Closed-end investment company’s like The China Fund, Inc. do not continuously offer shares to the public or rights offerings. Growth results from market appreciation, which benefits its shareholders. Sector funds like The China Fund, Inc. are often used to change the impact of a particular country, or sector, in portfolio management.
The Fund’s investment objective is long-term capital appreciation through investments in the equity securities of companies engaged in a substantial amount of business in the People’s Republic of China.  Management can influence the net asset value, but this is not of great concern to investors.
Mr. Chris Ruffle, and Mr. Shifeng Ke, are the portfolio managers for the Fund’s portfolio of listed and direct securities. CHN restricts management to investments that are expected to benefit from developments in the economy of China. The China Fund now has a direct-investment segment of it’s portfolio. Direct investments are generally restricted and do not have a readily available resale market. The Fund does not have the right to demand that such securities be registered.  These securities like those of GCH are unlisted equity securities of China companies for which there is no public trading market. This gives the potential for explosive Capital appreciation, but makes the true net asset value of the fund a mystery until these companies emerge.
Wealth is shifting from the developed countries to the emerging, and frontier economies, which includes China. Chinese companies tend to be under-researched, and not so readily available to normal investors. CHN portfolio turnover is an indication of the confidence management has in its investments.
The China Fund, Inc. (CHN) distributes essentially all of its net realized gains and earned income to shareholders each year. When comparing the results of this closed-end company, to securities which may retain earnings. Both stocks should have all distributions reinvested and compounded to compare results. Because they could not increase the size of the fund with retained earnings. CHN recently conducted a rights offering to raise capital for direct investments it wanted but could not afford.
Shares of The China Fund, Inc. are traded on the New York Stock Exchange under the symbol “CHN.”  Other China sector closed-end companies: TDF, GCH, TEMIT and JFC. CHN has a Dividend Reinvestment Plan.
Greater China Fund Virtual Forum Presentation 
Mark Mobius "World Outlook 2010," 
The China Fund, Inc. Investment Manager Baring Asset Management (Asia) Ltd. 19th Fl. Edinburgh Tower 15 Queen's Road Central Hong Kong T: (852) 2841-1411