NPORT-EX 2 THE_CHINA_FUND.htm SOI FOR VALIDATION PURPOSES ONLY - [68220.TX]

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS

July 31, 2020 (unaudited)

 

Name of Issuer and Title of Issue

    Shares            Value (Note A)  

COMMON STOCK

        

CHINA — “A” SHARES

        

Banks — 4.1%

        

China Merchants Bank Co., Ltd. — A(1)

      2,461,547        $ 12,205,247  
       

 

 

  

Beverages — 3.5%

        

Kweichow Moutai Co., Ltd. — A(1)

      26,278          6,298,878  

Wuliangye Yibin Co., Ltd. — A(1)

      144,796          4,487,724  
       

 

 

  
          10,786,602  
       

 

 

  

Chemicals — 1.2%

        

Wanhua Chemical Group Co., Ltd. — A(1)

      388,443          3,740,561  
       

 

 

  

Construction Materials — 2.1%

        

Anhui Conch Cement Co., Ltd. — A(1)

      732,869          6,415,215  
       

 

 

  

Electronic Equipment, Instruments & Components — 3.3%

        

AVIC Jonhon Optronic Technology Co., Ltd. — A(1)

      505,791          3,153,976  

Luxshare Precision Industry Co., Ltd. — A(1)

      381,439          3,166,170  

NAURA Technology Group Co., Ltd. — A(1)

      128,702          3,851,599  
       

 

 

  
          10,171,745  
       

 

 

  

Health Care Equipment & Supplies — 2.0%

        

Lepu Medical Technology Beijing Co., Ltd. — A(1)

      1,000,000          6,128,973  
       

 

 

  

Household Durables — 2.4%

        

Midea Group Co., Ltd. — A(1)

      733,129          7,504,667  
       

 

 

  

Insurance — 2.6%

        

Ping An Insurance Group Company of China, Ltd. — A(1)

      749,428          8,097,288  
       

 

 

  

Life Sciences Tools & Services — 1.2%

        

Hangzhou Tigermed Consulting Co., Ltd. — A(1)

      244,700          3,772,538  
       

 

 

  

Machinery — 1.7%

        

Estun Automation Co., Ltd. — A(1)*

      2,277,900          5,258,660  
       

 

 

  

TOTAL CHINA — “A” SHARES — (Cost $49,431,436)

         24.1 %      74,081,496  
     

 

 

    

 

 

  

HONG KONG

        

Capital Markets — 3.1%

        

Hong Kong Exchanges & Clearing, Ltd.(1)

      200,900          9,576,112  
       

 

 

  

Diversified Consumer Services — 2.4%

        

New Oriental Education & Technology Group, Inc. ADR*

      53,000          7,430,600  
       

 

 

  

Entertainment — 1.2%

        

Tencent Music Entertainment Group ADR*

      217,500          3,510,450  
       

 

 

  

Gas Utilities — 1.1%

        

ENN Energy Holdings, Ltd.(1)

      289,200          3,469,821  
       

 

 

  

Hotels, Restaurants & Leisure — 0.5%

        

Galaxy Entertainment Group, Ltd.(1)

      230,000          1,557,401  
       

 

 

  

Insurance — 2.7%

        

AIA Group, Ltd.(1)

      915,600          8,221,789  
       

 

 

  

 

See notes to schedule of investments.

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

July 31, 2020 (unaudited)

 

Name of Issuer and Title of Issue

    Shares            Value (Note A)  

COMMON STOCK (continued)

        

HONG KONG (continued)

        

Interactive Media & Services — 13.6%

        

JOYY, Inc. ADR*

      37,300        $ 2,977,286  

Tencent Holdings, Ltd.(1)

      568,900          38,831,903  
       

 

 

  
          41,809,189  
       

 

 

  

Internet & Direct Marketing Retail — 20.4%

        

Alibaba Group Holding, Ltd.(1)*

      1,294,408          40,746,122  

JD.com, Inc. — A(1)*

      272,300          8,484,502  

JD.com, Inc. ADR*

      136,150          8,685,009  

Meituan Dianping — B(1)*

      182,700          4,516,693  
       

 

 

  
          62,432,326  
       

 

 

  

IT Services — 2.8%

        

Chinasoft International, Ltd.(1)*

      11,104,000          8,466,244  
       

 

 

  

Life Sciences Tools & Services — 1.6%

        

Wuxi Biologics Cayman, Inc. 144A(1)*

      242,500          5,010,050  
       

 

 

  

Pharmaceuticals — 1.8%

        

Sino Biopharmaceutical, Ltd.(1)

      4,167,000          5,408,145  
       

 

 

  

Real Estate Management & Development — 6.3%

        

China Overseas Property Holdings, Ltd.(1)

      2,335,000          2,433,463  

China Resources Land, Ltd.(1)

      1,376,000          5,685,114  

CIFI Holdings Group Co., Ltd.(1)

      5,880,000          5,260,928  

Times China Holdings, Ltd.(1)

      3,418,000          6,038,470  
       

 

 

  
          19,417,975  
       

 

 

  

Software — 1.9%

        

Kingdee International Software Group Co., Ltd.(1)*

      1,211,000          3,347,554  

Weimob, Inc. 144A(1)(2)*

      1,898,000          2,618,848  
       

 

 

  
          5,966,402  
       

 

 

  

Specialty Retail — 1.8%

        

Zhongsheng Group Holdings, Ltd.(1)

      862,500          5,353,631  
       

 

 

  

TOTAL HONG KONG — (Cost $109,602,976)

         61.2 %      187,630,135  
     

 

 

    

 

 

  

HONG KONG — “H” SHARES

        

Banks — 4.2%

        

China Construction Bank Corp.(1)

      17,521,000          12,792,035  
       

 

 

  

Capital Markets — 5.8%

        

China International Capital Corp., Ltd. 144A(1)*

      3,550,000          8,407,992  

CITIC Securities Co., Ltd.(1)

      4,165,000          9,656,727  
       

 

 

  
          18,064,719  
       

 

 

  

Health Care Providers & Services — 1.1%

        

Sinopharm Group Co., Ltd.(1)

      1,404,400          3,333,173  
       

 

 

  

TOTAL HONG KONG — “H” SHARES — (Cost $31,959,755)

         11.1 %      34,189,927  
     

 

 

    

 

 

  

TOTAL HONG KONG (INCLUDING “H” SHARES) —
(Cost $141,562,731)

         72.3 %      221,820,062  
     

 

 

    

 

 

  

TOTAL COMMON STOCK — (Cost $190,994,167)

         96.4 %      295,901,558  
     

 

 

    

 

 

  

 

See notes to schedule of investments.

THE CHINA FUND, INC.

SCHEDULE OF INVESTMENTS (continued)

July 31, 2020 (unaudited)

 

Name of Issuer and Title of Issue

    Shares            Value (Note A)  

COMMON STOCK (continued)

        

COLLATERAL FOR SECURITIES ON LOAN

        

Money Market Funds — 0.7%

        

Fidelity Investments Money Market Government Portfolio, 0.09%¥ — (Cost $2,201,680)

      2,201,680        $ 2,201,680  
       

 

 

  

TOTAL COLLATERAL FOR SECURITIES ON LOAN — (Cost $2,201,680)

         0.7 %      2,201,680  
     

 

 

    

 

 

  
     Principal
Amount		               

SHORT TERM INVESTMENTS — 3.5%

        

Time Deposits — 3.5%

        

Barclays — London, 0.01%, 8/3/2020

    USD  2,000,000          2,000,000  

BNP Paribas — Paris, 0.00%, 8/3/2020

    HKD  5,848,311          754,592  

Citibank N.A. — New York, 0.01%, 8/3/2020

    USD  4,000,000          3,999,999  

JPMorgan Chase & Co. — New York, 0.01%, 8/3/2020

    USD  4,000,000          4,000,000  

Royal Bank of Canada — Toronto, 0.01%, 8/3/2020

    USD  49,990          49,990  
       

 

 

  

TOTAL SHORT TERM INVESTMENTS — (Cost $10,804,581)

         3.5 %      10,804,581  
     

 

 

    

 

 

  

TOTAL INVESTMENTS — (Cost $204,000,428)

         100.6 %      308,907,819  
     

 

 

    

 

 

  

OTHER ASSETS AND LIABILITIES

         (0.6 )%      (2,007,691 ) 
     

 

 

    

 

 

  

NET ASSETS

         100.0 %    $ 306,900,128  
     

 

 

    

 

 

  

Footnotes to Schedule of Investments

 

* 

Denotes non-income producing security.

¥ 

Rate shown is the 7-day yield as of July 31, 2020.

(1) 

Level 2 securities fair valued in accordance with procedures adopted by the Board of Directors. At July 31, 2020, the value of these securities amounted to $273,298,213 or 89.1% of net assets.

(2) 

A security (or a portion of the security) is on loan. As of July 31, 2020, the market value of the security loaned was $2,095,079. The loaned security was secured with cash collateral of $2,201,680. Collateral is calculated based on prior day’s prices.

144A Securities exempt from registration under Rule 144a of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2020, these restricted securities amounted to $16,036,890, which represented 5.2% of total net assets.

ADR American Depositary Receipt

HKD — Hong Kong dollar

USD — United States dollar

 

See notes to schedule of investments.

THE CHINA FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS

July 31, 2020 (unaudited)

NOTE A – Security valuation:

Portfolio securities listed on recognized United States or foreign security exchanges are valued at the last quoted sales price in the principal market where they are traded. Listed securities with no such sales price and unlisted securities are valued at the mean between the current bid and asked prices, if any, from brokers. Short-term investments having maturities of sixty days or less are generally valued at amortized cost (original purchase cost as adjusted for amortization of premium or accretion of discount) which when combined with accrued interest approximates market value. Securities for which market quotations are not readily available or are deemed unreliable are valued at fair value in good faith by or at the direction of the Board of Directors considering relevant factors, data and information including, if relevant, the market value of freely tradable securities of the same class in the principal market on which such securities are normally traded. Forward currency contracts are valued at the current cost of offsetting the contract. Equity linked securities, if any, are valued at fair value primarily based on the value(s) of the underlying security (or securities), which normally follows the same methodology as the valuation of securities listed on recognized exchanges.

Factors used in determining fair value may include, but are not limited to, the type of security, the size of the holding, the initial cost of the security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable companies, the availability of quotations from broker-dealers, the availability of values of third parties other than the Investment Manager, information obtained from the issuer, analysts, and/or the appropriate stock exchange (if available), an analysis of the company’s financial statements, an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold and with respect to debt securities, the maturity, coupon, creditworthiness, currency denomination, and the movement of the market in which they trade.

The Fund’s investments in Chinese 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 Chinese 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 Chinese 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.

Fair Value Measurement

The Fund has adopted fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

 

  •  

Level 1 — Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access at the measurement date;

THE CHINA FUND, INC.

NOTES TO SCHEDULE OF INVESTMENTS (continued)

July 31, 2020 (unaudited)

 

  •  

Level 2 — Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active;

 

  •  

Level 3 — Inputs that are unobservable.

The following is a summary of the inputs used as of July 31, 2020 in valuing the Fund’s investments carried at value:

ASSETS VALUATION INPUT

 

Description*

    Level 1      Level 2      Level 3      Total  

Common Stock

    $ 22,603,345      $ 273,298,213      $ —        $ 295,901,558  

Collateral on Securities on Loan

      2,201,680        —          —          2,201,680  

Short Term Investments

      —          10,804,581        —          10,804,581  
  

 

 

     

 

 

     

 

 

     

 

 

  

TOTAL INVESTMENTS

    $             24,805,025      $             284,102,794      $                 —        $             308,907,819  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

*

Please refer to the Schedule of Investments for additional security details.