8-K

UNITED STATES
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

April 30, 2008
Date of Report (Date of Earliest Event Reported)

The China Fund, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland
(State or Other Jurisdiction of Incorporation) 811-05749
(Commission
File Number) 000000000
(IRS Employer
Identification Number)

c/o State Street Bank and Trust Company
2 Avenue de Lafayette, 6^th Floor,
P.O. Box 5049, Boston, Massachusetts
(Address of Principal Executive Offices) 02206-5049
(Zip Code)

1(888) 246-2255

(Registrant’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

TABLE OF CONTENTS

	Item 7.01. Regulation FD Disclosure.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
April 2008 Monthly Insight Report

Item 7.01. Regulation FD Disclosure.

     Pursuant to Regulation FD Rules 100-103, The China Fund, Inc. (the “Fund”) furnishes the Monthly Insight Report of the Fund’s Listed Investment Manager.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Description
99	April 2008 Monthly Insight Report of the Fund’s Listed 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: May 16, 2008

By:	/s/ Elizabeth A. Watson
	Name:	Elizabeth A. Watson
	Title:	Assistant Secretary

EXHIBIT INDEX

Exhibit No.	Description
99	April 2008 Monthly Insight Report of the Fund’s Listed Investment Manager

EX-99

THE CHINA FUND, INC. (CHN)

The Martin Currie
Shanghai team

IN BRIEF

Net asset value per share	US$	40.36
Market price	US$	35.06
Premium/(discount)		(13.13	%)
Fund size	US$	732.7m

Source: State Street Bank and Trust Company

At 30 April 2008				US$ returns
	China Fund NAV			MSCI Golden Dragon*
	%			%
One month		5.5			9.8
Year to date		(9.8	)		(5.8	)
One year		36.0			30.0
Three years %pa		38.5			26.8

Past performance is not a guide to future returns.
Source: State Street Bank and Trust Company. NAV performance.
*Source for index data: MSCI.

MANAGER’S COMMENTARY

Martin Currie acts as portfolio manager of The China Fund, Inc. (“Fund”). This commentary is the opinion of Martin Currie Inc.

Chinese markets enjoyed a nice bounce in April up 9.8%. Fears of further credit tightening abated somewhat; the latest Consumer Price Index figure came in slightly lower than the preceding month (8.3% in March compared with 8.7% in February) and there was no government response beyond lifting the reserve ratio requirement by a further 50 basis points. After standing aside while the A-share market fell by 50%, the Chinese Securities Regulatory Commission finally rode to the rescue with some sentiment-boosting measures. First-quarter results were, on the whole, reassuring, with the exception of some large state-owned companies, such as refiners and independent power producers, which are now being asked to perform national service (that is to say, not being allowed to put up prices, despite a rise in costs, to help restrain inflation). The combined revenues of 150 large state-owned enterprises jumped by 27% in the first quarter, but their combined profit fell by 3%. In contrast, the Fund’s domestic portfolio, which owns none of these stocks, recorded earnings growth of 26%.

Over the summer we think China will stop worrying about inflation and start worrying about growth. Our company meetings reveal exporters pedalling hard to cope with increasing material, labour and environmental costs. The story is not wholly negative — economic pressures are forcing another round of Western companies to seek the ‘China price’. But as Western companies squeeze inventory to the bare minimum, even the winners are seeing smaller, albeit more frequent, orders. As the complaints of exporters escalate, coincident with a likely rally in the US dollar, we expect renminbi appreciation against this currency to slow and stop. Added to this, we see the first signs of a loosening of the purse strings as a couple of companies we visited struggled to secure reasonably priced loans in the first quarter, but have now been able to get them.

INVESTMENT STRATEGY

The Fund is 92.8% invested in 72 companies. The reason for the relatively high cash level at the month-end is a substantial pre-IPO investment in Huiyin, an electrical retailer targeting rural consumers.

Early in April we decided to buy back some A-shares, as losses in this market since the peak last October neared 50%. Our purchases focused on the property and financial sectors, which had been the worst performers during the collapse (Vanke, Financial Street, Ping An Insurance), as well as the hard-liquor-maker Wuliangye. We sold one A-share, Shanghai Port, which we expect to be hurt by declining trade volumes. To fund our purchase of Huiyin and the A-shares, we took profits in Zhejiang Expressway, Shenhua Coal and Synnex and cut our losses in Efun.

The weighting in A-shares now stands at 13.1% and in Taiwan at 34.4%. By sector, the Fund is overweight in agriculture, healthcare and domestic consumer and underweight in commodities and exporters.

Chris Ruffle, Martin Currie Inc*

*Martin Currie Ltd and Heartland Capital Management Ltd (HCML) have established MC China Ltd (MCCL), as a joint venture company, to provide investment management or investment advisory services to the range of China investment products managed by Martin Currie.

MCCL has appointed Martin Currie Investment Management Ltd (MCIM), or its affiliates, as investment manager of Martin Currie’s China investment products.

HCML has seconded both Chris Ruffle and Shifeng Ke to MCIM or its affiliates on a full time basis with the same roles and responsibilities as if they were full time employees.

30 APRIL 2008

FUND DETAILS

Market cap	US$636.47m
Shares outstanding	18,153,741
Exchange listed	NYSE
Listing date	July 10, 1992
Investment adviser	Martin Currie Inc

Source: State Street Bank and Trust Company.

SECTOR ALLOCATION

	The China			MSCI Golden
	Fund, Inc			Dragon
Consumer discretionary		19.3	%		5.0	%
Financials		16.5	%		33.2	%
Consumer staples		13.3	%		1.4	%
Industrials		12.9	%		9.6	%
Healthcare		9.0	%		—
Information technology		7.0	%		19.7	%
Materials		6.1	%		7.1	%
Energy		5.1	%		8.7	%
Utilities		2.3	%		3.5	%
Telecommunications		1.3	%		11.7	%
Other assets & liabilities		7.2	%		—
Total		100.0	%		100.0	%

Source: State Street Bank and Trust Company. Source for index data: MSCI

ASSET ALLOCATION

Source: State Street Bank and Trust Company

PERFORMANCE (US$ RETURNS)

	NAV			Market price
	%			%
One month		5.5			10.3
Year to date		(9.8	)		(7.8	)
Three years %pa		38.5			28.9

Past performance is not a guide to future returns. Three year returns are annualiosed.

Source: State Street Bank and Trust Company

DIRECT INVESTMENTS (3.6%)

Qingdao Bright Moon	Industrials	1.0	%
China Silicon	Information technology	0.9	%
Highlight Tech	Industrials	0.8	%
Wuxi Paiho	Industrials	0.5	%
Sino-Twinwood	Information technology	0.4	%
teco Optronics	Information technology	—

15 LARGEST LISTED INVESTMENTS (37.0%)

Chaoda Modern Agriculture	Consumer staples	4.0	%
Far Eastern Department Stores	Consumer discretionary	4.0	%
Yuanta Financial	Financials	3.4	%
Uni-President Enterprises	Consumer staples	2.7	%
China Metal Products	Materials	2.5	%
China Development Financial	Financials	2.4	%
Xinao Gas	Utilities	2.3	%
Daqin Railway	Industrials	2.2	%
Cathay Financial	Financials	2.2	%
Fubon Financial Holdings	Financials	2.1	%
Powertech Technology	Information technology	1.9	%
China Oilfield Services	Energy	1.8	%
Shandong Weigao Group	Healthcare	1.8	%
Wumart Stores	Consumer staples	1.8	%
Synnex Technology	Consumer discretionary	1.7	%

Source: State Street Bank and Trust Company.

FUND PERFORMANCE (BASED ON NET ASSET VALUE) (US$ RETURNS)

	One		Three			Calendar			One		Three		Five		Since
	month		months			year to date			year		years		years		launch
	%		%			%			%		% pa		% pa		% pa
The China Fund, Inc.		5.5		6.1			(9.8	)		36.0		38.5		36.8		13.5
MSCI Golden Dragon		9.8		11.9			(5.8	)		30.0		26.8		29.0		n/a
Hang Seng Chinese Enterprise		17.6		14.0			(11.7	)		42.3		45.1		45.2		n/a
Shanghai Stock Exchange 180		6.8		(10.7	)		(22.8	)		22.4		68.7		29.5		n/a

Past performance is not a guide to future returns.

Source: State Street Bank and Trust Company. Launch date 10 July 1992. Three year, five year and since launch returns are all annualised.

Source for index data: MSCI for the MSCI Golden Dragon and Copyright 2008 Bloomberg LP for the Hang Seng Chinese Enterprise and the Shanghai Stock Exchange 180. For a full description of each index please see the index descriptions section.

PERFORMANCE IN PERSPECTIVE

Past performance is not a guide to future returns.
Source: Martin Currie Inc as at 30 April 2008.

THE CHINA FUND INC. PREMIUM/DISCOUNT

Past performance is not a guide to future returns.
Source: Martin Currie Inc as at 30 April 2008.

10 YEAR DIVIDEND HISTORY CHART

Total	0.50	0.08	0.11	0.00	0.13	0.21	1.78	3.58	2.51	4.01	12.12
Income	0.50	0.08	0.11	0.00	0.13	0.06	0.07	0.20	0.22	0.30	0.28
Long-term capital	0.00	0.00	0.00	0.00	0.00	0.00	0.67	3.27	2.29	2.73	9.00
Short-term capital	0.00	0.00	0.00	0.00	0.00	0.15	1.04	0.11	0.00	0.98	2.84

Past performance is not a guide to future returns.
Source: State Street Bank and Trust Company.

30 APRIL 2008

Sector	Company (BBG ticker)	Price			Holding		Value $		% of portfolio
Hong Kong										20.5	%
Chaoda Modern Agriculture	682 HK		HK$	11.2		20,633,998		29,646,929		4.0	%
Xinao Gas	2688 HK		HK$	14.3		9,286,000		17,082,685		2.3	%
Golden Meditech	8180 HK		HK$	2.7		35,040,000		12,136,855		1.7	%
Huabao International	336 HK		HK$	7.0		12,790,000		11,485,420		1.6	%
Shangri-La Asia	0069 HK		HK$	21.6		4,141,555		11,423,001		1.5	%
TPV Technology	903 HK		HK$	5.4		12,728,000		8,849,888		1.2	%
Ports Design	589 HK		HK$	25.1		2,678,500		8,624,694		1.2	%
Natural Beauty Bio-Technology	157 HK		HK$	1.9		32,780,000		7,989,891		1.1	%
China Shineway Pharmaceutical	2877 HK		HK$	5.2		11,184,000		7,431,992		1.0	%
Tianjin Development	0882 HK		HK$	6.3		8,440,000		6,821,208		0.9	%
Intime Department Store Group	1833 HK		HK$	5.8		8,778,000		6,553,856		0.9	%
SPG Land	1688 HK		HK$	4.0		10,924,000		5,535,503		0.8	%
China Travel International	0308 HK		HK$	3.5		10,982,000		4,902,741		0.7	%
Yorkey Optical International	2788 HK		HK$	1.9		16,424,000		4,003,233		0.5	%
China Rare Earth	769 HK		HK$	1.8		15,254,000		3,463,661		0.5	%
Chinasoft International	8216 HK		HK$	1.3		19,230,000		3,330,361		0.5	%
Ocean Grand Chemicals	2882 HK		HK$	0.3		17,379,000		691,138		0.1	%
Arcontech	8097 HK			—		18,386,000		—		—
China ‘B’ Shares										1.0	%
Shanghai Lujiazui Finance	900932 SHA		US$	1.7		4,459,405		7,366,937		1.0	%
Singapore										4.4	%
China Hongxing Sports	CHHS SP		SG$	0.7		15,307,000		7,665,336		1.1	%
Yangzijiang Shipbuilding	YZJ SP		SG$	1.1		9,546,000		7,522,071		1.0	%
China Fishery Group	CFG SP		SG$	1.7		6,068,000		7,507,357		1.0	%
Hsu Fu Chi International	HFCI SP		SG$	1.0		8,409,000		6,192,651		0.9	%
CDW	CDW SP		SG$	0.1		60,000,000		3,093,011		0.4	%
Hong Kong ‘H’ shares										10.5	%
China Oilfield Services	2883 HK		HK$	14.3		7,132,000		13,138,448		1.8	%
Shandong Weigao Group	8199 HK		HK$	12.7		8,180,000		13,117,215		1.8	%
Wumart Stores	995 HK		HK$	6.8		15,126,000		13,098,036		1.8	%
China Huiyuan Juice	1886 HK		HK$	6.0		13,000,500		10,006,671		1.3	%
Zijin Mining	2899 HK		HK$	7.1		10,408,000		9,479,904		1.3	%
ZTE Corp	763 HK		HK$	32.7		2,236,360		9,338,369		1.3	%
China Shenhua Energy	1088 HK		HK$	35.8		1,450,000		6,659,312		0.9	%
China Railway Group	390 HK		HK$	7.5		2,450,800		2,342,299		0.3	%
Taiwan										34.4	%
Far Eastern Department Stores	2903 TT		NT$	51.2		17,630,080		29,646,444		4.0	%
Yuanta Financial	2885 TT		HK$	29.0		26,413,545		25,157,823		3.4	%
Uni-President Enterprises	1216 TT		NT$	43.6		14,137,220		20,244,118		2.7	%
China Metal Products	1532 TT		NT$	65.0		8,392,675		17,916,869		2.5	%
China Development Financial	2883 TT		NT$	14.3		36,871,940		17,256,758		2.4	%
Cathay Financial	2882 TT		NT$	85.5		5,708,370		16,029,744		2.2	%
Fubon Financial	2881 TT		NT$	36.3		12,603,000		15,025,500		2.1	%
Powertech Technology	6239 TT		NT$	122.5		3,581,100		14,407,907		2.0	%
Synnex Technology	2347 TT		NT$	81.5		4,738,050		12,682,522		1.7	%
Lien Hwa Industrial	1229 TT		NT$	23.2		15,161,855		11,527,940		1.6	%
Tripod Technology	3044 TT		NT$	103.5		3,163,083		10,752,249		1.5	%
Ruentex Development	9945 TT		NT$	33.5		9,477,000		10,427,112		1.4	%
Taiwan Secom	9917 TT		NT$	66.5		4,738,000		10,348,206		1.4	%
Merry Electronics	2439 TT		NT$	80.7		3,584,340		9,500,164		1.3	%
Wah Lee Industrial	3010 TT		NT$	64.0		3,998,856		8,405,510		1.1	%
HannStar Display	6116 TT		NT$	14.1		17,900,000		8,289,350		1.1	%
FamilyMart	5903 TT		NT$	55.6		3,557,652		6,496,607		0.9	%
Yieh United Steel	9957 TT		NT$	14.0		11,379,600		5,232,430		0.7	%
Wintek Corp	2384 TT		NT$	27.6		3,148,000		2,853,594		0.4	%
United Kingdom										1.0	%
China Medical System Holdings	CMSH LN		£	1.0		3,623,188		7,442,055		1.0	%
United States										4.3	%
Mindray Medical International	MR US		US$	34.0		367,000		12,478,000		1.7	%
The9	CMED US		HK$	21.5		356,200		7,647,614		1.1	%
Far East Energy	FEEC US		US$	0.5		11,111,111		6,100,000		0.8	%
WuXi PharmaTech Cayman	WX US		HK$	18.4		287,041		5,293,036		0.7	%
Equity linked securities (‘A’ shares)										13.1	%
Daqin Railway			US$	2.4		6,907,000		16,300,520		2.2	%
Qinghai Salt Lake Potash			US$	12.5		887,909		11,054,467		1.5	%
Shanghai Zhenhua Port Machinery			US$	2.4		4,462,752		10,652,589		1.5	%
China Vanke			US$	3.5		2,833,650		9,863,936		1.4	%

Sector	Company (BBG ticker)	Price			Holding		Value $		% of portfolio
Finance Street			US$	2.8		3,191,059		9,088,136		1.2	%
Wuliangye Yibin			US$	4.1		2,200,000		8,940,800		1.2	%
China Yangtze Power			US$	2.0		4,169,077		8,346,492		1.1	%
Shanghai Tunnel Engineering			US$	1.9		4,439,247		8,301,392		1.1	%
Ping An Insurance			US$	9.9		773,600		7,638,527		1.1	%
Shanghai International Airport			US$	3.2		1,816,700		5,829,790		0.8	%
Direct										3.6	%
Qingdao Bright Moon			US$	0.2		31,827,172		7,001,978		1.0	%
China Silicon			US$	238.0		27,418		6,525,484		0.9	%
Highlight Tech			US$	1.8		3,366,893		5,993,069		0.8	%
Wuxi Paiho			US$	4.2		876,190		3,679,998		0.5	%
Sino-Twinwood			US$	6.1		500,000		3,050,000		0.4	%
teco Optronics				—		1,861,710		—		—
Other assets & liabilities								52,812,605		7.2	%

INDEX DESCRIPTIONS

MSCI Golden Dragon Index

The MSCI Golden Dragon is a free float-adjusted market capitalisation index that is designed to measure equity market performance in the China region. As of May 2005 the MSCI Golden Dragon Index consisted of the following country indices: China, Hong Kong and Taiwan.

Hang Seng China Enterprise Index

The Hang Seng China Enterprise Index is a capitalisation-weighted index comprised of state-owned Chinese companies (H-shares) listed on the Hong Kong Stock Exchange and included in HSMLCI index.

Shanghai Stock Exchange 180 Index

The Shanghai Stock Exchange 180 ‘A’ Share Index is a capitalisation-weighted index. The index tracks the daily price performance of the 180 most representative ‘A’ share stocks listed on the Shanghai Stock Exchange.

OBJECTIVE

The investment objective of the Fund is to achieve long term capital appreciation. The Fund seeks to achieve its objective through investment in the equity securities of 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 30 June 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; or (iii) companies organised in China. Under the 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 Fund is subject to the Investment Company Act of 1940 which limits the means in which it can access the ‘A’ share market. The Fund will continue to seek the most efficient way in which to increase its ‘A’ share exposure ensuring ongoing compliance with its legal and regulatory obligations.

CONTACTS

The China Fund, Inc.
c/o State Street Bank and Trust Company
2 Avenue de Lafayette, 6th Floor
PO Box 5049
Boston, MA 02206-5049
Tel: (1) 888 CHN-CALL (246 2255)
www.chinafundinc.com

Important information: This document is issued and approved by Martin Currie Inc (MC Inc), as investment adviser of the China Fund Inc (the Fund). MC Inc is authorised and regulated by the Financial Services Authority (FSA) and incorporated under limited liability in New York, USA. Registered in Scotland (No BR2575), registered address Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES. Information herein is believed to be reliable but has not been verified by MC Inc. MC Inc 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.

Martin Currie Ltd and Heartland Capital Management Ltd (HCML) have established MC China Ltd (MCCL), as a joint venture company, to provide investment management or investment advisory services to our China product. MCCL has appointed Martin Currie Investment Management Ltd (MCIM), or its affiliates, as investment manager of our China funds. HMCL has seconded both Chris Ruffle and Shifeng Ke to MCIM or its affiliates on a full time basis with the same roles and responsibilities as if they were full time employees.

The Fund is classified as a ‘non-diversified’ investment company under the US Investment Company Act of 1940 as amended. It meets the criteria of a closed ended US mutual fund and its shares are listed on the New York Stock Exchange. MC Inc has been appointed investment adviser to the Fund.

Investors are advised that they will not generally benefit from the rules and regulations of the United Kingdom Financial Services and Markets Act 2000 and the FSA for the protection of investors, nor benefit from the United Kingdom Financial Services Compensation Scheme, nor have access to the Financial Services Ombudsman in the event of a dispute. Investors will also have no rights of cancellation under the FSA’s Conduct of Business Sourcebook of the United Kingdom.

This newsletter does not constitute an offer of shares. MC Inc, 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.

The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased.

It should not be assumed that any of the securities transactions or holdings discussed here were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Investing in the Fund involves certain considerations in addition to the risks normally associated with making investments in securities. The value of the shares issued by the Fund, and the income from them, may go down as well as up and there can be no assurance that upon sale, or otherwise, investors will receive back the amount originally invested. There can be no assurance that you will receive comparable performance returns, or that investments will reflect the performance of the stock examples contained in this document. Movements in foreign exchange rates may have a separate effect, unfavorable as well as favorable, on the gain or loss otherwise experienced on an investment. Past performance is not a guide to future returns. Accordingly, the Fund is only suitable for investment by investors who are able and willing to withstand the total loss of their investment. In particular, prospective investors should consider the following risks:

è	The companies quoted on Greater Chinese stock exchanges are exposed to the risks of political, social and religious instability, expropriation of assets or nationalisation, rapid rates of inflation, high interest rates, currency depreciation and fluctuations and changes in taxation, which may affect income and the value of investments.
è	At present, the securities market and the regulatory framework for the securities industry in China is at an early stage of development. The China Regulatory Securities Commission (CSRC) is responsible for supervising the national securities markets and producing relevant regulations. The Investment Regulations, under which the Fund invests in the People’s Republic of China (‘PRC’) and which regulate repatriation and currency conversion, are new. The Investment Regulations give CSRC and State Administration of Foreign Exchange (SAFE) wide discretions and there is no precedent or certainty as to how these discretions might be exercised, either now or in the future. The Fund may, from time to time, obtain access to the securities markets in China via Access Products. Such products carry additional risk and may be less liquid than the underlying securities which they represent.
è	During the past 15 years, the PRC government has been reforming the economic and political systems of the PRC, and these reforms are expected to continue, as evidenced by the recently announced changes. The Fund’s operations and financial results could be adversely affected by adjustments in the PRC’s state plans, political, economic and social conditions, changes in the policies of the PRC government such as changes in laws and regulations (or the interpretation thereof), measures which may be introduced to control inflation, changes in the rate or method of taxation, imposition of additional restrictions on currency conversion and the imposition of additional import restrictions.
è	PRC’s disclosure and regulatory standards are in many respects less stringent than standards in certain Organisation for Economic Co-operation and Development (OECD) countries, and there may be less publicly available or less reliable information about PRC companies than is regularly published by or about companies from OECD countries.
è	The Shanghai Stock Exchange and Shenzhen Stock Exchange have lower trading volumes than most OECD exchanges and the market capitalisations of listed companies are small compared to those on more developed exchanges in developed markets. The listed equity securities of many companies in the PRC are accordingly materially less liquid, subject to greater dealing spreads and experience materially greater volatility than those of OECD countries. These factors could negatively affect the Fund’s NAV.
è	The Fund invests primarily in securities denominated in other currencies but its NAV will be quoted in US dollars. Accordingly, a change in the value of such securities against US dollars will result in a corresponding change in the US dollar NAV.
è	The marketability of quoted shares may be limited due to foreign investment restrictions, wide dealing spreads, exchange controls, foreign ownership restrictions, the restricted opening of stock exchanges and a narrow range of investors. Trading volume may be lower than on more developed stockmarkets, and equities are less liquid. Volatility of prices can also be greater than in more developed stockmarkets. The infrastructure for clearing, settlement and registration on the primary and secondary markets may be underdeveloped. Under certain circumstances, there may be delays in settling transactions in some of the markets.
è	The value of the Fund’s investment in any Quota will be affected by taxation levied against the relevant Qualified Foreign Institutional Investors (QFIIs) or in respect of investments held in the relevant Quotas. The PRC taxation regime that will apply to QFIIs and investments made in or through QFII quotas is not clear. The Investment Regulations are new and do not currently expressly contemplate the treatment of QFIIs and investment made through QFII Quotas.

Fund returns used in this document are calculated on the net asset value and therefore fall outside the scope of the GIPS standards.

Martin Currie Inc, registered in Scotland (no BR2575)

Registered office: Saltire Court, 20 Castle Terrace, Edinburgh EH11 2ES Tel: (44) 131 229 5252 Fax: (44) 131 228 5959 www.martincurrie.com/china
North American office: 1350 Avenue of the Americas, Suite 3010, New York, NY 10019, USA Tel: (1) 212 258 1900 Fax: (1) 212 258 1919

Authorised and registered by the Financial Services Authority and incorporated with limited liability in New York, USA. Please note: calls to the above numbers may be recorded.