shares made pursuant to the Offer may be withdrawn at any time prior to the Termination Date or, if the offer is extended, the Extended Termination Date. Additionally, the amount of Shares tendered may be increased or decreased by the Stockholder prior to the Termination Date or, if the offer is extended, the Extended Termination Date. Upon the terms and subject to the conditions of the Offer, the Fund expects to accept for payment validly tendered and not properly withdrawn Shares promptly after the Termination Date or, if the offer is extended, the Extended Termination Date. After the Fund has accepted tendered Shares for payment, all tenders made pursuant to the Offer are irrevocable. If the Fund has not yet accepted tendered Shares for payment, you may withdraw your tendered Shares after 5:00 p.m. New York City time on March 3, 2019.

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To be effective, a written or telegraphic transmission notice of withdrawal must be timely received by the Depositary at one of its addresses set forth on the last page of this Offer. Any notice of withdrawal must specify the name of the person who executed the particular Letter of Transmittal or Notice of Guaranteed Delivery, the number of Shares to be withdrawn, and the names in which the Shares to be withdrawn are registered. Any signature on the notice of withdrawal must be guaranteed by an Eligible Institution. If certificates have been delivered to the Depositary, the name of the registered holder and the serial numbers of the particular certificates evidencing the Shares withdrawn must also be furnished to the Depositary. If Shares have been delivered pursuant to the Book-Entry Delivery Procedure set forth in Section 3, any notice of withdrawal must specify the name and number of the account at the appropriate Book-Entry Transfer Facility to be credited with the withdrawn Shares (which must be the same name, number, and Book-Entry Transfer Facility from which the Shares were tendered), and must comply with the procedures of that Book-Entry Transfer Facility.

All questions as to the form and validity, including time of receipt, of any notice of withdrawal will be determined by the Fund, in its sole discretion, which determination shall be final and binding. Neither the Fund, Matthews Asia, the Information Agent, the Depositary, nor any other person shall be under any duty to give notification of any defects or irregularities in any notice of withdrawal, nor shall any of the foregoing incur any liability for failure to give such notification. Any Shares properly withdrawn will be deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be re-tendered by following the procedures described in Section 3 at any time prior to the Termination Date.

If the Fund is delayed in its acceptance for payment of Shares, or is unable to accept for payment Shares tendered pursuant to the Offer, for any reason, then, without prejudice to the Fund’s rights under this Offer, the Depositary may, on behalf of the Fund, retain tendered Shares, and such Shares may not be withdrawn except to the extent that tendering Stockholders are entitled to withdrawal rights as set forth in this Section 4.

5. Source and Amount of Funds; Effect of the Offer.

The actual cost to the Fund cannot be determined at this time because the number of Shares to be purchased will depend on the number tendered, and the price will be based on the NAV per Share on the Pricing Date. If the NAV per Share on the Pricing Date were the same as the NAV per Share on December 28, 2019, and if Stockholders tender 30% of the Fund’s outstanding Shares pursuant to the Offer, the estimated payments by the Fund to the Stockholders would be approximately $86,694,839. See the Pro Forma Capitalization table below.

The monies to be used by the Fund to purchase Shares pursuant to the Offer will be obtained from cash and from sales of securities in the Fund’s investment portfolio. The Fund does not expect to borrow money to finance the purchase of any tendered Shares.

The Offer may have certain adverse consequences for tendering and non-tendering Stockholders.

Effect on NAV and Consideration Received by Tendering Stockholders. If the Fund is required to sell a substantial amount of portfolio securities to raise cash to finance the Offer, the market prices of the Fund’s portfolio securities, and hence the Fund’s NAV, may decline or may fail to increase at the rate they would have increased absent such sale. If such a decline or underperformance occurs, the Fund cannot predict what its magnitude might be or whether such a decline or underperformance would be temporary or continue to or beyond the Termination Date. Because the Purchase Price per Share to be paid in the Offer will be dependent upon the NAV per Share as determined on the Pricing Date, if such decline or underperformance should continue up to the Pricing Date, the consideration received by tendering Stockholders would be lower than if such decline or under performance had not occurred. In addition, the sale of portfolio securities will cause increased brokerage and related transaction expenses, and the Fund may receive proceeds from the sale of portfolio securities less than their valuations by the Fund. Accordingly, because of the Offer, the Fund’s NAV per Share may decline or underperform more than it otherwise might, thereby reducing the amount of proceeds received by tendering Stockholders and the value per Share for non-tendering Stockholders.

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Stockholders should note, however, that the Offer may result in accretion to the Fund’s NAV per Share, following the Offer, due to the fact that the Purchase Price represents a 1% discount to the Fund’s NAV per Share. The potential accretion to the Fund’s NAV per Share may offset in whole or in part any decline in the Fund’s NAV (as discussed above) and the expenses or transaction costs associated with the Offer.

The Fund will likely sell portfolio securities during the pendency of the Offer to raise cash for the purchase of Shares. Thus, during the pendency of the Offer, and possibly for a short time thereafter, the Fund will hold a greater than normal percentage of its net assets in cash and cash equivalents. Similarly, the Fund may increase its holdings in exchange traded funds (“ETFs”) and other highly liquid securities during the pendency of the Offer and may temporarily depart from its stated investment strategies and percentage tests applicable to the Fund’s investments under normal circumstances. The Fund is required by law to pay for tendered Shares it accepts for payment promptly after the Pricing Date of this Offer. Because the Fund will not know the number of Shares tendered until the Termination Date and the Purchase Price of the Shares tendered until the Pricing Date, the Fund will not know until the Pricing Date the amount of cash required to pay for such Shares. If on or prior to the Termination Date the Fund does not have, or believes it is unlikely to have, sufficient cash to pay for all Shares tendered, it may extend the Offer to allow additional time to sell portfolio securities and raise sufficient cash.

Effect on Liquidity for Shares not Tendered in the Offer. The Fund’s purchase of Shares pursuant to the Offer will reduce the number of Shares that might otherwise trade publicly and may reduce the number of the Fund’s Stockholders. It will also have the effect of increasing the proportionate interest in the Fund of non-tendering Stockholders. A reduction in the number of Shares issued and outstanding may reduce the volume of trading in the Shares and make it more difficult to buy or sell significant amounts of Shares without affecting the market price, which could adversely affect non-tendering Stockholders.

Possible Proration: If greater than 30% of the Fund’s Shares are presented for repurchase pursuant to the Offer, the Fund will be required to purchase Shares tendered on a pro rata basis, subject to the exception described in Section 1 above. Accordingly, tendering stockholders cannot be assured that all of the Shares tendered will in fact be accepted for payment by the Fund.

Recognition of Capital Gains. As noted, the Fund will likely be required to sell portfolio securities pursuant to the Offer. If the Fund’s tax basis for the securities sold is less than the sale proceeds, the Fund will recognize capital gains. The Fund would expect to declare a distribution of any such gains to Stockholders of record (reduced by net capital losses realized during the fiscal year, if any, and available capital loss carryforwards) prior to December 31, 2019, and distribute such gains in January of 2020. This recognition and distribution of gains, if any, would have two negative consequences: first, Stockholders at the time of a declaration of distributions would be required to pay taxes on a greater amount of capital gain distributions than otherwise would be the case; and second, to raise cash to make the distributions and otherwise to increase the level of liquidity of the overall portfolio during the pendency of this Offer, the Fund might need to sell additional portfolio securities, thereby possibly being forced to realize and recognize additional capital gains. It is impossible to predict what the amount of unrealized gains or losses would be in the Fund’s portfolio at the time that the Fund is required to liquidate portfolio securities (and hence the amount of capital gains or losses that would be realized and recognized). As of October 31, 2018, the aggregate cost basis of the Fund’s investment securities for U.S. federal income tax purposes was $290,516,760. Gross unrealized appreciation of investments was $41,243,966 while gross unrealized depreciation of investments was $43,682,617, resulting in net unrealized depreciation of investments of $2,438,651.

In addition, some of the distributed gains may be realized on securities held for one year or less, which would generate income taxable to the Stockholders at ordinary income rates. This could adversely affect the Fund’s after-tax performance.

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Tax Consequences of Repurchases to Stockholders. The Fund’s purchase of tendered Shares pursuant to the Offer will have tax consequences for tendering Stockholders and may have tax consequences for non-tendering Stockholders. See Section 8, “U.S. Federal Income Tax Consequences of the Offer,” below.

Higher Expense Ratio and Less Investment Flexibility. If the Fund purchases a substantial number of Shares pursuant to the Offer, the net assets of the Fund would be reduced accordingly. The reduced net assets of the Fund as a result of the Offer is likely to result in a higher expense ratio for the Fund, and possibly in less investment flexibility for the Fund, depending on the number of Shares repurchased.

Pro Forma Effects on Capitalization. The following table sets forth the net assets of the Fund as of December 28, 2018, adjusted to give effect to the Offer (excluding expenses and assuming the Fund repurchases 30% of its outstanding Shares):

PRO FORMA CAPITALIZATION⁽¹⁾

	As of December 28, 2018		Adjustment for Purchase at $18.38 Per Share (2)		Pro Forma As Adjusted
Total net assets	$	291,924,859	$	86,694,839	$	205,230,020
Shares outstanding		15,722,675		4,716,803		11,005,872
NAV per Share (3)	$	18.57			$	18.65

(1) This table assumes a purchase by the Fund of 4,716,803 Shares, equal to 30% of the Fund’s outstanding Shares as of December 28, 2018,but does not reflect expenses incurred by the Fund in connection with the Offer.

(2) This amount represents 99% of the Fund’s NAV per Share as determined as of December 28,2018. Shares tendered pursuant to the Offer will be purchased at a 1% discount to NAV per Share on the Pricing Date, which may be more or less than $18.38 per Share, and the pro forma NAV per Share also may be more or less than that shown above.

(3) The Fund normally calculates the NAV of its Shares no less frequently than the close of regular trading on the NYSE on the last business day of each week, and it is determined by dividing the total net assets of the Fund, less all liabilities, by the number of Shares outstanding.

6. Purpose of the Offer.

The Board considered the Offer at a meeting held on August 24, 2018 and approved the terms of the Offer on December 28, 2018.

Since the Fund’s inception, the Board has regularly considered whether steps should be taken to attempt to reduce or eliminate any discount at which the Fund’s Shares may trade to their NAV. In order to address the discount to NAV at which the Shares trade, on November 9, 2018 the Fund announced that the Fund intended to implement a discount management program (the “Discount Management Program”) shortly after conclusion of the Offer. On that same date, the Fund announced that the Board had voted to approve in principle a one-time tender Offer to Repurchase up to 30% of the outstanding Shares at a Purchase Price equal to 99% of the NAV per Share. In accordance with the Discount Management Program, the Fund will repurchase its Shares in the open market on any day that the Fund’s Shares are trading at a discount determined by the Board. Under the program, the Fund is authorized to repurchase in each 12-month period ended October 31, up to 10% of the Fund’s Shares outstanding as of October 31 of the prior year. For example, for the year ending October 31, 2019, the Fund may repurchase up to 10% of its common shares outstanding as of October 31, 2018.

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The Fund is making the Offer to provide Stockholders with an alternative source of liquidity for their investment in Shares and as part of the Fund’s ongoing efforts to provide additional value to Stockholders. The Offer provides a means for Stockholders wishing to sell a portion of their Shares to do so at a price close to net asset value per Share.

The Offer has been unanimously approved by the Board. However, none of the Fund, its executive officers, the Board, Mathews Asia, or any affiliate of the Fund makes any recommendation to any Stockholder regarding his or her participation in the Offer. Members of the Board who are also Stockholders may elect to participate in the Offer. None of the executive officers of the Fund or Matthews Asia intends to participate in the Offer.

No person has been authorized to make any recommendation on behalf of the Fund, its executive officers, the Board or Matthews Asia as whether any Stockholder should participate in the Offer or to make any representation or to give any information in connection with the Offer other than as contained herein. If made or given, any such recommendation, representation or information must not be relied upon as having been authorized by the Fund, its executive officers, the Board or Matthews Asia. Stockholders are urged to evaluate carefully all information in this Offer to Repurchase and the related documents, consult their own investment and tax advisers and make their own decisions whether to tender their shares for repurchase or refrain from participating in the Offer.

There can be no assurance that this Offer or any other actions taken by the Board will reduce or eliminate any market price discount from NAV of the Shares. The market price of the Shares will also be determined by, among other things, the relative demand for and supply of the Shares in the market, the Fund’s investment performance, the Fund’s dividends and yield, and investor perception of the Fund’s overall attractiveness as an investment as compared with other investment alternatives.

Any Shares repurchased by the Fund pursuant to the Offer will be retired and will constitute authorized but unissued Shares, available for issuance by the Fund without further Stockholder action (except as required by applicable law or the rules of national securities exchanges on which the Shares are listed). Such Shares submitted in the Offer will not be counted for purposes of any Fund events with a record date after the Termination Date.

Except in connection with the operation of the Fund’s Dividend Reinvestment and Cash Purchase Plan and the Discount Management Program described above and except for the engagement of Matthews Asia and the reduction in the size of the Board, both announced by the Fund on November 9, 2018, the Fund does not have any present plans or proposals and is not engaged in any negotiations that relate to or would result in: (a) any extraordinary transaction, such as a merger, reorganization or liquidation, involving the Fund; (b) other than in connection with transactions in the ordinary course of the Fund’s operations and for purposes of funding the Offer, any purchase, sale or transfer of a material amount of assets of the Fund; (c) any material change in the Fund’s present dividend policy, or indebtedness or capitalization of the Fund; (d) changes to the present Board or management of the Fund, including, but not limited to, any plans or proposals to change the number or the term of members of the Board, fill any existing vacancies on the Board or change any material term of the employment contract of any executive officer; (e) any other material change in the Fund’s corporate structure or business, including any plans or proposals to make any changes in the Fund’s investment policy for which a vote would be required by Section 13 of the 1940 Act; (f) any class of equity securities of the Fund being delisted from a national securities exchange or ceasing to be authorized to be quoted in an automated quotations system operated by a national securities association; (g) any class of equity securities of the Fund becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; (h) the suspension of the Fund’s obligation to file reports pursuant to Section 15(d) of the Exchange Act; (i) the acquisition by any person of additional securities of the Fund, or the disposition of securities of the Fund; or (j) any changes in the Fund’s Articles of Incorporation, By-Laws or other governing instruments or other actions that could impede the acquisition of control of the Fund. Except as required by the Fund’s Discount Management Program described above, no other repurchase offers are presently contemplated, but the Board reserves the right to conduct repurchase offers in the future.

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7. NAV and Market Price Range of Shares.

The Shares are traded on the NYSE. During each fiscal quarter of the Fund during the past two fiscal years , the NAV (as of the last business day of such fiscal quarter), and the high, low and close market price per Share (as of the last business day of such fiscal quarter) were as follows:

	Market Price
Fiscal Quarter Ended	High		Low		Close		NAV
January 31, 2017	$	15.791	$	15.74	$	15.74	$	18.46
April 30, 2017	$	17.59	$	17.46	$	17.59	$	19.41
July 31, 2017	$	19.64	$	19.539	$	19.59	$	21.73
October 31, 2017	$	21.1	$	20.91	$	21.10	$	23.31
January 31, 2018	$	24.36	$	23.96	$	24.00	$	26.17
April 30, 2018	$	21.64	$	21.37	$	21.45	$	24.05
July 31, 2018	$	20.87	$	20.59	$	20.59	$	22.51
October 31, 2018	$	17.05	$	16.88	$	16.98	$	18.98

It is not anticipated that any cash dividend will be declared by the Board with a record date occurring before the expiration of the Offer. The amount and frequency of dividends in the future will depend on circumstances existing at that time.

8. U.S. Federal Income Tax Consequences of the Offer.

The U.S. federal income tax discussion set forth below is a summary included for general information purposes only. In view of the individual nature of tax consequences, each Stockholder is advised to consult his or her own tax adviser with respect to the specific, individual tax consequences of participation in the Offer, including the effect and applicability of state, local, foreign and other tax laws and the possible effects of changes in federal or other tax laws.

A U.S. Stockholder who tenders its Shares will receive either “sale or exchange treatment” or “dividend treatment” with respect to any portfolio securities it receives in the Offer. Except as discussed below, a U.S. Stockholder will generally recognize capital gain or loss on a tender of Shares if the exchange: results in a “complete termination” of all such U.S. Stockholder’s interest in our Shares; results in a “substantially disproportionate” redemption with respect to such U.S. Stockholder; or is “not essentially equivalent to a dividend” with respect to the U.S. Stockholder. Each of these tests, referred to as the “Section 302 tests,” is explained in more detail below. In applying the Section 302 tests, a U.S. Stockholder must take account of all Shares that such U.S. Stockholder constructively owns under attribution rules, pursuant to which the U.S. Stockholder will be treated as owning Shares owned by certain family members (except that in the case of a “complete termination” a U.S. Stockholder may, under certain circumstances, waive attribution from family members) and related entities and Shares that the U.S. Stockholder has the right to acquire by exercise of an option.

If one of the following tests is satisfied with respect to a U.S. Stockholder pursuant to the Offer the U.S. Stockholder will be treated as selling or exchanging the redeemed Shares giving rise to capital gain or loss.

Complete Termination Test. A U.S. Stockholder’s tender of Shares pursuant to the Offer will result in a “complete termination” of the U.S. Stockholder’s interest in Fund Shares if the U.S. Stockholder does not directly or constructively own any Shares, all of the Shares that are actually owned by the U.S. Stockholder are tendered and accepted for tender, and all of the Shares that are constructively owned by the U.S. Stockholder, if

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any, are tendered and accepted for tender (or, with respect to Shares owned by certain related individuals, the U.S. Stockholder satisfies special conditions set forth in Section 302(c) of the Internal Revenue Code of 1986, as amended (the “Code”), which, if satisfied, prevents attribution of ownership of certain Shares to the U.S. Stockholder).

Substantially Disproportionate Test. A U.S. Stockholder’s tender of Shares pursuant to the Offer generally will result in a “substantially disproportionate” redemption with respect to the U.S. Stockholder if, among other things, the percentage of the then-outstanding Shares actually and constructively owned by the U.S. Stockholder after the Offer is completed is less than 80% of the percentage of the Shares actually and constructively owned by the U.S. Stockholder before the Offer.

Not Essentially Equivalent to a Dividend Test. A U.S. Stockholder’s tender of Shares pursuant to the Offer will be treated as “not essentially equivalent to a dividend” if the reduction in the U.S. Stockholder’s proportionate interest after the completion of the Offer constitutes a “meaningful reduction” of the U.S. Stockholder’s proportionate interest, given the U.S. Stockholder’s particular facts and circumstances. The IRS has indicated in a published revenue ruling that even a small reduction in the percentage interest of a stockholder whose relative interest in a publicly held corporation is minimal and who exercises no control over corporate affairs should constitute a “meaningful reduction.”

Contemporaneous dispositions or acquisitions of Shares by a U.S. Stockholder may be deemed to be part of a single integrated transaction and, if so, may be taken into account in determining whether any of the Section 302 tests are satisfied.

If a U.S. Stockholder satisfies any of the Section 302 tests, the U.S. Stockholder will be treated as recognizing gain or loss from the disposition of the Shares. Such gain or loss will be equal to the difference between the fair market value of the portfolio securities and amount of cash received and such U.S. Stockholder’s adjusted tax basis in the Shares redeemed. Any such gain or loss will be capital gain or loss and will be long-term capital gain or loss if the holding period of the Shares redeemed exceeds one year as of the date of the exchange. Capital gains of individuals and certain other non-corporate U.S. Stockholders derived from capital assets held for more than one year are eligible for reduced rates of taxation. The deductibility of capital losses is subject to significant limitations. Any gain or loss generally will be treated as arising from U.S. sources. Gain or loss must be determined separately for each block of Shares (Shares acquired at the same cost in a single transaction) that are exchanged in the Offer from a U.S. Stockholder.

In all cases, a U.S. Stockholder offering shares for tender would take a tax basis in the portfolio securities he or she receives that is equal to the fair market value of those portfolio securities on the date of the exchange.

Under the “wash sale” rules of the Code, recognition of a loss on Shares redeemed pursuant to the Offer will ordinarily be disallowed to the extent a U.S. Stockholder acquires substantially identical shares within 30 days before or after the date the Shares are purchased by the Fund pursuant to the Offer. In that event, the basis and holding period of the Shares acquired will be adjusted to reflect the disallowed loss.

If none of the tests set forth in Section 302(b) of the Code are met, amounts received by a U.S. Stockholder that tenders its Shares pursuant to the Offer will be taxable to the U.S. Stockholder as a “dividend” to the extent of such Stockholder’s allocable share of the Fund’s current or accumulated earnings and profits, and the excess of such amounts received over the portion that is taxable as a dividend would constitute a non-taxable return of capital (to the extent of the Stockholder’s tax basis in the Shares sold pursuant to the Offer) and any amounts in excess of the Stockholder’s tax basis would constitute taxable gain. “Qualified dividend income” designated and paid by the Fund to a non-corporate U.S. Stockholder may be eligible for taxation at reduced rates to the extent that holding periods and other conditions are met.

The Fund believes that the nature of the repurchase will be such that the sale of Shares pursuant to the Offer will normally satisfy the test for a sale that is “not essentially equivalent to a dividend” and therefore will qualify for “sale or exchange” treatment (as opposed to “dividend” treatment).

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Foreign Stockholders. Any payments to a tendering Stockholder who is a nonresident alien individual, a foreign trust or estate or a foreign corporation that does not hold his, her or its Shares in connection with a trade or business conducted in the United States (a “Foreign Stockholder”) that are treated as dividends for U.S. federal income tax purposes under the rules set forth above, will be subject to U.S. withholding tax at the rate of 30% (unless a reduced rate applies under an applicable tax treaty). A tendering Foreign Stockholder who realizes a capital gain on a tender of Shares will not be subject to U.S. federal income tax on such gain, unless the Stockholder is an individual who is physically present in the United States for 183 days or more and certain other conditions exist. Such persons are advised to consult their own tax adviser. Special rules may apply in the case of Foreign Stockholders (i) that are engaged in a U.S. trade or business, (ii) that are former citizens or residents of the U.S. or (iii) that have a special status for U.S. federal income tax purposes, such as “controlled foreign corporations,” corporations that accumulate earnings to avoid U.S. federal income tax, and certain foreign charitable organizations. Such persons are advised to consult their own tax adviser. The Fund will generally withhold 30% of the proceeds otherwise payable to a Foreign Stockholder unless the Foreign Stockholder has established that it is exempt from such withholding (e.g., by providing a Form W-8ECI) or entitled to a reduced rate of withholding (e.g., by providing a Form W-8BEN that claims the benefit of an income tax treaty that reduces the withholding rate on dividends). A Foreign Stockholder may be eligible to obtain a refund from the Internal Revenue Service of all or a portion of any tax withheld if such Foreign Stockholder satisfies certain requirements or is otherwise able to establish that no tax or a reduced amount of tax is due. Foreign Stockholders are urged to consult their own tax advisors regarding the application of U.S. federal income tax withholding, including eligibility for a withholding tax reduction or exemption, and the refund procedure.

Backup Withholding. The Fund generally will be required to withhold tax at the rate of 28% (“backup withholding”) from any payment to a tendering Stockholder that is an individual (or certain other non-corporate persons) if the Stockholder fails to provide to the Fund its correct taxpayer identification number or otherwise establish an exemption from the backup withholding tax rules. A Foreign Stockholder generally will be able to avoid backup withholding with respect to payments by the Fund that are treated as made in exchange for tendered Shares only if her or she furnishes, or has previously furnished, to the Fund a duly completed Certificate of Foreign Status (Form W-8BEN), signed under penalty of perjury, stating that her or she (1) is a nonresident alien individual or a foreign corporation, partnership, estate or trust, (2) has not been and does not plan to be present in the United States for a total of 183 days or more during the calendar year, and (3) is neither engaged, nor plans to be engaged during the year, in a United States trade or business that has effectively connected gains from transactions with a broker or barter exchange. Backup withholding is not an additional tax, and any amounts withheld may be credited against a Stockholder’s U.S. federal income tax liability.

9. Selected Financial Information.

Set forth below is a summary of selected financial information for the Fund as of and for the fiscal years ended October 31, 2018 and October 31, 2017. The information with respect to the two fiscal years has been excerpted from the Fund’s audited financial statements contained in its Annual Reports to Stockholders for these years. These reports have previously been provided to Stockholders of the Fund. Copies of the two audited statements can be obtained for free, both at the website of the Commission (http://www.sec.gov) and from the Fund either from its website (www.chinafundinc.com) or by calling 888-246-2255. The summary of selected financial information set forth below is qualified in its entirety by reference to such statements and the financial information, the notes thereto and related matter contained therein.

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SUMMARY OF SELECTED FINANCIAL INFORMATION For the Periods Indicated Below

	Year Ended October 31, 2018(a)			Year Ended October 31, 2017(a)
	(Audited)
STATEMENT OF OPERATIONS:
Investment Income	$	9,274,327		$	7,565,231
Expenses		(7,003,680	)		(4,683,383	)
Net Investment Income		2,270,647			2,881,848
Net Realized Gain on Investments and Foreign Currency Transactions		33,960,459			9,913,474
Net change in unrealized appreciation/depreciation on investments and foreign currency transactions		(95,666,600	)		65,848,652
Net Increase/(decrease) in Net Assets from Operations	$	(59,435,494	)	$	78,643,974
STATEMENTS OF ASSETS AND LIABILITIES
Total Assets	$	307,239,087		$	376,852,413
Total Liabilities		(8,770,015	)		(10,311,382	)
Net Assets	$	298,469,072		$	366,541,031
Net Asset Value, per share (15,722,675 shares of common stock outstanding)	$	18.98		$	23.31
	Year Ended October 31, 2018(a)			Year Ended October 31, 2017(a)
SELECTED PER SHARE DATA (b)
Net Asset Value, Beginning of Year	$	23.31		$	18.78
Income from Investment Operations:
Net Investment Income (Loss)	$	0.14		$	0.18	(C)
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions		(3.92	)		4.82
Total Income from Investment Operations		(3.78	)		5.00
Less Dividends and Distributions to Stockholders from:
Dividend from Net Investment Income		(0.55	)		(0.47	)
Distributions from Net realized Capital Gains		—			—
Total Dividends and Distributions to Shareholders		(0.55	)		(0.47	)
Net Increase from Payment by Affiliate		0.36			—
Net Asset Value, End of Year	$	18.98		$	23.31
Market Value, End of Year	$	16.98		$	21.10
TOTAL RETURN
Based on Market Value		(17.53	)%		33.83	%
	Year Ended October 31, 2018a)			Year Ended October 31, 2017(a)
RATIOS AND SUPPLEMENTAL DATA:
Net Assets, End of Year (000s)	$	298,469		$	366,541
Ratio of Net Expenses to Average Net Assets		1.91	%		1.49	%
Ratio of Net Investment Income to Average Net Assets		0.62	%		0.92	%(c)
Portfolio Turnover Rate		50	%		31	%

(a) The Fund was audited by Tait, Weller & Baker LLP for the fiscal years ended October 31, 2018 and 2017.

(b) Per share amounts have been calculated using the average share method.

(c) Amount includes a non-recurring receipt of a refund for over-billing of prior years’ custody out of pocket expense which amounted to less than $0.01 per share and less than 0.005% of net assets during 2017.

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10. Certain Information Concerning the Fund and the Fund’s Investment Adviser.

The Fund, incorporated in Maryland in 1992, is a non-diversified, closed-end management investment company registered under the 1940 Act. The Fund commenced operations on July 17, 1992. The Shares commenced trading on the NYSE on July 10, 1992. As a closed-end investment company, the Fund differs from an open-end investment company (i.e., a mutual fund) in that it does not redeem its Shares at the election of a Stockholder and does not continuously offer its Shares for sale to the public. The Fund seeks long-term capital appreciation primarily through investments in equity securities (i) of companies for which the principal securities trading market is in China, (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 revenues from goods or services sold or produced, or have at least 50% of their assets, in China or (iii) constituting direct equity investments in companies organized in China (collectively, “China companies”). As used herein, the term “direct equity investments” means private investments in unlisted equity securities of China companies. The principal executive offices and business address of the Fund are located at c/o State Street Bank and Trust Company, P.O. Box 5049, One Lincoln Street, Boston, MA 02206-5409. The Fund’s business telephone number is 888-246-2255.

Matthews Asia serves as the investment adviser to the Fund. Matthews Asia is a limited liability company organized and existing under the laws of the State of Delaware and registered as an investment adviser under the Investment Advisers Act of 1940, as amended. Matthews Asia has served as the Fund’s investment adviser since January 1, 2019. Matthews Asia’s principal business address is Four Embarcadero Center, Suite 550, San Francisco, CA 94111.

The Fund is subject to the information and reporting requirements of the 1940 Act and in accordance therewith is obligated to file reports and other information with the Commission relating to its business, financial condition and other matters. The Fund has also filed an Offer to Repurchase on Schedule TO with the Commission. Such reports and other information should be available for inspection at the public reference room at the Commission’s office at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the public reference room by calling the Commission at 1-800-SEC-0330. The Fund’s filings are also available to the public, free of charge, on the Commission’s website (http://www.sec.gov). Copies may be obtained, by mail, upon payment of the Commission’s customary charges, by writing to its principal office at 100 F Street, N.E., Washington, D.C. 20549.

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11. Interest of Directors, Officers and Associates; Transactions and Arrangements Concerning the Shares.

The directors and executive officers of the Fund and the aggregate number and percentage of the Shares each of them beneficially owned as of December 31, 2018 is set forth in the table below. The address of each of them is in care of the Fund at c/o State Street Bank and Trust Company, P.O. Box 5049, 2 Avenue de Lafayette, Boston, MA 02206-5409.

Name and Position	Number of Shares Beneficially Owned		Percentage of Shares Beneficially Owned
Gary L. French, Director and Chairman of the Board		2,500		0	%
Brian Link, Secretary		0		—
Monique Labbe, Treasurer		0		—
Michael F. Holland, Director				—
Patrick J. Kenniston, Chief Compliance Officer		0		—
William C. Kirby, Director		1,538		0	%
Linda Coughlin, Director		0		—
Julian Reid, Director				—
Richard A. Silver, Director		3000		0	%
Li Jin, Director		0		—

Each member of the Board is considered an independent director and not an “interested person” of the Fund, as that term is defined in the 1940 Act.

Set forth below is information regarding persons who are beneficial owners or more than 10% of the Fund’s Shares as of December 28, 2018, based on Schedule 13D or 13G disclosures filed with the SEC:

Name and Address	Shares		Percent of Class
City of London Investment Management Co. Ltd. 77 Gracechurch Street London EC3V 0AS England		4,335,711		27.6	%
Lazard Asset Management 30 Rockefeller Plaza New York, NY 10112		2,133,471		13.57	%

Except as described below, neither the Fund nor, to the best of the Fund’s knowledge, any of the Fund’s directors or executive officers, or associates of any of the foregoing, has effected any transaction in Fund Shares, except for dividend reinvestment, during the past 60 days. On December 19, 2018, Mr. Holland disposed all of his shares in the Fund.

Except as set forth in this Offer, neither the Fund, nor, to the best of the Fund’s knowledge, any of the Fund’s officers or directors, is a party to any contract, arrangement, understanding or relationship with any other person relating, directly or indirectly, to the Offer with respect to any securities of the Fund, including, but not limited to, any contract, arrangement, understanding or relationship concerning the transfer or the voting of any such securities, joint ventures, loan or option arrangements, puts or calls, guaranties of loans, guaranties against loss or the giving or withholding of proxies, consents or authorizations. The Fund has been advised that no director or officer of the Fund intends to tender Shares pursuant to the Offer. The Offer does not, however, restrict the purchase of Shares pursuant to the Offer from any such person. The Fund is not aware of any Stockholders of the Fund that are associates of the directors or executive officers listed above within the meaning of Rule 12b-2 of the Exchange Act.

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12. Certain Legal Matters; Regulatory Approvals.

Except as described in this Offer, the Fund is not aware of any approval or other action by any government or governmental, administrative or regulatory authority or agency, domestic or foreign, that would be required for the acquisition or ownership of Shares by the Fund as contemplated herein. Should any such approval or other action be required, the Fund presently contemplates that such approval or other action will be sought. The Fund is unable to predict whether it may determine that it is required to delay the acceptance for payment of, or payment for, Shares tendered pursuant to the Offer pending the outcome of any such matter. There can be no assurance that any such approval or other action, if needed, would be obtained without substantial conditions or that the failure to obtain any such approval or other action might not result in adverse consequences to the Fund’s business. The Fund’s obligations under the Offer to accept for payment and pay for Shares are subject to certain conditions described in Section 13.

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13. Certain Conditions of the Offer.

Notwithstanding any other provision of the Offer, and in addition to (and not in limitation of) the Fund’s right to extend, amend or terminate the Offer at any time up to and including the Termination Date in its sole discretion, the Fund will not be required to accept for payment or, subject to the applicable rules and regulations of the Commission, including Rule 14e-1(c) under the Exchange Act, pay for any Shares, and may postpone the acceptance for payment of, or payment for, tendered Shares, and may, in its reasonable discretion, terminate or amend the Offer as to any Shares not then paid for if:

(1) such transactions, if consummated, would (a) result in delisting of the Shares from the NYSE or (b) impair, jeopardize or cause the loss of the Fund’s status as a regulated investment company under the Code (which would make the Fund subject to U.S. federal income taxes on all of its income and gains in addition to the taxation of Stockholders who receive distributions from the Fund);

(2) the amount of Shares tendered would require liquidation of such a substantial portion of the Fund’s portfolio securities that the Fund would not be able to liquidate portfolio securities in an orderly manner in light of the existing market conditions, and such liquidation would have an adverse effect on the NAV of the Fund to the detriment of non-tendering Stockholders;

(3) there shall be instituted, pending or threatened before any governmental entity or court any action, proceeding, application or claim, or there shall be any judgment, order or injunction sought or any other action taken by any person or entity, which restrains, prohibits or materially delays the making or consummation of the Offer, challenges the acquisition by the Fund of any shares pursuant to the Offer or the Board’s fulfilment of its fiduciary obligations in connection with the Offer, seeks to obtain any material amount of damages in connection with the Offer, or otherwise directly or indirectly adversely effects the Offer or the Fund;

(4) there shall have occurred (a) any general suspension of trading in or limitation on prices for securities on the NYSE, any other national securities exchange, any stock exchange in China or any other exchange on which the Shares or the portfolio securities held by the Fund are traded; (b) any declaration of a banking moratorium or similar action materially adverse to the Fund by U.S. federal, state or foreign authorities or any foreign jurisdiction, or any suspension of payment material to the Fund by banks in the United States, the State of New York, or any other jurisdiction; (c) any limitation affecting the Fund or the issuers of its portfolio securities imposed by federal or state authorities on the extension of credit by lending institutions or the convertibility of foreign currencies, (d) the commencement of war, armed hostilities or other international or national calamity directly or indirectly involving the United States or any foreign country in which the Fund invests or which is material to the Fund, or (e) in the Board’s judgment, other event or condition which would have a material adverse effect on the Fund or its Stockholders if tendered Shares were purchased; or

(5) determination by the Board that effecting any such transaction would constitute a breach of their fiduciary duty owed to the Fund or its Stockholders.

The foregoing conditions are for the sole benefit of the Fund and may be asserted by the Fund regardless of the circumstances (including any action or inaction by the Fund) giving rise to any such conditions and may be waived by the Fund in whole or in part at any time and from time to time in its sole discretion. The failure by the Fund at any time to exercise any of the foregoing rights will not be deemed a waiver of any such right, and each such right will be deemed an ongoing right which may be asserted at any time and from time to time. Any determination by the Fund concerning the events described in this Section 13 will be final and binding on all parties.

A public announcement will be made of a material change in, or waiver of, such conditions, and the Offer will be extended to the extent required by Rules 13e-4(e)(3) and 13e-4(f)(1) under the Exchange Act. Without limiting the manner in which the Fund may choose to make a public announcement of extension, termination or amendment, the Fund will have no obligation to publish, advertise or otherwise communicate any such public announcement, except as provided by applicable law (including Rule 13e-4(d)(2), Rule 13e-4(e)(3) and Rule 14e-1(d) under the Exchange Act) and the requirements of the NYSE.

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As described in Section 1 of this Offer to Repurchase, the Fund reserves the right, at any time during the pendency of this Offer, to amend, extend or terminate the Offer in any respect (including amending the Offer to modify the conditions set forth above).

14. Fees and Expenses.

The Fund will not pay to any broker or dealer, commercial bank, trust company or other person any solicitation fee for any Shares purchased pursuant to the Offer. The Fund will reimburse such persons for customary handling and mailing expenses incurred in forwarding the Offer. No such broker, dealer, commercial bank or trust company has been authorized to act as the agent of the Fund or the Depositary for purposes of the Offer.

The Fund has retained Computershare Trust Company, N.A. to act as Depositary and AST Fund Solutions, LLC to act as Information Agent. The Depositary and the Information Agent will each receive reasonable and customary compensation for their services and will also be reimbursed for certain out-of-pocket expenses. Both the Depositary and the Information Agent will be indemnified against certain liabilities by the Fund.

15. Miscellaneous.

The Offer is not being made to (nor will tenders be accepted from or on behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. The Fund may, in its sole discretion, take such action as it may deem necessary to make the Offer in any such jurisdiction.

Since the Fund is not aware of any jurisdiction in which the making of the Offer or the acceptance of Shares in connection therewith would not be in compliance with the laws of such jurisdiction, the Offer is currently being made to all holders of Shares. However, the Fund reserves the right to exclude Stockholders in any jurisdiction in which it is asserted that the Offer cannot lawfully be made. So long as the Fund makes a good faith effort to comply with any state law deemed applicable to the Offer, the Fund believes that the exclusion of Stockholders residing in such jurisdiction is permitted under Rule 13e-4(f)(9) promulgated under the Exchange Act. In any jurisdiction where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on the Fund’s behalf by one or more brokers or dealers licensed under the laws of such jurisdiction.

16. Contacting the Depositary and the Information Agent.

The Letter of Transmittal, certificates for the Shares and any other required documents should be sent by each Stockholder of the Fund or his or her broker-dealer, commercial bank, trust company or other nominee to the Depositary as set forth below. Facsimile copies of the Letter of Transmittal will be accepted.

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The Depositary for the Offer is:

By First Class Mail:

Computershare

c/o Voluntary Corporate Actions

P.O. Box 43011

Providence, RI 02940-3011

By Overnight Courier:

Computershare

c/o Voluntary Corporate Actions

250 Royall Street Suite V

Canton, MA 02021

Any questions or requests for assistance or additional copies of the Offer, the Letter of Transmittal, the Notice of Guaranteed Delivery, and other documents may be directed to the Information Agent at its telephone number and location listed below. Stockholders may also contact their broker, dealer, commercial bank or trust company or other nominee for assistance concerning the Offer.

The Information Agent for the Offer is:

Toll Free: 888-644-6071

Call Collect: 201-806-7301

THE CHINA FUND, INC.

January 4, 2019

EX-99.906CERT

Exhibit 13(b)

Frank Wheeler, Chief Executive Officer, and Monique Labbe, Chief Financial Officer of The China Fund, Inc. (the “Fund”), each certify that:

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/ Frank Wheeler
	Frank Wheeler
	Chief Executive Officer of The China Fund, Inc.

Date: July 1, 2019

By:	/s/ Monique Labbe
	Monique Labbe
	Chief Financial Officer of The China Fund, Inc.

Date: July 1, 2019