The China Fund announces proposed record date for its rights offering
Boston, Massachusetts, June 16, 2005
The China Fund, Inc. (the "Fund") (NYSE: CHN), a closed-end management investment company, announced the proposed record date for an anticipated rights offering (the "Offering") of its shares of common stock. Subject to the registration statement for the Offering becoming effective under the Securities Act of 1933, as amended, the Fund will issue to stockholders of record as of June 27, 2005 (the "Record Date") one non-transferable right for each share of common stock held. Three rights will entitle the holder to purchase one share of common stock at the subscription price.
The estimated subscription price has not yet been determined by the Fund. The subscription price will not be determined until July 29, 2005, the expiration date of the Offering (the "Expiration Date"), and will equal 92.5% of the average of the closing price of the Fund's common stock on the New York Stock Exchange on the Expiration Date of the Offering and for the four immediately preceding trading days, with a requirement that the price be no lower than the net asset value per share of common stock of the Fund at the Expiration 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 all available shares are then subscribed for, the Fund may issue additional shares of an amount up to 25% of the shares available pursuant to the Offering. If all subscription rights are exercised (including the additional 25%), the Fund will issue approximately 4,250,000 shares of its common stock in the Offering.
The subscription rights are exercisable from June 27, 2005 until, up to and including, 5:00 p.m. New York City time on July 29, 2005, the Expiration Date, unless extended by the Fund.
For further information regarding the Fund's rights offering, or to obtain a Prospectus, when available, please contact the Fund's Information Agent:
THE ALTMAN GROUP
1275 Valley Brook Avenue
Lyndhurst, NJ 07071
888 CHN-CALL (246-2255)
wantler@altmangroup.com
Investors should read the prospectus carefully before they invest or send money.