NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Greater China Fund (the "Fund") was incorporated in Maryland on May 11, 1992, as a non-diversified,
closed-end management investment company. The Fund's investment objective is to seek long-term capital
appreciation by investing substantially all of its assets in listed equity securities of companies which derive or are
expected to derive a significant portion of their revenues from goods produced or sold, investments made or
services performed in China. The Fund had no operations until July 7, 1992, when it sold 7,200 shares of
common stock for $100,440 to Baring International Investment (Far East) Limited (the "Investment Manager"),
an indirect wholly-owned subsidiary of ING Groep NV. Investment operations commenced on July 23, 1992.
Organizational costs of $123,000 have been deferred and amortized on a straight-line basis over a 60-month
period from the date the Fund commenced operations.
The preparation of financial statements in accordance with generally accepted accounting principles requires Fund
management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund.
VALUATION OF INVESTMENTS
All securities for which market quotations are readily available are valued at the last sales price on the day of
valuation or, if there was no sale on such day, the last bid price quoted on such day. Short-term debt securities
having a maturity of 60 days or less are valued at amortized cost, or by amortizing their value on the 61st day
prior to maturity if their term to maturity from the date of purchase was greater than 60 days, unless the Fund's
Board of Directors determines that such value does not represent the fair value of such securities. Securities and
assets for which market quotations are not readily availabl