NEW YORK, March 28, 2012 /PRNewswire/ --
Discount Management Policy
The China Fund, Inc. (NYSE: CHN) (the "Fund"), announced today that the Fund's Board of Directors has voted to approve a Discount Management Policy. The Fund will repurchase, commencing the month after stockholders have approved the proposed arrangements (the "Proposed Arrangements") for the Fund to be managed by RCM Asset Management Limited ("RCM"), its common shares in the open market on any day that the Fund's shares are trading at a discount of 8% or more from net asset value the prior day and there is a daily average discount of 8% or more from net asset value over the five-day period ending the prior day. On each day that shares are repurchased, the Fund will repurchase its shares to the maximum extent permitted by law unless the Fund's investment manager determines that such a repurchase would be detrimental to the Fund and its shareholders. On each day that shares are repurchased, in addition to the limits set forth above, the Fund will repurchase shares only at such times that the market price represents a discount of 8% or more from the Fund's closing NAV on the prior day. Under the program, the Fund is authorized to repurchase in each twelve month period ended October 31 up to 10% of its common shares outstanding as of October 31 the prior year. For example, for the year November 1, 2012 to October 31, 2013, the Fund may repurchase up to 10% of its common shares outstanding as of October 31, 2012. For the first period of operation of the program through October 31, 2012, the Fund is authorized to purchase a portion of 10% of its common shares outstanding at October 31, 2011, pro-rated based on the number of months in that period.
The discount management program is intended to enhance shareholder value, as repurchases made at a discount have the effect of increasing the net value per share of the Fund's remaining shares.