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<SEC-DOCUMENT>0000950135-04-000064.txt : 20040414
<SEC-HEADER>0000950135-04-000064.hdr.sgml : 20040414
<ACCEPTANCE-DATETIME>20040109170555
ACCESSION NUMBER:		0000950135-04-000064
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20031031
FILED AS OF DATE:		20040109
EFFECTIVENESS DATE:		20040109

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHINA FUND INC
		CENTRAL INDEX KEY:			0000845379
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-CSR
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05749
		FILM NUMBER:		04518883

	BUSINESS ADDRESS:	
		STREET 1:		225 FRANKLIN ST
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110

	MAIL ADDRESS:	
		STREET 1:		225 FRANKLIN ST
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02110
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSR
<SEQUENCE>1
<FILENAME>b48619cnnvcsr.txt
<DESCRIPTION>THE CHINA FUND, INC.
<TEXT>
<PAGE>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM N-CSR

                   CERTIFIED SHAREHOLDER REPORT OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANIES

                  Investment Company Act file number: 811-6651

                 ----------------------------------------------

                              THE CHINA FUND, INC.

- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)

                               225 FRANKLIN STREET
                                BOSTON, MA 02110

- --------------------------------------------------------------------------------
               (Address of principal executive offices)(Zip code)

  (Name and Address of Agent for Service)                 Copy to:

             Mary Moran Zeven               State Street Bank and Trust Company
                 Secretary                         Daniel P. Bulger, Esq.
           The China Fund, Inc.                One Federal Street, 9th Floor
            225 Franklin Street                 Boston, Massachusetts 02110
             Boston, MA 02110

                                                            and

                                                     Leonard B. Mackey, Esq.
                                                     Clifford Chance US LLP
                                                         200 Park Avenue
                                                  New York, New York 10166 0153

Registrant's telephone number, including area code: (888) 246-2255

Date of fiscal year end: October 31, 2003

Date of reporting period: October 31, 2003

<PAGE>

ITEM 1:  SHAREHOLDER REPORT

<PAGE>

                              THE CHINA FUND, INC.

                                 ANNUAL REPORT

                                OCTOBER 31, 2003

                                              THE CHINA FUND, INC.
                                              TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                     PAGE
                                                                                                     ----
                                                                   <S>                               <C>
                                                                   Key Highlights                      1
                                                                   Asset Allocation                    2
                                                                   Chairman's Statement                3
                                                                   Investment Managers' Statements     4
                                                                   About the Portfolio Managers        6
                                                                   Schedule of Investments             7
                                                                   Financial Statements               12
                                                                   Notes to Financial Statements      16
                                                                   Report of Independent Auditors     21
                                                                   Other Information                  22
                                                                   Dividends and Distributions;
                                                                     Dividend Reinvestment
                                                                     and Cash Purchase Plan           23
</Table>
<PAGE>

THE CHINA FUND, INC.
KEY HIGHLIGHTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
- --------------------------------------------------------------------------------------
                                      FUND DATA
- --------------------------------------------------------------------------------------
<S>                                         <C>
            NYSE STOCK SYMBOL                                  CHN
- --------------------------------------------------------------------------------------
               LISTING DATE                               JULY 10, 1992
- --------------------------------------------------------------------------------------
            SHARES OUTSTANDING                              10,073,173
- --------------------------------------------------------------------------------------
       TOTAL NET ASSETS (10/31/03)                       US$271.3 MILLION
- --------------------------------------------------------------------------------------
   NET ASSET VALUE PER SHARE (10/31/03)                       $26.93
- --------------------------------------------------------------------------------------
         MARKET PRICE (10/31/03)                              $34.74
- --------------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
- -------------------------------------------------------------------------------------
                                    TOTAL RETURN
- -------------------------------------------------------------------------------------
<S>                          <C>                          <C>
     PERFORMANCE AS OF
         10/31/03:               NET ASSET VALUE(1)              MARKET PRICE
- -------------------------------------------------------------------------------------
         12 MONTHS                      83.06%                      179.41%
- -------------------------------------------------------------------------------------
     3-YEAR CUMULATIVE                 123.08%                      298.18%
- -------------------------------------------------------------------------------------
     3-YEAR ANNUALIZED                  30.66%                       58.50%
- -------------------------------------------------------------------------------------
     5-YEAR CUMULATIVE                 159.67%                      314.99%
- -------------------------------------------------------------------------------------
     5-YEAR ANNUALIZED                  21.03%                       32.93%
- -------------------------------------------------------------------------------------
    10-YEAR CUMULATIVE                  97.82%                      139.23%
- -------------------------------------------------------------------------------------
    10-YEAR ANNUALIZED                   7.06%                        9.11%
- -------------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
- -------------------------------------------------------------------------------------
                                  DIVIDEND HISTORY
- -------------------------------------------------------------------------------------
<S>                          <C>                          <C>
        RECORD DATE                    INCOME                    CAPITAL GAINS
- -------------------------------------------------------------------------------------
         12/26/02                     $0.06397                      $0.1504
- -------------------------------------------------------------------------------------
         12/31/01                      $0.1321                        --
- -------------------------------------------------------------------------------------
         12/31/99                      $0.1110                        --
- -------------------------------------------------------------------------------------
         12/31/98                      $0.0780                        --
- -------------------------------------------------------------------------------------
         12/31/97                        --                         $0.5003
- -------------------------------------------------------------------------------------
         12/31/96                      $0.0834                        --
- -------------------------------------------------------------------------------------
         12/29/95                      $0.0910                        --
- -------------------------------------------------------------------------------------
         12/30/94                      $0.0093                      $0.6006
- -------------------------------------------------------------------------------------
         12/31/93                      $0.0853                      $0.8250
- -------------------------------------------------------------------------------------
         12/31/92                      $0.0434                      $0.0116
- -------------------------------------------------------------------------------------
</Table>

(1) Total investment returns reflect changes in net asset value per share during
each period and assumes that dividends and capital gains distributions, if any,
were reinvested. The net asset value percentages are not an indication of the
performance of a shareholder's investment in the Fund, which is based on market
price. Total investment returns are historical and do not guarantee future
results.

                                        1
<PAGE>

THE CHINA FUND, INC.
ASSET ALLOCATION AS OF OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
- ---------------------------------------------------------------------------------
                     TEN LARGEST LISTED EQUITY INVESTMENTS*
- ---------------------------------------------------------------------------------
<C>  <S>                                                <C>
 1.  Sohu.com Inc.                                                9.0%
- ---------------------------------------------------------------------------------
 2.  TCL International Holdings, Ltd.                             4.4%
- ---------------------------------------------------------------------------------
 3.  Chaoda Modern Agriculture (Holdings) Ltd.                    3.8%
- ---------------------------------------------------------------------------------
 4.  Yanzhou Coal Mining Co.                                      3.7%
- ---------------------------------------------------------------------------------
 5.  Sinotrans Limited                                            3.7%
- ---------------------------------------------------------------------------------
 6.  Chinadotcom, Corp.                                           3.3%
- ---------------------------------------------------------------------------------
 7.  Anhui Conch Cement Co., Ltd.                                 3.3%
- ---------------------------------------------------------------------------------
 8.  Fountain Set (Holdings) Ltd.                                 3.3%
- ---------------------------------------------------------------------------------
 9.  Xinao Gas Holdings, Ltd.                                     2.8%
- ---------------------------------------------------------------------------------
10.  Shenzhen Expressway Co., Ltd.                                2.6%
- ---------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
- ---------------------------------------------------------------------------------
                           LARGEST DIRECT INVESTMENTS*
- ---------------------------------------------------------------------------------
<C>  <S>                                                <C>
 1.  Captive Finance, Ltd.                                        1.1%
- ---------------------------------------------------------------------------------
 2.  Tomoike Industrial (H.K.) Ltd.                               0.9%
- ---------------------------------------------------------------------------------
</Table>

* Percentages based on net assets at October 31, 2003.

                                        2
<PAGE>

THE CHINA FUND, INC.
CHAIRMAN'S STATEMENT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

Dear Stockholders:

The Fund enjoyed a successful year (net asset value per share increased 83.06%
after taking into consideration the US$0.21 per share distribution paid to
shareholders in January 2003) as the Chinese economy continued to grow at above
7% per annum and Chinese corporations showed strong earnings growth. This was
achieved despite the disruption of SARS in mid-year. Growing interest in China
by Western investors was reflected in the improvement in the Fund's share price,
which moved from a 15% discount to net asset value at the start of the financial
year to a 29% premium by the end. This means that long-term investors in the
Fund achieved a 179.41% return over the year. As the size of the Fund has grown,
average daily liquidity on the New York stock exchange has improved to US$2.2M
and the expense ratio has fallen to 1.76%.

The combination of China's continuing strong economic growth, regulatory reform
to favor private businesses, and capital market development are benefiting
financial investors in China. We expect these conditions to continue into 2004
aided by recent moves by the Central Government to curb excessive lending that
was beginning to distort asset markets.

The Direct Investment Manager has exited several of the Fund's direct
investments in the last six months. The Direct Investment Manager will focus on
realizing value from the new investments it has made and on closing new deals.

The Board of Directors remains optimistic about the long-term prospects for
economic growth in China, and believes that the Fund remains one of the best
ways to access such growth through investment in a spread of the best
entrepreneurial Chinese companies. However, we are aware of several structural
problems that China needs to overcome, such as reform of the state-owned sector,
particularly the financial system and under-funding of its social security
system. China also faces political tensions both domestically and in foreign
relations. Investors should therefore be aware that returns from China
investments are likely to be volatile.

We thank you for your continuing support. If you have any questions, comments or
would like additional information on our Fund's holdings, we invite you to visit
the Fund's website at www.chinafundinc.com or call (toll free) 1-888-CHN-CALL
(246-2255).

Sincerely,

/s/ Alan Tremain
Alan Tremain
Chairman of the Board

                                        3
<PAGE>

THE CHINA FUND, INC.
INVESTMENT MANAGERS' STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REVIEW OF LISTED INVESTMENTS
There was a low level of turnover in our Fund's portfolio last year - we retain
significant positions in eight of our top ten holdings from a year ago. Our most
successful investment theme over the past year was Chinese internet portfolios,
which achieved dramatic earnings growth after discovering they could charge for
internet services using the billing systems of the mobile phone companies. We
also made good money by investing in textile companies and textile machinery
makers, as the industry ramped up capacity in anticipation of the ending of the
Multi-Fibre Agreement in 2005. Our least successful investment theme was health
care, where Chinese participants lack scale and a period of consolidation has
still some time to run. We were also relatively underweight in the commodity
sector, which has been the best performing sector in 2003. Most of this sector
consists of state-owned companies (we prefer management-owned companies
believing that their shared interest with us, as shareholders, makes for better
corporate governance and investor returns in the long run). We did, however,
make money in Chinese cement and coal stocks. The "H" shares (Chinese companies,
mostly state-owned corporations, listed in Hong Kong with the People's Republic
of China government approval) were the best performing sub-sector within the
Chinese stock markets. We are now reducing our weighting in this area,
preferring laggards which offer better value, such as private-sector companies
in Hong Kong, China plays listed in Taipei and the newly-opened "A" share market
(stocks denominated in Renminbi listed in Shanghai and Shenzhen). The "A" share
market recently hit a four-year low.

The main investment themes that we hope to profit from in 2004 are recovery of
the rural economy (based on the new Rural Land Contract law and increasing grain
prices) and growing US protectionism in a presidential election year, plus a
return of inflation, which may cause the government to revalue the Renminbi.
From the point of view of demand for equities, the situation in Taiwan appears
particularly favorable; there are signs that local investors are starting to
move assets from the shelter of bond funds and foreign exchange deposits into
the asset markets, and that the lengthy bear market in property is coming to an
end. The main point of caution here is the presidential election to take place
in March 2004. Sentiment in Hong Kong has perked up after the massive
demonstration in July prompted the Central Government to initiate several
preferential measures for the territory. In China, the authorities have moved to
tighten credit on signs of over-investment in several sectors. Foreign capital
flows into China, both direct and portfolio, are likely to remain positive. For
monthly updates on our investment strategy, please see our website
www.chinafundinc.com.

                                        4
<PAGE>

THE CHINA FUND, INC.
INVESTMENT MANAGERS' STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

REVIEW OF DIRECT INVESTMENTS
The Direct Investment market in China is beginning to become more active. Higher
than anticipated growth and profitability is increasing the confidence of
business managers to raise capital rather than merely testing market interest on
a contingency basis. The buoyant equity and credit markets, while increasing
competition for new deals, are leading to favorable opportunities to exit and
realize value for existing investments.

Our new deal origination focuses on established companies in need of expansion
finance to fund a proven business model. Such companies can generate profit
rapidly from incremental investment and are in a position to realize value for
their investors, via an IPO or other mechanisms, in a relatively short time.

Over the last 6 months, we reached an agreement with MOULIN INTERNATIONAL to
redeem the convertible bond held by the Fund. The sale of NEW WORLD SUN CITY was
also completed. Both of these transactions generated substantial gains for the
Fund. Finally, the Fund sold its entire holding in A-S CHINA PLUMBING following
the company's recent IPO and listing on the GEM market in Hong Kong.

We profitably disposed of the Fund's remaining shares of KOWLOON DEVELOPMENT,
taking advantage of the recovery in property stocks of Hong Kong.

As of October 31, 2003, the Fund's Direct Investment portfolio consisted of the
following holdings:

CAPTIVE FINANCE LIMITED ("CAPTIVE")
Captive is engaged in providing operating and financial leases for technology
products (PC, servers, telecom equipment, etc.). It has operations in Greater
China, Singapore, Malaysia and Europe. The company has experienced good growth
in Greater China and South East Asia following the end of the SARS outbreak. It
is actively involved in developing the leasing market in China. Captive is also
building a platform to promote cross-selling and other synergies between its
Asia and Europe operations.

TOMOIKE INDUSTRIAL (H.K.) LIMITED ("TOMOIKE")
Tomoike manufactures a wide range of sheet materials such as labels, speaker
cushions, and cushion materials for office equipment and household appliances.
Its fastest growing business line is the assembly of backlight unit components
for the mobile phone industry. For more than a decade, Tomoike has been
supplying parts and accessories for office and consumer equipment of major
Japanese manufacturers. Its business is experiencing strong growth as a result
of robust demand for its products, especially the backlight units.

                                        5
<PAGE>

THE CHINA FUND, INC.
ABOUT THE PORTFOLIO MANAGERS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

LISTED INVESTMENT MANAGER
Mr. Chris Ruffle serves as the portfolio manager for the Fund's portfolio of
listed securities. Mr. Ruffle joined Martin Currie in 1994. He is a Chinese and
Taiwanese equity specialist with over 15 years investment experience in Asia.
Fluent in Mandarin and Japanese, Mr. Ruffle has worked in the Far East since
1983. He worked originally in Beijing and Shanghai and then in Australia for a
metal trading company. He then moved to Warburg Securities in 1987 as an analyst
in Tokyo, before establishing Warburg's office in Taiwan. Mr. Ruffle also
manages The Martin Currie China Hedge Fund and the China "A" Share Fund.

DIRECT INVESTMENT MANAGER
Mr. Koh Kuek Chiang is the Executive Director of Asian Direct Capital Management
("ADCM") and is the portfolio manager of the Fund's portfolio of direct
securities. Mr. Koh joined ADCM in 1998. Mr. Koh has over ten years of private
equity investment experience in the U.S., Europe and Asia working for the
Government of Singapore, Union Bank of Switzerland and private interests. His
investment experience covers a wide range of industries, including
telecommunications equipment, biotechnology, media, financial services and basic
materials. Mr. Koh graduated with an engineering degree from the University of
Western Australia and has a post-graduate Diploma in Business Administration
from the National University of Singapore. He is a Chartered Financial Analyst
and is fluent in English and Mandarin.

                                        6
<PAGE>

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS
CHINA -- SHANGHAI "B" SHARES
  CONSUMER STAPLES -- (0.1%)
     Shanghai Friendship Group Co., Inc. ...................     300,000            $    232,200
                                                                                    ------------
          TOTAL CHINA -- SHANGHAI "B" SHARES -- (Cost
            $277,476)                                                        0.1%        232,200
                                                                                    ------------
CHINA -- SHENZHEN "B" SHARES
  INDUSTRIALS -- (1.9%)
     China International Marine Containers (Group) Co.,
       Ltd. ................................................   2,442,747               4,188,644
     Luthai Textile Co., Ltd. ..............................   1,237,886                 897,181
                                                                                    ------------
                                                                                       5,085,825
                                                                                    ------------
          TOTAL CHINA -- SHENZHEN "B" SHARES -- (Cost
            $3,504,986)                                                      1.9%      5,085,825
                                                                                    ------------
          TOTAL CHINA -- (Cost $3,782,462)                                   2.0%      5,318,025
                                                                                    ------------
HONG KONG
  CONSUMER DISCRETIONARY -- (6.4%)
     Brilliance China Automotive Holdings, Ltd. ............  12,882,000               5,431,070
     TCL International Holdings, Ltd. ......................  32,318,000              11,961,154
                                                                                    ------------
                                                                                      17,392,224
                                                                                    ------------
  CONSUMER STAPLES -- (6.3%)
     Chaoda Modern Agriculture (Holdings) Ltd.*.............  41,038,000              10,407,423
     Mainland Headwear Holding, Ltd. .......................   1,626,000                 544,233
     Sino Golf Holdings, Ltd. ..............................  10,953,000               2,129,123
     Tack Fat Group International, Ltd. ....................  37,296,000               3,985,026
                                                                                    ------------
                                                                                      17,065,805
                                                                                    ------------
  HEALTH CARE -- (2.2%)
     Golden Meditech Co., Ltd. .............................  13,950,000               3,501,866
     Natural Beauty Bio-Technology, Ltd. ...................  32,780,000               2,531,926
                                                                                    ------------
                                                                                       6,033,792
                                                                                    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        7
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS (CONTINUED)
HONG KONG (CONTINUED)
  INDUSTRIALS -- (5.3%)
     Proview International Holdings Ltd. ...................  17,644,000            $  4,826,661
     TPV Technology, Ltd. ..................................   9,968,000               5,229,094
     Wanyou Fire Safety.....................................  53,565,000               4,413,182
                                                                                    ------------
                                                                                      14,468,937
                                                                                    ------------
  INFORMATION TECHNOLOGY -- (0.1%)
     Arcontech Corp. .......................................  18,386,000                 409,472
                                                                                    ------------
  MATERIALS -- (3.9%)
     Fountain Set (Holdings), Ltd. .........................  12,750,000               8,863,285
     Ocean Grand Chemicals Holdings Ltd. ...................   9,861,000               1,637,576
                                                                                    ------------
                                                                                      10,500,861
                                                                                    ------------
  TELECOMMUNICATIONS -- (2.1%)
     Comba Telecom Systems Holdings Ltd.*...................  13,174,000               5,596,576
                                                                                    ------------
  UTILITIES -- (2.8%)
     Xinao Gas Holdings, Ltd.*..............................  13,976,000               7,466,581
                                                                                    ------------
          TOTAL HONG KONG -- (Cost $43,335,850)                             29.1%     78,934,248
                                                                                    ------------
HONG KONG -- "H" SHARES
  ENERGY -- (3.7%)
     Yanzhou Coal Mining Co. ...............................  13,786,000              10,115,886
                                                                                    ------------
  INDUSTRIALS -- (8.2%)
     Beijing Capital International Airport Co., Ltd. .......   7,520,000               2,783,213
     BYD Co., Ltd. .........................................   2,525,000               6,582,293
     Jingwei Textile Machinery Co., Ltd. ...................   7,436,000               2,943,576
     Sinotrans Limited......................................  20,065,000              10,009,253
                                                                                    ------------
                                                                                      22,318,335
                                                                                    ------------
  MATERIALS -- (3.3%)
     Anhui Conch Cement Co., Ltd. ..........................   7,726,000               8,901,609
                                                                                    ------------
  TELECOMMUNICATIONS -- (1.7%)
     China Telecom Corporation Ltd. ........................  14,000,000               4,640,834
                                                                                    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        8
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS (CONTINUED)
HONG KONG -- "H" SHARES (CONTINUED)
  UTILITIES -- (4.7%)
     Anhui Expressway Co., Ltd. ............................  17,778,000            $  5,721,550
     Shenzhen Expressway Co., Ltd. .........................  21,494,000               6,986,657
                                                                                    ------------
                                                                                      12,708,207
                                                                                    ------------
          TOTAL HONG KONG -- "H" SHARES -- (Cost $32,041,336)               21.6%     58,684,871
                                                                                    ------------
          TOTAL HONG KONG (INCLUDING "H" SHARES) -- (Cost
            $75,377,186)                                                    50.7%    137,619,119
                                                                                    ------------
SINGAPORE
  CONSUMER STAPLES -- (1.0%)
     People's Food Holdings, Ltd. ..........................   4,400,000               2,807,139
                                                                                    ------------
          TOTAL SINGAPORE -- (Cost $2,221,014)                               1.0%      2,807,139
                                                                                    ------------
TAIWAN
  CONSUMER DISCRETIONARY -- (8.6%)
     Altek Corp. ...........................................   1,430,000               2,718,391
     China Motor Co., Ltd. .................................   2,140,000               4,068,081
     Merry Electronics Co., Ltd. ...........................   3,254,208               5,275,020
     Synnex Technologies International, Corp. ..............   2,950,640               4,348,129
     Tainan Enterprises Co., Ltd. ..........................   1,546,000               2,064,067
     Taiwan FamilyMart Co., Ltd. ...........................   1,478,520               1,908,611
     Taiwan Hon Chuan Enterprise Co., Ltd. .................   2,345,520               3,055,467
                                                                                    ------------
                                                                                      23,437,766
                                                                                    ------------
  FINANCIALS -- (5.4%)
     Cathay Financial Holding Co., Ltd. ....................   3,862,000               6,374,064
     Fubon Financial Holdings Co., Ltd. ....................   3,953,952               4,171,868
     Polaris Securities Co., Ltd.*..........................   8,359,377               4,163,674
                                                                                    ------------
                                                                                      14,709,606
                                                                                    ------------
  INDUSTRIALS -- (3.0%)
     Cheng Shin Rubber Industry Co., Ltd. ..................   2,516,400               3,522,812
     Chicony Electronics Co., Ltd. .........................   2,500,960               4,643,692
                                                                                    ------------
                                                                                       8,166,504
                                                                                    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        9
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS (CONTINUED)
TAIWAN (CONTINUED)
  INFORMATION TECHNOLOGY -- (6.8%)
     Data Systems Consulting Co., Ltd. .....................   3,968,339            $  3,087,655
     Soft-World International Corp. ........................     790,000               2,724,138
     Taiwan Green Point Enterprises Co., Ltd. ..............   1,831,200               4,182,670
     Vanguard International Semiconductor Corp.*............  14,000,000               4,765,694
     Wintek Corp. ..........................................   5,040,000               3,668,966
                                                                                    ------------
                                                                                      18,429,123
                                                                                    ------------
  MATERIALS -- (2.0%)
     China Metal Products Co., Ltd. ........................   5,473,408               5,307,254
                                                                                    ------------
  TELECOMMUNICATIONS -- (3.1%)
     Ability Enterprise Co., Ltd. ..........................   3,714,840               3,481,636
     Chunghwa Telecom Co., Ltd. ............................   3,055,000               4,817,050
                                                                                    ------------
                                                                                       8,298,686
                                                                                    ------------
          TOTAL TAIWAN -- (Cost $57,552,634)                                28.9%     78,348,939
                                                                                    ------------
UNITED STATES -- "N" SHARES
  INFORMATION TECHNOLOGY -- (12.3%)
     Chinadotcom, Corp.*....................................     973,654               8,947,880
     Sohu.com Inc.*.........................................     711,586              24,549,717
                                                                                    ------------
                                                                                      33,497,597
                                                                                    ------------
          TOTAL UNITED STATES -- "N" SHARES -- (Cost $4,319,653)            12.3%     33,497,597
                                                                                    ------------
          TOTAL COMMON STOCK AND OTHER EQUITY
            INTERESTS -- (Cost $143,252,949)                                94.9%    257,590,819
                                                                                    ------------
DIRECT INVESTMENTS
  FINANCIALS -- (1.1%)
     Captive Finance, Ltd., (acquired 5/24/02)(1)*+.........   2,000,000               3,045,000
                                                                                    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        10
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS (CONTINUED)
DIRECT INVESTMENTS (CONTINUED)
  INDUSTRIALS -- (0.9%)
     Tomoike Industrial (H.K.) Ltd., (acquired
       2/21/03)(1)+.........................................     825,000            $  2,361,530
                                                                                    ------------
          TOTAL DIRECT INVESTMENTS -- (Cost $5,397,038)                      2.0%      5,406,530
                                                                                    ------------
TOTAL INVESTMENTS -- (Cost $148,649,987) (Note E)                           96.9%    262,997,349
                                                                                    ------------
OTHER ASSETS AND LIABILITIES                                                 3.1%      8,280,871
                                                                                    ============
NET ASSETS                                                                 100.0%   $271,278,220
                                                                                    ============
</Table>

Notes to Schedule of Investments

  * Denotes non-income producing security

(1) 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 initially valued at acquisition cost. These
    direct investments are valued at fair value as determined by the Board of
    Directors as discussed in Notes A and B to the financial statements.
  + Affiliated issuer (see Note G)

See notes to financial statements and notes to schedule of investments.
                                        11
<PAGE>

THE CHINA FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<S>                                                           <C>
ASSETS:
  Investments in listed securities, at value (cost
     $143,252,949) (Note A).................................  $257,590,819
  Direct investments, at value (cost $5,397,038) (Notes A
     and B).................................................     5,406,530
  Cash......................................................     4,152,044
  Foreign currency, at value (cost $2,856,999)..............     2,846,990
  Receivable for investments sold...........................     1,796,999
  Dividends and interest receivable.........................       119,392
                                                              ------------
TOTAL ASSETS................................................   271,912,774
                                                              ------------
LIABILITIES:
  Payable for investments purchased.........................       122,880
  Investment management fee payable (Note C)................       185,210
  Administration, custodian and transfer agent fees
     payable................................................       190,099
  Accrued expenses and other liabilities....................       136,365
                                                              ------------
TOTAL LIABILITIES...........................................       634,554
                                                              ------------
TOTAL NET ASSETS............................................  $271,278,220
                                                              ============
COMPOSITION OF NET ASSETS:
  Paid-in Capital (Note D)..................................   139,159,210
  Accumulated undistributed net investment income...........       722,029
  Accumulated net realized gain on investments and foreign
     currency transactions..................................    17,059,950
  Net unrealized appreciation on investments and foreign
     currency transactions..................................   114,337,031
                                                              ------------
TOTAL NET ASSETS............................................  $271,278,220
                                                              ============
NET ASSETS VALUE PER SHARE
  ($271,278,220/10,073,173 shares of common stock
  outstanding)..............................................        $26.93
                                                              ============
</Table>

See notes to financial statements and notes to schedule of investments.
                                        12
<PAGE>

THE CHINA FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<S>                                                           <C>
INVESTMENT INCOME:
  Dividend income -- listed investments (net of taxes
     withheld of $317,523)..................................  $  4,022,856
  Interest income -- direct investments.....................        84,304
                                                              ------------
     TOTAL INVESTMENT INCOME................................     4,107,160
                                                              ------------
EXPENSES:
  Investment Management fees (Note C).......................     1,535,917
  Custodian fees............................................       659,022
  Directors' fees and expenses (Note C).....................       358,610
  Administration fees.......................................       343,364
  Stock dividend tax expense................................       146,627
  Legal fees................................................       127,989
  Insurance.................................................        88,469
  Audit and tax service fees................................        59,247
  Printing and postage......................................        66,619
  Stock exchange listing fee................................        35,591
  Transfer Agent fees.......................................        23,302
  Shareholder service fees..................................        20,070
  Miscellaneous expenses....................................         1,200
                                                              ------------
     TOTAL EXPENSES.........................................     3,466,027
                                                              ------------
NET INVESTMENT INCOME.......................................       641,133
                                                              ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
  FOREIGN CURRENCY:
  Net realized gain on listed investment transactions.......    19,483,948
  Net realized loss on direct investment transactions.......      (726,807)
  Net realized gain on foreign currency transactions........        80,896
                                                              ------------
                                                                18,838,037
                                                              ------------
  Net change in unrealized appreciation on listed
     investments and foreign currency transactions..........   102,626,012
  Net change in unrealized depreciation on direct
     investments............................................     1,012,977
                                                              ------------
                                                               103,638,989
                                                              ------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
  CURRENCY TRANSACTIONS.....................................   122,477,026
                                                              ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS..................  $123,118,159
                                                              ============
</Table>

See notes to financial statements and notes to schedule of investments.
                                        13
<PAGE>

THE CHINA FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
                                                                 YEAR ENDED          YEAR ENDED
                                                              OCTOBER 31, 2003    OCTOBER 31, 2002
                                                              ----------------    ----------------
<S>                                                           <C>                 <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
  Net investment income.....................................    $    641,133        $  1,132,163
  Net realized gain/(loss) on investments and foreign
     currency transactions..................................      18,838,037          (7,425,274)
  Net change in unrealized appreciation on investments and
     foreign currency translations..........................     103,638,989          25,031,092
                                                                ------------        ------------
  Net increase in net assets from operations................     123,118,159          18,737,981
                                                                ------------        ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
  Net investment income.....................................        (644,376)         (1,330,135)
  Capital gains.............................................      (1,514,948)                 --
                                                                ------------        ------------
  Total dividends and distributions to shareholders.........      (2,159,324)         (1,330,135)
                                                                ------------        ------------
NET INCREASE IN NET ASSETS..................................     120,958,835          17,407,846
                                                                ------------        ------------
NET ASSETS:
Beginning of year...........................................     150,319,385         132,911,539
                                                                ------------        ------------
End of year.................................................    $271,278,220        $150,319,385
                                                                ============        ============
UNDISTRIBUTED NET INVESTMENT INCOME, END OF YEAR............    $    722,029        $    644,376
                                                                ============        ============
</Table>

See notes to financial statements and notes to schedule of investments.
                                        14
<PAGE>

THE CHINA FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING FOR THE PERIOD(S)
INDICATED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<Table>
<Caption>
                                                                YEAR ENDED OCTOBER 31,
                                               --------------------------------------------------------
                                                 2003        2002        2001        2000        1999
                                               --------    --------    --------    --------    --------
<S>                                            <C>         <C>         <C>         <C>         <C>
PER SHARE OPERATION PERFORMANCE(1)
Net asset value, beginning of year...........  $  14.92    $  13.19    $  12.37    $  12.74    $  10.84
Net investment income (loss).................      0.06        0.11        0.14       (0.03)       0.12
Net realized and unrealized gain (loss) on
  investment and foreign currency
  transactions...............................     12.16        1.75        0.68       (0.23)       1.86
                                               --------    --------    --------    --------    --------
Total income (loss) from investment
  operations.................................     12.22        1.86        0.82       (0.26)       1.98
                                               --------    --------    --------    --------    --------
Less distributions:
  Dividend from net investment income........     (0.06)      (0.13)       0.00       (0.11)      (0.08)
  Distributions from net realized capital
    gains....................................     (0.15)       0.00        0.00        0.00        0.00
                                               --------    --------    --------    --------    --------
Total distributions..........................     (0.21)      (0.13)       0.00       (0.11)      (0.08)
                                               --------    --------    --------    --------    --------
Net asset value, end of year.................  $  26.93    $  14.92    $  13.19    $  12.37    $  12.74
                                               ========    ========    ========    ========    ========
Per share market value, end of year..........  $  34.74    $  12.61    $  10.74    $   8.94    $   9.94
                                               ========    ========    ========    ========    ========
TOTAL INVESTMENT RETURN (BASED ON MARKET
  VALUE).....................................    179.41%      18.63%      20.13%      (9.14)%     14.65%
                                               ========    ========    ========    ========    ========
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of year (000's)..............  $271,278    $150,319    $132,912    $124,619    $128,303
Ratio of expenses to average net assets......      1.76%       1.97%       2.39%       2.12%       2.28%
Ratio of expenses to average net assets,
  excluding stock dividend tax expense.......      1.68%       1.85%       2.31%       2.12%       2.28%
Ratio of net investment income (loss) to
  average net assets.........................      0.32%       0.72%       1.09%      (0.21)%      0.95%
Portfolio turnover rate......................        55%         68%        115%        108%         75%
</Table>

(1) Based on average shares outstanding during the period.

See notes to financial statements and notes to schedule of investments.
                                        15
<PAGE>

THE CHINA FUND, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2003
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The China Fund, Inc. (the "Fund") was incorporated under the laws of the State
of Maryland on April 28, 1992, and is a non-diversified, closed-end management
investment company registered under the Investment Company Act of 1940, as
amended. The Fund's investment objective is long-term capital appreciation
through investments in the equity securities of companies engaged in a
substantial amount of business in the People's Republic of China. The following
is a summary of significant accounting policies followed by the Fund in the
preparation of its financial statements.

USE OF ESTIMATES:  The preparation of financial statements requires management
to make estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from these
estimates. The significant estimates made as of, and for the year ended, October
31, 2003 relate to the valuation of the Fund's Direct Investments, as further
discussed below and in Note B.

SECURITY VALUATION:  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, of two 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 in good faith at fair
value using methods determined by the Board of Directors. Direct Investments not
traded on an exchange are valued at fair value as determined by the Board of
Directors based on advice from the Direct Investment Manager. The Direct
Investment's original cost is considered to be fair value unless the Board of
Directors, based on such advice, concludes there has been a material change of a
long-term nature and sufficient reliable information is available to revalue
these investments.

REPURCHASE AGREEMENTS:  In connection with transactions in repurchase
agreements, it is the Fund's policy that its custodian take possession of the
underlying collateral securities, the fair value of which exceeds the principal
amount of the repurchase transaction, including accrued interest, at all times.
If the seller defaults, and the fair value of the collateral declines,
realization of the collateral by the Fund may be delayed or limited.

FOREIGN CURRENCY TRANSLATIONS:  The records of the Fund are maintained in U.S.
dollars. Foreign currencies, investments and other assets and liabilities are
translated into U.S. dollars at the current exchange rates. Purchases and sales
of investment securities and income and expenses are translated on the
respective dates of such transactions. Net realized gains and losses on foreign
currency transactions represent net gains and losses from the disposition of
foreign currencies, currency gains and losses realized between the trade dates
and settlement dates of security transactions, and the difference between the
amount of net investment income accrued and the U.S. dollar amount actually
received. The effects of changes in foreign currency exchange rates on
investments in securities are not segregated in the Statement of Operations from
the effects of changes in market prices of those securities, but are included in
realized and unrealized gain or loss on investments.

                                        16
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

OPTIONS CONTRACTS:  The Fund may purchase and write (sell) call options and put
options provided the transactions are for hedging purposes and the initial
margin and premiums do not exceed 5% of total assets. Option contracts are
valued daily and unrealized gains or losses are recorded based upon the last
sales price on the principal exchange on which the options are traded. The Fund
will realize a gain or loss upon the expiration or closing of the option
contract. When an option is exercised, the proceeds on sales of the underlying
security for a written call option, the purchase cost of the security for a
written put option, or the cost of the security for a purchased put or call
option is adjusted by the amount of premium received or paid.

The risk in writing a call option is that the Fund gives up the opportunity for
profit if the market price of the security increases and the option is
exercised. The risk in writing a put option is that the Fund may incur a loss if
the market price of the security decreases and the option is exercised. The risk
in buying an option is that the Fund pays a premium whether or not the option is
exercised. Risks may also arise from an illiquid secondary market or from the
inability of counter parties to meet the terms of the contract.

SECURITY TRANSACTIONS AND INVESTMENT INCOME:  Security transactions are recorded
as of the trade date. Realized gains and losses from securities sold are
recorded on the identified cost basis. Dividend income is recorded on the
ex-dividend date, or, in the case of dividend income on foreign securities, on
the ex-dividend date or when the Fund becomes aware of its declaration. Interest
income is recorded on the accrual basis. All premiums and discounts are
amortized/accreted for both financial reporting and federal income tax purposes.

Dividend and interest income generated in Taiwan is subject to a 20% withholding
tax. Stock dividends received (except those which have resulted from
capitalization of capital surplus) are taxable at 20% of the par value of the
stock dividends received. The Fund records the taxes paid on stock dividends as
an operating expense.

DIVIDENDS AND DISTRIBUTIONS:  The Fund intends to distribute to its
shareholders, at least annually, substantially all of its net investment income
and any net realized capital gains. Income and capital gains distributions are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of foreign currency transactions, and losses deferred due
to wash sales.

The Fund paid $2,152,414 from Ordinary Income and $6,910 from Long-Term Capital
Gains during the year ended October 31, 2003. As of October 31, 2003 the
components of distributable earnings on a tax basis were $11,145,972 for
Undistributed Ordinary Income, $6,736,584 for Undistributed Long-Term Capital
Gains, and $114,236,452 for Unrealized Appreciation.

FEDERAL INCOME TAXES:  The Fund has qualified and intends to qualify in the
future as a regulated investment company by complying with the provisions of the
Internal Revenue Code available to certain investment companies, including
making distributions of taxable income and capital gains sufficient to relieve
it from all, or substantially all, federal income and excise taxes.

                                        17
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

NOTE B -- VALUATION OF DIRECT INVESTMENTS
At October 31, 2003, Direct Investments amounting to $5,406,530 (2.0% of net
assets) have been valued at fair value as determined by the Board of Directors
in the absence of readily ascertainable market values. The procedures applied by
the Board of Directors in arriving at its estimate of value of securities
without readily available market values comply with the Fund's policies for
valuing Direct Investments at original cost unless the Board of Directors, based
on advice from the Direct Investment Manager, concludes that there has been a
material change of a long-term nature and sufficient reliable information is
available to revalue these investments. Determination of fair values involves
subjective judgment and, because of the inherent uncertainty of valuation, the
Board of Directors' estimated values may differ significantly from the values
that would have been used had a ready market for the securities existed, and the
differences could be material.

NOTE C -- ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Martin Currie Inc. is the investment manager for the Fund's listed assets (the
"Listed Assets") and is paid a fee, computed weekly and payable monthly, at the
following annual rates: 1.00% of the first US$25 million of the Fund's average
weekly net assets invested in Listed Assets; 0.90% of the next US$25 million of
the Fund's average weekly net assets invested in Listed Assets; 0.70% of the
next US$25 million of the Fund's average weekly net assets invested in Listed
Assets; and 0.50% of the Fund's average weekly net assets invested in Listed
Assets in excess of US$75 million.

Asian Direct Capital Management ("ADCM") is the investment manager for the
Fund's assets allocated to Direct Investments. ADCM receives a fee, computed
weekly and payable monthly at an annual rate equal to the greater of $300,000 or
2.2% of the average weekly value of the net assets of the Fund invested in
Direct Investments.

No director, officer or employee of the Investment Manager or Direct Investment
Manager or any affiliates of those entities receives any compensation from the
Fund for serving as an officer or director of the Fund. The Fund pays the
Chairman of the Board and each of the directors (who is not a director, officer
or employee of the Investment Manager or Direct Investment Manager or any
affiliate thereof) an annual fee of $27,500 and $10,000, respectively, plus
$2,000 for each Board of Directors' meeting or Audit Committee meeting attended.
In addition, the Fund reimburses each of the directors and officers for travel
and out-of-pocket expenses incurred in connection with attending Board of
Directors' meetings.

NOTE D -- CAPITAL STOCK
The Board of Directors of the Fund has approved a share repurchase plan. Under
the program, the Fund will repurchase shares at management's discretion at times
when it considers the repurchase to be consistent with the objectives of the
program. For the year ended October 31, 2003, the Fund did not participate in
this program.

NOTE E -- INVESTMENT TRANSACTIONS
For the year ended October 31, 2003, the Fund's cost of purchases and proceeds
from sales of investment securities, other than short-term securities, were
$104,029,958 and $110,071,986, respectively. At October 31, 2003, the cost of
investments for federal income tax purposes was $148,750,566. Gross unrealized
appreciation of investments was $117,290,535, while gross unrealized
depreciation of investments was $3,043,752, resulting in net unrealized
appreciation of investments of $114,246,783.

                                        18
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

NOTE F -- INVESTMENTS IN CHINA
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.

NOTE G -- INVESTMENTS IN NON-CONTROLLED AFFILIATES*:
<Table>
<Caption>
                                                                                                               INTEREST
                                                                                                DIVIDENDS     INCLUDED IN
                                                                                               INCLUDED IN     INTEREST
                       BALANCE OF                                  BALANCE OF                    DIVIDEND       INCOME-
                       SHARES HELD       GROSS       GROSS SALES   SHARES HELD      VALUE      INCOME- NON-      NON-
                       OCTOBER 31,     PURCHASES         AND       OCTOBER 31,   OCTOBER 31,    CONTROLLED    CONTROLLED
NAME OF ISSUER            2002       AND ADDITIONS   REDUCTIONS       2003          2003        AFFILIATES    AFFILIATES
- --------------         -----------   -------------   -----------   -----------   -----------   ------------   -----------
<S>                    <C>           <C>             <C>           <C>           <C>           <C>            <C>
Captive Finance,
  Ltd................   2,000,000             --              --    2,000,000    $3,045,000       $  --       $       --
LifeTec Group Ltd....  79,708,000     88,784,000     168,492,000           --            --          --               --
Tomoike Industrial
  (H.K.) Ltd.........          --        825,000              --      825,000     2,361,530          --        40,119.54

<Caption>

                       PRINCIPAL
NAME OF ISSUER         PAYMENTS
- --------------         ---------
<S>                    <C>
Captive Finance,
  Ltd................    $  --
LifeTec Group Ltd....       --
Tomoike Industrial
  (H.K.) Ltd.........       --
</Table>

* Affiliated issuers, as defined in the 1940 Act, include issuers in which the
  Fund held 5% or more of the outstanding voting securities.

NOTE H -- BENEFICIAL INTEREST
As of October 31, 2003, the Fund had one shareholder owning beneficially or of
record 7.70% shares of the Fund.

NOTE I -- INSTALLMENT SALE
On October 26, 2002, the Fund entered into an agreement to sell its direct
investment in New World Sun City Ltd. on an installment basis over a 14-month
period. Under the terms of the agreement, the Fund has received proceeds and
interest totaling HK$12,227,988 (US$1,612,964) through October 31, 2003. The
Fund has received the final proceeds and dividend payments from this
transaction.

NOTE J -- PROPOSED REVISION TO INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT
(UNAUDITED)

The Board of Directors of the Fund has approved, subject to the approval of the
Fund's stockholders, a proposed revised Investment Advisory and Management
Agreement between the Fund and Martin Currie Inc. The proposed changes to the
advisory fee are as follows: Martin Currie Inc. will receive a fee, computed
weekly and payable monthly, at the following annual rates: 0.70% of the first
US$400,000,000 of the Fund's average weekly net assets consisting of Listed
Assets; and 0.50% of the Fund's average weekly net assets for all listed assets
in

                                        19
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

excess of US$400,000,000. Refer to Note C in the Notes to Financial Statements
for details of the current fee structure. The Fund's stockholders will have an
opportunity to vote on this proposal at the Fund's 2004 Annual Meeting of
Stockholders, and a proxy statement prepared for the meeting will contain
further information regarding the proposal.

                                        20
<PAGE>

THE CHINA FUND, INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

The Shareholders and Board of Directors of
The China Fund, Inc.:

     We have audited the accompanying statement of assets and liabilities of The
China Fund, Inc., including the schedule of investments, as of October 31, 2003,
and the related statement of operations for the year then ended, the statements
of changes in net assets for each of the years in the two-year period then ended
and financial highlights for each of the years in the five-year period then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2003, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

     In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of The
China Fund, Inc. as of October 31, 2003, the results of its operations for the
year then ended, changes in its net assets for each of the years in the two-year
period then ended and financial highlights for each of the years in the five
year period then ended, in conformity with accounting principles generally
accepted in the United States of America.

                                         [KPMG LOGO]

Boston, Massachusetts
December 5, 2003

                                        21
<PAGE>

THE CHINA FUND, INC.
OTHER INFORMATION
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

PRIVACY POLICY

                                 PRIVACY NOTICE

The China Fund, Inc. collects nonpublic personal information about its
shareholders from the following sources:

     [ ]  Information it receives from shareholders on applications or other
          forms; and

     [ ]  Information about shareholder transactions with the Fund.

THE FUND'S POLICY IS TO NOT DISCLOSE NONPUBLIC PERSONAL INFORMATION ABOUT ITS
SHAREHOLDERS TO NONAFFILIATED THIRD PARTIES (other than disclosures permitted by
law).

The Fund restricts access to nonpublic personal information about its
shareholders to those agents of the Fund who needs to know that information to
provide products or services to shareholders. The Fund maintains physical,
electronic and procedural safeguards that comply with federal standards to guard
its shareholders' nonpublic personal information.

PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that are used by the Fund's
investment advisers to vote proxies relating to the Fund's portfolio securities
is available (1) without charge, upon request, by calling 1-888-CHN-CALL
(246-2255); and (2) as an exhibit to the Fund's annual report on Form N-CSR
which is available on the website of the Securities and Exchange Commission (the
"Commission") at http://www.sec.gov. Information regarding how the investment
advisers vote these proxies will become available by calling the same number and
on the Commission's website when the Fund files its first report on Form N-PX
which is due by August 31, 2004 covering the Fund's proxy voting record for the
12 month period ending June 30, 2004.

                                        22
<PAGE>

DIVIDENDS AND DISTRIBUTIONS;
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

The Fund will distribute to shareholders, at least annually, substantially all
of its net investment income from dividends and interest earnings and expects to
distribute any net realized capital gains annually. Pursuant to the Dividend
Reinvestment and Cash Purchase Plan (the "Plan"), adopted by the Fund, each
shareholder will be deemed to have elected, unless Equiserve Trust Company,
N.A., the Plan Administrator, is otherwise instructed by the stockholder in
writing, to have all distributions automatically reinvested by the Plan
Administrator in Fund shares pursuant to the Plan. Shareholders who do not
participate in the Plan will receive all distributions in cash paid by check in
U.S. dollars mailed directly to the stockholder by Equiserve Trust Company,
N.A., as paying agent. Shareholders who do not wish to have distributions
automatically reinvested should notify the Fund by contacting EquiServe c/o The
China Fund, Inc. at P.O. Box 43010, Providence, Rhode Island 02940-3010. Phone:
1-800-426-5523.

Equiserve Trust Company, N.A. ("EquiServe") or the ("Plan Administrator"), a
federally chartered trust institution, acts as Plan Administrator. EquiServe,
Inc. an affiliate of EquiServe and a transfer agent registered with the
Securities and Exchange Commission, acts as Service Agent for EquiServe. If the
Directors of the Fund declare an income dividend or a capital gains distribution
payable either in the Fund's Common Stock or in cash, as shareholders may have
elected, non-participants in the Plan will receive cash and participants in the
Plan will receive Common Stock, to be issued by the Fund. If the market price
per share on the valuation date equals or exceeds net asset value per share on
that date, the Fund will issue new shares to participants at net asset value or,
if the net asset value is less than 95% of the market price on the valuation
date, then at 95% of the market price. The valuation date will be the dividend
or distribution payment date or, if that date is not a trading day on the
exchange on which the Fund's shares are then listed, the next preceding trading
day. If net asset value exceeds the market price of Fund shares at such time,
participants in the Plan will be deemed to have elected to receive shares of
stock from the Fund, valued at market price on the valuation date. If the Fund
should declare a dividend or capital gains distribution payable only in cash,
the Plan Administrator will, as administrator for the participants, buy Fund
shares in the open market, on the New York Stock Exchange or elsewhere, with the
cash in respect of such dividend or distribution, for the participant's account
on, or shortly after, the payment date.

Participants in the Plan have the option of making additional payments to the
Plan Administrator, annually, in any amount from $100 to $3,000 for investment
in the Fund's Common Stock. The Plan Administrator will use all funds received
from participants (as well as any dividends and capital gains distributions
received in cash) to purchase Fund shares in the open market on or about January
15 of each year. Any voluntary cash payments received more than thirty days
prior to such date will be returned by the Plan Administrator, and interest will
not be paid on any uninvested cash payments. To avoid unnecessary cash
accumulations, and also to allow ample time for receipt and processing by the
Plan Administrator, it is suggested that participants send in voluntary cash
payments to be received by the Plan Administrator approximately ten days before
January 15. A participant may withdraw a voluntary cash payment by written
notice, if the notice is received by the Plan Agent not less than 48 hours
before such payment is to be invested.

The Plan Administrator maintains all stockholder accounts in the Plan and
furnishes written confirmations of all transactions in the account, including
information needed by shareholders for personal and tax records. Shares in

                                        23
<PAGE>
DIVIDENDS AND DISTRIBUTIONS;
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (CONTINUED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

the account of each Plan participant will be held by the Plan Administrator in
non-certificated form in the name of the participant, and each stockholder's
proxy will include those shares purchased pursuant to the Plan.

In the case of shareholders, such as banks, brokers or nominees, which hold
shares for others who are the beneficial owners, the Plan Administrator will
administer the Plan on the basis of the number of shares certified from time to
time by the stockholder as representing the total amount registered in the
stockholder's name and held for the account of beneficial owners who are
participating in the Plan.

There is no charge to participants for reinvesting dividends or capital gains
distributions. The Plan Administrator's fees for the handling of the
reinvestment of dividends and distributions will be paid by the Fund. However,
each participant's account will be charged a pro rata share of brokerage
commissions incurred with respect to the Plan Administrator's open market
purchases in connection with the reinvestment of dividends or capital gains
distributions. A participant will also pay brokerage commissions incurred in
purchases from voluntary cash payments made by the participant. Brokerage
charges for purchasing small amounts of stock for individual accounts through
the Plan are expected to be less than the usual brokerage charges for such
transactions, because the Plan Administrator will be purchasing stock for all
participants in blocks and prorating the lower commission thus attainable.

The automatic reinvestment of dividends and distributions will not relieve
participants of any income tax which may be payable on such dividends and
distributions.

Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund reserves the right to amend or terminate the Plan as applied to any
voluntary cash payment made and any dividend or distribution paid subsequent to
notice of the change sent to all shareholders at least 90 days before the record
date for such dividend or distribution. The Plan also may be amended or
terminated by the Plan Administrator by at least 90 days' written notice to all
shareholders. All correspondence concerning the Plan should be directed to
EquiServe c/o The China Fund, Inc. at P.O. Box 43010, Providence, Rhode Island
02940-3010. Phone: 1-800-426-5523.

                                        24
<PAGE>

DIRECTORS AND OFFICERS (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

The following table sets forth information concerning directors and officers of
the Fund.

<Table>
<Caption>
                                                           PRINCIPAL OCCUPATION OR EMPLOYMENT
NAME (AGE) AND                PRESENT OFFICE                   DURING PAST FIVE YEARS AND                  DIRECTOR
ADDRESS OF DIRECTOR            WITH THE FUND            DIRECTORSHIPS IN PUBLICLY HELD COMPANIES            SINCE
- -------------------           ---------------  ----------------------------------------------------------  --------
<S>                           <C>              <C>                                                         <C>
Alan Tremain(68)............  Chairman of the  Chairman of the Board of the Fund; Chairman, Hotels of        1992
  380 South County Road       Board and        Distinction Ventures, Inc. (1989-present); Chairman,
  Suite 200                   Director         Hotels of Distinction (International), Inc.
  Palm Beach, Florida 33480                    (1974-present).
Gary L. French(52)..........  President        Senior Vice President, State Street Bank and Trust Company
  225 Franklin Street                          (2002-present); Managing Director, Deutsche Asset
  Boston, MA 02110                             Management, Inc. and Zurich Scudder Investments (acquired
                                               by Deutsche Bank in 2002) (2001-2002); President UAM Fund
                                               Services, Inc. (1995-2001); Treasurer, Fidelity Group of
                                               Funds (1991-1995); Senior Vice President, Fidelity
                                               Accounting and Custody Services (1990-1991)
Michael F. Holland(59)......  Director         Chairman, Holland & Company L.L.C. (1995-present);            1992
  375 Park Avenue                              Director, The Holland Balanced Fund, Inc., State Street
  New York, New York 10152                     Master Funds and State Street Institutional Investment
                                               Trust.
Burton Levin(73)............  Director         Visiting Professor Carleton College (1995-present);           1992
  18 Page Farm Road                            Co-Chairman, Hopkins-Nanjing Center (1999-present);
  Sherborn, MA 01770                           Director, Noble Ltd. (1997-present); U.S. Ambassador to
                                               Burma (1987-1990).
James J. Lightburn(60)......  Director         Attorney, member of Hughes Hubbard & Reed (1993-present).     1992
  47, Avenue Georges Mandel
  Paris, France 75116
Joe O. Rogers(55)...........  Director         Manager, The J-Squared Team LLC (2003-present);               1992
  2247 Foxwood Drive                           The Rogers Team LLC, organizing member (July
  Chapel Hill, NC 27514                        2001-present); Executive Vice President, Business
                                               Development, PlanetPortal.com, Inc. (Sept. 1999-May 2001);
                                               President, Rogers International, Inc. (1986-1998); Vice
                                               President of Business Development, Thomson Consulting
                                               (1998-May 1999); Director, The Taiwan Fund, Inc.
                                               (1986-present).
Nigel S. Tulloch(57)........  Director         Chief Executive, HSBC Asset Management Bahamas Limited        1992
  7, Circe Circle                              (1986-1992); Director, The HSBC China Fund Limited.
  Dalkeith
  WA6009
  Australia
Ann M. Casey(37)............  Treasurer        Vice President, State Street Bank and Trust Company.
  225 Franklin Street
  Boston, MA 02110
Mary Moran Zeven(42)........  Secretary        Senior Vice President and Senior Managing Counsel, State
  225 Franklin Street                          Street Bank and Trust Company (2000-present).
  Boston, MA 02110
Julie A. Tedesco(46)........  Assistant        Vice President and Counsel, State Street Bank and Trust
  225 Franklin Street         Secretary        Company.
  Boston, MA 02110
</Table>

                                        25
<PAGE>

THE CHINA FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

UNITED STATES ADDRESS
The China Fund, Inc.
225 Franklin Street
Boston, MA 02110
1-888-CHN-CALL (246-2255)

DIRECTORS AND OFFICERS
Alan Tremain, O.B.E., Director and Chairman of the Board
Gary L. French, President
Michael F. Holland, Director
Burton Levin, Director
James J. Lightburn, Director
Joe O. Rogers, Director
Nigel S. Tulloch, Director
Ann M. Casey, Treasurer
Mary Moran Zeven, Secretary
Julie A. Tedesco, Assistant Secretary

INVESTMENT MANAGER
Martin Currie Inc.

DIRECT INVESTMENT MANAGER
Asian Direct Capital Management

SHAREHOLDER SERVICING AGENT
Georgeson Shareholder

ADMINISTRATOR AND CUSTODIAN
State Street Bank and Trust Company

TRANSFER AGENT, DIVIDEND PAYING AGENT AND REGISTRAR
Equiserve Trust Company, N.A.

INDEPENDENT AUDITORS
KPMG LLP

LEGAL COUNSEL
Clifford Chance US LLP
<PAGE>

ITEM 2:  CODE OF ETHICS

(a)      The China Fund, Inc. (the "Fund") has adopted a Code of Ethics that
         applies to the Fund's principal executive officer and principal
         financial officer.

(c)      There have been no amendments to the Fund's Code of Ethics during the
         reporting period for Form N-CSR.

(d)      There have been no waivers granted by the Fund to individuals covered
         by the Fund's Code of Ethics during the reporting period for Form
         N-CSR.

(f)      A copy of the Fund's Code of Ethics is attached as an exhibit to this
         Form N-CSR.

ITEM 3:  AUDIT COMMITTEE FINANCIAL EXPERT

(a)      (1)      The Board of Directors of The China Fund, Inc. (the "Fund")
                  has determined that the Company has one member serving on the
                  Fund's Audit Committee that possesses the attributes
                  identified in Instruction 2(b) of Item 3 to Form N-CSR to
                  qualify as "audit committee financial expert."

         (2)      The name of the audit committee financial expert is Michael F.
                  Holland. Mr. Holland has been deemed to be "independent" as
                  that term is defined in Item 3(a)(2) of Form N-CSR.

ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees

         For the fiscal year ended October 31, 2003, KPMG billed the Fund
aggregate fees of US$48,500 for professional services rendered for the audit of
the Fund's annual financial statements and review of financial statements
included in the Fund's annual report to shareholders.

         For the fiscal year ended October 31, 2002, KPMG billed the Fund
aggregate fees of US$47,000 for professional services rendered for the audit of
the Fund's annual financial statements and review of financial statements
included in the Fund's annual report to shareholders.

(b) Audit-Related Fees

         For the fiscal year ended October 31, 2003, KPMG did not bill the Fund
any fees for assurances and related services that are reasonably related to the
performance of the audit or review of the Fund's financial statements and are
not reported under the section Audit Fees above.

         For the fiscal year ended October 31, 2002, KPMG did not bill the Fund
any fees for assurances and related services that are reasonably related to the
performance of the audit or review of the Fund's financial statements and are
not reported under the section Audit Fees above.

(c) Tax Fees

         For the fiscal year ended October 31, 2003, KPMG billed the Fund
aggregate fees of US$8,500 for professional services rendered for tax
compliance, tax advice, and tax planning. The nature of the

<PAGE>

services comprising the Tax Fees was the review of the Fund's income tax returns
and tax distribution requirements.

         For the fiscal year ended October 31, 2002, KPMG billed the Fund
aggregate fees of US$8,000 for professional services rendered for tax
compliance, tax advice, and tax planning. The nature of the services comprising
the Tax Fees was the review of the Fund's income tax returns and tax
distribution requirements.

(d) All Other Fees

         For the fiscal year ended October 31, 2003, KPMG did not bill the Fund
any fees for products and services other than those disclosed above.

         For the fiscal year ended October 31, 2002, KPMG did not bill the Fund
any fees for products and services other than those disclosed above.

(e)      (1)      The Fund's Audit Committee Charter requires that the Audit
Committee pre-approve all audit and non-audit services to be provided to the
Fund by the Fund's independent accountants; provided, however, that the
pre-approval requirement with respect to non-auditing services to the Fund may
be waived consistent with the exceptions provided for in the Securities Exchange
Act of 1934, as amended (the "1934 Act"). All of the audit and tax services
described above for which KPMG billed the Fund fees for the fiscal years ended
October 31, 2003 and October 31, 2002 were pre-approved by the Audit Committee.

         For the fiscal years ended October 31, 2003 and October 31, 2002, the
Fund's Audit Committee did not waive the pre-approval requirement of any
non-audit services to be provided to the Fund by KPMG.

(g)      For the fiscal year ended October 31, 2003, the aggregate non-audit
fees billed by KPMG for services rendered to the Fund were US$8,500. During the
same period, the aggregate non-audit fees billed by KPMG for services rendered
to State Street Bank and Trust Company, the parent company of the Fund's direct
investment manager, Asian Direct Capital Management, was US$440,000. The
non-audit services provided to State Street Bank and Trust Company were not
ongoing services and were not related directly to the operations and financial
reporting of the Fund. During this period, KPMG did not provide any services to
Martin Currie Inc.

         For the fiscal year ended October 31, 2002, the aggregate non-audit
fees billed by KPMG for services rendered to the Fund were US$8,000. During the
same period, the aggregate non-audit fees billed by KPMG for services rendered
to State Street Bank and Trust Company, an affiliate of the Fund's direct
investment manager, Asian Direct Capital Management, was US$50,000. The
non-audit services provided to State Street Bank and Trust Company were not
ongoing services and were not related directly to the operations and financial
reporting of the Fund. During this period, KPMG did not provide any services to
Martin Currie Inc.

(h)      The Fund's Audit Committee has determined that the provision of
non-audit services by KPMG to State Street Bank and Trust is compatible with
maintaining KPMG's independence.

ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS.

<PAGE>

(a)      The Fund has a separately-designated audit committee established in
accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as
amended. The members of the Fund's audit committee are Alan Tremain, James J.
Lightburn, Nigel Tulloch, Joe O. Rogers, Michael F. Holland, and Burton Levin.

ITEM 6.  [RESERVED]

ITEM 7.  DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
         INVESTMENT COMPANIES.

Attached to this Form N-CSR as exhibits are copies of the proxy voting policies
and procedures of the Fund and its investment advisers.

ITEM 8.  PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
         AFFILIATED PURCHASERS

         NOT APPLICABLE

ITEM 9.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         NOT APPLICABLE


<PAGE>

ITEM 10. 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-CSR based on
         their evaluation of these 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 Exchange Act (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 second fiscal
         half-year that has materially affected, or is reasonably likely to
         materially affect, the registrant's internal control over financial
         reporting.

ITEM 11. EXHIBITS

(a)(1)   Code of Ethics is attached hereto.

(a)(2)   The certifications required by Rule 30a-2 of the 1940 Act are attached
         hereto.

(b)      The certifications required by Rule 30a-2(b) of the 1940 Act and
         Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(c)      Proxy voting policies and procedures of the Fund and its investment
         advisers are attached hereto.
<PAGE>

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/Gary L. French
      ----------------------------------
      Gary L. French
      President of The China Fund, Inc.

By:   /s/Ann M. Casey
      ----------------------------------
      Ann M. Casey
      Treasurer of The China Fund, Inc.

Date: January 9, 2004

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/Gary L. French
      ----------------------------------
      Gary L. French
      President of The China Fund, Inc.

By:   /s/Ann M. Casey
      ----------------------------------
      Ann M. Casey
      Treasurer of The China Fund, Inc.

Date: January 9, 2004


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CODE ETH
<SEQUENCE>3
<FILENAME>b48619cnexv99wcodeeth.txt
<DESCRIPTION>CODE OF ETHICS
<TEXT>
<PAGE>

                                                           EXHIBIT - 99.CODE ETH

                              THE CHINA FUND, INC.

                   CODE OF CONDUCT FOR PRINCIPAL EXECUTIVE AND
                            SENIOR FINANCIAL OFFICERS

I.       COVERED OFFICERS/PURPOSE OF THE CODE

         This Code of Conduct (the "Code") shall apply to the China Fund, Inc.'s
(the "Fund") Principal Executive Officer, Principal Financial Officer,
Controller, Principal Accounting Officer and persons performing similar
functions (the "Covered Officers," each of whom is named in Exhibit A attached
hereto) for the purpose of promoting:

- -        honest and ethical conduct, including the ethical handling of actual or
         apparent conflicts of interest between personal and professional
         relationships;

- -        full, fair, accurate, timely and understandable disclosure in reports
         and documents that the Fund files with, or submits to, the Securities
         and Exchange Commission ("SEC") and in other public communications made
         by the Fund;

- -        compliance with applicable laws and governmental rules and regulations;

- -        the prompt internal reporting of violations of the Code to an
         appropriate person or persons identified in the Code; and

- -        accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and
should be sensitive to situations that may give rise to actual as well as
apparent conflicts of interest.

II.      COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS
         OF INTEREST

         OVERVIEW. A "conflict of interest" occurs when a Covered Officer's
private interest interferes with the interests of, or his service to, the Fund.
For example, a conflict of interest would arise if a Covered Officer, or a
member of his family, receives improper personal benefits as a result of his
position with the Fund. Covered Officers must avoid conduct that conflicts, or
appears to conflict, with their duties to the Fund. All Covered Officers should
conduct themselves such that a reasonable observer would have no grounds for
belief that a conflict of interest exists. Covered Officers are not permitted to
self-deal or otherwise to use their positions with the Fund to further their own
or any other related person's business opportunities.

         This Code does not, and is not intended to, repeat or replace the
programs and procedures or codes of ethics of the Fund's investment adviser or
distributor.

<PAGE>

         Although typically not presenting an opportunity for improper personal
benefit, conflicts may arise from, or as a result of, the contractual
relationship between the Fund and its service providers, including investment
adviser or administrator, of which the Covered Officers may be officers or
employees. As a result, this Code recognizes that the Covered Officers will, in
the normal course of their duties (whether formally for the Fund, the investment
adviser or administrator, or other service providers), be involved in
establishing policies and implementing decisions that will have different
effects on the service providers and the Fund. The participation of the Covered
Officers in such activities is inherent in the contractual relationship between
the Fund and its service providers and is consistent with the performance by the
Covered Officers of their duties as officers of the Fund. Thus, if performed in
conformity with the provisions of the Investment Company Act of 1940, as amended
("Investment Company Act") and the Investment Advisers Act of 1940, as amended
("Investment Advisers Act"), such activities will be deemed to have been handled
ethically. In addition, it is recognized by the Fund's Board of Directors (the
"Board") that the Covered Officers may also be officers or employees of one or
more other investment companies covered by other codes.

         The following list provides examples of conflicts of interest under the
Code, but Covered Officers should keep in mind that these examples are not
exhaustive. The overarching principle is that the personal interest of a Covered
Officer should not be placed improperly before the interest of the Fund.

                       *          *          *          *

 Each Covered Officer must not:

     -   use his personal influence or personal relationship improperly to
         influence investment decisions or financial reporting by the Fund
         whereby the Covered Officer would benefit personally to the detriment
         of the Fund;

     -   cause the Fund to take action, or fail to take action, for the
         individual personal benefit of the Covered Officer rather than the
         benefit of the Fund; or

     -   retaliate against any other Covered Officer or any employee of the Fund
         or its affiliated persons for reports of potential violations by the
         Fund of applicable rules and regulations that are made in good faith.

         Each Covered Officer must discuss certain material conflict of interest
situations with the Fund's Audit Committee. Examples of such situations include:

     -   service as a Director, general partner, or officer of any unaffiliated
         business organization. This rule does not apply to charitable, civic,
         religious, public, political, or social organizations, the activities
         of which do not conflict with the interests of the Fund;

     -   the receipt of any non-nominal gifts;

<PAGE>

     -   the receipt of any entertainment from any company with which the Fund
         has current or prospective business dealings unless such entertainment
         is business-related, reasonable in cost, appropriate as to time and
         place, and not so frequent as raise any question of impropriety;

     -   any ownership interest in, or any consulting or employment relationship
         with, any of the Fund's service providers, other than its investment
         adviser, administrator, transfer agent, custodian or any affiliated
         person thereof; and

     -   a direct or indirect financial interest in commissions, transaction
         charges or spreads paid by the Fund for effecting portfolio
         transactions or for selling or redeeming shares other than an interest
         arising from the Covered Officer's employment, such as compensation or
         equity ownership.

III.     DISCLOSURE AND COMPLIANCE

     -   Each Covered Officer will monitor the compliance of the Fund and the
         Fund's service providers with federal or state statutes, regulations or
         administrative procedures that affect the operation of the Fund.

     -   Each Covered Officer should not knowingly misrepresent, or cause others
         to misrepresent, facts about the Fund to others, whether within or
         outside the Fund, including to the Fund's Board, Fund's Audit Committee
         and the Fund's independent auditors, and to governmental regulators and
         self-regulators and self-regulatory organizations.

     -   Each Covered Officer should, to the extent appropriate within his or
         her area of responsibility, consult with other officers and employees
         of the Fund and its service providers with the goal of promoting full,
         fair, accurate, timely and understandable disclosure in the reports and
         documents the Fund files with, or submits to, the SEC and in other
         public communications made by the Fund.

     -   It is the responsibility of each covered officer to promote and
         encourage professional integrity in all aspects of the Fund's
         operations.

IV.      REPORTING AND ACCOUNTABILITY

         Each Covered Officer must:

     -   upon adoption of this Code (or thereafter as applicable, upon becoming
         a Covered Officer), sign and return a report in the form of Exhibit B
         to the Fund's compliance officer affirming that he or she has received,
         read, and understands the Code;

     -   annually sign and return a report in the form of Exhibit C to the
         Fund's compliance officer as an affirmation that he or she has complied
         with the requirements of the Code; and

<PAGE>
     -   notify the Fund's Audit Committee promptly if he or she knows of any
         violation of this Code. Failure to do so is itself a violation of this
         Code.

         The Fund's Audit Committee is responsible for applying this Code to
specific situations in which questions are presented under it and has the
authority to interpret this Code in any particular situation including any
approvals or waivers sought by the Covered Persons.

         The Audit Committee will follow these procedures in investigating and
enforcing this Code:

     -   The Audit Committee will take all appropriate actions to investigate
         any potential violations reported to the Committee.

     -   If, after such investigation, the Audit Committee believes that no
         violation has occurred, the Audit Committee is not required to take any
         further action.

     -   Any matter that the Audit Committee believes is a violation of this
         Code will be reported to the full Board.

     -   If the Board concurs that a violation has occurred, it will notify the
         appropriate personnel of the applicable service provider and may
         dismiss the Covered Officer as an officer of the Fund.

     -   The Audit Committee will be responsible for granting waivers of
         provisions of this Code, as appropriate.

     -   Any changes to or waivers of this Code will, to the extent required, be
         disclosed as provided by SEC rules.

V.       OTHER POLICIES AND PROCEDURES

         This Code shall be the sole code of ethics adopted by the Fund for
purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and
forms applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Fund, the Fund's investment adviser, principal
underwriter, or other service providers govern or purport to govern the behavior
or activities of the Covered Officers who are subject to this Code, they are
superseded by this Code to the extent that they overlap or conflict with the
provisions of this Code. The Fund's, investment adviser's and principal
underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act
and the investment adviser's more detailed policies and procedures are separate
requirements applying to the Covered Officers and others, and are not part of
this Code.

VI.      AMENDMENTS

<PAGE>

         Any amendments to this Code, other than amendments to Exhibit A, must
be approved or ratified by a majority vote of the Board, including a majority of
Independent Directors.

VII.     CONFIDENTIALITY

         All reports and records prepared or maintained pursuant to this Code
will be considered confidential and shall be maintained and protected
accordingly. Except as otherwise required by law or this Code, such matters
shall not be disclosed to anyone other than the Fund's Board or Audit Committee.

VIII.    INTERNAL USE

         The Code is intended solely for the internal use by the Fund and does
not constitute an admission, by or on behalf of Fund, as to any fact,
circumstance, or legal conclusion.

Approved on: September 12, 2003

<PAGE>

                                    EXHIBIT A

Persons Covered by this Code of Ethics:

<TABLE>
<CAPTION>
                 TITLE                                 NAME
<S>                                               <C>
President, Chief Executive Officer and
Principal Executive Officer                       Gary L. French

Treasurer, Chief Financial Officer and
Principal Financial Officer                       Ann M. Casey
</TABLE>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(2)
<SEQUENCE>4
<FILENAME>b48619cnexv99wxayx2y.txt
<DESCRIPTION>PROXY VOTING POLICY
<TEXT>
<PAGE>

                                                             EXHIBIT - 99.(a)(z)

                              THE CHINA FUND, INC.
                       PROXY VOTING POLICY AND PROCEDURES

The Board of Directors of The China Fund, Inc. (the "Fund") hereby adopts the
following policy and procedures with respect to voting proxies relating to Fund
securities managed by Martin Currie Inc. and Asian Direct Capital Management
(the "Listed Investment Manager" and the "Direct Investment Manager",
respectively and the "Investment Managers", collectively).

I.       POLICY

It is the policy of the Board of Directors of the Fund (the "Board") to delegate
the responsibility for voting proxies relating to securities held by the Fund to
the Investment Managers as a part of the Managers' general management of the
Fund's assets, subject to the Board's continuing oversight. The Board of
Directors of the Fund hereby delegates such responsibility to the Investment
Managers, and directs each Investment Manager to vote proxies relating to Fund
portfolio securities managed by the Investment Manager consistent with the
duties and procedures set forth below. The Investment Managers may retain one or
more vendors to review, monitor and recommend how to vote proxies in a manner
consistent with the duties and procedures set forth below, to ensure such
proxies are voted on a timely basis and to provide reporting and/or record
retention services in connection with proxy voting for the Fund.

II.      FIDUCIARY DUTY

The right to vote a proxy with respect to securities held by the Fund is an
asset of the Fund. Each Investment Manager, to which authority to vote on behalf
of the Fund is delegated, acts as a fiduciary of the Fund and must vote proxies
in a manner consistent with the best interest of the Fund and its shareholders.
In discharging this fiduciary duty, each Investment Manager must maintain and
adhere to its policies and procedures for addressing conflicts of interest and
must vote in a manner substantially consistent with its policies, procedures and
guidelines, as presented to the Board.

III.     PROCEDURES

The following are the procedures adopted by the Board for the administration of
this policy:

         A. Review of Investment Managers' Proxy Voting Procedures. The
         Investment Managers shall present to the Board their policies,
         procedures and other guidelines for voting proxies at least annually,
         and must notify the Board promptly of material changes to any of these
         documents, including changes to policies addressing conflicts of
         interest.

         B. Voting Record Reporting. Each Investment Manager shall provide the
         voting record information necessary for the completion and filing of
         Form-NPX to the Fund at least annually. Such voting record information
         shall be in a form acceptable to the Fund and shall be provided at such
         time(s) as are required for the timely filing of Form-NPX and at such
         additional time(s) as the Fund and the Investment Manager may agree
         from time to time. With respect to those proxies that an Investment
         Manager has identified as

<PAGE>

         involving a conflict of interest (1), the Investment Manager shall
         submit a separate report indicating the nature of the conflict of
         interest and how that conflict was resolved with respect to the voting
         of the proxy.

         C. Record Retention. The each Investment Manager shall maintain such
         records with respect to the voting of proxies as may be required by the
         Investment Advisers Act of 1940 and the rules promulgated thereunder or
         by the Investment Company Act of 1940 and the rules promulgated
         thereunder.

         D. Conflicts of Interest. Any actual or potential conflicts of interest
         between or an Investment Manager and the Fund's shareholders arising
         from the proxy voting process will be addressed by the relevant
         Investment Manager and the Investment Manager's application of its
         proxy voting procedures pursuant to the delegation of proxy voting
         responsibilities to the Investment Manager. In the event that the
         Investment Manager notifies the officer(s) of the Fund that a conflict
         of interest cannot be resolved under the Investment Manager's Proxy
         Voting Procedures, such officer(s) are responsible for notifying the
         Chairman of the Board of the Fund of the irreconcilable conflict of
         interest and assisting the Chairman with any actions he determines are
         necessary.

IV.      REVOCATION

The delegation by the Board of the authority to vote proxies relating to
securities of the Fund is entirely voluntary and may be revoked by the Board, in
whole or in part, at any time.

V.       ANNUAL FILING

The Fund shall file an annual report of each proxy voted with respect to
securities of the Fund during the twelve-month period ended June 30 on Form N-PX
not later than August 31 of each year.(2)

VI.      DISCLOSURES

         A. The Fund shall include in its annual report filed on Form N-CSR:

- --------------------

(1) As it is used in this document, the term "conflict of interest" refers to a
situation in which the Investment Managers or affiliated persons of the
Investment Managers have a financial interest in a matter presented by a proxy
other than the obligation they incur as Investment Managers to the Fund which
could potentially compromise the Investment Managers' independence of judgment
and action with respect to the voting of the proxy.

(2) The Fund must file its first report on Form N-PX not later than August 31,
2004, for the twelve-month period beginning July 1, 2003, and ending June 30,
2004.

<PAGE>

                  1. a description of this policy and of the policies and
                  procedures used by the Fund and the Investment Managers to
                  determine how to vote proxies relating to portfolio securities
                  or copies of such policies and procedures; and

                  2. a statement disclosing that a description of the policies
                  and procedures used by or on behalf of the Fund to determine
                  how to vote proxies relating to securities of the Fund is
                  available without charge, upon request, by calling the Fund's
                  toll-free telephone number; through a specified Internet
                  address, if applicable; and on the SEC's website; and

                  3. a statement disclosing that information regarding how the
                  Fund voted proxies relating to Fund securities during the most
                  recent 12-month period ended June 30 is available without
                  charge, upon request, by calling the Fund's toll-free
                  telephone number; or through a specified Internet address; or
                  both; and on the SEC's website.

VII.     REVIEW OF POLICY

The Board shall review from time to time this policy to determine its
sufficiency and shall make and approve any changes that it deems necessary from
time to time.

Adopted: September 12, 2003

<PAGE>

         PROXY VOTING POLICY
         ASIAN DIRECT CAPITAL MANAGEMENT

INTRODUCTION

Asian Direct Capital Management ("ADCM") seeks to vote proxies in the best
interests of its clients. In the ordinary course, this entails voting proxies in
a way which ADCM believes will maximize the monetary value of each portfolio's
holdings. ADCM takes the view that this will benefit our direct clients (e.g.
investment funds) and, indirectly, the ultimate owners and beneficiaries of
those clients (e.g. fund shareholders).

Oversight of the proxy voting process is the responsibility of the ADCM
Investment Committee. ADCM's Compliance Officer is responsible for implementing
processes and procedures to ensure the objectives of this policy are properly
carried out. In addition to voting proxies, ADCM:

         1)       describes its proxy voting procedures to its clients in Part
                  II of its Form ADV;

         2)       provides the client with this written proxy policy, upon
                  request;

         3)       discloses to its clients how they may obtain information on
                  how ADCM voted the client's proxies;

         4)       matches proxies received with holdings as of record date;

         5)       reconciles holdings as of record date and rectifies any
                  discrepancies;

         6)       generally applies its proxy voting policy consistently and
                  keeps records of votes for each client;

         7)       documents the reason(s) for voting for all non-routine items;
                  and

         8)       keeps records of such proxy voting available for inspection by
                  the client or governmental agencies.

PROCESS

All proxies received on behalf of ADCM clients are voted according to our
guidelines listed below, as long as there are no special circumstances relating
to that company or proxy request.

However, from time to time, proxy votes will be solicited which (i) involve
special circumstances and require additional research and discussion or (ii) are
not directly addressed by our policies. These proxies are identified through a
number of methods, including but not limited to concerns of clients, review by
internal proxy specialists, and questions from consultants.

In instances of special circumstances or issues not directly addressed by our
policies, the Investment Team is consulted for a determination of the proxy
vote. The first determination is whether there is a material conflict of
interest between the interests of our client and those of ADCM. If the
Investment Team determines that there is a material conflict, the process
detailed below under "Potential Conflicts" is followed. If there is no material
conflict, we examine each of the issuer's proposals in detail in seeking to
determine what vote would be in the best interests of our clients. At this
point, the Investment Committee makes a voting decision based on maximizing the
monetary value of each portfolios' holdings. However, the Investment Committee
may determine that a proxy involves the consideration of particularly
significant issues and may seek additional guidance from ADCM's Compliance
Officer, and SSgA Compliance personnel.

ADCM also endeavors to show sensitivity to local market practices when voting
proxies of non-U.S. issuers.

<PAGE>

VOTING

For most issues and in most circumstances, we abide by the following general
guidelines. However, as discussed above, in certain circumstances, we may
determine that it would be in the best interests of our clients to deviate from
these guidelines.

Management Proposals

I.       ADCM votes in support of management on the following ballot items,
         which are fairly common management sponsored initiatives.

         -        Elections of directors who do not appear to have been remiss
                  in the performance of their oversight responsibilities

         -        Approval of auditors

         -        Directors' and auditors' compensation

         -        Directors' liability and indemnification

         -        Discharge of board members and auditors

         -        Financial statements and allocation of income

         -        Dividend payouts that are greater than or equal to country and
                  industry standards

         -        Authorization of share repurchase programs

         -        General updating of or corrective amendments to charter

         -        Change in Corporation Name

         -        Elimination of cumulative voting

II.      ADCM votes in support of management on the following items, which have
potentially substantial financial or best-interest impact:

         -        Capitalization changes which eliminate other classes of stock
                  and voting rights

         -        Changes in capitalization authorization for stock splits,
                  stock dividends, and other specified needs which are no more
                  than 50% of the existing authorization for U.S. companies and
                  no more than 100% of existing authorization for non-U.S.
                  companies

         -        Elimination of pre-emptive rights for share issuance of less
                  than a given percentage (country specific - ranging from 5% to
                  20%) of the outstanding shares

         -        Elimination of "poison pill" rights

         -        Stock purchase plans with an exercise price of not less that
                  85% of fair market value

         -        Stock option plans which are incentive based and not excessive

<PAGE>

         -        Other stock-based plans which are appropriately structured

         -        Reductions in super-majority vote requirements

         -        Adoption of anti-"greenmail" provisions

III. ADCM votes against management on the following items, which have
potentially substantial financial or best interest impact:

         -        Capitalization changes that add "blank check" classes of stock
                  or classes that dilute the voting interests of existing
                  shareholders

         -        Changes in capitalization authorization where management does
                  not offer an appropriate rationale or which are contrary to
                  the best interest of existing shareholders

         -        Anti-takeover and related provisions that serve to prevent the
                  majority of shareholders from exercising their rights or
                  effectively deter appropriate tender offers and other offers

         -        Amendments to bylaws which would require super-majority
                  shareholder votes to pass or repeal certain provisions

         -        Elimination of Shareholders' Right to Call Special Meetings

         -        Establishment of classified boards of directors

         -        Reincorporation in a state which has more stringent
                  anti-takeover and related provisions

         -        Shareholder rights plans that allow the board of directors to
                  block appropriate offers to shareholders or which trigger
                  provisions preventing legitimate offers from proceeding

         -        Excessive compensation

         -        Change-in-control provisions in non-salary compensation plans,
                  employment contracts, and severance agreements which benefit
                  management and would be costly to shareholders if triggered

         -        Adjournment of Meeting to Solicit Additional Votes

         -        "Other business as properly comes before the meeting"
                  proposals which extend "blank check" powers to those acting as
                  proxy

         -        Proposals requesting re-election of insiders or affiliated
                  directors who serve on audit, compensation, and nominating
                  committees.

IV.      ADCM evaluates Mergers and Acquisitions on a case-by-case basis.
Consistent with our proxy policy, we support management in seeking to achieve
their objectives for shareholders. However, in all cases, ADCM uses its
discretion in order to maximize shareholder value. ADCM, generally votes, as
follows:

         -        Against offers with potentially damaging consequences for
                  minority shareholders because of illiquid stock, especially in
                  some non-US markets

<PAGE>

         -        For offers that concur with index calculators treatment and
                  our ability to meet our clients return objectives for passive
                  funds

         -        Against offers when there are prospects for an enhanced bid or
                  other bidders

         -        For proposals to restructure or liquidate closed end
                  investment funds in which the secondary market price is
                  substantially lower than the net asset value

Shareholder Proposals

Traditionally, shareholder proposals have been used to encourage management and
other shareholders to address socio-political issues. ADCM believes that it is
inappropriate to use client assets to attempt to affect such issues. Thus, we
examine shareholder proposals primarily to determine their economic impact on
shareholders.

I.       ADCM votes in support of shareholders on the following ballot items,
which are fairly common shareholder-sponsored initiatives:

         -        Requirements that auditors attend the annual meeting of
                  shareholders

         -        Establishment of an annual election of the board of directors

         -        Mandates requiring a majority of independent directors on the
                  Board of Directors and the audit, nominating, and compensation
                  committees

         -        Mandates that amendments to bylaws or charters have
                  shareholder approval

         -        Mandates that shareholder-rights plans be put to a vote or
                  repealed

         -        Establishment of confidential voting

         -        Expansions to reporting of financial or compensation-related
                  information, within reason

         -        Repeals of various anti-takeover related provisions

         -        Reduction or elimination of super-majority vote requirements

         -        Repeals or prohibitions of "greenmail" provisions

         -        "Opting-out" of business combination provisions

         -        Proposals requiring the disclosure of executive retirement
                  benefits if the issuer does not have an independent
                  compensation committee

II.      In light of recent events surrounding corporate auditors and taking
into account corporate governance provisions released by the SEC, NYSE, and
NASDAQ, ADCM votes in support of shareholders on the following ballot items,
which are fairly common shareholder-sponsored initiatives:

         -        Disclosure of Auditor and Consulting relationships when the
                  same or related entities are conducting both activities

<PAGE>

         -        Establishment of selection committee responsible for the final
                  approval of significant management consultant contract awards
                  where existing firms are already acting in an auditing
                  function

         -        Mandates that Audit, Compensation and Nominating Committee
                  members should all be independent directors

         -        Mandates giving the Audit Committee the sole responsibility
                  for the selection and dismissal of the auditing firm and any
                  subsequent result of audits are reported to the audit
                  committee

III.     ADCM votes against shareholders on the following initiatives, which are
fairly common shareholder-sponsored initiatives:

         -        Limits to tenure of directors

         -        Requirements that candidates for directorships own large
                  amounts of stock before being eligible to be elected

         -        Restoration of cumulative voting in the election of directors

         -        Requirements that the company provide costly, duplicative, or
                  redundant reports; or reports of a non-business nature

         -        Restrictions related to social, political, or special interest
                  issues which affect the ability of the company to do business
                  or be competitive and which have significant financial or
                  best-interest impact

         -        Proposals which require inappropriate endorsements or
                  corporate actions

         -        Requiring the company to expense stock options unless already
                  mandated by FASB (or similar body) under regulations that
                  supply a common valuation model.

         -        Proposal asking companies to adopt full tenure holding periods
                  for their executives.

         -        Proposals requiring the disclosure of executive retirement
                  benefits if the issuer has an independent compensation
                  committee

Shareholder Activism

We at ADCM agree entirely with the United States Department of Labor's position
that "where proxy voting decisions may have an effect on the economic value of
the plan's underlying investment, plan fiduciaries should make proxy voting
decisions with a view to enhancing the value of the shares of stock" (IB 94-2).
Our proxy voting policy and procedures are designed to ensure that our clients
receive the best possible returns on their investments.

POTENTIAL CONFLICTS

As discussed above under Process, from time to time, the Investment Committee
will review a proxy which presents a potential material conflict. For example,
ADCM or its affiliates may provide services to a company whose management is
soliciting proxies, or to another entity which is a proponent of a particular
proxy proposal. Another example could arise when ADCM has business or other
relationships with participants involved in proxy contests, such as a candidate
for a corporate directorship.

<PAGE>

As a fiduciary to its clients, ADCM takes these potential conflicts very
seriously. While ADCM's only goal in addressing any such potential conflict is
to ensure that proxy votes are cast in the clients' best interests and are not
affected by ADCM's potential conflict, there are a number of courses ADCM may
take. The final decision as to which course to follow shall be made by the
Investment Committee.

When the matter falls clearly within one of the proposals enumerated above,
casting a vote which simply follows ADCM's pre-determined policy would eliminate
ADCM's discretion on the particular issue and hence avoid the conflict.

In other cases, where the matter presents a potential material conflict and is
not clearly within one of the enumerated proposals, or is of such a nature that
ADCM believes more active involvement is necessary, the Investment Committee
will follow one of two courses of action. First, ADCM may employ the services of
a third party, wholly independent of ADCM, its affiliates and those parties
involved in the proxy issue, to determine the appropriate vote.

Second, in certain situations the Investment Committee may determine that the
employment of a third party is unfeasible, impractical or unnecessary. In such
situations, the Investment Committee shall make a decision as to the voting of
the proxy. The basis for the voting decision, including the basis for the
determination that the decision is in the best interests of ADCM's clients,
shall be formalized in writing as a part of the minutes to the ADCM Investment
Committee. As stated above, which action is appropriate in any given scenario
would be the decision of the Investment Committee in carrying out its duty to
ensure that the proxies are voted in the clients', and not ADCM's, best
interests.

RECORDKEEPING

In accordance with applicable law, ADCM shall retain the following documents for
not less than five years from the end of the year in which the proxies were
voted, the first two years in ADCM's office:

         1)       ADCM's Proxy Voting Policy and any additional procedures
                  created pursuant to such Policy;

         2)       a copy of each proxy statement ADCM receives regarding
                  securities held by its clients (note: this requirement may be
                  satisfied by a third party who has agreed in writing to do so
                  or by obtaining a copy of the proxy statement from the EDGAR
                  database);

         3)       a record of each vote cast by ADCM (note: this requirement may
                  be satisfied by a third party who has agreed in writing to do
                  so);

         4)       a copy of any document created by ADCM that was material in
                  making its voting decision or that memorializes the basis for
                  such decision; and

         5)       a copy of each written request from a client, and response to
                  the client, for information on how ADCM voted the client's
                  proxies.

<PAGE>

DISCLOSURE OF CLIENT VOTING INFORMATION

Any client who wishes to receive information on how its proxies were voted
should contact ADCM's Compliance Officer.

<PAGE>

                   PROXY VOTING POLICY FOR MARTIN CURRIE, INC.

                    STATEMENT OF POLICIES AND PROCEDURES FOR
                                 VOTING PROXIES

INTRODUCTION

As a registered investment adviser, Martin Currie, Inc. ("Martin Currie," "we"
or "us") has a fiduciary duty to act solely in the best interests of our
clients. As part of this duty, we recognize that we must exercise voting rights
in the best interests of our clients.

Martin Currie recognizes the importance of good corporate governance in ensuring
that management and boards of directors fulfill their obligations to
shareholders. As part of our investment process, we take into account the
attitudes of management and boards of directors on corporate governance issues
when deciding whether to invest in a company.

Martin Currie is a global investment manager, and invests significantly in
emerging markets. It should be noted that protection for shareholders may vary
significantly from jurisdiction to jurisdiction, and in some cases may be
substantially less than in the U.S. or developed countries.

This statement is intended to comply with Rule 206(4)-6 of the Investment
Advisers Act of 1940. It sets forth the policy and procedures of Martin Currie,
Inc. for voting proxies for our clients, including investment companies
registered under the Investment Company Act of 1940.

PROXY VOTING POLICIES

It is the general policy of Martin Currie to support management of the companies
in which it invests and will cast votes in accordance with management's
proposals. However, Martin Currie reserves the right to depart from this policy
in order to avoid voting decisions that we believe may be contrary to our
clients' best interests.

ELECTIONS OF DIRECTORS: In many instances, election of directors is a routine
voting issue. Unless there is a proxy fight for seats on the Board or we
determine that there are other compelling reasons for withholding votes for
directors, we will vote in favor of the management proposed slate of directors.
That said, we believe that directors have a duty to respond to shareholder
actions that have received significant shareholder support. We may withhold
votes for directors that fail to act on key issues such as failure to implement
proposals to declassify boards, failure to implement a majority vote
requirement, failure to submit a rights plan to a shareholder vote and failure
to act on tender offers where a majority of shareholders have tendered their
shares.

APPOINTMENT OF AUDITORS: The selection of an independent accountant to audit a
company's financial statements is generally a routine business matter. Martin
Currie believes that management remains in the best position to choose the
accounting firm and will generally support management's recommendation.

CHANGES IN CAPITAL STRUCTURE: Changes in a company's charter, articles of
incorporation or by-laws are often technical and administrative in nature.
Absent a compelling reason to the contrary, Martin Currie

<PAGE>

will cast its votes in accordance with the company's management on such
proposals. However, we will review and analyze on a case-by-case basis any
non-routine proposals that are likely to affect the structure and operation of
the company or have a material economic effect on the company.

CORPORATE RESTRUCTURINGS, MERGERS AND ACQUISITIONS: Martin Currie believes proxy
votes dealing with corporate reorganizations are an extension of the investment
decision and will take account of our investment process policy in deciding how
to vote.

CORPORATE GOVERNANCE: Martin Currie recognizes the importance of good corporate
governance in ensuring that management and the board of directors fulfil their
obligations to the shareholders. We generally favor proposals promoting
transparency and accountability within a company.

SOCIAL AND CORPORATE RESPONSIBILITY: Martin Currie recognizes the importance of
supporting sound and responsible policies in relation to social, political and
environmental issues. However, in the interests of shareholders, we reserve the
right to vote against proposals that are unduly burdensome or result in
unnecessary and excessive costs to the company. We may abstain from voting on
social proposals that do not have a readily determinable financial impact on
shareholder value.

EXECUTIVE COMPENSATION: Martin Currie believes that company management and the
compensation committee of the board of directors should, within reason, be given
latitude to determine the types and mix of compensation and benefit awards
offered. Whether proposed by a shareholder or management, we will review
proposals relating to executive compensation plans and, if deemed excessive, may
vote against the proposals.

PROXY VOTING PROCEDURES

PROXY VOTING

Our Market data team is responsible for the co-ordination of Martin Currie's
proxy voting. They liaise with the Product managers and/or the Proxy voting
committee to ascertain how Martin Currie will vote. They will then instruct the
relevant Custodians. The Market data team is also responsible for ensuring that
full and adequate records of proxy voting are kept.

The Product managers will implement the Proxy voting policies by instructing
proxy voting in accordance with the general principles contained herein.

PROXY VOTING COMMITTEE

A.       WE HAVE FORMED A PROXY VOTING COMMITTEE TO REGULARLY REVIEW OUR GENERAL
PROXY POLICIES AND CONSIDER SPECIFIC PROXY VOTING MATTERS AS AND WHEN DEEMED
NECESSARY. MEMBERS OF THE COMMITTEES INCLUDE SENIOR INVESTMENT PERSONNEL AND
REPRESENTATIVES OF THE LEGAL & COMPLIANCE DEPARTMENT. THE COMMITTEE MAY ALSO
EVALUATE PROXIES WHERE WE FACE A MATERIAL CONFLICT OF INTEREST (AS DISCUSSED
BELOW).

CONFLICTS OF INTEREST

Martin Currie recognizes that there is a potential conflict of interest when we
vote a proxy solicited by an issuer with whom we have any material business or
personal relationship that may affect how we vote on the issuer's proxy. We
believe that oversight by the proxy voting committee ensures that proxies are
voted with only our clients' best interests in mind. In order to avoid any
perceived conflict of interests, the following procedures have been established
for use when we encounter a potential conflict.

<PAGE>

         1.       The Market data team will refer to the Legal and compliance
                  team any proxy votes that are issued by existing clients or
                  where Martin Currie holds a significant voting percentage of
                  the company. The Legal and compliance team will make the
                  initial determination about whether a material conflict of
                  interest exists based on the facts and circumstances of each
                  particular situation.

         2.       If our proposed vote is consistent with our stated proxy
                  voting policy, no further review is necessary.

         3.       If our proposed vote is contrary to our stated proxy voting
                  policy but is also contrary to management's recommendation, no
                  further review is necessary.

         4.       If our proposed vote is contrary to our stated proxy voting
                  policy and is consistent with management's recommendation, the
                  proposal is escalated to the proxy committee for final review
                  and determination.

PROXIES OF CERTAIN NON-U.S. ISSUERS

Proxy voting in certain countries requires "share blocking." That is,
shareholders wishing to vote their proxies must deposit their shares shortly
before the date of the meeting (usually one-week) with a designated depositary.
During this blocking period, shares that will be voted at the meeting cannot be
sold until the meeting has taken place and the shares are returned to the
clients' custodian banks. Martin Currie may determine that the value of
exercising the vote does not outweigh the detriment of not being able to
transact in the shares during this period. Accordingly, if share blocking is
required we may abstain from voting those shares. In such a situation we would
have determined that the cost of voting exceeds the expected benefit to the
client.

PROXY VOTING RECORD

Clients may obtain information on how Martin Currie voted with respect to their
proxies by contacting our Client services team at Martin Currie, Inc., Saltire
Court, 20 Castle Terrace, Edinburgh, Scotland, EH1 2ES, tel.
011-44-131-229-5252, fax 011-44-131-222-2527 or email
clientservices@martincurrie.com

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>5
<FILENAME>b48619cnexv99wcert.txt
<DESCRIPTION>CERTIFICATIONS OF GARY FRENCH AND ANNE CASEY
<TEXT>
<PAGE>

                                                              EXHIBIT - 99. CERT

CERTIFICATIONS

I, Gary L. French, certify that:

1.       I have reviewed this report on Form N-CSR of The China Fund, Inc.;

2.       Based on my knowledge, this report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances under which
         such statements were made, not misleading with respect to the period
         covered by this report;

3.       Based on my knowledge, the financial statements, and other financial
         information included in this report, fairly present in all material
         respects the financial condition, results of operations, changes in net
         assets, and cash flows (if the financial statements are required to
         include a statement of cash flows) of the registrant as of, and for,
         the periods presented in this report;

4.       The registrant's other certifying officers and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Rule 30a-3(c) under the Investment Company Act of 1940) for
         the registrant and have:

         a)       designed such disclosure controls and procedures, or caused
                  such disclosure controls and procedures to be designed under
                  our supervision, to ensure that material information relating
                  to the registrant, including its consolidated subsidiaries, is
                  made known to us by others within those entities, particularly
                  during the period in which this report is being prepared;

         b)       evaluated the effectiveness of the registrant's disclosure
                  controls and procedures and presented in this report our
                  conclusions about the effectiveness of the disclosure controls
                  and procedures, as of a date within 90 days prior to the
                  filing date of this report based on such evaluation; and

         c)       disclosed in this report any change in the registrant's
                  internal control over financial reporting that occurred during
                  the registrant's most recent fiscal half-year (the
                  registrant's second fiscal half-year in the case of an annual
                  report) that has materially affected, or is reasonably likely
                  to materially affect, the registrant's internal control over
                  financial reporting; and

5.       The registrant's other certifying officer(s) and I have disclosed to
         the registrant's auditors and the audit committee of the registrant's
         board of directors (or persons performing the equivalent functions):

         a)       all significant deficiencies and material weaknesses in the
                  design or operation of internal control over financial
                  reporting which are reasonably likely to adversely affect the
                  registrant's ability to record, process, summarize, and report
                  financial information; and

         b)       any fraud, whether or not material, that involves management
                  or other employees who have a significant role in the
                  registrant's internal controls over financial reporting.

Date: January 9, 2004

/s/ Gary L. French
- ------------------
Principal Executive Officer

<PAGE>

                                 CERTIFICATIONS

I, Ann M. Casey, certify that:

1.       I have reviewed this report on Form N-CSR of The China Fund, Inc.;

2.       Based on my knowledge, this report does not contain any untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances under which
         such statements were made, not misleading with respect to the period
         covered by this report;

3.       Based on my knowledge, the financial statements, and other financial
         information included in this report, fairly present in all material
         respects the financial condition, results of operations, changes in net
         assets, and cash flows (if the financial statements are required to
         include a statement of cash flows) of the registrant as of, and for,
         the periods presented in this report;

4.       The registrant's other certifying officers and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Rule 30a-3(c) under the Investment Company Act of 1940) for
         the registrant and have:

         a)       designed such disclosure controls and procedures, or caused
                  such disclosure controls and procedures to be designed under
                  our supervision, to ensure that material information relating
                  to the registrant, including its consolidated subsidiaries, is
                  made known to us by others within those entities, particularly
                  during the period in which this report is being prepared;

         b)       evaluated the effectiveness of the registrant's disclosure
                  controls and procedures and presented in this report our
                  conclusions about the effectiveness of the disclosure controls
                  and procedures, as of a date within 90 days prior to the
                  filing date of this report based on such evaluation; and

         c)       disclosed in this report any change in the registrant's
                  internal control over financial reporting that occurred during
                  the registrant's most recent fiscal half-year (the
                  registrant's second fiscal half-year in the case of an annual
                  report) that has materially affected, or is reasonably likely
                  to materially affect, the registrant's internal control over
                  financial reporting; and

5.       The registrant's other certifying officer(s) and I have disclosed to
         the registrant's auditors and the audit committee of the registrant's
         board of directors (or persons performing the equivalent functions):

         a)       all significant deficiencies and material weaknesses in the
                  design or operation of internal control over financial
                  reporting which are reasonably likely to adversely affect the
                  registrant's ability to record, process, summarize, and report
                  financial information; and

         b)       any fraud, whether or not material, that involves management
                  or other employees who have a significant role in the
                  registrant's internal controls over financial reporting.

Date: January 9, 2004

/s/ Ann M. Casey
- ----------------
Principal Financial Officer

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906 CERT
<SEQUENCE>6
<FILENAME>b48619cnexv99w906cert.txt
<DESCRIPTION>CERTIFICATION PURSUANT TO SECTION 906
<TEXT>
<PAGE>

                                                           EXHIBIT - 99.906 CERT

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Gary L. French, Chief Executive Officer and Ann M. Casey, Chief Financial
Officer of The China Fund, Inc.(the "Fund"), certify that:

1.       This Form N-CSR filing for the Fund (the "Report") fully complies with
         the requirements of Section 13(a) or 15(d) of the Securities Exchange
         Act of 1934; and

2.       The information contained in the Report fairly presents, in all
         material respects, the financial condition and results of operations of
         the Fund.

By: /s/ Gary L. French
    ---------------------

    Chief Executive Officer of The China Fund, Inc.

Date: January 9, 2004

By: /s/ Ann M. Casey
    -------------------

    Chief Financial Officer of the The China Fund, Inc.

Date: January 9, 2004

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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