Distributions Frequently Asked Questions

Q:  What are the terms of the distributions?
A: On December 6, 2007, the Fund declared distributions in the estimated amounts of $12.12 per share, consisting of long-term capital gains of $9.00 per share, short-term capital gains of $2.84 per share and net investment income of $0.28 per share.  The distribution will be payable on January 25, 2008 to shareholders of record on December 21, 2007, with an ex-dividend date of December 19, 2007.  The precise amounts of the distributions will be announced on the ex-dividend date.

Q: How do I request cash for these distributions?
A: The distributions will be made in newly issued Fund shares unless you request to receive cash.  Only stockholders of record (those who own CHN on December 21st) will receive a written notice of the planned distributions in the mail and have the option to request the distributions to be paid in cash.

Q:  Is there a limit on the amount of the distributions that will be paid in cash?
A:   Yes.  The Fund will limit the aggregate amount of cash to be paid to stockholders requesting cash to an amount equal to 30% of the total amount of the distributions.

Q:  What happens if the total amount of cash to be paid to stockholders requesting cash exceeds the  limit?
A:  An amount equal to the limit will be distributed to stockholders requesting to receive cash pro-rata, based on the total amount of the distributions to be paid to each requesting stockholder.  The portion of the distributions not paid to requesting stockholders in cash will be paid in shares of the Fund's common stock.  As a result, the cash portion of the distributions to those requesting to be paid in cash may be substantially lower than the estimated $12.12 per share with the balance of the distributions paid in newly issued Fund shares.

Q:  Can I request to receive part of the distributions in cash and part in stock?
A:  No.  If you elect to receive cash, you will receive the entire amount of the distributions in cash, subject to pro-ration as described above if the cash limit is exceeded.

Q:  How and when must shareholders of record notify us if they want cash?
A:  
For Direct Holders (who hold their shares directly with and receive their statements directly from the Fund's transfer agent, Computershare):  A written notice of the planned distributions will be sent in the mail and you will have the option to request that the dividend to be paid in cash. To receive cash, you must sign the card attached to that letter and mail it in the enclosed postage paid return envelope so that it will be received by Computershare no later than 4:00p.m. Eastern Standard Time on January 17, 2008.     

For Holders with Brokerage Accounts or Financial Advisers:  If your shares are held in a brokerage account or in "street name", both you and your Broker Dealer/Financial Adviser will receive written notices of the planned distributions in the mail. To receive cash, you must contact your financial adviser by 4:00 p.m. Eastern Standard Time on January 16, 2008 (or any earlier deadline established by your Broker Dealer/Financial Adviser) and your Broker Dealer/Financial Adviser must inform the Fund via DTC by 8:00 p.m on the same day.

Q:  What happens if I do not request cash by the above deadlines?  Can I still have cash?
A:  No. If your request card is not received by Computershare (direct holders) by 4:00 p.m. EST on January 17, 2008 or if you did not contact your Broker Dealer/Financial Adviser (other holders) by 4:00 p.m. EST on January 16, 2008 (or any earlier deadline established by your Broker Dealer/Financial Adviser), you will automatically receive the distributions in newly issued shares of common stock of the Fund plus cash in lieu of a fraction of a share, except that if you are a direct holder and participate in the Fund's dividend reinvestment plan you will receive newly issued full and fractional shares.

Q:  How do I request newly issued Fund shares for my distributions?
A:  It is not necessary to choose this option. You will automatically receive new shares if we do not hear from you by the deadlines for cash requests as described above. No action is required to receive your estimated $12.12 per share distributions in shares.

Q: At what price will I receive my distributions in new shares?
A:  Your distributions will be based on the lower of market price or net asset value (but not at a discount of more than 5% from the market price), as of the valuation date of January 18, 2008.
The market price at the close of business on December 18, 2007 will be adjusted to reflect the distributions and will be quoted ex-dividend on December 19, 2007.

Q:  Will the CHN stock still trade down on the ex-dividend date?
A:  Yes, CHN's market price will be discounted by the distributions' amount, estimated to be $12.12, when the stock opens on the ex-dividend date of December 19, 2007.

Q:  What are the tax consequences of this distributions?
A:  The full amount of the distributions, whether received in additional Fund shares or cash, will be classified as long-term capital gains (an estimated $9.00), short-term capital gains (an estimated $2.84) and net investment income (an estimated $0.28).     
These distributions may be reportable on your 2007 federal income tax return.  In January 2008, the Fund will send notices to stockholders regarding the federal income tax status of all distributions made in 2007. The Fund's distributions may also be subject to state and local taxes, and you should consult your tax adviser regarding your tax situation.

Q:  If I purchase CHN on the record date of December 21st, am I considered a stockholder of record and thus entitled to the distributions?
A:  You may not be considered a stockholder of record if you bought shares on December 21st because of settlement. Typically for stocks, the settlement period is three days (T+3) after the transaction.  This means that the buyer must transfer cash to the seller, and the seller must transfer ownership of the stock to the buyer within three days after the trade was made.  It is necessary to check with your Broker Dealer or Financial Adviser to confirm the settlement period for your stock trades.

Q:  If I want to receive these distributions, do I need to be a stockholder of record on December 21st?
A:  Yes.  Only stockholders of record on December 21, 2007 will be entitled to receive the distributions.  If you become a stockholder of record after December 21, 2007, you will not be entitled to the distributions.

Q:  Will the Fund be buying shares in the open market or issuing new shares for these distributions?
A:  The Fund will be issuing new shares.