Morgan Stanley China A Share Fund, Inc. (the “Fund”) (NYSE: CAF) announced today that the subscription period for its transferable rights offering to holders of the Fund’s common stock (the “Offering”) has commenced. The Fund is issuing to its stockholders of record (“Record Date Stockholders”) as of August 18, 2010 (the “Record Date”), transferable rights (the “Rights”) entitling the holders to subscribe for an aggregate of approximately 5,440,904 shares of the Fund’s common stock. The Rights entitle holders to acquire one share for each three Rights held. The Rights are transferable and are admitted for trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “CAF RT.” Morgan Stanley & Co. Incorporated is acting as dealer manager for the Offering. The subscription period commenced today, August 25, 2010, and will expire at 5:00 p.m., New York time, on September 14, 2010, unless extended (the “Expiration Date”). The actual subscription price per share, which will be determined on the Expiration Date, will be based on a formula equal to 90 percent of the average of the last reported sales price per share of the Fund’s common stock on the NYSE on the Expiration Date and the four preceding trading days (the “Formula Price”); provided, however, that in no event shall the subscription price be less than 90 percent of the net asset value per share of the Fund’s common stock at the close of trading on the NYSE on the Expiration Date. If the Formula Price is less than 90 percent of the net asset value per share of the Fund’s common stock at the close of trading on the Expiration Date, the subscription price will be 90 percent of the net asset value per share on that day. Record Date Stockholders who fully exercise all Rights issued to them will be entitled to subscribe for additional shares at the subscription price pursuant to an oversubscription privilege. If sufficient shares are not available to honor all oversubscription requests, the available shares will be allocated pro rata among those Record Date Stockholders who oversubscribe based on the number of rights originally issued to them by the Fund on the Record Date.