<SEC-DOCUMENT>0001398344-16-021011.txt : 20170314
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<ACCEPTANCE-DATETIME>20161122134823
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ACCESSION NUMBER:		0001398344-16-021011
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20161122

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:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		TWO AVENUE DE LAFAYETTE
		STREET 2:		PO BOX 5049 (02206-5049)
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02111
		BUSINESS PHONE:		6176622789

	MAIL ADDRESS:	
		STREET 1:		TWO AVENUE DE LAFAYETTE
		STREET 2:		PO BOX 5049 (02206-5049)
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02111
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<TYPE>CORRESP
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center; LINE-HEIGHT: 1.15">The China Fund, Inc.</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center; LINE-HEIGHT: 1.15">c/o State Street Bank and Trust Company</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center; LINE-HEIGHT: 1.15">100 Summer Street, Mail Code SUM0703</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: center; LINE-HEIGHT: 1.15">Boston, MA 02111</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">VIA EDGAR CORRESPONDENCE</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">November 22, 2016</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Securities and Exchange Commission</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Dave Manion</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">100 F Street, N.E.</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Washington, DC 20549-4720</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Attention: Office of Filings, Information &amp; Consumer Services</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'">The China Fund, Inc. (the &#8220;Fund&#8221;)</div>
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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.15; TEXT-INDENT: 36pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'"><u>File No. 811-05749</u></font><font id="TRGRRTFtoHTMLTab" style="FONT-SIZE: 1px; DISPLAY: inline-block; WIDTH: 252pt">&#160;</font></div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Dear Mr. Manion:</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15; TEXT-INDENT: 36pt">This letter responds to the comments provided by the Securities and Exchange Commission (the &#8220;SEC&#8221;) by telephone on October 25, 2016 to the Fund&#8217;s Annual Report for the year ended October 31, 2015 (the &#8220;Annual Report&#8221;).</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Comment 1</font>: The Fund booked a liability of $2,001,458 related to capital gains taxes paid related to investments in equity-linked securities. Please explain the accounting treatment of this liability.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Response</font>: The Fund booked a liability of $2,001,458 related to the reimbursement of capital gains taxes paid by a broker (Citigroup) related to the sale of China A-Share investments that underlied the Fund&#8217;s investments in equity linked securities.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15">The accounting treatment was a current year reduction in realized long term capital gain.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Comment 2</font>: The Statement of Financial Accounting Standards No. 5 requires contingent liabilities like the one identified in Comment 1 to be determined using a reasonable and probable standard. Explain what additional information was received by the Fund to cause this liability to be reduced from $2,001,458 in the Annual Report to $400,029 in the Fund&#8217;s Semi-Annual Report for the period ended April 30, 2016 (&#8220;Semi-Annual Report&#8221;).</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Response</font>: The liability of $2,001,458 referenced in the Annual Report and the liability of $400,029 referenced in the Semi-Annual Report are separate and unrelated. On January 13, 2016 the Fund booked a liability of $400,029 related to the reimbursement of capital gains taxes paid by a broker (Credit Lyonnais) related to the sale of China A-Share investments that underlied the Fund&#8217;s investments in equity linked securities.</div>

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<div style="TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Comment 3</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'">:&#160;</font><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'"> Explain the impact of the liabilities identified in Comment 1 and Comment 2 to the Fund&#8217;s financial results and how the reduction of the liability from $2,001,458 to $400,029 will affect the Fund&#8217;s annual report for the period ending October 31, 2016. Include in your analysis where the liabilities were recorded and the liabilities&#8217; impact to the Fund&#8217;s net asset value (&#8220;NAV&#8221;).</font></div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Response</font>: The impact of the liability referenced in Comment 1 was a $0.13 per share reduction in NAV on October 30, 2015. The impact of this liability was disclosed in the Annual Report. The impact of the liability referenced in Comment 2 was a reduction in the NAV of $0.03 per share on January 13, 2016. The liability in Comment 2 was incurred during the current fiscal year, was disclosed in the Semi-Annual Report and will be disclosed in a similar manner in the Fund&#8217;s annual report for the year ended October 31, 2016.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Comment 4</font>: Confirm whether any distributions have been paid by the Fund for any period after January 6, 2016. For any distributions paid for any period after January 6, 2016, post a Rule 19a-1 Distribution Notice on the Fund&#8217;s website.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; FONT-WEIGHT: bold">Response</font>: The Fund has paid no distributions since January 6, 2016.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: justify; LINE-HEIGHT: 1.15; TEXT-INDENT: 36pt">We trust the foregoing is responsive to your comments. Please contact me at (617) 662-1504 if you have any questions regarding the foregoing.</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Regards,</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15"><u>/s/ Brian F. Link</u></div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Brian F. Link</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15">Secretary of the Fund</div>

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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'">Leonard Mackey, Esq. &#8211; Clifford Chance US LLP</div>
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<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15; TEXT-INDENT: 36pt">Joe O. Rogers &#8211; Chairman of the Board</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15; TEXT-INDENT: 36pt">Gary French &#8211; Chairman of the Audit Committee</div>

<div style="FONT-SIZE: 11pt; FONT-FAMILY: 'Times New Roman'; TEXT-ALIGN: left; LINE-HEIGHT: 1.15; TEXT-INDENT: 36pt">Monique Labbe &#8211; Treasurer of the Fund</div>

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