NPORT-EX 2 THE_CHINA_FUND.htm SOI The China Fund

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS

July 31, 2021 (unaudited)

 

Name of Issuer and Title of Issue

    Shares      Value (Note A)  

COMMON STOCK

      

CHINA — “A” SHARES

      

Banks — 3.8%

      

China Merchants Bank Co., Ltd. — A

      1,726,047      $ 12,447,128  
     

 

 

  

Beverages — 0.7%

      

Wuliangye Yibin Co., Ltd. — A

      70,196        2,404,321  
     

 

 

  

Chemicals — 4.2%

      

Lianhe Chemical Technology Co., Ltd. — A

      390,850        1,599,707  

Shandong Sinocera Functional Material Co., Ltd. — A

      782,700        5,675,980  

Sinoma Science & Technology Co., Ltd. — A

      1,148,986        4,559,824  

Wanhua Chemical Group Co., Ltd. — A

      98,643        1,740,022  
     

 

 

  
        13,575,533  
     

 

 

  

Construction Materials — 1.4%

      

Anhui Conch Cement Co., Ltd. — A

      230,069        1,262,009  

China Jushi Co., Ltd. — A

      1,395,900        3,231,928  
     

 

 

  
        4,493,937  
     

 

 

  

Electrical Equipment — 5.0%

      

Sungrow Power Supply Co., Ltd. — A

      432,300        11,308,662  

Sunwoda Electronic Co., Ltd. — A

      899,000        4,706,804  
     

 

 

  
        16,015,466  
     

 

 

  

Electronic Equipment, Instruments & Components — 3.3%

      

Wingtech Technology Co., Ltd. — A

      335,100        5,680,780  

Wuxi Lead Intelligent Equipment Co., Ltd. — A

      427,200        5,043,035  
     

 

 

  
        10,723,815  
     

 

 

  

Health Care Providers & Services — 0.6%

      

Dian Diagnostics Group Co., Ltd. — A

      325,900        1,786,821  
     

 

 

  

Household Durables — 1.5%

      

Midea Group Co., Ltd. — A

      501,829        4,941,599  
     

 

 

  

Insurance — 0.8%

      

Ping An Insurance Group Company of China Ltd. — A

      303,628        2,524,869  
     

 

 

  

Life Sciences Tools & Services — 3.1%

      

Hangzhou Tigermed Consulting Co., Ltd. — A

      130,700        3,191,534  

Pharmaron Beijing Co., Ltd. — A

      224,565        6,882,977  
     

 

 

  
        10,074,511  
     

 

 

  

Machinery — 4.6%

      

Estun Automation Co., Ltd. — A*

      1,318,400        7,976,032  

Jiangsu Hengli Hydraulic Co., Ltd. — A

      240,000        3,641,707  

Weichai Power Co., Ltd. — A

      1,261,356        3,347,974  
     

 

 

  
        14,965,713  
     

 

 

  

Semiconductors & Semiconductor Equipment — 5.1%

      

Gigadevice Semiconductor Beijing, Inc. — A

      156,200        5,584,543  

LONGi Green Energy Technology Co., Ltd. — A

      403,200        5,386,963  

NAURA Technology Group Co., Ltd. — A

      44,602        2,992,555  

Shenzhen SC New Energy Technology Corp. — A

      90,700        2,294,001  
     

 

 

  
        16,258,062  
     

 

 

  

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

July 31, 2021 (unaudited)

 

Name of Issuer and Title of Issue

    Shares            Value (Note A)  

COMMON STOCK (continued)

        

CHINA — “A” SHARES (continued)

        

Software — 3.1%

        

Sangfor Technologies, Inc. — A

      41,367        $ 1,553,258  

Shanghai Baosight Software Co., Ltd. — A

      332,000          3,440,355  

Thunder Software Technology Co., Ltd. — A

      228,662          5,184,838  
       

 

 

  
          10,178,451  
       

 

 

  

TOTAL CHINA — “A” SHARES — (Cost $88,076,380)

         37.2 %      120,390,226  
     

 

 

    

 

 

  

HONG KONG

        

Air Freight & Logistics — 0.9%

        

JD Logistics, Inc.144A*

      817,300          2,950,048  
       

 

 

  

Biotechnology — 0.9%

        

Innovent Biologics, Inc.144A*

      272,000          2,782,285  
       

 

 

  

Building Products — 1.6%

        

Xinyi Glass Holdings, Ltd.

      1,382,000          5,175,698  
       

 

 

  

Capital Markets — 2.9%

        

Futu Holdings, Ltd. ADR*

      25,700          2,633,222  

Hong Kong Exchanges & Clearing, Ltd.

      103,200          6,611,487  
       

 

 

  
          9,244,709  
       

 

 

  

Entertainment — 1.3%

        

Bilibili, Inc. ADR(1)*

      48,059          4,112,889  
       

 

 

  

Gas Utilities — 1.3%

        

ENN Energy Holdings, Ltd.

      201,300          4,217,422  
       

 

 

  

Insurance — 3.1%

        

AIA Group, Ltd.

      821,400          9,878,574  
       

 

 

  

Interactive Media & Services — 8.0%

        

Tencent Holdings, Ltd.

      421,400          26,109,449  
       

 

 

  

Internet & Direct Marketing Retail — 17.4%

        

Alibaba Group Holding, Ltd.*

      1,045,608          25,959,690  

JD.com, Inc.*

      590,100          21,002,417  

Meituan, Inc. 144A*

      350,300          9,813,094  
       

 

 

  
          56,775,201  
       

 

 

  

Life Sciences Tools & Services — 1.2%

        

Wuxi Biologics Cayman, Inc.144A*

      247,500          3,785,894  
       

 

 

  

Metals & Mining — 1.3%

        

MMG, Ltd.*

      8,072,000          4,141,683  
       

 

 

  

Real Estate Management & Development — 4.1%

        

CIFI Holdings Group Co., Ltd.

      8,534,000          5,153,635  

KE Holdings, Inc. ADR(1)*

      103,500          2,275,965  

KWG Living Group Holdings, Ltd.

      2,479,000          2,370,173  

Times China Holdings, Ltd.

      3,543,000          3,355,532  
       

 

 

  
          13,155,305  
       

 

 

  

Software — 2.2%

        

Kingdee International Software Group Co., Ltd.*

      548,000          1,712,142  

Kingsoft Corp., Ltd.

      820,000          3,824,311  

Weimob, Inc.144A*

      1,247,000          1,695,177  
       

 

 

  
          7,231,630  
       

 

 

  

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

July 31, 2021 (unaudited)

 

 

Name of Issuer and Title of Issue

    Shares            Value (Note A)  

COMMON STOCK (continued)

        

HONG KONG (continued)

        

Specialty Retail — 4.5%

        

China Yongda Automobiles Services Holdings, Ltd.

      3,840,000        $ 7,193,207  

Zhongsheng Group Holdings, Ltd.

      790,000          7,278,686  
       

 

 

  
          14,471,893  
       

 

 

  

TOTAL HONG KONG — (Cost $122,138,054)

         50.7 %      164,032,680  
     

 

 

    

 

 

  

HONG KONG — “H” SHARES

        

Banks — 2.7%

        

China Construction Bank Corp.

      12,420,000          8,668,711  
       

 

 

  

Capital Markets — 7.7%

        

China International Capital Corp., Ltd.144A

      4,666,000          10,786,363  

China Merchants Securities Co., Ltd.144A(1)

      4,450,000          6,075,293  

CITIC Securities Co., Ltd.

      3,638,500          8,122,583  
       

 

 

  
          24,984,239  
       

 

 

  

Metals & Mining — 1.2%

        

Zijin Mining Group Co., Ltd.

      2,704,000          3,858,894  
       

 

 

  

TOTAL HONG KONG — “H” SHARES — (Cost $37,051,574)

         11.6 %      37,511,844  
     

 

 

    

 

 

  

TOTAL HONG KONG (INCLUDING “H” SHARES)) —
(Cost $159,189,628)

         62.3 %      201,544,524  
     

 

 

    

 

 

  

TOTAL COMMON STOCK — (Cost $247,266,008)

         99.5 %      321,934,750  
     

 

 

    

 

 

  

COLLATERAL FOR SECURITIES ON LOAN

        

Money Market Funds — 3.4%

        

Fidelity Investments Money Market Government Portfolio,

0.01%¥ (Cost $10,995,211)

      10,995,211          10,995,211  
       

 

 

  

TOTAL COLLATERAL FOR SECURITIES ON LOAN —
(Cost $10,995,211)

         3.4 %      10,995,211  
     

 

 

    

 

 

  
     Principal
Amount		               

SHORT TERM INVESTMENTS

        

Time Deposits — 0.7%

        

Brown Brothers Harriman & Co. — Grand Cayman, 0.00%, 8/2/2021

      HKD 4,605,523          592,644  

Royal Bank of Canada Toronto, 0.01%, 8/2/2021

      USD 1,771,629          1,771,628  
       

 

 

  

TOTAL SHORT TERM INVESTMENTS — (Cost $2,364,272)

         0.7 %      2,364,272  
     

 

 

    

 

 

  

TOTAL INVESTMENTS — (Cost $260,625,491)

         103.6 %      335,294,233  
     

 

 

    

 

 

  

OTHER ASSETS AND LIABILITIES

         (3.6 )%      (11,546,457 ) 
     

 

 

    

 

 

  

NET ASSETS

         100.0 %    $ 323,747,776  
     

 

 

    

 

 

  

Footnotes to Schedule of Investments

 

*

Denotes non-income producing security.

¥ 

Rate shown is the 7-day yield as of July 31, 2021

(1) 

A security (or a portion of the security) is on loan. As of July 31, 2021, the market value of securities loaned was $10,366,024. The loaned securities were secured with cash collateral of $10,995,211. 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 July 31, 2021, these restricted securities amounted to $37,888,154, which represented 11.7% of total net assets.

ADR American Depositary Receipt

HKD – Hong Kong dollar

USD – United States dollar

THE CHINA FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS

July 31, 2021 (unaudited)

NOTE A — Security valuation:

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. For securities listed on non North American exchanges the Fund fair values those securities daily using fair value factors provided by a third party pricing service if certain thresholds determined by the Board are met. 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 Direct 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, 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.

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 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.

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 CHINA FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (continued)

July 31, 2021 (unaudited)

 

The following is a summary of the inputs used as of July 31, 2021 in valuing the Fund’s investments carried at value:

ASSETS VALUATION INPUT

 

Description*    Level 1      Level 2      Level 3      Total  

Common Stock

    $ 14,342,297      $ 307,592,453      $ —        $ 321,934,750  

Collateral for Securities on Loan

      10,995,211        —          —          10,995,211  

Short Term Investments

      2,364,272        —          —          2,364,272  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL INVESTMENTS

    $ 27,701,780      $ 307,592,453      $ —        $ 335,294,233  
  

 

 

     

 

 

     

 

 

     

 

 

  

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