nvq
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: -811-05749
 
THE CHINA FUND, INC.
 
(Exact name of registrant as specified in charter)
c/o STATE STREET BANK AND TRUST COMPANY
2 AVENUE DE LAFAYETTE
P.O. BOX 5049
BOSTON, MA 02206-5049
 
(Address of principal executive offices)(Zip code)
     
(Name and Address of Agent for   Copy to:
Service)    
     
Tracie A. Coop   Leonard B. Mackey, Jr., Esq.
Secretary   Clifford Chance U.S. LLP
The China Fund, Inc.   31 West 52nd Street
4 Copley Place, 5th Floor   New York, New York 10019
Boston, MA 02116    
Registrant’s telephone number, including area code: (888) 246-2255
Date of fiscal year end: October 31
Date of reporting period: January 31, 2011
 
 

 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Item 3. Exhibits
SIGNATURES
Certifications

Table of Contents

Item 1. Schedule of Investments.

 

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS
January 31, 2011 (Unaudited)
                 
Name of Issuer and Title of Issue   Shares     Value (Note A)  
COMMON STOCK AND OTHER EQUITY INTERESTS
                
HONG KONG
                
Consumer Discretionary — (8.7%)
                
FU JI Food & Catering Services *^#(2)
     5,462,000     $ —  
Huiyin Household Appliances Holdings Co., Ltd. *#†(2)
     160,413,750       38,081,271  
Intime Department Store Group Co., Ltd.
     5,278,629       7,708,352  
Ports Design, Ltd. (1)
     4,549,500       12,522,443  
Shangri-La Asia, Ltd. Rights (expiration 02/07/11) #(1)
     255,128       9,330  
Shangri-La Asia, Ltd. (1)
     3,061,555       7,975,101  
Yorkey Optical International Cayman, Ltd. #
     4,880,926       901,909  
 
              
 
             67,198,406  
 
              
Consumer Staples — (2.8%)
                
Chaoda Modern Agriculture (Holdings), Ltd. (1)
     13,999,357       9,952,128  
Natural Beauty Bio-Technology, Ltd. #
     47,710,000       11,326,071  
 
              
 
             21,278,199  
 
              
Health Care — (1.6%)
                
China Shineway Pharmaceutical Group, Ltd. (1)
     2,222,000       5,605,646  
Golden Meditech Co., Ltd. # (1)
     35,040,000       6,564,703  
 
              
 
             12,170,349  
 
              
Telecommunications — (1.7%)
                
China Mobile, Ltd.
     1,365,500       13,430,803  
 
              
Utilities — (2.9%)
                
China Water Affairs Group, Ltd. (1)
     19,976,000       7,587,494  
Enn Energy Holdings, Ltd. (1)
     5,084,000       15,070,082  
 
              
 
             22,657,576  
 
              
TOTAL HONG KONG — (Cost $94,480,303)
     17.7 %     136,735,333  
 
            
HONG KONG — “H” SHARES
                
Consumer Discretionary — (2.4%)
                
Boshiwa International Holding, Ltd. *#
     24,932,000       18,939,867  
 
              
Consumer Staples — (3.7%)
                
Asian Citrus Holdings, Ltd. (1)
     6,677,000       7,968,240  
Wumart Stores, Inc. #(1)
     9,889,000       20,760,308  
 
              
 
             28,728,548  
 
              
Health Care — (14.5%)
                
China Medical System Holdings, Ltd. *#†
     72,353,760       66,848,507  
See notes to schedule to investments.

1

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
January 31, 2011 (Unaudited)
                 
Name of Issuer and Title of Issue   Shares     Value (Note A)  
COMMON STOCK AND OTHER EQUITY INTERESTS (continued)
                
HONG KONG — “H” SHARES (continued)
                
Shandong Weigao Group Medical Polymer Co., Ltd. #(1)
     9,176,000     $ 23,784,985  
Sinopharm Group Co., Ltd. (1)
     6,056,800       21,412,282  
 
              
 
             112,045,774  
 
              
Industrials — (0.9%)
                
Fook Woo Group Holdings, Ltd. *(1)
     19,836,000       7,127,057  
 
              
Telecommunications — (1.0%)
                
ZTE Corp. (1)
     1,875,689       7,377,164  
 
              
TOTAL HONG KONG — “H” SHARES — (Cost $71,997,419)
     22.5 %     174,218,410  
 
            
TOTAL HONG KONG (INCLUDING “H” SHARES) — (Cost $166,477,722)
     40.2 %     310,953,743  
 
            
SINGAPORE
                
Consumer Staples — (6.0%)
                
China Fishery Group, Ltd. #(1)
     13,255,000       22,894,529  
Hsu Fu Chi International, Ltd. #
     9,484,000       23,719,265  
 
              
 
             46,613,794  
 
              
Financials — (0.6%)
                
Financial One Corp.*#(1)
     12,030,000       4,842,087  
 
              
Information Technology — (0.4%)
                
CDW Holding, Ltd. #†
     48,208,000       3,108,371  
 
              
TOTAL SINGAPORE — (Cost $22,654,775)
     7.0 %     54,564,252  
 
            
TAIWAN
                
Consumer Discretionary — (7.6%)
                
FamilyMart Co., Ltd. #
     4,501,652       15,969,078  
Far Eastern Department Stores, Ltd. (1)
     19,543,604       34,933,548  
Synnex Technology International Corp. (1)
     3,088,006       8,146,623  
 
              
 
             59,049,249  
 
              
Consumer Staples — (2.7%)
                
Lien Hwa Industrial Corp.
     8,724,881       6,926,297  
Uni-President Enterprises Corp.
     10,023,901       13,774,643  
 
              
 
             20,700,940  
 
              
See notes to schedule to investments.

2

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
January 31, 2011 (Unaudited)
                 
Name of Issuer and Title of Issue   Shares     Value (Note A)  
COMMON STOCK AND OTHER EQUITY INTERESTS (continued)
                
TAIWAN (continued)
                
Financials — (7.8%)
                
Chinatrust Financial Holding Co., Ltd. (1)
     17,527,288     $ 14,970,527  
Fubon Financial Holdings Co., Ltd.
     5,195,134       7,264,295  
KGI Securities Co., Ltd.
     16,984,780       9,856,677  
Ruentex Development Co., Ltd. (1)
     12,694,000       19,236,314  
Yuanta Financial Holdings Co., Ltd.
     10,520,593       8,533,002  
 
              
 
             59,860,815  
 
              
                 
    Face Amount          
Financials — (1.0%)
                
Taiwan Life Insurance Co., Ltd. 4.0% 12/28/14 #†@(2)
   NT$200,000,000       8,217,527  
 
              
                 
    Shares          
Information Technology — (1.4%)
                
WPG Holdings Co., Ltd.
     5,335,103       10,510,165  
 
              
Materials — (1.6%)
                
China Metal Products Co., Ltd. #
     11,500,347       12,793,346  
 
              
TOTAL TAIWAN — (Cost $81,848,660)
     22.1 %     171,132,042  
 
            
UNITED STATES
                
Energy — (1.3%)
                
Far East Energy Corp. *#†
     16,392,823       9,835,694  
 
              
Health Care — (2.9%)
                
Mindray Medical International, Ltd., ADR (1)
     291,700       7,630,872  
WuXi PharmaTech Cayman, Inc., ADR *
     883,490       15,072,339  
 
              
 
             22,703,211  
 
              
Information Technology — (1.1%)
                
Hollysys Automation Technologies, Ltd. *(1)
     530,200       8,509,710  
 
              
TOTAL UNITED STATES — (Cost $33,574,182)
     5.3 %     41,048,615  
 
            
TOTAL COMMON STOCK AND OTHER EQUITY INTERESTS — (Cost $304,555,339)
     74.6 %     577,698,652  
 
            
See notes to schedule to investments.

3

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
January 31, 2011 (Unaudited)
                 
Name of Issuer and Title of Issue   Shares     Value (Note A)  
EQUITY LINKED SECURITIES
                
Consumer Discretionary — (1.0%)
                
Shanghai Yuyuan Tourist Mart Co., Ltd. Access Product (expiration 03/26/14) 144A (4)
     4,293,036     $ 8,010,028  
 
              
Consumer Staples — (0.9%)
                
Wuliangye Yibin Co., Ltd. Access Product (expiration 01/20/15) 144A *(3)
     1,403,507       6,997,886  
 
              
Financials — (6.1%)
                
Ping An Insurance (Group) Company of China, Ltd. Access Product (expiration 01/17/12) 144A *(3)
     1,114,259       8,386,896  
Ping An Insurance (Group) Company of China, Ltd. Access Product (expiration 04/01/13) 144A *(4)
     2,661,500       20,032,797  
Zhejiang China Commodities City Group Co., Ltd. Access Product (expiration 01/17/12) 144A *(3)
     2,771,970       13,449,598  
Zhejiang Guyuelongshan, Ltd. Access Product (expiration 10/07/13) 144A *(4)
     3,022,849       5,672,134  
 
              
 
             47,541,425  
 
              
Industrials — (3.4%)
                
China Railway Construction Corp., Ltd. Access Product (expiration 01/17/12) 144A *(3)
     3,932,600       4,734,850  
Qinghai Salt Lake Potash Co., Ltd. Access Product (expiration 01/20/15) 144A *(3)
     178,729       1,513,093  
Shanghai Qiangsheng Holding Co., Ltd. Access Product (expiration 01/17/12) 144A *(3)
     4,237,252       4,620,355  
Shanghai Qiangsheng Holding Co., Ltd. Access Product (expiration 11/13/14) 144A *(4)
     6,245,400       6,810,065  
Suning Appliance Co., Ltd. Access Product (expiration 01/20/15) 144A * (3)
     4,311,019       8,190,936  
 
              
 
             25,869,299  
 
              
Materials — (1.0%)
                
Tangshan Jidong Cement Co., Ltd. Access Product (expiration 08/11/15) 144A *(4)
     1,366,387       4,620,842  
Tangshan Jidong Cement Co., Ltd. Access Product (expiraton 01/20/15) 144A *(3)
     987,700       3,347,316  
 
              
 
             7,968,158  
 
              
TOTAL EQUITY LINKED SECURITIES — (Cost $76,593,504)
     12.4 %     96,386,796  
 
            
See notes to schedule to investments.

4

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
January 31, 2011 (Unaudited)
                 
Name of Issuer and Title of Issue   Shares     Value (Note A)  
DIRECT INVESTMENTS (5)
                
Consumer Staples — (2.0%)
                
Zong Su Foods (acquired 09/21/10) *#†(2)
     2,677     $ 15,000,034  
 
              
Health Care — (1.9%)
                
China Bright (acquired 08/27/10) *#†(2)(6)
     14,665,617       14,942,352  
 
              
Industrials — (1.2%)
                
Qingdao Bright Moon Seaweed Group Co., Ltd., (acquired 02/28/08) *#†(2)(6)
     31,827,172       9,293,534  
 
              
                 
    Face Amount          
Industrials — (0.0%)
                
Ugent Holdings, Ltd., 12.0% 04/06/12 (acquired 04/06/09) *#†@(2)
   HK$177,000,000       —  
 
              
                 
    Shares          
Information Technology — (1.8%)
                
China Silicon Corp. Common Stock, (acquired 01/08-09/10) *#†(2)
     2,301,863       —  
China Silicon Corp., Series A Preferred (acquired 11/30/07) *#†(2)
     27,418       —  
HAND Enterprise Solutions Co., Ltd. Common Stock (acquired 02/11/10) *#†(2)
     8,027,241       14,192,162  
HAND Enterprise Solutions Pte, Ltd. Preferred (acquired 02/01/07) *#†(2)
     500,000       —  
 
              
 
             14,192,162  
 
              
TOTAL DIRECT INVESTMENTS — (Cost $71,111,838)
     6.9 %     53,428,082  
 
            
 
                
COLLATERAL FOR SECURITIES ON LOAN— (7.5%)
                
State Street Navigator Prime Portfolio
     58,222,288       58,222,288  
 
              
TOTAL COLLATERAL FOR SECURITIES ON LOAN — (Cost $58,222,288)
     7.5 %     58,222,288  
 
            
 
                
SHORT TERM INVESTMENTS UNITED STATES
                
Repurchase Agreement with State Street Bank and Trust, 0.01%, 02/01/11 (7)
     16,195,000       16,195,000  
 
              
TOTAL UNITED STATES — (Cost $16,195,000)
     2.1 %     16,195,000  
 
            
See notes to schedule to investments.

5

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
January 31, 2011 (Unaudited)
                 
    Shares          
TOTAL INVESTMENTS** — (Cost $526,677,969)
     103.5 %     801,930,818  
 
            
OTHER ASSETS AND LIABILITIES
     (3.5 )%     (27,262,395 )
 
            
 
                
NET ASSETS
     100.0 %   $ 774,668,423  
 
Notes to Schedule of Investments
 
(A)   Portfolio securities listed on recognized United States or foreign securities exchanges are valued at the last quoted sales price in the principal market where they are traded. Listed securities with no such sales price and unlisted securities are valued at the mean between the current bid and asked prices, if any, from brokers. Short-term investments having maturities of sixty days or less are valued at amortized cost (original purchase cost as adjusted for amortization of premium or accretion of discount) which when combined with accrued interest approximates market value. Securities for which market quotations are not readily available are valued at fair value in good faith by or at the direction of the Board of Directors and considering relevant factors, data and information including, if relevant, the market value of freely tradable securities of the same class in the principal market on which such securities are normally traded. Direct Investments are valued at fair value as determined by or at the direction of the Board of Directors based on financial and other information supplied by the Direct Investment Manager regarding each Direct Investment. Forward currency contracts are valued at the current cost of offsetting the contract. Equity linked securities are valued at fair value primarily based on the value(s) of the security (or securities) underlying, which normally follows the same methodology as the valuation of securities listed on recognized exchanges.
 
    The Fund’s investments in China companies involve certain risks not typically associated with investments in securities of U.S. companies or the U.S. Government, including risks relating to (1) social, economic and political uncertainty; (2) price volatility, lesser liquidity and smaller market capitalization of securities markets in which securities of China companies trade; (3) currency exchange fluctuations, currency blockage and higher rates of inflation; (4) controls on foreign investment and limitations on repatriation of invested capital and on the Fund’s ability to exchange local currencies for U.S. dollars; (5) governmental involvement in and control over the economy; (6) risk of nationalization or expropriation of assets; (7) the nature of the smaller, less seasoned and newly organized China companies, particularly in China; and (8) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and less government supervision and regulation.
 
*   Denotes non-income producing security.
 
^   Security is deemed worthless.
 
#   Illiquid security.
 
†   Affiliated issuer (see Note B).
 
@   The bond contains a feature or option to be converted into common stock.
 
(1)   A portion or all of the security is on loan. As of January 31, 2011, the market value of the securities loaned was $61,468,896.
 
(2)   Security valued at fair value using methods determined in good faith by or at the direction of the Board of Directors.
 
(3)   Equity linked securities issued by Citigroup Global Markets Holdings.
 
(4)   Equity linked securities issued by Credit Lyonnais (CLSA).
 
(5)   Direct investments are generally restricted as to resale and do not have a readily available resale market. On the date of acquisition of each direct investment, there were no market quotations on similar securities, and such investments were therefore valued in good faith by the Board of Directors at fair market value. The securities continue to be valued in good faith by Board of Directors at fair market value as of January 31, 2011.
 
(6)   The Fund holds a put option which allows the Fund to sell the investment for a value at least equal to the purchase price under certain circumstances.
 
(7)   Repurchase agreement, dated 01/31/11, due 02/01/11 with repurchase proceeds of $16,195,005 is collateralized by US Treasury Bill 2.50% due 04/30/15 with a market value of $16,520,967.
 
    144A Securities restricted for resale to Qualified Institutional Buyers. At January 31, 2011, these restricted securities amounted to $96,386,796, which represented 12.44% of total net assets.
 
    ADR American Depositary Receipt
See notes to schedule to investments.

6

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
January 31, 2011 (Unaudited)
 
**   At January 31, 2011, the cost of investment securities for tax purposes was $526,677,969. Net unrealized appreciation of investment securities for tax purposes was $275,252,849, consisting of unrealized losses of $38,346,575 on securities that had decreased in value since their purchase and $313,599,424 in unrealized gains on securities that had risen in value since their purchase.
See notes to schedule to investments.

7

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
JANUARY 31, 2011 (Unaudited)
Fair Value Measurement
The fund has adopted fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion in changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:
•   Level 1 — Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;
 
•   Level 2 — Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;
 
•   Level 3 — Inputs that are unobservable.
The following is a summary of the inputs used as of January 31, 2011 in valuing the Fund’s investments carried at value:
ASSETS VALUATION INPUT
                                 
Description   Level 1     Level 2     Level 3     Total  
 
COMMON STOCK AND OTHER EQUITY INTERESTS
                                
Hong Kong
                                
Consumer Discretionary
   $ 29,117,135     $ —     $ 38,081,271     $ 67,198,406  
Consumer Staples
     21,278,199       —       —       21,278,199  
Health Care
     12,170,349       —       —       12,170,349  
Telecommunications
     13,430,803       —       —       13,430,803  
Utilities
     22,657,576       —       —       22,657,576  
 
                        
Total Hong Kong
     98,654,062       —       38,081,271       136,735,333  
 
                        
Hong Kong — “H” Shares
                                
Consumer Discretionary
     18,939,867       —       —       18,939,867  
Consumer Staples
     28,728,548       —       —       28,728,548  
Health Care
     112,045,774       —       —       112,045,774  
Industrials
     7,127,057       —       —       7,127,057  
Telecommunications
     7,377,164       —       —       7,377,164  
 
                        
Total Hong Kong — “H” Shares
     174,218,410       —       —       174,218,410  
 
                        
Singapore
                                
Consumer Staples
     46,613,794       —       —       46,613,794  
Financials
     4,842,087       —       —       4,842,087  
Information Technology
     3,108,371       —       —       3,108,371  
 
                        
Total Singapore
     54,564,252       —       —       54,564,252  
 
                        
Taiwan
                                
Consumer Discretionary
     59,049,249       —       —       59,049,249  
Consumer Staples
     20,700,940       —       —       20,700,940  
Financials
     59,860,815       —       8,217,527       68,078,342  
Information Technology
     10,510,165       —       —       10,510,165  
Materials
     12,793,346       —       —       12,793,346  
 
                        
Total Taiwan
     162,914,515       —       8,217,527       171,132,042  
 
                        
United States
                                
Energy
     9,835,694       —       —       9,835,694  
Health Care
     22,703,211       —       —       22,703,211  
Information Technology
     8,509,710       —       —       8,509,710  
 
                        
Total United States
     41,048,615       —       —       41,048,615  
 
                        
TOTAL COMMON STOCK AND OTHER EQUITY INTERESTS
     531,399,854       —       46,298,798       577,698,652  
 
                        

 

Table of Contents

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
JANUARY 31, 2011 (Unaudited)
                                 
Description   Level 1     Level 2     Level 3     Total  
 
EQUITY LINKED SECURITIES
                                
Consumer Discretionary
   $ —     $ 8,010,028     $ —     $ 8,010,028  
Consumer Staples
     —       6,997,886       —       6,997,886  
Financials
     —       47,541,425       —       47,541,425  
Industrials
     —       25,869,299       —       25,869,299  
Materials
     —       7,968,158       —       7,968,158  
 
                        
TOTAL EQUITY LINKED SECURITIES
     —       96,386,796       —       96,386,796  
 
                        
DIRECT INVESTMENTS
                                
Consumer Staples
     —       —       15,000,034       15,000,034  
Health Care
     —       —       14,942,352       14,942,352  
Industrials
     —       —       9,293,534       9,293,534  
Information Technology
     —       —       14,192,162       14,192,162  
 
                        
TOTAL DIRECT INVESTMENTS
     —       —       53,428,082       53,428,082  
 
                        
COLLATERAL FOR SECURITIES ON LOAN
     —       58,222,288       —       58,222,288  
SHORT TERM INVESTMENTS
                                
United States
     —       16,195,000       —       16,195,000  
 
                        
TOTAL INVESTMENTS
   $ 531,399,854     $ 170,804,084     $ 99,726,880     $ 801,930,818  
 
                        
The Fund’s policy is to recognize transfers between levels at the end of the reporting period. As of January 31, 2011, there was no significant security transfer activity between Level 1 and Level 2.
The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the fund during the period ending January 31, 2011:
                                                                 
                                                            Change in
                                                            Unrealized
                            Change in                           Appreciation
    Balance as of   Net   Realized   Unrealized   Transfers   Transfers   Balance as of   (Depreciation) from
Investments in   October 31,   Purchases   Gain   Appreciation   in to   out of   January 31,   Investments Held at
Securities   2010   (Sales)   (Loss)   (Depreciation)   Level 3   Level 3   2011   January 31, 2011
 
COMMON STOCK AND OTHER EQUITY INTERESTS
                                                                
Consumer Discretionary
   $ 44,491,832     $ —     $ —     $ (6,410,561 )   $ —     $ —     $ 38,081,271     $ (6,410,561 )
Financials
     7,936,254       —       —       281,273       —       —       8,217,527       281,273  
     
 
     52,428,086       —       —       (6,129,288 )     —       —       46,298,798       (6,129,288 )
     
DIRECT INVESTMENTS
                                                                
Consumer Staples
     15,000,034       —       —       —       —       —       15,000,034       —  
Health Care
     15,021,769       —       —       (79,417 )     —       —       14,942,352       (79,417 )
Industrials
     9,293,534       —       —       —       —       —       9,293,534       —  
Information Technology
     14,192,162       —       —       —       —       —       14,192,162       —  
     
 
     53,507,499       —       —       (79,417 )     —       —       53,428,082       (79,417 )
     
 
   $ 105,935,585       —       —     $ (6,208,705 )     —       —     $ 99,726,880     $ (6,208,705 )
     

 

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THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (continued)
JANUARY 31, 2011 (Unaudited)
Direct Investments: The Fund may invest up to 25% of the net proceeds from its offering of its outstanding common stock in direct investments. Direct investments are generally restricted and do not have a readily available resale market. Because of the absence of any public trading market for these investments, the The Fund may take longer to liquidate these positions than would be the case for publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices on these sales could be less than those originally paid by the Fund. Issuers whose securities are not publicly traded may not be subject to public disclosure and other investor protections requirements applicable to publicly traded securities. The value of these securities at January 31, 2011 was $53,428,082 or 6.9% of the Fund’s net asset value. The table below details the acquisition date, cost, and value of the Fund’s direct investments as determined by the Board of Directors of the Fund. The Fund does not have the right to demand that such securities be registered.
                         
Security   Acquisition Date     Cost     Value  
China Bright
     08/27/2010     $ 14,969,436     $ 14,942,352  
China Silicon Corp., Series A Preferred
     11/30/2007       6,552,874       —  
China Silicon Corp. Common Stock
     01/08 – 09/10       1,458,811       —  
HAND Enterprise Solutions Pte, Ltd. Preferred
     02/01/2007       —       —  
HAND Enterprise Solutions Co., Ltd. Common Stock
     02/11/2010       3,164,275       14,192,162  
Qingdao Bright Moon Seaweed Group Co., Ltd.
     02/28/2008       7,121,480       9,293,534  
Ugent Holdings, Ltd.
     04/06/2009       22,844,928       —  
Zong Su Foods
     09/21/2010       15,000,034       15,000,034  
 
                    
 
           $ 71,111,838     $ 53,428,082  
 
                    
NOTE B — Investments in Non-Controlled Affiliates*:
                                         
    Balance of   Gross   Gross   Balance of    
    Shares Held   Purchases   Sales   Shares Held   Value
    October 31,   and   and   January 31,   January 31,
Name of Issuer   2010   Additions   Reductions   2011   2011
 
CDW Holdings, Ltd.
     51,458,000       —       3,250,000       48,208,000     $ 3,108,371  
China Bright
     14,665,617       —       —       14,665,617       14,942,352  
China Medical Systems Holdings, Ltd.
     72,353,760       —       —       72,353,760       66,848,507  
China Silcon Corp. Common Stock
     2,301,863       —       —       2,301,863       —  
China Silcon Corp. Series A Preferred
     27,418       —       —       27,418       —  
China Silicon Corp. Warrants
     685,450       —       685,450       —       —  
Far East Energy Corp.
     17,529,277       —       1,136,454       16,392,823       9,835,694  
HAND Enterprise Solutions Pte, Ltd. Preferred
     500,000       —       —       500,000       —  
HAND Enterprise Solutions Co., Ltd. Common Stock
     8,027,241       —       —       8,027,241       14,192,162  
Huiyin Household Appliances Holdings Co., Ltd.
     160,413,750       —       —       160,413,750       38,081,271  
Qingdao Bright Moon Seaweed Group Co., Ltd.
     31,827,172       —       —       31,827,172       9,293,534  
Taiwan Life Insurance Co., Ltd.
     200,000,000       —       —       200,000,000       8,217,527  
Ugent Holdings, Ltd.
     177,000,000       —       —       177,000,000       —  
Zong Su Foods
     2,677       —       —       2,677       15,000,034  
 
*   Affiliated issuers, as defined in the 1940 Act as amended, include issuers in which the Fund held 5% or more of the outstanding voting securities.

 

Table of Contents

Item 2. Controls and Procedures.
(a)   The registrant’s principal executive and principal financial officers have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-Q that includes the disclosure required by this paragraph based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
(b)   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
The certification required by Rule 30a-2(a) of the 1940 Act (17 CFR 270.30a-2(a)) is attached as an exhibit to this filing.

 

Table of Contents

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  THE CHINA FUND, INC.
 		  
  By:   /s/ Jamie Skinner   
    Jamie Skinner   
    President and Chief Executive Officer   
 
Date: 3/16/11
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
         
     
  By:   /s/ Jamie Skinner   
    Jamie Skinner   
    President and Chief Executive Officer   
 
Date: 3/16/11
         
     
  By:   /s/ Laura F. Healy   
    Laura F. Healy   
    Treasurer   
 
Date: 3/16/11