UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-6651
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THE CHINA FUND, INC.
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(Exact name of registrant as specified in charter)
225 FRANKLIN STREET
BOSTON, MA 02110
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(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 U.S. LLP
The China Fund, Inc. 31 West 52nd Street
225 Franklin Street New York, New York 10019
Boston, MA 02110
Registrant's telephone number, including area code: (888) 246-2255
Date of fiscal year end: October 31
Date of reporting period: July 31, 2004
ITEM 1: SCHEDULE OF INVESTMENTS
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS
JULY 31, 2004 (UNAUDITED)
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NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE
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COMMON STOCK AND OTHER EQUITY INTERESTS
CHINA - SHENZHEN "B" SHARES
INDUSTRIALS -- (2.4%)
China International Marine Containers (Group) Co., Ltd. ...... 3,908,395 $ 6,013,069
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TOTAL CHINA - SHENZHEN "B" SHARES -- (COST $2,735,768) 2.4% 6,013,069
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HONG KONG
CONSUMER DISCRETIONARY -- (4.8%)
Nanjing Dahe Outdoor Media Co., Ltd. *........................ 37,500,000 2,259,673
TCL International Holdings, Ltd. ............................. 32,318,000 9,633,497
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11,893,170
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CONSUMER STAPLES -- (5.4%)
Chaoda Modern Agriculture (Holdings) Ltd. .................... 43,089,900 11,187,088
Sino Golf Holdings, Ltd. ..................................... 11,835,000 2,139,458
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13,326,546
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HEALTH CARE -- (3.1%)
Golden Meditech Co., Ltd. * .................................. 13,950,000 5,276,097
Natural Beauty Bio-Technology, Ltd. .......................... 32,780,000 2,269,443
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7,545,540
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INDUSTRIALS -- (7.1%)
Beiren Printing Machinery Holdings Ltd. ...................... 7,000,000 2,019,283
China Fire Safety Enterprise Group Holdings Ltd. ............. 50,380,000 2,712,839
China Shipping Container Lines Co., Ltd. * ................... 9,221,000 3,162,411
Proview International Holdings Ltd. .......................... 14,644,000 3,135,398
TPV Technology, Ltd. ......................................... 9,968,000 6,645,504
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17,675,435
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INFORMATION TECHNOLOGY -- (3.1%)
Arcontech Corp. * ............................................ 18,386,000 407,803
Hongkong.Com Corp. * ......................................... 30,232,000 2,635,678
Solomon Systech Ltd. * ....................................... 20,698,000 4,696,974
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7,740,455
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MATERIALS -- (5.8%)
Asia Aluminum Holdings Ltd. .................................. 18,000,000 1,938,511
Asia Zirconium Ltd. .......................................... 13,196,000 1,844,104
China Rare Earth Holdings, Ltd. .............................. 15,254,000 1,838,350
Fountain Set (Holdings), Ltd. ................................ 6,714,000 4,605,233
Ocean Grand Chemicals Holdings Ltd. .......................... 17,379,000 2,183,571
Zijin Mining Group Co., Ltd. * ............................... 6,000,000 1,884,664
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14,294,433
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TELECOMMUNICATIONS -- (3.3%)
Comba Telecom Systems Holdings Ltd. .......................... 15,356,000 8,219,608
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UTILITIES -- (2.7%)
Xinao Gas Holdings, Ltd. * ................................... 13,976,000 6,585,015
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TOTAL HONG KONG -- (COST $63,239,670) 35.3% 87,280,202
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See Notes to Schedule of Investments
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2004 (UNAUDITED)
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NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE
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HONG KONG - "H" SHARES
CONSUMER DISCRETIONARY -- (1.9%)
Weichai Power Co. Ltd. *........................................ 2,536,000 4,551,912
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ENERGY -- (2.8%)
Yanzhou Coal Mining Co. ........................................ 5,686,000 6,888,984
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INDUSTRIALS -- (5.8%)
BYD Co., Ltd.................................................... 3,225,000 9,220,429
Jingwei Textile Machinery Co., Ltd.............................. 3,436,000 792,943
Sinotrans Limited............................................... 12,835,000 4,360,721
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14,374,093
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UTILITIES -- (6.0%)
Anhui Expressway Co., Ltd. ..................................... 17,778,000 7,635,619
Shenzhen Expressway Co., Ltd. *................................. 21,494,000 7,302,636
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14,938,255
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TOTAL HONG KONG -"H" SHARES -- (COST $25,458,879) 16.5% 40,753,244
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TOTAL HONG KONG (INCLUDING "H" SHARES) -- (COST
$88,698,549) 51.8% 128,033,446
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SINGAPORE
INFORMATION TECHNOLOGY -- (0.2%)
Autron Corp. Ltd................................................ 2,795,000 447,018
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TOTAL SINGAPORE -- (COST $509,480) 0.2% 447,018
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TAIWAN
CONSUMER DISCRETIONARY -- (8.8%)
Asia Optical Co., Inc. ......................................... 686,937 3,092,126
Merry Electronics Co., Ltd. .................................... 3,012,016 6,513,186
Synnex Technologies International, Corp. *...................... 4,059,640 6,150,970
Taiwan FamilyMart Co., Ltd. *................................... 1,478,520 2,196,683
Taiwan Hon Chuan Enterprise Co., Ltd............................ 4,179,435 3,799,486
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21,752,451
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FINANCIALS -- (6.0%)
Cathay Financial Holding Co., Ltd. ............................. 3,862,000 6,362,812
Fubon Financial Holdings Co., Ltd. ............................. 5,453,952 4,492,811
Polaris Securities Co., Ltd. *.................................. 8,859,377 3,909,699
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14,765,322
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INDUSTRIALS -- (3.3%)
Cheng Shin Rubber Industry Co., Ltd. ........................... 3,305,974 4,211,494
Chicony Electronics Co., Ltd. .................................. 3,001,152 3,840,839
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8,052,333
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INFORMATION TECHNOLOGY -- (8.3%)
Allied Material Technology Corp. *.............................. 4,000,000 1,606,355
CMC Magnetics Corp. ............................................ 8,100,000 3,538,835
Data Systems Consulting Co., Ltd. .............................. 3,968,339 2,229,929
See Notes to Schedule of Investments
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2004 (UNAUDITED)
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NAME OF ISSUER AND TITLE OF ISSUE SHARES VALUE
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Soft-World International Corp. .................................. 790,000 1,510,738
Taiwan Green Point Enterprises Co., Ltd. * ...................... 1,831,200 5,279,718
Tripod Technology Corp. ......................................... 2,503,413 2,474,689
Vanguard International Semiconductor Corp. * .................... 6,000,000 1,932,921
Wintek Corp. .................................................... 2,421,104 2,022,929
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20,596,114
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MATERIALS -- (3.1%)
China Metal Products Co., Ltd. .................................. 6,325,659 6,290,299
Yieh United Steel Corp. * ....................................... 3,500,000 1,482,789
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7,773,088
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TELECOMMUNICATIONS -- (0.9%)
Chunghwa Telecom Co., Ltd. ...................................... 1,408,000 2,216,181
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TOTAL TAIWAN -- (COST $62,995,437) 30.4% 75,155,489
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UNITED STATES - "N" SHARES
CONSUMER DISCRETIONARY -- (2.6%)
Chindex International, Inc. * ................................... 42,987 311,656
Shanda Interactive Entertainment Ltd. * ......................... 324,300 6,161,700
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6,473,356
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INFORMATION TECHNOLOGY -- (4.4%)
Sohu.com Inc. * ................................................. 526,286 10,904,646
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TOTAL UNITED STATES - "N" SHARES -- (COST $4,876,163) 7.0% 17,378,002
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TOTAL COMMON STOCK AND OTHER EQUITY INTERESTS
-- (COST $159,815,397) 91.8% 227,027,024
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DIRECT INVESTMENTS
FINANCIALS -- (1.2%)
Captive Finance, Ltd., (acquired 5/24/02) (1)*+ ................. 2,000,000 3,045,000
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INDUSTRIALS -- (2.6%)
Tomoike Industrial (H.K.) Ltd., (acquired 2/21/03) (1)+ ......... 825,000 6,331,234
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INFORMATION TECHNOLOGY -- (1.4%)
Global E Business Svcs., (acquired 6/18/04) (1)* ................ 40,000 3,000,077
teco Optronics Corp., (acquired 4/26/04) (1)* ................... 1,500,000 441,306
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3,441,383
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TOTAL DIRECT INVESTMENTS -- (COST $8,856,425) 5.2% 12,817,617
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TOTAL INVESTMENTS -- (COST $168,671,822) (Note E) 97.0% 239,844,641
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OTHER ASSETS AND LIABILITIES 3.0% 7,470,020
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NET ASSETS 100.0% $ 247,314,661
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See Notes to Schedule of Investments
THE CHINA FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2004 (UNAUDITED)
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NOTES TO SCHEDULE OF INVESTMENTS
* Denotes non-income producing security
(1) Direct investments are generally restricted as to resale and do not have a
readily available resale market. On the date of acquisition of each direct
investment, there were no market quotations on similar securities, and
such investments were therefore initially valued at acquisition cost.
These direct investments are valued at fair value as determined by the
Board of Directors as discussed in Notes A and B to the Financial
Statements in the Annual and Semi-Annual Reports.
+ Affiliated Issuer
ITEM 2. 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-Q that includes the
disclosure required by this paragraph based on their evaluation of the
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 Securities
Exchange Act of 1934 (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 last fiscal quarter
that has materially affected, or is reasonably likely to materially affect,
the registrant's internal control over financial reporting.
ITEM 3. EXHIBITS
The certification required by Rule 30a-2 of the Investment Company Act of 1940,
as amended, is attached as an exhibit to this filing.
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
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Gary L. French
President and Chief Executive Officer
Date: September 29, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Ann. M. Casey
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Ann M. Casey
Treasurer and Chief Financial Officer
Date: September 29, 2004
By: /s/ Gary L. French
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Gary L. French
President and Chief Executive Officer
Date: September 29, 2004