SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
September 1, 2001
Date of Report (Date of Earliest Event Reported)
The China Fund, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Maryland 811-6651 000000000
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
225 Franklin Street, Boston, Massachusetts 02110
(Address of Principal Executive Offices) (Zip Code)
(212) 808-0500
(Registrant's Telephone Number, Including Area Code)
Item 9. Regulation FD Disclosure.
Pursuant to Regulation FD Rules 100-103, The China Fund, Inc. (the "Fund")
furnishes the September 2001 Monthly Update on the Fund by the Fund's Investment
Manager.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 23, 2001
By: /s/ Ann Casey
-----------------------------
Name: Ann Casey
Title: Secretary
----------------------
Insight
----------------------
The China Fund, Inc., (CHN)
September 2001
In brief... 30 September 2001
--------------------------------------------------------------------------------
Net Asset Value per share* US$12.64
Market Price* US$10.66
Premium/Discount* -15.66%
Fund size* US$127.4m
------------------------ -------------------- -------------------------
China Fund NAV MSCI Golden Dragon
1 month return* -9.03 -15.89
1 year return* -3.29 -40.61
------------------------ -------------------- -------------------------
*Source: State Street Corporation/Martin Currie Global Investors Limited
Objective
--------------------------------------------------------------------------------
The investment objective of the Fund is to achieve long term capital
appreciation through investment in companies and other entities with significant
assets, investments, production activities, trading or other business interests
in China or which derive a significant part of their revenue from China.
The Board of Directors of the Fund has adopted an operating policy of the Fund,
effective June 30, 2001, that the Fund will invest at least 80% of its assets in
China companies. For this purpose, "China companies" are (i) companies for which
the principal securities trading market is in China; (ii) companies for which
the principal securities trading market is outside of China or in companies
organised outside of China, that in both cases derive at least 50% of their
revenues from goods or services sold or produced, or have a least 50% of their
assets in China; and (iii) companies organized in China. Under the new policy,
China will mean the People's Republic of China, including Hong Kong, and Taiwan.
The Fund will provide its stockholders with at least 60 days' prior notice of
any change to the policy described above.
The fundamental policy, which applies to not less than 65% of the Fund's assets
as set out in the Fund's prospectus dated July 10, 1992, remains in place. The
fundamental policy is the same as the operating policy set out above, except
that China only includes the People's Republic of China.
Manager's Comments
--------------------------------------------------------------------------------
China stockmarkets fell heavily in the third quarter (MSCI Golden Dragon -26%)
as the extent of the slow-down in global economic growth became evident.
Investor sentiment was further undermined by the events of September 11. Whilst
China's export sector will inevitably be affected by a temporary reduction in US
demand, China's exporters remain internationally competitive - foreign exchange
reserves have now topped US$200bn. We believe that the Chinese currency is
likely to appreciate against the US dollar in the medium term. With its large,
domestic economy, we expect China's growth to remain relatively resilient. We
therefore feel that the extremely low prices - on which some of the Chinese
stocks now stand - represent excellent value for long-term investors. This is
particularly true of the private sector companies on which your Fund
concentrates.
Private sector companies, or "P" shares, are starting to receive attention from
the international investment community, disenchanted with the returns on
investment in state-owned enterprises. Your manager was speaking at a conference
of such companies on September 11 in New York. The benefits of such companies
can be summarized as:
o the managers are shareholders and therefore have a shared interest
with minority investors
o they lack the historical burdens of state-owned enterprises, in terms
of over-manning, debts, receivables and out-dated equipment
o they tend to be in newer, less capital-intensive industries with
better growth prospects
o managements are more flexible and should be better able to exploit
opportunities thrown up by the de-regulation of China's economy and
WTO entry
Investing in the Chinese private sector is not without risk. Entrepreneurs can
be distracted by unrelated projects. The companies are new and often lack an
understanding of capital markets. The private sector has only recently been
recognized in the Chinese constitution and private sector companies can be at a
disadvantage under existing legal and financial frameworks. However, we believe
that by investing in a selection of the best entrepreneurial companies, your
Fund spreads risk whilst maximizing potential returns for investors. Chinese "P"
shares in the portfolio include China Rare Earth, TCL (TV and electronics),
Global Biochem (corn starch and sweeteners), Xinao Gas (LNG distribution),
Euro-Asia (orchid seedlings), Asia Dekor (HDF flooring) and Luthai Textile.
Another way in which your Fund seeks to access opportunities in the Chinese
private sector is to invest in Taiwan-listed companies which derive a
substantial portion of their earnings from China. These companies often have the
advantage of being more mature than the Chinese "P" shares. Given that the
Taiwan market is now at an 8-year low, this is also currently a cheap way to
access Chinese growth. Such companies in the portfolio include Choice
Communications (printing), Pacific Construction (department stores), Premier
Image (cameras), Phoenixtech (uninterruptible power supplies) and Hotung
Chemical (petrochemicals).
The Fund is managed in a bottom-up fashion, by selecting individual companies
rather than taking a position relative to sector weightings. But we note that
the overall effect of these selections is that the Fund is currently biased
towards the consumer and energy sectors, and away from IT, telecoms and
financials. We estimate that the overall portfolio is trading on 9x 2000
earnings.
Fund Details*
--------------------------------------------------------------------------------
Market cap US$107m
Shares outstanding 10,073,173 shares
Exchange listed NYSE
Listing date July 10, 1992
Investment manager Martin Currie Global Investors Limited
Direct investment Asia Direct Capital Management Ltd
manager
Asset allocation (%)*
--------------------------------------------------------------------------------
Hong Kong 40.7%
Taiwan 33.5%
B shares 5.9%
New York 2.6%
Unlisted 5.4%
Singapore 3.0%
Cash 7.4%
Ten Largest Listed Investments (36.2%)*
---------------------------------- --------------------------- --------
China Petroleum & Chemical Energy 4.8%
Taipei Bank Financials 4.6%
Yanzhou Coal Mining Energy 4.5%
Huaneng Power International Energy 3.6%
Zheijiang Expressway Utilities 3.4%
Chunghwa Telecom Telecoms 3.4%
TCL International Holdings Information Technology 3.2%
Uni President Enterprises Consumer Discretionary 3.1%
Pacific Construction Consumer Discretionary 3.0%
Want Want Holdings Consumer Staples 2.7%
Unlisted Investments*
-----------------------------------------------------------
-----------------------------------------------------------
A-S China Plumbing Products
Moulin International Holdings (CB)
Road King Infrastructure
New World Sun City
Road King Infrastructure (Warrants)
Sector allocation (%)*
------------------------------- ---------------
% of net assets
Consumer Discretionary 16.3
Consumer Staples 7.8
Energy 8.1
Financials 7.5
Health Care 2.5
Industrials 11.3
Information Technology 11.0
Materials 5.6
Telecoms 4.6
Utilities 5.3
Other 12.6
Cash 7.4
Total 100.0
Performance (in US$ term)*
---------------------------------- --------------- --------------
As at 30 September 2001 NAV % Market Price %
One month -9.03 -5.83
Calendar year to date 1.43 15.24
3 years 31.61 51.29
Dividend History*
US$ Ex Date
0.1110 12/28/99
0.0780 12/23/98
0.5003 12/23/97
0.0834 12/27/96
0.0910 12/31/95
0.6099 12/31/94
0.9103 12/31/93
0.0550 12/31/92
Fund Performance
----------------------------------- -------- -------- -------- -------- ------- -------- ---------
One Three Year One Three Five Since
Fund performance Month Months To date Year Years Years Launch #
The China Fund, Inc. -9.03 -20.46 1.43 -3.29 31.61 -0.19 8.51
MSCI Golden Dragon -15.89 -25.97 -31.91 -40.61 -8.57 -39.83 -
Hang Seng Chinese Enterprise Index -5.63 -25.60 5.85 -13.04 5.99 -51.04 -
Source: * State Street Corporation / MCGI. # The Fund was launched on July 10, 1992
Performance in perspective
------------------------------------------------------
The China Fund Inc. vs MSCI Golden Dragon
Date Fund Index
--------- ------ -----
17-Jul-92 13.83
31-Jul-92 13.17
31-Aug-92 13.20
30-Sep-92 13.17
31-Oct-92 13.51
30-Nov-92 14.23
31-Dec-92 13.00
31-Jan-93 14.25
28-Feb-93 14.80
31-Mar-93 14.97
30-Apr-93 15.55
31-May-93 15.60
30-Jun-93 14.97
31-Jul-93 14.32
31-Aug-93 15.15
30-Sep-93 15.29
31-Oct-93 17.35
30-Nov-93 18.05
27-Dec-93 19.28
31-Dec-93 20.18
31-Jan-94 18.21
28-Feb-94 17.09
31-Mar-94 15.64
30-Apr-94 14.52
31-May-94 14.96
30-Jun-94 14.16
31-Jul-94 14.85
31-Aug-94 15.44
30-Sep-94 15.50
31-Oct-94 15.25
30-Nov-94 13.76
23-Dec-94 12.62
31-Dec-94 12.60
31-Jan-95 11.17
28-Feb-95 11.75
31-Mar-95 11.78
30-Apr-95 11.45
31-May-95 12.36
30-Jun-95 12.21
31-Jul-95 12.65
31-Aug-95 12.31
30-Sep-95 12.49
31-Oct-95 12.87
30-Nov-95 12.41
29-Dec-95 12.23
31-Dec-95 12.23
31-Jan-96 13.44
29-Feb-96 13.49
31-Mar-96 12.82
30-Apr-96 12.70
31-May-96 12.94
30-Jun-96 12.87
31-Jul-96 12.83
31-Aug-96 13.33
30-Sep-96 13.60
31-Oct-96 -4.60 13.24
30-Nov-96 3.37 14.73
31-Dec-96 11.07 16.33
31-Jan-97 1.80 16.55
28-Feb-97 3.16 17.35
31-Mar-97 2.27 16.87
30-Apr-97 6.61 18.57
31-May-97 2.35 20.38
30-Jun-97 -1.21 21.62
31-Jul-97 -0.57 23.00
31-Aug-97 13.03 23.37
30-Sep-97 -5.88 22.02
31-Oct-97 5.05 16.97
30-Nov-97 -10.54 15.03
31-Dec-97 -4.75 14.53
31-Jan-98 -10.98 11.45
28-Feb-98 4.66 14.44
31-Mar-98 0.05 13.99
30-Apr-98 2.52 12.88
31-May-98 2.90 11.63
30-Jun-98 -8.15 10.05
31-Jul-98 -7.95 8.72
31-Aug-98 -3.05 7.54
30-Sep-98 13.76 9.80
31-Oct-98 -12.33 10.84
30-Nov-98 -2.13 10.80
28-Dec-98 0.52 10.28
31-Dec-98 1.07 10.39
31-Jan-99 -7.49 9.05
28-Feb-99 -4.68 8.80
31-Mar-99 -2.99 9.57
30-Apr-99 3.48 11.72
31-May-99 4.21 11.38
30-Jun-99 17.91 15.35
31-Jul-99 -2.38 14.01
31-Aug-99 -3.69 14.12
30-Sep-99 0.04 13.43
31-Oct-99 -9.09 12.74
30-Nov-99 1.71 14.06
28-Dec-99 -5.57 14.41
31-Dec-99 -1.48 14.20
31-Jan-00 -3.64 13.75
29-Feb-00 -4.26 13.37
31-Mar-00 6.65 14.71
30-Apr-00 -4.02 12.71
31-May-00 4.42 12.45
30-Jun-00 5.72 13.53
31-Jul-00 5.43 14.54
31-Aug-00 1.04 14.32
30-Sep-00 3.29 13.07
31-Oct-00 3.31 12.37
30-Nov-00 0.76 11.63
31-Dec-00 5.03 12.47
31-Jan-01 -11.30 12.53
28-Feb-01 11.33 13.23
31-Mar-01 13.53 13.76
30-Apr-01 7.31 14.58
31-May-01 14.53 16.28
30-Jun-01 0.63 15.90
31-Jul-01 -4.32 14.26
31-Aug-01 #N/A 13.90
30-Sep-01 #N/A 12.64
The China Fund, Inc. Premium/discount
---------------------------------------------
DATE Premium/Discount
31-Jul-92 14.07%
17-Jul-92 8.46%
31-Jul-92 10.10%
7-Aug-92 1.99%
14-Aug-92 1.99%
21-Aug-92 -7.88%
28-Aug-92 -4.54%
4-Sep-92 -4.61%
18-Sep-92 -9.11%
25-Sep-92 -13.67%
2-Oct-92 -13.42%
9-Oct-92 -13.67%
16-Oct-92 -13.58%
23-Oct-92 -3.17%
30-Oct-92 -1.55%
6-Nov-92 0.81%
13-Nov-92 1.99%
20-Nov-92 1.59%
27-Nov-92 1.40%
4-Dec-92 -2.10%
11-Dec-92 -4.05%
18-Dec-92 -5.22%
25-Dec-92 -1.53%
1-Jan-93 -8.39%
8-Jan-93 -0.81%
15-Jan-93 -2.71%
22-Jan-93 -3.65%
29-Jan-93 -7.02%
5-Feb-93 -4.59%
12-Feb-93 -4.98%
19-Feb-93 -4.31%
26-Feb-93 -7.09%
5-Mar-93 -5.52%
12-Mar-93 -3.26%
19-Mar-93 -1.83%
26-Mar-93 -7.44%
2-Apr-93 -3.33%
9-Apr-93 4.54%
16-Apr-93 1.91%
23-Apr-93 1.46%
30-Apr-93 7.72%
7-May-93 7.37%
14-May-93 15.76%
21-May-93 12.01%
28-May-93 14.58%
4-Jun-93 15.95%
11-Jun-93 14.08%
18-Jun-93 14.83%
25-Jun-93 14.09%
2-Jul-93 10.98%
9-Jul-93 15.57%
16-Jul-93 12.78%
23-Jul-93 5.89%
30-Jul-93 11.31%
6-Aug-93 14.87%
13-Aug-93 15.62%
20-Aug-93 10.10%
27-Aug-93 9.78%
3-Sep-93 11.02%
10-Sep-93 4.03%
17-Sep-93 2.92%
24-Sep-93 5.40%
1-Oct-93 9.48%
8-Oct-93 12.55%
15-Oct-93 10.25%
22-Oct-93 11.65%
29-Oct-93 6.63%
5-Nov-93 4.53%
12-Nov-93 2.04%
19-Nov-93 1.35%
26-Nov-93 -0.47%
3-Dec-93 5.75%
10-Dec-93 16.73%
17-Dec-93 25.94%
24-Dec-93 21.63%
31-Dec-93 39.99%
7-Jan-94 21.38%
14-Jan-94 27.76%
21-Jan-94 24.80%
28-Jan-94 27.52%
4-Feb-94 19.88%
11-Feb-94 23.48%
18-Feb-94 24.50%
25-Feb-94 20.04%
4-Mar-94 25.23%
11-Mar-94 25.61%
18-Mar-94 21.53%
25-Mar-94 20.87%
1-Apr-94 17.49%
8-Apr-94 9.80%
15-Apr-94 6.72%
22-Apr-94 -1.42%
29-Apr-94 10.19%
6-May-94 9.00%
13-May-94 9.60%
20-May-94 14.80%
27-May-94 24.92%
3-Jun-94 29.98%
10-Jun-94 18.28%
17-Jun-94 18.31%
24-Jun-94 15.21%
1-Jul-94 14.44%
8-Jul-94 13.80%
15-Jul-94 17.68%
22-Jul-94 15.45%
29-Jul-94 13.64%
5-Aug-94 17.55%
12-Aug-94 18.16%
19-Aug-94 21.53%
26-Aug-94 18.85%
2-Sep-94 20.97%
9-Sep-94 15.84%
16-Sep-94 16.50%
23-Sep-94 15.24%
30-Sep-94 11.29%
7-Oct-94 10.56%
14-Oct-94 12.07%
21-Oct-94 11.97%
28-Oct-94 12.43%
4-Nov-94 9.88%
11-Nov-94 8.81%
18-Nov-94 7.63%
25-Nov-94 7.45%
2-Dec-94 7.60%
9-Dec-94 4.65%
16-Dec-94 8.90%
23-Dec-94 -5.90%
30-Dec-94 0.20%
6-Jan-95 4.08%
13-Jan-95 14.04%
20-Jan-95 10.00%
27-Jan-95 11.91%
3-Feb-95 12.62%
10-Feb-95 9.39%
17-Feb-95 10.92%
24-Feb-95 11.11%
3-Mar-95 7.48%
10-Mar-95 5.82%
17-Mar-95 9.82%
24-Mar-95 6.96%
31-Mar-95 6.11%
7-Apr-95 7.02%
14-Apr-95 4.87%
21-Apr-95 3.72%
28-Apr-95 6.99%
5-May-95 9.69%
12-May-95 19.24%
19-May-95 9.50%
26-May-95 8.39%
2-Jun-95 10.18%
9-Jun-95 8.92%
16-Jun-95 6.88%
23-Jun-95 5.19%
30-Jun-95 2.38%
7-Jul-95 6.91%
14-Jul-95 3.27%
21-Jul-95 2.59%
28-Jul-95 1.94%
4-Aug-95 1.62%
11-Aug-95 -2.14%
18-Aug-95 -0.65%
25-Aug-95 1.73%
1-Sep-95 1.54%
8-Sep-95 -3.54%
15-Sep-95 0.43%
22-Sep-95 -1.63%
29-Sep-95 2.08%
6-Oct-95 -1.34%
13-Oct-95 -3.92%
20-Oct-95 -6.30%
27-Oct-95 -5.64%
3-Nov-95 -7.44%
10-Nov-95 -4.94%
17-Nov-95 -2.00%
24-Nov-95 -2.66%
1-Dec-95 -4.54%
8-Dec-95 2.48%
15-Dec-95 -3.22%
22-Dec-95 0.74%
29-Dec-95 -3.92%
5-Jan-96 9.87%
12-Jan-96 15.04%
19-Jan-96 16.57%
26-Jan-96 14.58%
2-Feb-96 10.70%
9-Feb-96 4.40%
16-Feb-96 3.11%
23-Feb-96 -1.68%
1-Mar-96 -0.85%
8-Mar-96 -6.64%
15-Mar-96 2.36%
22-Mar-96 0.23%
29-Mar-96 4.33%
5-Apr-96 1.12%
12-Apr-96 -2.04%
19-Apr-96 -2.56%
26-Apr-96 -3.69%
3-May-96 2.52%
10-May-96 3.59%
17-May-96 -0.87%
24-May-96 -3.09%
31-May-96 -5.33%
7-Jun-96 -5.64%
14-Jun-96 -6.76%
21-Jun-96 -4.52%
28-Jun-96 -5.79%
5-Jul-96 -7.05%
12-Jul-96 -6.61%
19-Jul-96 -7.83%
26-Jul-96 -11.89%
2-Aug-96 -9.13%
9-Aug-96 -11.60%
16-Aug-96 -14.47%
23-Aug-96 -11.05%
30-Aug-96 -10.92%
6-Sep-96 -10.11%
13-Sep-96 -7.23%
20-Sep-96 -7.99%
27-Sep-96 -10.19%
4-Oct-96 -10.39%
11-Oct-96 -13.58%
18-Oct-96 -12.81%
25-Oct-96 -13.92%
1-Nov-96 -11.52%
8-Nov-96 -15.05%
15-Nov-96 -12.81%
22-Nov-96 -10.09%
29-Nov-96 -10.90%
6-Dec-96 -14.14%
13-Dec-96 -16.61%
20-Dec-96 -16.34%
27-Dec-96 -18.15%
3-Jan-97 -21.31%
10-Jan-97 -17.33%
17-Jan-97 -15.63%
24-Jan-97 -18.35%
31-Jan-97 -17.67%
7-Feb-97 -18.32%
14-Feb-97 -17.94%
21-Feb-97 -19.81%
28-Feb-97 -21.47%
7-Mar-97 -19.95%
14-Mar-97 -18.46%
21-Mar-97 -15.87%
28-Mar-97 -20.12%
4-Apr-97 -19.11%
11-Apr-97 -22.10%
18-Apr-97 -20.95%
25-Apr-97 -23.57%
2-May-97 -19.16%
9-May-97 -18.52%
16-May-97 -17.52%
23-May-97 -24.65%
30-May-97 -20.26%
6-Jun-97 -18.96%
13-Jun-97 -16.45%
20-Jun-97 -21.69%
27-Jun-97 -20.61%
4-Jul-97 -17.22%
11-Jul-97 -16.73%
18-Jul-97 -20.95%
25-Jul-97 -20.69%
1-Aug-97 -18.61%
8-Aug-97 -21.22%
15-Aug-97 -22.58%
22-Aug-97 -25.56%
29-Aug-97 -24.05%
5-Sep-97 -16.72%
12-Sep-97 -25.14%
19-Sep-97 -17.51%
26-Sep-97 -17.05%
3-Oct-97 -21.24%
10-Oct-97 -17.32%
17-Oct-97 -21.02%
24-Oct-97 -16.69%
31-Oct-97 -21.73%
7-Nov-97 -19.93%
14-Nov-97 -19.53%
21-Nov-97 -14.38%
28-Nov-97 -15.59%
5-Dec-97 -18.64%
12-Dec-97 -19.52%
19-Dec-97 -19.01%
26-Dec-97 -16.28%
2-Jan-98 -13.73%
9-Jan-98 -10.56%
16-Jan-98 -3.80%
23-Jan-98 -8.95%
30-Jan-98 -1.75%
6-Feb-98 -13.63%
13-Feb-98 -11.05%
20-Feb-98 -13.44%
27-Feb-98 -15.17%
6-Mar-98 -13.43%
13-Mar-98 -17.16%
20-Mar-98 -17.55%
27-Mar-98 -18.52%
3-Apr-98 -18.06%
10-Apr-98 -17.76%
17-Apr-98 -19.75%
24-Apr-98 -19.54%
1-May-98 -16.86%
8-May-98 -20.18%
15-May-98 -21.49%
22-May-98 -18.86%
29-May-98 -21.54%
5-Jun-98 -18.31%
12-Jun-98 -17.91%
19-Jun-98 -17.13%
26-Jun-98 -13.16%
3-Jul-98 -12.52%
10-Jul-98 -12.41%
17-Jul-98 -7.08%
24-Jul-98 -13.44%
31-Jul-98 -14.71%
7-Aug-98 -15.35%
14-Aug-98 -18.65%
21-Aug-98 -18.65%
28-Aug-98 -21.35%
4-Sep-98 -34.91%
11-Sep-98 -28.05%
18-Sep-98 -24.67%
25-Sep-98 -30.42%
2-Oct-98 -29.21%
9-Oct-98 -28.45%
16-Oct-98 -19.06%
23-Oct-98 -18.76%
30-Oct-98 -19.43%
6-Nov-98 -18.93%
13-Nov-98 -22.57%
20-Nov-98 -16.37%
27-Nov-98 -15.57%
4-Dec-98 -17.97%
11-Dec-98 -24.74%
18-Dec-98 -22.10%
25-Dec-98 -23.53%
1-Jan-99 -20.60%
8-Jan-99 -16.87%
15-Jan-99 -13.72%
22-Jan-99 -18.35%
29-Jan-99 -22.65%
5-Feb-99 -17.65%
12-Feb-99 -17.71%
19-Feb-99 -18.51%
26-Feb-99 -21.16%
5-Mar-99 -20.45%
12-Mar-99 -17.84%
19-Mar-99 -23.65%
26-Mar-99 -19.23%
2-Apr-99 -19.37%
9-Apr-99 -20.01%
16-Apr-99 -17.49%
23-Apr-99 -19.69%
30-Apr-99 -19.48%
7-May-99 -21.75%
14-May-99 -22.76%
21-May-99 -22.01%
28-May-99 -19.27%
4-Jun-99 -21.01%
11-Jun-99 -23.12%
18-Jun-99 -15.44%
25-Jun-99 -20.63%
2-Jul-99 -21.47%
9-Jul-99 -21.26%
16-Jul-99 -21.77%
23-Jul-99 -21.75%
30-Jul-99 -21.93%
6-Aug-99 -21.76%
13-Aug-99 -21.44%
20-Aug-99 -22.65%
27-Aug-99 -24.14%
3-Sep-99 -22.44%
10-Sep-99 -23.35%
17-Sep-99 -23.45%
24-Sep-99 -24.04%
1-Oct-99 -24.14%
8-Oct-99 -21.52%
15-Oct-99 -22.45%
22-Oct-99 -26.21%
29-Oct-99 -22.00%
5-Nov-99 -21.70%
12-Nov-99 -22.57%
19-Nov-99 -16.67%
26-Nov-99 -20.28%
3-Dec-99 -21.60%
10-Dec-99 -23.44%
17-Dec-99 -27.70%
24-Dec-99 -24.48%
31-Dec-99 -25.17%
7-Jan-00 -25.16%
14-Jan-00 -21.65%
21-Jan-00 -24.59%
28-Jan-00 -26.63%
4-Feb-00 -24.80%
11-Feb-00 -27.41%
18-Feb-00 -23.54%
25-Feb-00 -23.62%
3-Mar-00 -29.53%
10-Mar-00 -30.75%
17-Mar-00 -28.26%
24-Mar-00 -32.40%
31-Mar-00 -28.19%
7-Apr-00 -28.14%
14-Apr-00 -31.36%
21-Apr-00 -28.48%
28-Apr-00 -29.20%
5-May-00 -31.73%
12-May-00 -28.88%
19-May-00 -29.49%
26-May-00 -24.45%
2-Jun-00 -29.72%
9-Jun-00 -29.91%
16-Jun-00 -30.05%
23-Jun-00 -31.03%
30-Jun-00 -29.33%
7-Jul-00 -28.98%
14-Jul-00 -28.77%
21-Jul-00 -29.98%
28-Jul-00 -24.71%
4-Aug-00 -29.83%
11-Aug-00 -26.07%
18-Aug-00 -27.87%
25-Aug-00 -26.60%
1-Sep-00 -27.84%
8-Sep-00 -26.78%
15-Sep-00 -28.13%
22-Sep-00 -26.04%
29-Sep-00 -27.31%
6-Oct-00 -24.62%
13-Oct-00 -23.94%
20-Oct-00 -26.50%
27-Oct-00 -28.35%
3-Nov-00 -27.96%
10-Nov-00 -26.36%
17-Nov-00 -25.49%
24-Nov-00 -26.14%
1-Dec-00 -25.73%
8-Dec-00 -25.79%
15-Dec-00 -25.66%
22-Dec-00 -25.93%
29-Dec-00 -25.82%
5-Jan-00 -24.24%
12-Jan-00 -24.84%
19-Jan-00 -20.38%
26-Jan-00 -21.88%
2-Feb-01 -22.28%
9-Feb-01 -23.10%
16-Feb-01 -21.06%
23-Feb-01 -18.80%
2-Mar-01 -19.29%
9-Mar-01 -21.27%
16-Mar-01 -23.76%
23-Mar-01 -24.25%
30-Mar-01 -21.88%
6-Apr-01 -21.18%
13-Apr-01 -20.79%
20-Apr-01 -20.54%
27-Apr-01 -21.94%
4-May-01 -19.93%
11-May-01 -19.35%
18-May-01 -19.26%
25-May-01 -19.39%
1-Jun-01 -17.67%
8-Jun-01 -16.37%
15-Jun-01 -17.10%
22-Jun-01 -19.03%
29-Jun-01 -16.54%
6-Jul-01 -18.06%
13-Jul-01 -13.35%
20-Jul-01 -18.67%
27-Jul-01 -19.60%
3-Aug-01 -18.61%
10-Aug-01 -20.08%
17-Aug-01 -18.66%
24-Aug-01 -15.34%
31-Aug-01 -18.56%
7-Sep-01 -15.32%
21-Sep-01 -20.28%
28-Sep-01 -15.66%
-------------------------------------------------------------------------------
The performance and premium/discount are based on 28 September 2001
*Source: State Street Corporation
------------------------------------------------------------------------------------------------------------------------------------
The portfolio - in full at 30 September 2001
------------------------------------------------------------------------------------------------------------------------------------
Sector Company (code) Price % of portfolio
Hong Kong 40.9% China Petroleum & Chemical Corp 0386.JK HK$1.09 4.8%
Yanzhou Coal Mining 1171.HK HK$2.35 4.5%
Huaneng Power International 0902.HK HK$4.425 3.7%
Zhejiang Expressway 0576.HK HK$1.71 3.4%
TCL International 1070.HK HK$0.78 3.2%
TPV Holdings Ltd 0903.HK HK$1.52 2.2%
Shangri-La Asia 0069.HK HK$4.2 2.1%
China Rare Earth 0769.HK HK1.74 2.1%
Beijing Capital International Airport 0697.HK HK$1.82 1.9%
Brilliance China 1114.HK HK$1.13 1.8%
Euro - Asia Agriculture 0932.HK HK$1.36 1.3%
Global Biotech 0809.HK HK$1.87 1.3%
Xinao Gas 8149.HK HK$1.85 1.3%
China Overseas Land & Investment 0688.HK HK$0.74 1.2%
Asia Satellite 1135.HK HK$10.2 1.2%
Life Tech 1180.HK HK$0.233 1.2%
Fountain Set 0420.HK HK$0.85 1.1%
Arcontech 8097.HK HK$1.04 0.9%
Chen Hsong 0057.HK HK$1.18 0.8%
Road King Infrastructure 1098.HK HK$2.5 0.5%
Automated Systems Holdings 0771.HK HK$2 0.4%
Taiwan 33.3% Taipei Bank 2830.TW NT$16.5 4.5%
Chunghwa Telecom 2412.TW NT$44.9 3.3%
Uni-President Enterprises 1216.TW NT$11.9 3.1%
Pacific Construction 2506.TW NT$4.04 3.0%
Ho Tung Chemical 1714.TW NT$17.7 2.5%
Choice Lithograph 9929.TW NT$10.95 2.2%
Taiwan Secom 9917.TW NT$28.3 2.1%
Premier Image Technology 2394.TW NT$45 2.1%
China Synthetic Rubber 2104.TW NT$8.9 1.9%
Phoenixtech 2411.TW NT$20.7 1.8%
Teco 1504.TW NT$9.6 1.8%
Polaris Securities 6011.TW NT$9.65 1.8%
Giant Manufacturing 9921.TW NT$34.7 1.6%
Advantech 2395.TW NT$64 1.4%
Sunplus 2401.TW NT$65.5 0.2%
B shares 5.9% Shanghai Friendship 90923.SS US$0.891 2.0%
Eastern Communication 900941.SS US$1.192 1.6%
Shanghai Matsuoka 900955.SS US$1.524 1.2%
Luthai Textile 2726.SZ HK$7.12 1.1%
New York 2.7% Chinadotcom China.O US$1.943 2.7%
Unlisted 5.3% America Standard China 3.3%
Moulin International Holdings Convertible Bond 2004 1.5%
New World Sun City Ltd 0.5%
Singapore 3.0% Want Want Holdings WANT.SI US$1.82 2.7%
Asia Dekor ADEK.SI US$0.08 0.3%
Cash 7.4%
Contacts
--------------------------------------------------------------------------------
The China Fund Inc
c/o State Street Bank and Trust Company
225 Franklin Street
Boston MA 02110
Tel: (1) 888 CHN-CALL (246 2255)
Important Information: This newsletter is issued by Martin Currie Global
Investors Limited, Saltire Court, 20 Castle Terrace, Edinburgh, Scotland.
Regulated by IMRO and registered with the Securities Exchange Commission as an
investment adviser. Information herein is believed to be reliable but has not
been verified by Martin Currie Global Investors Limited. Martin Currie Global
Investors Limited makes no representation or warranty and does not accept any
responsibility in relation to such information or for opinion or conclusion
which the reader may draw from the newsletter. This newsletter does not
constitute an offer of shares. Martin Currie Global Investors Limited, its
ultimate and intermediate holding companies, subsidiaries, affiliates, clients,
directors or staff may, at any time, have a position in the market referred to
herein, and may buy or sell securities, currencies, or any other financial
instruments in such markets. The information or opinion expressed in this
newsletter should not be construed to be a recommendation to buy or sell the
securities, commodities, currencies, or financial instruments referred to
herein. Investors are advised that they will not generally benefit from the
rules and regulations of the United Kingdom Financial Services Act 1986, the
Financial Services Authority and the Securities and Futures Authority for the
protection of investors nor benefit from the United Kingdom Investors
Compensation Scheme nor have access to IMRO's Investment Ombudsman in the event
of a dispute. Investors will also have no rights of cancellation under the
Financial Services (Cancellation) Rules 1989 (as amended) of the United Kingdom.
Please remember that past performance is not necessarily a guide to the future.
Market and currency movements may cause the value of the shares and the income
from them to fluctuate and you may get back less than you invested when you
decide to sell your shares.