The China Fund, Inc. Announces Response to City of London Letter
New York, New York, August 15, 2017—The China Fund, Inc. (NYSE: CHN) (the “Fund”) announced today that it had sent a response to the letter City of London Investment Group PLC (“City of London”) had attached to its August 10, 2017 Form 13D filing with the SEC with respect to the Fund. In the letter, City of London states its opposition to the selection by the Board of the Fund of Open Door Investment Management Ltd. (“Open Door”) as the Fund’s new investment manager and to the Board’s continued effort to seek stockholder approval of that selection. In the response, the Fund stated:
The Fund’s Board believes it is in the best interest of the Fund and its stockholders to approve Open Door. The Board is seeing strong stockholder support for its position, with over 60% of the shares that have voted voting in favor of the selection of Open Door.
It is clear that the Fund’s stockholders, as a whole, favor the Open Door proposal; however, the favorable vote is not quite at the required level for regulatory purposes (a majority of the outstanding shares). In view of the strong stockholder support, the Board feels it has a responsibility to give all stockholders who have not yet voted an opportunity to vote before the voting deadline of August 30.
A copy of the full response is attached to this press release.
The Fund is a closed-end management investment company with the investment objective of long-term capital appreciation which it seeks to achieve by investing primarily in equity securities (i) of companies for which the principal securities trading market is the People’s Republic of China (“China”), (ii) of companies for which the principal securities trading market is outside of China, or constituting direct equity investments in companies organized outside of China, that in both cases derive at least 50% of their revenues from goods and services sold or produced, or have at least 50% of their assets, in China and (iii) constituting direct equity investments in companies organized in China. The China Fund, Inc. is listed on the New York Stock Exchange under the ticker symbol “CHN”.
For further information regarding the Fund and the Fund’s holdings, please call (888)-CHN-CALL or visit the Fund’s website at www.chinafundinc.com.
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