The Greater China Fund, Inc.

NYSE:GCH

FAQs

What is a closed-end fund?
How do I invest in the Greater China Fund?
Where do I get information on the Fund's market price and NAV?
Why do closed-end funds trade at discounts?
Does the Fund, from time to time, change the holdings in which it invests? If so, how are these changes determined?
Does the Fund pay a year-end distribution?
Are the distributions taxable for U.S. shareholders?
How does a shareholder enroll or participate in the Dividend Reinvestment Plan?
How can I receive reports, fact sheets, releases, prospectuses, and economic data on the Fund?
What rights issues have there been and at what price?

The Greater China Fund, Inc. - Frequently Asked Questions Regarding July 31, 2008 Distributions

What is a closed-end fund?
Closed-end funds are professionally managed investment companies listed on a security exchange. Shares of closed-end funds are bought and sold at market price, which is determined by supply and demand in the marketplace. The market price may be less than, more than or equal to the net asset value, which is the value of the underlying assets of the portfolio. Following an initial public offering, closed-end funds have a fixed number of shares and generally do not redeem shares or offer new shares.

How do I invest in the Greater China Fund?
The Greater China Fund is listed on the New York Stock Exchange under the ticker symbol "GCH". Shares of the Fund may be bought and sold through a registered financial advisor like any other listed security.

Where do I get information on the Fund's market price and NAV?
The market price can be found daily on the "Stock Price" page of this website and on Bloomberg, Reuters or any other market quotation service under the ticker symbol "GCH". The Fund's closing price is published daily in financial publications or can be found in the financial section under "Listed NYSE Quotes". The net asset value (NAV) is published weekly in Barron's (Saturday), the New York Times (Sunday) or the Wall Street Journal (Monday). NAV's can also be accessed on Bloomberg or the homepage of this website.

Why do closed-end funds trade at discounts?
The market price at which investors buy and sell closed-end funds is determined by supply and demand in the secondary market. The net asset value represents the value of the underlying assets of the portfolio. Because market prices fluctuate based on investor sentiment, a closed-end fund may trade above (at a premium) or below (at a discount) the net asset value. Other factors, in addition to investor sentiment, that may impact the premium or discount level include performance, distributions and liquidity.

Does the Fund, from time to time, change the holdings in which it invests?
If so, how are these changes determined?
As a professionally managed investment portfolio, the Fund's holdings are actively managed. The portfolio manager, based on the prevailing outlook at a specific time, determines changes to the portfolio holdings of the Fund. For recent asset allocation and portfolio weightings, see the "Monthly Fact Sheet" page of this website.

Does the Fund pay a year-end distribution?
Pursuant to US Securities laws, a closed-end fund is mandated to pay 98% of its net realized gains and earned income during its fiscal year. The Fund declared a distribution from ordinary income of $0.082 on August 18, 2009. The dividend was payable on September 9, 2009 to shareholders of record as of September 1, 2009. The ex-dividend date was August 28, 2009.

Are the distributions taxable for U.S. shareholders?
Dividends of net investment income and distributions of capital gains are taxable to a U.S. shareholder as ordinary income or either long-term or short-term capital gains, respectively, whether paid in cash or shares. After the end of each taxable year, the Fund will notify shareholders of the Federal income tax status of any distributions made by the Fund during the year.

How does a shareholder enroll or participate in the Dividend Reinvestment Plan?
Dividend Reinvestment Plan

Pursuant to the Fund’s Dividend Reinvestment Plan (the “Plan”), each shareholder will be deemed to have elected, unless PFPC Inc. (the “Plan Agent”) is otherwise instructed by the shareholder in writing, to have all distributions, net of any applicable U.S. withholding tax, automatically reinvested in additional shares of the Fund by the Plan Agent. Shareholders who do not participate in the Plan will receive all dividends and distributions in cash, net of any applicable U.S. withholding tax, paid in dollars by check mailed directly to the shareholder by the plan agent, as dividend-paying agent. Shareholders who do not wish to have dividends and distributions automatically reinvested should notify the Plan Agent. Dividends and distributions with respect to shares registered in the name of a broker-dealer or other nominee (in “street name”) will be reinvested under the Plan unless such service is not provided by the broker or nominee or the shareholder elects to receive dividends and distributions in cash. A shareholder whose shares are held by a broker or nominee that does not provide a dividend reinvestment program may be required to have his shares registered in his own name to participate in the Plan. The Plan Agent serves as agent for the shareholders in administering the Plan. If the Fund declares an income dividend or a capital gain 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 valued at net asset value, or if the net asset value is less than 95% of the market price on the valuation date, then valued at 95% of the market price. If net asset value per share on the valuation date exceeds the market price per share on that date, the Plan Agent, as agent for the participants, will buy shares of Common Stock on the open market. The Plan Agent maintains all shareholder 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 the account of each Plan participant will be held by the Plan Agent in non-certificated form in the name of the participant, and each shareholder’s proxy will include those shares purchased pursuant to the Plan. There is no charge to participants for reinvesting dividends or capital gain distributions. There will be no brokerage charge with respect to shares issued directly by the Fund as a result of dividends or capital gain distributions payable either in shares or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any U.S. income tax that may be payable on such dividends or distributions.

Experience under the Plan may indicate that changes are desirable. Accordingly, the Fund and the Plan Agent reserve the right to terminate the Plan as applied to any dividend or distribution paid subsequent to notice of the termination sent to the members of the Plan at least 30 days before the record date for dividends or distributions. The Plan also may be amended by the Fund or the Plan Agent, but (except when necessary or appropriate to comply with applicable law, rules or policies of a regulatory authority) only by at least 30 days’ written notice to members of the Plan. All correspondence concerning the Plan should be directed to the Plan Agent c/o PFPC Inc., P.O. Box 43027, Providence, Rhode Island 02940–3027. For further information regarding the plan, you may also contact the transfer agent directly at 1–800–331–1710.

How can I receive reports, fact sheets, releases, prospectuses, and economic data on the Fund?
Additional information may be obtained by registering for the Fund's "Alert Service" on the homepage. Notices for Fund announcements, fact sheets, financial statements, etc. will be sent to you via e-mail. For specific investment and tax advice, please consult your financial and tax advisor.

What rights issues have there been and at what price?
Please check this Prospectus and Supplement to the Prospectus.

1992 Prospectus
1996 Prospectus