Notes to Financial Statements
December 31, 1997
1. Organization and Capital
Jardine Fleming China Region Fund Inc. (the "Fund") was incorporated in the State of Maryland on May 22,
1992, and is registered as a non-diversified, closed-end management investment company under the Investment
Company Act of 1940. The Fund commenced operations on July 16, 1992.
In connection with its initial organization and offering of shares, the Fund incurred $177,227 and $772,698 of
organization and offering costs, respectively. The organization costs were amortized over a 60 month period from
the date the Fund commenced operations. The offering costs were charged to capital.
2. Significant Accounting Policies
The following significant accounting policies, which are in conformity with generally accepted accounting
principles of the United States of America for investment companies, are consistently followed by the Fund in the
preparation of its financial statements.
The preparation of financial statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from these estimates.
i) Security Valuation
All securities for which market quotations are readily available are valued at the last sales price prior to the time
of determination, or, if no sales price is available at that time, at the mean between the last current bid and asked
prices. Securities that are traded over-the-counter are valued, if bid and asked quotations are available, at the
mean between the current bid and asked prices. Investments in short-term debt securities having a maturity of 60
days or less are valued at amortized cost. All other securities and assets are valued at fair value as determined in
good faith by the Board of Directors. In valuing the Fund's assets, quotations of foreign securities in a foreign
currency are translated to U.S. dollar equivalents at th