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<SEC-DOCUMENT>0000950135-05-000097.txt : 20050107
<SEC-HEADER>0000950135-05-000097.hdr.sgml : 20050107
<ACCEPTANCE-DATETIME>20050107151843
ACCESSION NUMBER:		0000950135-05-000097
CONFORMED SUBMISSION TYPE:	N-CSR
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20041031
FILED AS OF DATE:		20050107
DATE AS OF CHANGE:		20050107
EFFECTIVENESS DATE:		20050107

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:		05518168

	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>b52504fhnvcsr.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                      Leonard B. Mackey, Jr., Esq.
                 Secretary                            Clifford Chance US LLP
            The China Fund, Inc.                        31 West 52nd Street
            225 Franklin Street                   New York, New York 10019 6131
             Boston, MA 02110

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

Date of fiscal year end: October 31, 2004

Date of reporting period: October 31, 2004

<PAGE>

ITEM 1. REPORTS TO STOCKHOLDERS.
<PAGE>

                              THE CHINA FUND, INC.

                                 ANNUAL REPORT

                                OCTOBER 31, 2004

                                              THE CHINA FUND, INC.
                                              TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                     PAGE
                                                                                                     ----
                                                                   <S>                               <C>
                                                                   Key Statistics                      1
                                                                   Asset Allocation                    2
                                                                   Chairman's Statement                3
                                                                   Investment Managers' Statements     4
                                                                   About the Portfolio Managers        7
                                                                   Schedule of Investments             8
                                                                   Financial Statements               12
                                                                   Notes to Financial Statements      16
                                                                   Report of Independent Registered
                                                                     Public Accounting Firm           20
                                                                   Other Information                  21
                                                                   Dividends and Distributions;
                                                                     Dividend Reinvestment
                                                                     and Cash Purchase Plan           23
</Table>
<PAGE>

THE CHINA FUND, INC.
KEY STATISTICS
================================================================================

<Table>
<Caption>
- --------------------------------------------------------------------------------------
                                      FUND DATA
- --------------------------------------------------------------------------------------
<S>                                         <C>
            NYSE STOCK SYMBOL                                  CHN
- --------------------------------------------------------------------------------------
               LISTING DATE                               JULY 10, 1992
- --------------------------------------------------------------------------------------
            SHARES OUTSTANDING                              10,081,913
- --------------------------------------------------------------------------------------
       TOTAL NET ASSETS (10/31/04)                       US$264.9 MILLION
- --------------------------------------------------------------------------------------
   NET ASSET VALUE PER SHARE (10/31/04)                       $26.27
- --------------------------------------------------------------------------------------
    MARKET PRICE PER SHARE (10/31/04)                         $29.15
- --------------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
- -------------------------------------------------------------------------------------
                                    TOTAL RETURN
- -------------------------------------------------------------------------------------
<S>                          <C>                          <C>
     PERFORMANCE AS OF
         10/31/04:               NET ASSET VALUE(1)              MARKET PRICE
- -------------------------------------------------------------------------------------
         12 MONTHS                      2.12%                       -12.16%
- -------------------------------------------------------------------------------------
     3-YEAR CUMULATIVE                 113.64%                      191.14%
- -------------------------------------------------------------------------------------
     3-YEAR ANNUALIZED                  28.79%                       42.79%
- -------------------------------------------------------------------------------------
     5-YEAR CUMULATIVE                 123.46%                      217.80%
- -------------------------------------------------------------------------------------
     5-YEAR ANNUALIZED                  17.45%                       26.02%
- -------------------------------------------------------------------------------------
    10-YEAR CUMULATIVE                 109.83%                      105.84%
- -------------------------------------------------------------------------------------
    10-YEAR ANNUALIZED                   7.69%                        7.49%
- -------------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
- -------------------------------------------------------------------------------------
                                  DIVIDEND HISTORY
- -------------------------------------------------------------------------------------
<S>                          <C>                          <C>
        RECORD DATE                    INCOME                    CAPITAL GAINS
- -------------------------------------------------------------------------------------
         12/31/03                      $0.0700                      $1.710
- -------------------------------------------------------------------------------------
         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 assume that dividends and capital gains distributions, if any,
were reinvested in accordance with the dividend reinvestment plan. The net asset
value per share 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, 2004
================================================================================

<Table>
<Caption>
- ---------------------------------------------------------------------------------
                     TEN LARGEST LISTED EQUITY INVESTMENTS*
- ---------------------------------------------------------------------------------
<C>  <S>                                                <C>
 1.  Chaoda Modern Agriculture (Holdings) Ltd.                    5.59%
- ---------------------------------------------------------------------------------
 2.  Shanda Interactive Entertainment Ltd.                        3.72%
- ---------------------------------------------------------------------------------
 3.  BYD Co., Ltd.                                                3.43%
- ---------------------------------------------------------------------------------
 4.  TCL International Holdings, Ltd.                             3.33%
- ---------------------------------------------------------------------------------
 5.  Sohu.com Inc.                                                3.33%
- ---------------------------------------------------------------------------------
 6.  Anhui Expressway Co., Ltd.                                   3.26%
- ---------------------------------------------------------------------------------
 7.  Xinao Gas Holdings, Ltd.                                     2.95%
- ---------------------------------------------------------------------------------
 8.  Shenzhen Expressway Co., Ltd.                                2.89%
- ---------------------------------------------------------------------------------
 9.  Cathay Financial Holding Co., Ltd.                           2.79%
- ---------------------------------------------------------------------------------
     China International Marine Containers (Group)
10.  Co., Ltd.                                                    2.78%
- ---------------------------------------------------------------------------------
</Table>

<Table>
<Caption>
- ---------------------------------------------------------------------------------
                           LARGEST DIRECT INVESTMENTS*
- ---------------------------------------------------------------------------------
<C>  <S>                                                <C>
 1.  Tomoike Industrial (H. K.) Ltd.                              2.40%
- ---------------------------------------------------------------------------------
 2.  Captive Finance, Ltd.                                        1.15%
- ---------------------------------------------------------------------------------
 3.  Global e-Business Services (BVI) Ltd.                        1.15%
- ---------------------------------------------------------------------------------
 4.  teco Optronics Corp.                                         0.21%
- ---------------------------------------------------------------------------------
</Table>

* Percentages based on net assets at October 31, 2004.

                                        2
<PAGE>

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

Dear Stockholders,

The last twelve months in China saw continued high economic growth, good
progress in corporate profitability and continued reform. The introduction of
measures designed to curtail investment in "overheated" sectors of the economy
in April, however, caused investor sentiment toward China to turn negative. An
increase in inflation, driven by food prices, also raised worries about the
future course of interest rates. The net asset value per share of the Fund,
therefore, only increased by 2.1% over the year, after taking into consideration
the US$1.78 per share distribution paid to shareholders in January 2004. This
was slightly behind the index (MSCI Golden Dragon increased by 4.9%) as the
smaller, entrepreneurial companies, in which the Fund primarily invests, were
neglected in favor of large, state-owned commodity stocks and Hong Kong banks
and property developers. We continue to believe that private sector companies
remain the best hope for long-term growth in China.

The outlook for the Chinese economy remains good. Food price inflation is
already abating, and some of the credit-tightening measures are gradually being
eased. The various central government measures to slow the Chinese economy to a
more stable rate of growth are creating attractive entry points for new
investments. We believe that there is a high likelihood of an upward adjustment
in the value of the Chinese currency in the coming financial year. The portfolio
is therefore being concentrated on stocks which should benefit from domestic
consumer growth, with a reduced weighting towards exporters.

The Fund took profits on some of its best performing holdings early in the
financial year, which is likely to result in the largest cash dividend pay-out
in the Fund's history. In light of the persistent premium at which the Fund has
traded recently, investors should note that this dividend can be taken in stock
at a 5% discount to market price as an alternative to cash through the Fund's
dividend reinvestment plan. Fund portfolio turnover in the second half of the
year has been relatively low (19.98%).

During the six-months ended October 31, 2004, the Direct Investment Manager
added one investment to the Direct Investment portfolio, Global e-Business
Services (BVI) Ltd., a Hong Kong company. It is a leading e-commerce company in
Hong Kong providing on-line electronic processing service of import /export
documentation handling. The valuation of Tomoike Industrial (HK) Limited
("Tomoike") has been increased by 169% adding 1.5% to the NAV of the Fund based
on the closing value on October 31, 2004. This reflects its substantial sales
and profit growth since the Fund's investment in February 2003. Tomoike has now
applied to list on the Singapore Stock Exchange.

This past year saw the retirement of two directors, Sir Alan Donald and Burton
Levin. Both served on the board since the Fund's establishment in 1992. We thank
them for their years of service.

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
In April 2004, the introduction of credit-tightening measures by China's
government triggered concerns of a "hard-landing" for China's economy. As
investors in global equity and bond markets worried about the end of cheap
money, sentiment towards China remained negative through to August. Performance
relative to the benchmark was held back in this period by the Fund's large
exposure to management-owned small-caps. The performance of these small-cap
companies was behind that of large-cap Hong Kong stocks, which are heavily
represented in the index.

At the end of August sentiment improved: oil prices fell back a little and signs
of weakness in the US economy calmed fears of rising interest rates and reduced
the appeal of the US dollar. The domestic A share market was spurred in
September by Premier Wen's call to "accelerate implementation of the nine
guidelines". Translated, this was a message to his ministers to push ahead with
capital market reform.

Having avoided action while inflation was rising, the government raised interest
rates in October, just at the time when inflation appeared to have peaked. The
target seems to be some overexcitement in parts of the property market. This
rise has raised fears that it will be the first of many. But, as this is the
first rise in nine years, it seems likely that the government will take a few
months to assess the impact. Also, food prices now seem to be falling and, given
their weighting in the consumer price index, this trend is likely to prevail
over rising energy costs.

In the first part of the period, we did more selling than buying. In particular,
we sold automobile manufacturers, such as China Motor and Brilliance China, due
to concerns about oversupply in the industry.

On the buy side, one of the major themes in the middle of the year was our
purchase of electronic stocks in Taiwan, which we identified as oversold. Among
our purchases were Tripod (PCB manufacturer) and Synnex (IT distributor).
Meanwhile, we started investing in NYSE-listed Chindex (medical equipment
distribution and hospital management) in July. We topped up our holding in
September ahead of the opening of its second hospital in Shanghai.

INVESTMENT STRATEGY
As of October 31, the Fund was 94.4% invested with holdings in 58 companies.

We continue to focus on domestically-orientated consumer stocks. A retreat in
commodity prices should ease margin pressure for a number of these companies.
Chinese property stocks have suffered from the rate rise, but given that real
interest rates remain negative, and the lack of attractive alternative
investments, property is likely to return to favor. Having made one move on
interest rates, the next seems likely to be on the currency.

One threat to prices comes from the heavy promised supply of new equity in Hong
Kong. There is certainly demand for attractively priced IPOs (the Fund
participated in the well-received CHINA POWER IPO). But mega deals tend to drag
down valuations in the corresponding sectors before pricing of the deal. This
has happened for telecoms (Netcom) and seems likely to apply to airlines (Air
China) and banks (Minsheng Bank, China Construction Bank etc.) In the case of
the oversold telecoms, we are taking advantage of this by subscribing to

                                        4
<PAGE>

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

REVIEW OF LISTED INVESTMENTS (CONTINUED)

NETCOM. We will finance these deals, and the forthcoming dividend, by taking
profits on internet and textile names.

After a long period of underperformance, we expect Taiwan's market to rally
ahead of the MSCI re-weighting and December election.

REVIEW OF DIRECT INVESTMENTS
The PRC government continues to implement measures to slow the economy and on
October 28th raised interest rates for the first time in 9 years. This is an
important and desirable shift from administrative measures used to date. As in
the years 1993-1995, this rise is likely to be the first of a number of
incremental adjustments, which will have a substantial cumulative effect and
reposition the economy on a more stable track for future growth.

We are confident regarding the outlook of the Chinese economy given the
successful ingredients of low cost production, skilled labor, globalization of
the value chain and growing private consumption. We continue to focus on
companies that could be beneficiaries of a more sustainable economy after the
current tightened cycle.

In June, the Fund added one new investment to its Direct Investment portfolio.
We invested in GLOBAL e-BUSINESS SERVICES (BVI) LTD. that is a Hong Kong based
e-commerce company mainly engaged in the electronic processing services of
import/export documentation for the Hong Kong trading community.

In July, the valuation of TOMOIKE INDUSTRIAL (HK) LIMITED was increased from
US$2.35 mn to US$6.33 mn to reflect the substantial increase in the company's
audited profits since the investment was made in February 2003. The Company is
also seeking approval to list on the Singapore Stock Exchange.

As of October 31, 2004 the Fund's Direct Investment portfolio comprised the
following investments:

CAPTIVE FINANCE LIMITED ("CAPTIVE")
Captive is engaged in providing operating and financial leases for technology
products (PCs, servers, telecom equipment etc.). It has operations in Greater
China, Singapore, Malaysia and Europe. Apart from seeking leasing opportunities
within each of its national markets, Captive is also improving cross-selling and
other synergies between the Asian and European operations.

TOMOIKE INDUSTRIAL (HK) LIMITED ("TOMOIKE")
Tomoike manufactures a range of component parts for mobile telephones, office
equipment and household appliances. Its fastest growing business 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 manufactures. Its business is experiencing profit
growth above budget as a result of robust demand of its products, especially the
backlight units.

                                        5
<PAGE>

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

REVIEW OF DIRECT INVESTMENTS (CONTINUED)

teco Optronics Corp. ("teco")
teco designs and manufactures organic light emitting diodes ("OLED") displays.
It has a technology licensing agreement with Kodak. OLED is a new flat screen
display technology that is competing with liquid crystal displays ("LCDs"). teco
is a subsidiary of the Teco Group, a substantial Taiwanese business group.

Global e-Business Services (BVI) Ltd. ("GO")
GO engages in operating e-commerce outsourcing services and related business
opportunities. GO is a market leader in e-tendering and related business
processing outsourcing services in both public and commercial sectors in Hong
Kong. In March 2003, GO was awarded one of the two available licenses in Hong
Kong to provide and operate the front-end Government Electronic Trading Services
and related electronic processing services for the trading community to submit
their trade documents online. GO is a subsidiary of Computer And Technologies
Holdings Limited, a listed company in Hong Kong.

                                        6
<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 Investment Corporation, 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.

                                        7
<PAGE>

THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS
OCTOBER 31, 2004
================================================================================

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS
CHINA -- SHENZHEN "B" SHARES
  INDUSTRIALS -- (2.8%)
     China International Marine Containers (Group) Co.,
       Ltd..................................................   3,908,395            $  7,376,414
                                                                                    ------------
          TOTAL CHINA -- SHENZHEN "B" SHARES --
            (Cost $2,735,769)                                                2.8%      7,376,414
                                                                             ---    ------------
HONG KONG
  CONSUMER DISCRETIONARY -- (4.1%)
     Nanjing Dahe Outdoor Media Co., Ltd.*+.................  37,500,000               2,119,869
     TCL International Holdings, Ltd. ......................  32,318,000               8,823,248
                                                                                    ------------
                                                                                      10,943,117
                                                                                    ------------
  CONSUMER STAPLES -- (7.1%)
     Chaoda Modern Agriculture (Holdings) Ltd. .............  43,089,900              14,808,953
     Li Ning Co. Ltd.*......................................   5,600,000               2,212,372
     Sino Golf Holdings, Ltd. ..............................  11,835,000               1,885,450
                                                                                    ------------
                                                                                      18,906,775
                                                                                    ------------
  ENERGY -- (0.2%)
     China Power International Development Ltd.*............   1,029,000                 399,913
                                                                                    ------------
  HEALTH CARE -- (3.4%)
     Golden Meditech Co., Ltd. .............................  27,900,000               6,738,871
     Natural Beauty Bio-Technology, Ltd. ...................  32,780,000               2,316,310
                                                                                    ------------
                                                                                       9,055,181
                                                                                    ------------
  INDUSTRIALS -- (6.9%)
     Beiren Printing Machinery Holdings Ltd.+ ..............   7,000,000               2,225,862
     China Fire Safety Enterprise Group Holdings Ltd. ......  50,380,000               3,689,420
     China Shipping Container Lines Co., Ltd.*..............   9,221,000               3,879,845
     Proview International Holdings Ltd. ...................  13,644,000               2,524,232
     TPV Technology, Ltd. ..................................   9,968,000               6,019,092
                                                                                    ------------
                                                                                      18,338,451
                                                                                    ------------
  INFORMATION TECHNOLOGY -- (2.1%)
     Arcontech Corp.(2)*....................................  18,386,000                 408,657
     Solomon Systech Ltd. ..................................  20,698,000               5,212,061
                                                                                    ------------
                                                                                       5,620,718
                                                                                    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        8
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004
================================================================================

<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)
  MATERIALS -- (6.0%)
     Asia Aluminum Holdings Ltd. ...........................  18,000,000            $  2,035,074
     Asia Zirconium Ltd. ...................................  13,196,000               1,661,474
     China Rare Earth Holdings, Ltd. .......................  15,254,000               2,136,167
     Fountain Set (Holdings), Ltd. .........................   6,714,000               5,046,175
     Ocean Grand Chemicals Holdings Ltd. ...................  17,379,000               2,098,832
     Zijin Mining Group Co., Ltd. ..........................   7,400,000               2,875,956
                                                                                    ------------
                                                                                      15,853,678
                                                                                    ------------
  TELECOMMUNICATIONS -- (2.7%)
     Comba Telecom Systems Holdings Ltd. ...................  15,356,000               7,003,764
                                                                                    ------------
  UTILITIES -- (3.0%)
     Xinao Gas Holdings, Ltd.*..............................  13,976,000               7,810,831
                                                                                    ------------
          TOTAL HONG KONG -- (Cost $62,077,362)                             35.5%     93,932,428
                                                                            ----    ------------
HONG KONG -- "H" SHARES
  CONSUMER DISCRETIONARY -- (2.0%)
     Weichai Power Co. Ltd. ................................   2,536,000               5,229,370
                                                                                    ------------
  ENERGY -- (1.6%)
     Yanzhou Coal Mining Co. ...............................   3,146,000               4,163,140
                                                                                    ------------
  INDUSTRIALS -- (6.0%)
     BYD Co., Ltd...........................................   3,225,000               9,074,002
     Sinotrans Limited......................................  12,835,000               4,163,728
     Weiqiao Textile Co. Ltd. ..............................   1,854,500               2,692,343
                                                                                    ------------
                                                                                      15,930,073
                                                                                    ------------
  UTILITIES -- (6.1%)
     Anhui Expressway Co., Ltd. ............................  17,778,000               8,622,336
     Shenzhen Expressway Co., Ltd. .........................  21,494,000               7,663,114
                                                                                    ------------
                                                                                      16,285,450
                                                                                    ------------
          TOTAL HONG KONG -- "H" SHARES -- (Cost
            $26,832,247)                                                    15.7%     41,608,033
                                                                            ----    ------------
          TOTAL HONG KONG (INCLUDING "H" SHARES) -- (Cost
            $88,909,609)                                                    51.2%    135,540,461
                                                                            ----    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        9
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004
================================================================================

<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
  CONSUMER DISCRETIONARY -- (7.6%)
     Asia Optical Co., Inc. ................................     686,937            $  3,269,660
     Merry Electronics Co., Ltd. ...........................   3,012,016               6,807,580
     Synnex Technologies International, Corp. ..............   4,465,604               6,403,306
     Taiwan FamilyMart Co., Ltd. ...........................   1,567,231               2,439,635
     Taiwan Hon Chuan Enterprise Co., Ltd. .................   1,843,403               1,318,884
                                                                                    ------------
                                                                                      20,239,065
                                                                                    ------------
  FINANCIALS -- (6.6%)
     Cathay Financial Holding Co., Ltd. ....................   3,862,000               7,399,132
     Fubon Financial Holdings Co., Ltd. ....................   5,453,952               5,142,928
     Polaris Securities Co., Ltd. ..........................   9,407,587               4,815,738
                                                                                    ------------
                                                                                      17,357,798
                                                                                    ------------
  INDUSTRIALS -- (3.2%)
     Cheng Shin Rubber Industry Co., Ltd. ..................   3,305,974               3,928,968
     Chicony Electronics Co., Ltd. .........................   3,001,152               3,144,449
     ET Internet Technology Corp.*..........................   2,877,000               1,386,610
                                                                                    ------------
                                                                                       8,460,027
                                                                                    ------------
  INFORMATION TECHNOLOGY -- (7.7%)
     Data Systems Consulting Co., Ltd. .....................   4,237,987               2,613,457
     Radiant Opto-Electronics Corp. ........................   1,890,000               3,366,412
     Soft-World International Corp. ........................     933,457               1,425,125
     Taiwan Green Point Enterprises Co., Ltd. ..............   2,155,749               5,937,103
     Tripod Technology Corp. ...............................   2,503,413               2,960,180
     Vanguard International Semiconductor Corp.*............   3,122,163               1,476,730
     Wintek Corp. ..........................................   2,421,104               2,681,660
                                                                                    ------------
                                                                                      20,460,667
                                                                                    ------------
  MATERIALS -- (3.1%)
     China Metal Products Co., Ltd. ........................   6,328,714               6,877,183
     Yieh United Steel Corp.*...............................   3,500,000               1,435,414
                                                                                    ------------
                                                                                       8,312,597
                                                                                    ------------
          TOTAL TAIWAN -- (Cost $54,918,567)                                28.2%     74,830,154
                                                                            ----    ------------
</Table>

See notes to financial statements and notes to schedule of investments.
                                        10
<PAGE>
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2004
================================================================================

<Table>
<Caption>
NAME OF ISSUER AND TITLE OF ISSUE                               SHARES             VALUE (NOTE A)
- ---------------------------------                               ------             --------------
<S>                                                           <C>          <C>     <C>
COMMON STOCK AND OTHER EQUITY INTERESTS (CONTINUED)
UNITED STATES -- "N" SHARES
  CONSUMER DISCRETIONARY -- (4.0%)
     Chindex International, Inc.*...........................      69,987            $    554,997
     Shanda Interactive Entertainment Ltd.*.................     324,300               9,855,153
                                                                                    ------------
                                                                                      10,410,150
                                                                                    ------------
  INFORMATION TECHNOLOGY -- (3.3%)
     Sohu.com Inc.*.........................................     526,286               8,815,290
                                                                                    ------------
          TOTAL UNITED STATES -- "N" SHARES -- (Cost $5,132,393)             7.3%     19,225,440
                                                                             ----   ------------
          TOTAL COMMON STOCK AND OTHER EQUITY
            INTERESTS -- (Cost $151,696,338)                                89.5%    236,972,469
                                                                            ----    ------------
DIRECT INVESTMENTS
  FINANCIALS -- (1.1%)
     Captive Finance, Ltd., (acquired 5/24/02)(1)*+.........   2,000,000               3,045,000
                                                                                    ------------
  INDUSTRIALS -- (2.4%)
     Tomoike Industrial (H.K.) Ltd., (acquired
       2/21/03)(1)+.........................................     825,000               6,344,492
                                                                                    ------------
  INFORMATION TECHNOLOGY -- (1.4%)
     Global e-Business Services (BVI) Ltd., (acquired
       6/18/04)(1)*.........................................      40,000               3,040,462
     teco Optronics Corp., (acquired 4/26/04)(1)*...........   1,861,710                 561,406
                                                                                    ------------
                                                                                       3,601,868
                                                                                    ------------
          TOTAL DIRECT INVESTMENTS -- (Cost $8,997,200)                      4.9%     12,991,360
                                                                             ---    ------------
TOTAL INVESTMENTS -- (Cost $160,693,538) (Note E)                           94.4%    249,963,829
                                                                            ----    ------------
OTHER ASSETS AND LIABILITIES                                                 5.6%     14,922,146
                                                                             ---    ------------
NET ASSETS                                                                 100.0%   $264,885,975
                                                                           =====    ============
</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 Note A and B to the Financial Statements.

(2) Security valued at fair value using methods determined in good faith by or
    at the direction of the Board of Directors.

  + 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, 2004
================================================================================

<Table>
<S>                                                           <C>
ASSETS:
  Investments in listed investments, at value (cost
     $151,696,338) (Note A).................................  $236,972,469
  Investments in direct investments, at value (cost
     $8,997,200) (Notes A and B)............................    12,991,360
  Cash......................................................       292,611
  Foreign currency, at value (cost $14,276,542).............    14,406,796
  Receivable for investments sold...........................       442,779
  Dividends and interest receivable.........................       169,425
                                                              ------------
TOTAL ASSETS................................................   265,275,440
                                                              ============
LIABILITIES:
  Investment management fee payable (Note C)................       206,030
  Administration, custodian and transfer agent fees
     payable................................................        80,568
  Accrued expenses and other liabilities....................       102,867
                                                              ------------
TOTAL LIABILITIES...........................................       389,465
                                                              ------------
TOTAL NET ASSETS............................................  $264,885,975
                                                              ============
COMPOSITION OF NET ASSETS:
  Paid-in capital (Note D)..................................   139,491,406
  Undistributed net investment income.......................     1,978,886
  Accumulated net realized gain on investments and foreign
     currency transactions..................................    34,014,133
  Net unrealized appreciation on investments and foreign
     currency transactions..................................    89,401,550
                                                              ------------
TOTAL NET ASSETS............................................  $264,885,975
                                                              ============
NET ASSET VALUE PER SHARE
  ($264,885,975/10,081,913 shares of common stock
  outstanding)..............................................        $26.27
                                                              ============
</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, 2004
================================================================================

<Table>
<S>                                                           <C>
INVESTMENT INCOME:
  Dividend income -- listed investments (net of tax withheld
     of $503,396)...........................................  $  5,775,564
  Dividend income -- direct investments.....................        57,797
  Interest income...........................................        12,069
                                                              ------------
     TOTAL INVESTMENT INCOME................................     5,845,430
                                                              ------------
EXPENSES:
  Investment management fees (Note C).......................     2,018,029
  Custodian fees............................................       448,872
  Administration fees.......................................       432,051
  Directors' fees and expenses (Note C).....................       249,883
  Stock dividend tax expense................................       183,968
  Printing and postage......................................       179,159
  Insurance.................................................        88,711
  Audit and tax service fees................................        56,627
  Legal fees................................................        29,957
  Shareholder service fees..................................        26,814
  Stock exchange listing fee................................        22,363
  Transfer agent fees.......................................        18,819
  Miscellaneous expenses....................................         2,206
                                                              ------------
     TOTAL EXPENSES.........................................     3,757,459
                                                              ------------
NET INVESTMENT INCOME.......................................     2,087,971
                                                              ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
  FOREIGN CURRENCY:
  Net realized gain on listed investment transactions.......    34,148,625
  Net realized gain on direct investment transactions.......        30,684
  Net realized loss on foreign currency transactions........      (125,991)
                                                              ------------
                                                                34,053,318
                                                              ------------
  Net change in unrealized appreciation on listed
     investments and foreign currency transactions..........   (28,920,149)
  Net change in unrealized appreciation on direct
     investments............................................     3,984,668
                                                              ------------
                                                               (24,935,481)
                                                              ------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
  CURRENCY TRANSACTIONS.....................................     9,117,837
                                                              ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS..................  $ 11,205,808
                                                              ============
</Table>

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

THE CHINA FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================

<Table>
<Caption>
                                                                 YEAR ENDED          YEAR ENDED
                                                              OCTOBER 31, 2004    OCTOBER 31, 2003
                                                              ----------------    ----------------
<S>                                                           <C>                 <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
  Net investment income.....................................    $  2,087,971        $    641,133
  Net realized gain on investments and foreign currency
     transactions...........................................      34,053,318          18,838,037
  Net increase (decrease) in unrealized appreciation on
     investments and foreign currency transactions..........     (24,935,481)        103,638,989
                                                                ------------        ------------
  Net increase in net assets from operations................      11,205,808         123,118,159
                                                                ------------        ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
  Net investment income.....................................        (705,122)           (644,376)
  Capital gains.............................................     (17,225,127)         (1,514,948)
                                                                ------------        ------------
  Total dividends and distributions to shareholders.........     (17,930,249)         (2,159,324)
                                                                ------------        ------------
CAPITAL SHARE TRANSACTIONS:
  Reinvestment of dividends and distributions (8,740 and 0
     shares, respectively)..................................         332,196                  --
                                                                ------------        ------------
NET INCREASE (DECREASE) IN NET ASSETS.......................      (6,392,245)        120,958,835
                                                                ------------        ------------
NET ASSETS:
Beginning of year...........................................     271,278,220         150,319,385
                                                                ------------        ------------
End of year.................................................    $264,885,975        $271,278,220
                                                                ============        ============
UNDISTRIBUTED NET INVESTMENT INCOME, END OF YEAR............    $  1,978,886        $    722,029
                                                                ============        ============
</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,
                                               --------------------------------------------------------
                                                 2004        2003        2002        2001        2000
                                               --------    --------    --------    --------    --------
<S>                                            <C>         <C>         <C>         <C>         <C>
PER SHARE OPERATING PERFORMANCE
- -------------------------------
Net asset value, beginning of year...........  $  26.93    $  14.92    $  13.19    $  12.37    $  12.74
Net investment income (loss).................      0.21        0.06        0.11        0.14       (0.03)
Net realized and unrealized gain (loss) on
  investment and foreign currency
  transactions...............................      0.91       12.16        1.75        0.68       (0.23)
                                               --------    --------    --------    --------    --------
Total income (loss) from investment
  operations.................................      1.12       12.22        1.86        0.82       (0.26)
                                               --------    --------    --------    --------    --------
Less distributions:
  Dividend from net investment income........     (0.07)      (0.06)      (0.13)       0.00       (0.11)
  Distributions from net realized capital
    gains....................................     (1.71)      (0.15)       0.00        0.00        0.00
                                               --------    --------    --------    --------    --------
Total distributions..........................     (1.78)      (0.21)      (0.13)       0.00       (0.11)
                                               --------    --------    --------    --------    --------
Net asset value, end of year.................  $  26.27    $  26.93    $  14.92    $  13.19    $  12.37
                                               ========    ========    ========    ========    ========
Per share market price, end of year..........  $  29.15    $  34.74    $  12.61    $  10.74    $   8.94
                                               ========    ========    ========    ========    ========
TOTAL INVESTMENT RETURN (BASED ON MARKET
- ----------------------------------------
  PRICE).....................................    (12.16)%    179.41%      18.63%      20.13%      (9.14)%
  -----                                        ========    ========    ========    ========    ========
RATIOS AND SUPPLEMENTAL DATA
- ----------------------------
Net assets, end of year (000's)..............  $264,886    $271,278    $150,319    $132,912    $124,619
Ratio of expenses to average net assets .....      1.41%       1.76%       1.97%       2.39%       2.12%
Ratio of expenses to average net assets,
  excluding stock dividend tax expense.......      1.34%       1.68%       1.85%       2.31%       2.12%
Ratio of net investment income to average net
  assets.....................................      0.78%       0.32%       0.72%       1.09%      (0.21)%
Portfolio turnover rate......................        40%         55%         68%        115%        108%
</Table>

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

THE CHINA FUND, INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2004
================================================================================

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, 2004 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 fixed income 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 readily available are valued at current 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 Investment
Manager and 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

                                        16
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================

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.

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.

INDEMNIFICATION OBLIGATIONS:  Under the Fund's organizational documents, its
Officers and Directors are indemnified against certain liabilities arising out
of the performance of their duties to the Fund. In addition, in the normal
course of business the Fund enters into contracts that provide general
indemnifications to other parties. The Fund's maximum exposure under these
arrangements is unknown as this would involve future claims that may be made
against the Fund that have not yet occurred.

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 U.S. income tax regulations, which may differ from
generally accepted accounting principles. These differences are primarily due to
differing book and tax treatments for foreign currency transactions.

The Fund made distributions of $11,181,223 from Ordinary Income and $6,749,026
from Long-Term Capital Gains during the year ended October 31, 2004. For the
year ended October 31, 2003 the Fund made distributions of $2,152,414 from
Ordinary Income and $6,910 from Long-Term Capital Gains. As of October 31, 2004
the

                                        17
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================

components of distributable earnings on a tax basis were $3,061,613 for
Undistributed Ordinary Income, $32,931,406 for Undistributed Long-Term Capital
Gains, and $89,401,550 for Unrealized Appreciation. There were no differences
between book and tax distributable earnings.

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
Subchapter M 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.

NOTE B -- VALUATION OF DIRECT INVESTMENTS
At October 31, 2004, Direct Investments amounting to $12,991,360 (4.9% 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 was paid a fee, computed weekly and payable monthly, at the
following annual rates from November 1, 2003 through March 18, 2004: 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.
Effective March 19, 2004, Martin Currie Inc. is paid a fee, computed weekly and
payable monthly, at the following annual rates: 0.70% of the first US$400
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$400 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 will receive 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

                                        18
<PAGE>

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================

addition, the Fund reimburses each of the directors 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, 2004, the Fund did not participate in
this program.

NOTE E -- INVESTMENT TRANSACTIONS
For the year ended October 31, 2004, the Fund's cost of purchases and proceeds
from sales of investment securities, other than short-term securities, were
$101,749,324 and $123,854,398, respectively. At October 31, 2004, the cost of
investments for federal income tax purposes was $160,693,538. Gross unrealized
appreciation of investments was $97,702,098, while gross unrealized depreciation
of investments was $8,431,807, resulting in net unrealized appreciation of
investments of $89,270,291.

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>
                                                                                                                    DIVIDENDS
                                                                                                                   INCLUDED IN
                                           BALANCE OF                                  BALANCE OF                    DIVIDEND
                                           SHARES HELD       GROSS       GROSS SALES   SHARES HELD      VALUE      INCOME-NON-
                                           OCTOBER 31,     PURCHASES         AND       OCTOBER 31,   OCTOBER 31,    CONTROLLED
NAME OF ISSUER                                2003       AND ADDITIONS   REDUCTIONS       2004          2004        AFFILIATES
- --------------                             -----------   -------------   -----------   -----------   -----------   ------------
<S>                                        <C>           <C>             <C>           <C>           <C>           <C>
Captive Finance, Ltd. ...................   2,000,000             --          --        2,000,000    $3,045,000      $    --
Tomoike Industrial (H.K.) Ltd. ..........     825,000             --          --          825,000     6,344,492       57,797
Beiren Printing Machinery Holdings
  Ltd. ..................................          --      7,000,000          --        7,000,000     2,225,862       67,658
Nanjing Dahe Outdoor Media Co., Ltd. ....          --     37,500,000          --       37,500,000     2,119,869           --
</Table>

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

                                        19
<PAGE>

THE CHINA FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================

The Stockholders 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, 2004,
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 the standards of the Public Company
Accounting Oversight Board (United States). 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, 2004, by correspondence with the custodian.
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, 2004, and the results of its operations, the
changes in its net assets and the financial highlights for each of the years
described above in conformity with accounting principles generally accepted in
the United States of America.

/S/KPMG LLP
Boston, Massachusetts
December 10, 2004

                                        20
<PAGE>

THE CHINA FUND, INC.
OTHER INFORMATION (UNAUDITED)
================================================================================

TAX INFORMATION

     CAPITAL GAINS DISTRIBUTIONS:  $6,749,026 has been designated as capital
gains dividends for the purpose of the dividends paid deduction, of which 100%
represents 15% rate gains.

     FOREIGN TAXES CREDIT:  The Fund designates $687,364 as foreign taxes paid
and $6,336,757 as foreign source income earned for regular Federal income tax
purposes.

     QUALIFIED DIVIDEND INCOME:  For the fiscal year ended October 31, 2004, the
Fund will designate up to the maximum amount allowable pursuant to the Internal
Revenue Code, as qualified dividend income eligible for reduced tax rates. These
lower rates range from 5% to 15% depending on an individual's tax bracket.
Complete information will be reported in conjunction with Form 1099-DIV.

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 is now available by calling the same number and on
the Commission's website. The Fund has filed its first report on Form N-PX
covering the Fund's proxy voting record for the 12 month period ending June 30,
2004.

                                        21
<PAGE>

THE CHINA FUND, INC.
OTHER INFORMATION (UNAUDITED) (CONTINUED)
================================================================================

QUARTERLY PORTFOLIO OF INVESTMENTS
A Portfolio of Investments will be filed as of the end of the first and third
quarter of each fiscal year on Form N-Q and will be available on the Securities
and Exchange Commission's website at http://www.sec.gov. Form N-Q has been filed
as of July 31, 2004 for the third quarter of this fiscal year and is available
on the Securities and Exchange Commission's website at http://www.sec.gov.
Additionally, the Portfolio of Investments may be reviewed and copied at the
Commission's Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330. The quarterly Portfolio of Investments will be made available
without charge, upon request, by calling 1-888-246-2255.

                                        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 02940-3011. 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 43011, Providence, Rhode Island
02940-3011. Phone: 1-800-426-5523.

                                        24
<PAGE>

DIRECTORS AND OFFICERS (UNAUDITED)
================================================================================

The following table sets forth information concerning each of the nominees as a
director 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
  4100 N. Ocean Drive            Board and        Distinction Ventures, Inc. (1989-present); Chairman,
  #1001                          Director         Hotels of Distinction (International), Inc.
  Singer Island, Florida 33404                    (1974-present).
Michael F. Holland(60).........  Director         Director, Reaves Utility Income Fund (2004-present);          1992
  375 Park Avenue                                 Chairman,
  New York, New York 10152                        Holland & Company L.L.C. (1995-present); Director,
                                                  The Holland Balanced Fund, Inc., State Street Master Funds
                                                  and State Street Institutional Investment Trust.
James J. Lightburn(61).........  Director         Attorney, Nomos (2004-present); Attorney, member of Hughes    1992
  13, Rue Alphonse de Neuville                    Hubbard & Reed (1993-2004).
  75017 Paris, France
Joe O. Rogers(55)..............  Director         Manager, The J-Squared Team LLC (April 2003-May 2004);        1992
  2477 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); Director, The Taiwan Fund,
                                                  Inc. (1986-present).
Nigel S. Tulloch(58)...........  Director         Chief Executive, HSBC Asset Management Bahamas Limited        1992
  7, Circe Circle                                 (1986-1992); Director, The HSBC China Fund Limited.
  Dalkeith
  WA6009
  Australia
Gary L. French(53).............  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).
Ann M. Carpenter(38)...........  Treasurer        Vice President, State Street Bank and Trust Company.
  225 Franklin Street
  Boston, MA 02110
Mary Moran Zeven(43)...........  Secretary        Senior Vice President and Senior Managing Counsel, State
  225 Franklin Street                             Street Bank and Trust Company.
  Boston, MA 02110

</Table>

The Statement of Additional Information for the Fund includes additional
information about the Directors and is available, without charge, upon request,
by calling 1-888-CHN-CALL (246-2255).

                                        25
<PAGE>

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                                        26
<PAGE>

                 (This page has been left blank intentionally.)

                                        27
<PAGE>

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                                        28
<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
James J. Lightburn, Director
Joe O. Rogers, Director
Nigel S. Tulloch, Director
Ann M. Carpenter, Treasurer
Mary Moran Zeven, Secretary

INVESTMENT MANAGER
Martin Currie Inc.

DIRECT INVESTMENT MANAGER
Asian Direct Capital Management

SHAREHOLDER SERVICING AGENT
The Altman Group

ADMINISTRATOR AND CUSTODIAN
State Street Bank and Trust Company

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

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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 exhibit 11(a)(1) 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, 2004, KPMG LLP ("KPMG"), the Fund's
independent registered public accounting firm, 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 years 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.

(b)   Audit-Related Fees

      For the fiscal year ended October 31, 2004, 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, 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.

<PAGE>

(c)   Tax Fees

      For the fiscal year ended October 31, 2004, 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 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, 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 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, 2004, KPMG did not bill the Fund any
fees for products and services other than those disclosed above.

      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.

(e)   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 registered public accounting firm; 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, 2004 and October 31, 2003 were pre-approved by the Audit
Committee.

      For the fiscal years ended October 31, 2004 and October 31, 2003, 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.

(f)   No disclosures are required by this Item 4(f).

(g)   For the fiscal year ended October 31, 2004, KPMG did not bill the Fund any
non-audit fees. 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 approximately US$14 million. 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, 2003, KPMG did not bill the Fund any
non-audit fees. 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.

<PAGE>

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

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

(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. The
members of the Fund's audit committee are Alan Tremain, James J. Lightburn,
Nigel Tulloch, Joe O. Rogers and Michael F. Holland.

ITEM 6. SCHEDULE OF INVESTMENTS.

Schedule of Investments is included as part of Item 1.

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

Attached to this Form N-CSR as exhibit 11(a)(4) are copies of the proxy voting
policies and procedures of the Fund and its investment advisers, Asian Direct
Capital Management and Martin Currie, Inc.

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

Not applicable.

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

There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors during the period
covered by this Form N-CSR filing.

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 1934 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 in response to Item 2(f).

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

<PAGE>

(a)(3) Not applicable.

(a)(4) Proxy voting policies and procedures of the Fund and its investment
       advisers are attached hereto in response to Item 7.

(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.

<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.

Date: January 7, 2005

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.

Date: January 7, 2005

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

Date: January 7, 2005


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(1)
<SEQUENCE>2
<FILENAME>b52504fhexv99wxayx1y.txt
<DESCRIPTION>CODE OF ETHICS
<TEXT>
<PAGE>

                                                                EXHIBIT 11(a)(1)

                              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.

                                        1
<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;

                                        2
<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

                                        3
<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.

                                        4
<PAGE>

VI.   AMENDMENTS

      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

                                        5

<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>

                                        6


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>3
<FILENAME>b52504fhexv99wcert.txt
<DESCRIPTION>CERTIFICATIONS OF PEO AND PFO
<TEXT>
<PAGE>

                                                                EXHIBIT 11(a)(2)

I, Gary L. French, President of The China Fund, Inc., 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 officer 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 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 control over financial reporting.

Date: January 7, 2005

By: /s/ Gary L. French
    ------------------
    Gary L. French
    President (principal executive officer) of The China Fund, Inc.

<PAGE>

I, Ann M. Carpenter, Treasurer of The China Fund, Inc., 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 officer 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 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 control over financial reporting.

Date: January 7, 2005

By: /s/ Ann M. Carpenter
    --------------------
    Ann M. Carpenter
    Treasurer (principal financial officer) of The China Fund, Inc.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.(A)(4)
<SEQUENCE>4
<FILENAME>b52504fhexv99wxayx4y.txt
<DESCRIPTION>PROXY VOTING POLICIES & PROCEDURES
<TEXT>
<PAGE>

                                                                EXHIBIT 11(a)(4)

                              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

                                        1
<PAGE>

      time to time. With respect to those proxies that an Investment Manager has
      identified as 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. 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

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

(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.

                                        2
<PAGE>

            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

                                       3

<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.

                                        1
<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

      -     Other stock-based plans which are appropriately structured

                                        2
<PAGE>

      -     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

      -     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

                                        3
<PAGE>

      -     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

      -     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

                                        4
<PAGE>

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.

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

                                        5
<PAGE>

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.

DISCLOSURE OF CLIENT VOTING INFORMATION

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

                                        6

<PAGE>

                               MARTIN CURRIE, INC.
                      STATEMENT OF POLICIES AND PROCEDURES
                                  PROXY VOTING

Martin Currie, Inc. ("Martin Currie") has adopted a Statement of Policies and
Procedures for Voting Proxies (the "Policies and Procedures") designed to ensure
that it votes proxies in the best interests of its Clients in accordance with
its fiduciary duties, Rule 206(4)-6 under the Investment Advisers Act of 1940
and other applicable law. The Policies and Procedures do not apply to any Client
who has retained authority and discretion to vote its own proxies or delegated
such authority and discretion to a third party.

PROXY VOTING POLICIES

Martin Currie recognizes the importance of good corporate governance in ensuring
that management and boards of directors fulfil their obligations to
shareholders. As part of its investment process, it takes into account the
attitudes of management and boards of directors on corporate governance issues
when deciding whether to invest in a company. As set out in the Policies and
Procedures, it is Martin Currie's general policy to support management of the
companies in which it invests and it will generally cast votes in accordance
with management's proposals. However, it reserves the right to depart from this
policy in order to avoid voting decisions that it believes may be contrary to
its Clients' best interests.

The Policies and Procedures also contain proxy voting policies relating to
specific issues, such as: the election of directors; the appointment of
auditors; changes to a company's charter, articles of incorporation or bylaws;
corporate restructurings, mergers and acquisitions; transparency and
accountability in corporate governance; proposals regarding social, political
and environmental issues; and executive compensation. Martin Currie applies
these proxy-voting policies flexibly and reserves the right to vote contrary to
the policies when it believes they may be contrary to its Clients' best
interests.

Martin Currie is a global investment manager, and it 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.

PROXY VOTING PROCEDURES

Martin Currie's Market Data Team is responsible for the coordination of proxy
voting and liaises with Product Managers and/or the Proxy Voting Committee. The
Product Managers are responsible for evaluating proxies and determining voting
decisions in accordance with the general principles of the Policies and
Procedures.

The Proxy Voting Committee, which comprises senior investment personnel and
representatives of the Legal & Compliance Department, regularly reviews the
proxy policies and considers specific proxy voting matters in certain
situations.

CONFLICTS OF INTEREST

Martin Currie recognizes that there is a potential conflict of interest when it
votes a proxy solicited by an issuer with whom it has a material business or
personal relationship that may

                                        1
<PAGE>

affect how it votes on the issuer's proxy. Martin Currie believes that oversight
by the Committee ensures that proxies are voted with only its Clients' best
interests in mind. In order to avoid any perceived conflict of interests,
procedures have been established for use when proxy votes are issued by existing
Clients or where Martin Currie holds a significant voting percentage of the
company.

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. In such cases, Martin Currie may
abstain from voting the affected shares.

AVAILABILITY OF POLICIES AND PROCEDURES AND PROXY VOTING RECORD

Clients may obtain a copy of the Policies and Procedures and information on how
Martin Currie voted with respect to their proxies by contacting the 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.

                                        2

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906CERT
<SEQUENCE>5
<FILENAME>b52504fhexv99w906cert.txt
<DESCRIPTION>CERTIFICATIONS PURSUANT TO SECTION 906
<TEXT>
<PAGE>

                                                                   EXHIBIT 11(b)

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

Date: January 7, 2005

By: /s/ Ann M. Carpenter
    --------------------
    Ann M. Carpenter
    Chief Financial Officer of the The China Fund, Inc.

Date: January 7, 2005


</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
