NEW YORK, Oct. 30, 2015 /PRNewswire/ -- The China Fund, Inc. (NYSE: CHN) (the "Fund") announced today that, in accordance with the terms of a long-standing agreement, a financial institution which provides the Fund with economic access to the Chinese A-share market has requested the Fund to reimburse it for capital gains taxes paid to Chinese authorities during the fiscal year ending October 31, 2015. The Fund will record the obligation to pay the reimbursement as a reduction in accumulated realized gains from sales of investment securities in the amount of approximately $2 million, equal to $0.13 per share; however, this amount is subject to adjustment based on final determination of the Fund's liability for the reimbursement The taxes were imposed following a recent change in policy announced by Chinese tax authorities to impose capital gains tax on securities transactions in China for the period from November 2009 to November 2014.
The Fund is a closed-end management investment company seeking long-term capital appreciation primarily through investment in the equity securities of companies engaged in a substantial amount of business in the People's Republic of China.
The China Fund, Inc. is listed on the New York Stock Exchange under the ticker symbol "CHN."
SOURCE The China Fund, Inc.