INTERNATIONAL REGIONAL
ALLIANCE GREATER CHINA '97 FUND
Semi-Annual Report
January 31, 2000 (unaudited)
INVESTMENT PRODUCTS OFFERED
o ARE NOT FDIC INSURED
o MAY LOSE VALUE
o ARE NOT BANK GUARANTEED
LETTER TO SHAREHOLDERS
March 21, 2000
DEAR SHAREHOLDER:
We are pleased to report on our performance, outlook and investment strategy
for Alliance Greater China '97 Fund (the "Fund") for the semi-annual reporting
period ended January 31, 2000.
INVESTMENT RESULTS
The following table provides performance data for the Fund during the six- and
12-month periods ended January 31, 2000. For comparison, we have also included
performance results for the Lipper China Region Funds Average (the "Lipper
Average"). For reference, the table also shows performance data for three
Morgan Stanley Capital International ("MSCI") indices including the China
Domestic Free, Hong Kong and Taiwan indices. Since the performance for each
MSCI index represents issues located only in a single country, these indices
should not be used to compare the performance data of your Fund, as your Fund's
investments are diversified into all three countries.
The Fund substantially outperformed the Lipper Average during the six- and
12-month periods under review mainly due to stock selection. In particular, the
Fund achieved this outperformance by overweighting the higher growth industries
in technology and telecommunications.
INVESTMENT RESULTS*
As of January 31, 2000
TOTAL RETURNS
6 months 12 months
---------- ---------
Alliance Greater China '97 Fund
Class A 34.15% 85.50%
Class B 33.25% 83.70%
Class C 33.29% 83.84%
MSCI China Domestic Free Index -18.08% 50.98%
MSCI Hong Kong Index 15.86% 57.92%
MSCI Taiwan Index 41.94% 83.09%
Lipper China Region Funds Average 25.32% 77.03%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE AS OF JANUARY 31, 2000. ALL FEES AND EXPENSES RELATED TO THE
OPERATION OF THE FUND HAVE BEEN DEDUCTED, BUT NO ADJUSTMENT HAS BEEN MADE FOR
SALES CHARGES THAT MAY APPLY WHEN SHARES ARE PURCHASED OR REDEEMED. RETURNS FOR
THE FUND INCLUDE THE REINVESTMENT OF ANY DISTRIBUTIONS PAID DURING THE PERIOD.
TOTAL RETURNS FOR ADVISOR CLASS SHARES WILL DIFFER DUE TO DIFFERENT EXPENSES
ASSOCIATED WITH THAT CLASS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
THE MSCI CHINA FREE INDEX, THE MSCI HONG KONG INDEX, AND THE MSCI TAIWAN
INDEX ARE MARKET CAPITALIZATION-WEIGHTED INDICES OF COMPANIES LOCATED IN THEIR
RESPECTIVE
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ALLIANCE GREATER CHINA '97 FUND o 1
COUNTRIES, AND ARE RESPECTIVELY COMPRISED OF 37, 33, AND 76 COMPANIES AS OF
JANUARY 31, 2000. THE LIPPER CHINA REGION FUNDS AVERAGE REPRESENTS FUNDS THAT
INVEST IN EQUITY SECURITIES WHOSE PRIMARY TRADING MARKETS OR OPERATIONS ARE
CONCENTRATED IN THE CHINA REGION OR IN A SINGLE COUNTRY WITHIN THIS REGION.
THESE FUNDS HAVE GENERALLY SIMILAR INVESTMENT OBJECTIVES TO YOUR FUND, ALTHOUGH
INVESTMENT POLICIES FOR THE VARIOUS FUNDS MAY DIFFER. FOR THE SIX- AND 12-MONTH
PERIODS ENDED JANUARY 31, 2000, THE LIPPER AVERAGE INCLUDED 27 AND 27 FUNDS,
RESPECTIVELY. ALL COMPARATIVE INDICES ARE UNMANAGED AND REFLECT NO FEES OR
EXPENSES. AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX OR AVERAGE.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGES 4-8.
MARKET REVIEW
During the six-month period ended January 31, 2000, the Asian stock markets
generally continued their up trends due to an increase in economic momentum.
The Taiwan stock market rebounded strongly after last fall's deadly earthquake
as exports remained strong. The Hong Kong stock market rose moderately while
the Chinese B shares (shares that are listed in Shanghai/Shenzhen available for
foreign investors) corrected, as we anticipated in the Fund's July 31, 1999
annual report.
ECONOMIC REVIEW AND OUTLOOK
The Asian economies continued to improve during the period under review and the
Greater China economies also benefited from the acceleration of regional growth
momentum.
In our view, the agreement reached between the U.S. and China on World Trade
Organization ("WTO") negotiations will bring long-term benefits to China, and
we anticipate that the Greater China economies will benefit from this long-term
development. Following China's accession into the WTO, which is expected in
2000, foreign direct investment is expected to increase and broaden to a wide
range of industries. We believe that China's exports will also benefit, as the
export potential will be much enhanced. However, in the short term, we expect
that the structural changes brought about by the WTO will also create pressure
on selective sectors such as agriculture and automobiles.
China's export performance continued to improve, as reflected by the
year-over-year 28.8% increase in November 1999, up from the year-over-year
23.8% gain in October. In our view, China should be able to sustain 6% to 7%
growth next year and we believe that the probability to devalue the currency is
low given the strong current account balance. Hong Kong also recovered strongly
with 4.5% growth recorded in the third quarter of 1999, and the government has
revised its full year 1999 gross domestic product forecast to 1.8% from its
earlier 0.5%. This sharp rebound was led by a strong rebound in exports, as
well as a general pick-up in demand in Asia. Hong Kong should also benefit as a
major service center for foreign direct investment going into China upon
China's entry into the WTO. In Taiwan, as previously mentioned, the economy has
not been affected by last fall's earthquake and
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2 o ALLIANCE GREATER CHINA '97 FUND
export performance remained strong, led by electronic products, basic metals
and plastic products. Additionally, the stock market in Taiwan reacted calmly
after the March 2000 Presidential elections as newly-elected President Chen
indicated that Taiwan will not go for independence.
PORTFOLIO STRATEGY
The Fund's strategy to overweight the growth sector will continue in 2000,
especially in the telecommunications and technology sectors. We also like
selected cyclicals like semiconductors. In addition, we shall continue to
identify companies that are well placed to take advantage of the new growth
phase in the Greater China region.
Thank you for your continued interest in Alliance Greater China '97 Fund. We
look forward to reporting to you on market activity and your Fund's investment
results in the coming periods.
Sincerely,
John D. Carifa
Chairman and President
Matthew W.S. Lee
Chief Investment Officer
[GRAPHIC OMITTED]
John D. Carifa
[GRAPHIC OMITTED]
Matthew W.S. Lee
Portfolio Manager, Mathew W.S. Lee, is Chief Investment Officer, New-Alliance
Asset Management (Asia) Limited. Mr. Lee is responsible for the investment
activities in Hong Kong and has over 15 years of investment experience.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 3
PERFORMANCE UPDATE
ALLIANCE GREATER CHINA '97 FUND
GROWTH OF A $10,000 INVESTMENT
9/30/97* TO 1/31/00
Alliance Greater China '97 Fund
Lipper China Region Funds Average
ALLIANCE GREATER CHINA '97 FUND CLASS A: $10,748
LIPPER CHINA REGION FUNDS AVERAGE: $9,314
[GRAPHIC OMITTED]
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Greater China '97 Fund Class A shares (from 9/30/97 to 1/31/00) as
compared to the performance of an appropriate broad-based average. The chart
reflects the deduction of the maximum 4.25% sales charge from the initial
$10,000 investment in the Fund and assumes the reinvestment of dividends and
capital gains. Performance for Class B, Class C and Advisor Class shares will
vary from the results shown above due to differences in expenses charged to
these classes. Past performance is not indicative of future results, and is not
representative of future gain or loss in capital value or dividend income.
The Lipper China Region Funds Average reflects the performance of 19 funds
(based on the number of funds in the average from 9/30/97 to 1/31/00). These
funds have generally similar investment objectives to Alliance Greater China
'97 Fund, although the investment policies of some funds included in the
average may vary.
When comparing Alliance Greater China '97 Fund to the average shown above, you
should note that Lipper results include fees and expenses. An investor cannot
invest directly in an average.
* CLOSEST MONTH-END AFTER FUND'S CLASS A SHARE INCEPTION DATE OF 9/3/97.
_______________________________________________________________________________
4 o ALLIANCE GREATER CHINA '97 FUND
PERFORMANCE UPDATE
ALLIANCE GREATER CHINA '97 FUND - CLASS A SHARES
HISTORY OF RETURNS
YEARLY PERIODS ENDED JANUARY 31*
Alliance Greater China '97 Fund
Lipper China Region Funds Average
[GRAPHIC OMITTED]
Past performance is no guarantee of future results. The Fund's investment
results represent total returns and are based on the net asset value of the
Fund's Class A shares. All fees and expenses related to the operation of the
Fund have been deducted, but no adjustment has been made for sales charges that
may apply when shares are purchased or redeemed. Returns for the Fund include
the reinvestment of any distributions paid during the period. Total returns for
Class B, Class C and Advisor Class shares will differ due to different expenses
associated those classes. The Lipper China Region Funds Average represents
funds that invest in equity securities whose primary trading markets or
operations are concentrated in the China region or in a single country within
this region. These funds have generally similar investment objectives to your
Fund, although investment policies for the various funds may differ. An
investor cannot invest directly in an average, and its results are not
indicative of any specific investment, including Alliance Greater China '97
Fund.
* Fund returns for the period ended 1/31/98 are from the Fund's inception
date of 9/3/97 through 1/31/98. Benchmark returns for the period ended 1/31/98
are from 8/31/97 through 1/31/98.
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ALLIANCE GREATER CHINA '97 FUND o 5
PORTFOLIO SUMMARY
INCEPTION DATE
(Class A Shares)
9/3/97
PORTFOLIO STATISTICS
Assets ($mil): $6.0
Median Market Capitalization ($mil): $5,143.0
SECTOR BREAKDOWN
[GRAPHIC OMITTED]
28.05% Technology
20.46% Multi Industry Companies
20.07% Finance
11.95% Utilities
7.04% Real Estate
4.87% Capital Goods
4.60% Consumer Services
1.33% Basic Industry
0.82% Transportation
0.81% Consumer Manufacturing
COUNTRY BREAKDOWN
[GRAPHIC OMITTED]
86.07% Hong Kong
11.32% Taiwan
2.61% Singapore
ALL DATA AS OF JANUARY 31, 2000. SECTOR AND COUNTRY BREAKDOWNS MAY VARY OVER
TIME. THESE BREAKDOWNS ARE EXPRESSED AS A PERCENTAGE OF TOTAL INVESTMENTS
(EXCLUDING CASH AND CASH EQUIVALENTS).
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6 o ALLIANCE GREATER CHINA '97 FUND
INVESTMENT OBJECTIVE & POLICIES
Alliance Greater China '97 Fund is a non-diversified management investment
company that seeks long-term capital appreciation by investing at least 80% of
its total assets in equity securities issued by Greater China companies.
INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF JANUARY 31, 2000
Class A Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 85.50% 77.71%
Since Inception* 4.39% 2.54%
Class B Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 83.70% 79.70%
Since Inception* 3.56% 2.77%
Class C Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 83.84% 82.84%
Since Inception* 3.52% 3.52%
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 7
SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END
(DECEMBER 31, 1999)
CLASS A CLASS B CLASS C
- -------------------------------------------------------------------------------
1 Year 75.11% 77.23% 80.20%
Since Inception* 6.39% 6.76% 7.46%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) the effect of
the 4.25% maximum front-end sales charge for Class A shares or applicable
contingent deferred sales charge for Class B shares (4% year 1, 3% year 2, 2%
year 3, 1% year 4); and for Class C shares (1% year 1). Returns for Class A
shares do not reflect the imposition of the 1 year 1% contingent deferred sales
charge for accounts over $1,000,000. Total return for Advisor Class shares will
differ due to different expenses associated with that class.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* SINCE INCEPTION: 9/3/97, ALL SHARE CLASSES.
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8 o ALLIANCE GREATER CHINA '97 FUND
TEN LARGEST HOLDINGS
January 31, 2000 (unaudited)
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Pacific Century CyberWorks, Ltd./Pacific
Century Regional Developments, Ltd.--The
company through its subsidiaries provides
broadband internet services via satellite,
invests in local and international
information technology, and internet
businesses. $ 512,236 8.6%
- -------------------------------------------------------------------------------
Cheung Kong Holdings, Ltd.--The company is
involved in property development and
investment, infrastructure, and related
businesses. 439,721 7.3
- -------------------------------------------------------------------------------
China Telecom (Hong Kong), Ltd.--The
company provides telecommunications
services in the People's Republic of
China. 432,749 7.2
- -------------------------------------------------------------------------------
Hutchison Whampoa, Ltd.--The company has
diverse operations including property
investment and development, port
services, retail, manufacturing, finance,
investment, and other services. 287,899 4.8
- -------------------------------------------------------------------------------
Cable & Wireless HKT, Ltd.--The company
provides international, local and mobile
telecommunications services and equipment
sales, internet and interactive multi-media
services, engineering, and other services. 275,707 4.6
- -------------------------------------------------------------------------------
Citic Pacific, Ltd.--A holding company with
interests in infrastructure, power
generation, environment, aviation,
telecommunications, credit card services,
and property investment. 255,254 4.3
- -------------------------------------------------------------------------------
CCT Telecom Holdings, Ltd.--The company
through its subsidiaries, manufactures
and sells corded and cordless telephones,
telephone answering machines, fascimile
machines, transformers, adapters, plastic
casings, and other accessories. 209,498 3.5
- -------------------------------------------------------------------------------
China Everbright, Ltd.--The company through
its subsidiaries provides corporate
finance and investment advisory services,
insurance agency services, brokerage,
secretarial services, and money lending. 206,928 3.5
- -------------------------------------------------------------------------------
Legend Holdings, Ltd.--The company through
its subsidiaries manufactures and
distributes the legend brand personal
computer, manufactures motherboards,
distributes brand name computers,
and provides system integration services. 206,928 3.5
- -------------------------------------------------------------------------------
China Resources Enterprise, Ltd.-- A holding
company whose subsidiaries develop and
invest in real estate and infrastructural
projects, provide cold storage services,
manufacture beer products, and office
furniture. 193,561 3.2
- -------------------------------------------------------------------------------
$3,020,481 50.5%
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 9
SECTOR DIVERSIFICATION
January 31, 2000 (unaudited)
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 81,412 1.4%
Capital Goods 298,004 5.0
Consumer Manufacturing 49,804 0.8
Consumer Services 281,344 4.7
Finance 1,226,914 20.5
Multi Industry 1,251,099 20.9
Real Estate 429,579 7.2
Technology 1,714,906 28.6
Transportation 50,382 0.8
Utilities 730,948 12.2
Total Investments 6,114,392 102.1
Cash and receivables, net of liabilities (127,559) (2.1)
Net Assets $5,986,833 100.0%
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10 o ALLIANCE GREATER CHINA '97 FUND
PORTFOLIO OF INVESTMENTS
January 31, 2000 (unaudited)
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS-102.1%
HONG KONG-87.9%
ABC Communications Holdings, Ltd. 100,000 $ 22,492
Aeon Credit Service (Asia) Company, Ltd. 74,000 28,533
ASM Pacific Technology, Ltd. 30,000 59,958
Bank of East Asia, Ltd. 34,000 88,490
Cable & Wireless HKT, Ltd. 113,200 275,707
Cathay Pacific Airways 30,000 47,426
CCT Telecom Holdings, Ltd.(a) 400,000 209,498
Cheung Kong Holdings, Ltd. 35,000 439,721
Cheung Kong Infrastructure Holdings, Ltd. 40,000 71,204
China Aerospace International, Ltd.(a) 298,800 104,650
China Everbright, Ltd. 200,000 206,928
China Merchants Holdings International
Co., Ltd. 100,000 83,542
China National Aviation Co., Ltd. 400,000 50,382
China Resources Enterprise, Ltd. 120,000 193,561
China Telecom (Hong Kong), Ltd. 70,000 432,749
Citic Pacific, Ltd. 60,000 255,254
City Telecom (Hong Kong), Ltd. 150,000 105,070
Dah Sing Financial Group, Ltd. 30,000 106,805
Dao Heng Bank Group, Ltd. 30,000 146,135
Far Eastern Polychem Industries, Ltd.(a) 58,000 34,850
Guangzhou Investment Co., Ltd. 600,000 54,752
Hang Seng Bank, Ltd. 6,000 58,415
Henderson Investment, Ltd. 100,000 86,755
Hong Kong Land Holdings, Ltd. 40,000 52,000
HSBC Holdings Plc. 5,600 66,397
Hutchison Whampoa, Ltd. 20,000 287,899
Kerry Properties, Ltd. 120,000 140,351
Legend Holdings, Ltd. 70,000 206,928
Midland Realty Holdings, Ltd. 500,000 55,909
New World Development Co., Ltd. 30,000 57,644
Pacific Century CyberWorks, Ltd.(a) 150,000 352,805
QPL International Holdings, Ltd.(a) 120,000 138,809
Shum Yip Investment, Ltd. 250,000 73,099
Silver Grant International Industries, Ltd.(a) 400,000 53,467
Stone Electronic Technology, Ltd. 200,000 96,395
TCC Hong Kong Cement Holdings, Ltd. 100,000 49,804
TCL International Holdings, Ltd.(a) 250,000 155,838
Television Broadcasts, Ltd. 20,000 147,163
T S Telecom Technologies, Ltd. 150,000 30,654
Wharf Holdings, Ltd. 23,000 45,967
Wing Hang Bank, Ltd. 30,000 88,683
------------
5,262,689
SINGAPORE-2.6%
Pacific Century Regional Developments, Ltd.(a) 10,000 159,431
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 11
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
TAIWAN-11.6%
Accton Technology Corp.(a) 16,000 $ 49,552
Asustek Computer, Inc. 5,802 71,686
Formosa Plastics Corp. 20,700 46,562
Hon Hai Precision Industry Co., Ltd.(a) 10,840 87,992
Siliconware Precision Industries Co.(a) 11,070 27,788
Synnex Technology International Corp. 9,200 62,383
Systex Corp.(a) 10,000 64,548
Taiwan Semiconductor Manufacturing
Co., Ltd.(a) 25,680 169,944
United Microelectronics Corp., Ltd.(a) 28,000 111,817
------------
692,272
TOTAL INVESTMENTS-102.1%
(cost $4,900,833) 6,114,392
Other assets less liabilities-(2.1)% (127,559)
NET ASSETS-100% $ 5,986,833
(A) NON-INCOME PRODUCING SECURITY.
SEE NOTES TO FINANCIAL STATEMENTS.
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12 o ALLIANCE GREATER CHINA '97 FUND
STATEMENT OF ASSETS & LIABILITIES
January 31, 2000 (unaudited)
ASSETS
Investments in securities, at value (cost $4,900,833) $ 6,114,392
Cash 11,023
Foreign cash, at value (cost $5,502) 5,520
Receivable for investment securities sold 244,909
Deferred organization expenses 176,269
Receivable for capital stock sold 63,656
Receivable from Adviser 14,731
Total assets 6,630,500
LIABILITIES
Payable to Adviser (reimbursement to Adviser for
organizational expenses) 326,500
Payable for capital stock redeemed 138,204
Payable for investment securities purchased 60,210
Distribution fee payable 3,764
Accrued expenses 114,989
Total liabilities 643,667
Net Assets $ 5,986,833
COMPOSITION OF NET ASSETS
Capital stock, at par $ 550
Additional paid-in capital 5,316,033
Accumulated net investment loss (6,572)
Accumulated net realized loss on investments and
foreign currency transactions (536,756)
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 1,213,578
$ 5,986,833
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($1,859,655/169,077 shares of beneficial interest
issued and outstanding) $11.00
Sales Charge--4.25% of public offering price .49
Maximum offering price $11.49
CLASS B SHARES
Net asset value and offering price per share
($3,299,452/304,811 shares of beneficial interest
issued and outstanding) $10.82
CLASS C SHARES
Net asset value and offering price per share
($485,853/44,925 shares of beneficial interest
issued and outstanding) $10.81
ADVISOR CLASS SHARES
Net asset value, redemption, and offering price per share
($341,873/30,916 shares of beneficial interest
issued and outstanding) $11.06
SEE NOTES TO FINANCIAL STATEMENTS.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 13
STATEMENT OF OPERATIONS
Six Months Ended January 31, 2000 (unaudited)
INVESTMENT INCOME
Dividends (net of foreign taxes
withheld of $141) $ 45,430
Interest 5,509 $ 50,939
EXPENSES
Advisory fee 21,693
Distribution fee - Class A 2,011
Distribution fee - Class B 12,346
Distribution fee - Class C 1,597
Custodian 66,830
Administrative 63,500
Audit and legal 35,522
Registration 32,209
Amortization of organizational expenses 31,344
Transfer agency 21,815
Directors' fees 5,051
Printing 2,136
Miscellaneous 8,309
Total expenses 304,363
Less: expenses waived and reimbursed
(see Note B) (240,368)
Less: expense offset arrangement
(see Note B) (317)
Net expenses 63,678
Net investment loss (12,739)
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain on investment
transactions 961,914
Net realized gain on foreign currency
transactions 5,515
Net change in unrealized appreciation/
depreciation of:
Investments 455,131
Foreign currency denominated
assets and liabilities (227)
Net gain on investments and foreign
currency transactions 1,422,333
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,409,594
SEE NOTES TO FINANCIAL STATEMENTS.
_______________________________________________________________________________
14 o ALLIANCE GREATER CHINA '97 FUND
STATEMENT OF CHANGES
IN NET ASSETS
SIX MONTHS
ENDED
JANUARY 31, YEAR ENDED
2000 JULY 31,
(UNAUDITED) 1999
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment loss $ (12,739) $ (1,600)
Net realized gain (loss) on investments
and foreign currency transactions 967,429 (629,637)
Net change in unrealized appreciation/
depreciation of investments and foreign
currency denominated assets
and liabilities 454,904 1,987,402
Net increase in net assets from operations 1,409,594 1,356,165
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 1,341,844 (279,240)
Total increase 2,751,438 1,076,925
NET ASSETS
Beginning of year 3,235,395 2,158,470
End of period (including undistributed
net investment income of $6,167,
at July 31, 1999) $5,986,833 $3,235,395
SEE NOTES TO FINANCIAL STATEMENTS.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 15
NOTES TO FINANCIAL STATEMENTS
January 31, 2000 (unaudited)
NOTE A
SIGNIFICANT ACCOUNTING POLICIES
Alliance Greater China '97 Fund, Inc. (the "Fund") was organized as a Maryland
corporation on April 30, 1997 and is registered under the Investment Company
Act of 1940 as a non-diversified, open-end management investment company. The
Fund offers Class A, Class B, Class C and Advisor Class shares. Class A shares
are sold with an initial sales charge of up to 4.25% for purchases not
exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A
shares redeemed within one year of purchase may be subject to a contingent
deferred sales charge of 1%. Class B shares are sold with a contingent deferred
sales charge which declines from 4% to zero depending on the period of time the
shares are held. Class B shares will automatically convert to Class A shares
eight years after the end of the calendar month of purchase. Class C shares are
subject to a contingent deferred sales charge of 1% on redemptions made within
the first year after purchase. Advisor Class shares are sold without an initial
or contingent deferred sales charge and are not subject to ongoing distribution
expenses. Advisor Class shares are offered to investors participating in
fee-based programs and to certain retirement plan accounts. All four classes of
shares have identical voting, dividend, liquidation and other rights, except
that each class bears different distribution expenses and has exclusive voting
rights with respect to its distribution plan. The financial statements have
been prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities in the financial statements and
amounts of income and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies followed by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) or on the
Nasdaq Stock Market, Inc. are generally valued at the last reported sales price
or if no sale occurred, at the mean of the closing bid and asked prices on that
day. Readily marketable securities traded in the over-the-counter market,
securities listed on a foreign securities exchange whose operations are similar
to the U.S. over-the-counter market, and securities listed on a national
securities exchange whose primary market is believed to be over-the-counter
(but excluding securities traded on the Nasdaq Stock Market, Inc.) are valued
at the mean of the current bid and asked prices. U.S. government and fixed
income securities which mature in 60 days or less are valued at amortized cost,
unless this method does not represent fair value. Securities for which current
market quotations are not readily available are valued at their fair value as
determined in good faith by, or in accordance with procedures adopted by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices obtained from a
_______________________________________________________________________________
16 o ALLIANCE GREATER CHINA '97 FUND
pricing service when such prices are believed to reflect the fair market value
of such securities.
2. ORGANIZATION EXPENSES
Organization expenses of approximately $326,500 have been deferred and are
being amortized on a straight-line basis through August 2002.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the rates
of exchange prevailing when such securities were acquired or sold. Income and
expenses are translated into U.S. dollars at rates of exchange prevailing when
accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of investments and foreign
currency contracts, the holding of foreign currencies, currency gains or losses
realized between the trade and settlement dates on foreign security
transactions, and the difference between the amounts of dividends, interest and
foreign taxes receivable recorded on the Fund's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net unrealized currency
gains and losses from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of net
change in unrealized appreciation (depreciation) of investments and foreign
currency denominated assets and liabilities.
4. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the shares of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees
than Class A shares and Advisor Class shares (Advisor Class shares also have no
distribution fees).
6. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 17
Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts based
on their federal tax basis treatment; temporary differences do not require such
reclassification.
NOTE B
ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. ("the Adviser") a fee at an annual rate of 1% of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly.
The Adviser has agreed for the current fiscal year to waive its fee and bear
certain expenses so that total expenses do not exceed on an annual basis 2.50%,
3.20%, 3.20%, and 2.20% of average net assets, respectively, for the Class A,
Class B, Class C and Advisor Class shares. For the six months ended January 31,
2000, such waiver of management fees, amounted to $167,868 and the waiver of
the cost of certain legal and accounting services provided to the Fund by the
Adviser amounted to $63,500.
The Fund compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary of
the Adviser) under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund. For the six months
ended January 31, 2000, the Transfer Agent waived all of its fees under the
Agreement which amounted to $9,000.
For the six months ended January 31, 2000, the Fund's expenses were reduced by
$317 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor has advised the
Fund that it has received front-end sales charges of $1,010 from the sale of
Class A shares and $5,789 and $138 in contingent deferred sales charges imposed
upon redemptions by shareholders of Class B and Class C shares for the six
months ended January 31, 2000.
Brokerage commissions paid on investment transactions for the six months ended
January 31, 2000, amounted to $43,930, none of which was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, nor to DLJ directly.
NOTE C
DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .30 of 1% of the Fund's average daily net assets
attributable to Class A shares and 1% of the average daily net assets
_______________________________________________________________________________
18 o ALLIANCE GREATER CHINA '97 FUND
attributable to both Class B and Class C shares. There is no distribution fee
on the Advisor Class shares. The fees are accrued daily and paid monthly. The
Agreement provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. The
Distributor has advised the Fund that it has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amounts of $1,129,799 and
$106,320 for Class B and Class C shares. Such costs may be recovered from the
Fund in future periods so long as the Agreement is in effect. In accordance
with the Agreement, there is no provision for recovery of unreimbursed
distribution costs, incurred by the Distributor, beyond the current fiscal year
for Class A shares. The Agreement also provides that the Adviser may use its
own resources to finance the distribution of the Fund's shares.
NOTE D
INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term and U.S.
government obligations) aggregated $6,091,064 and $4,651,328, respectively, for
the six months ended January 31, 2000. There were no purchases or sales of U.S.
government or government agency obligations for the six months ended January
31, 2000.
At January 31, 2000, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $1,390,616 and
gross unrealized depreciation of investments was $177,057 resulting in net
unrealized appreciation of $1,213,559 (excluding foreign currency transactions).
At January 31, 2000, the Fund had a net capital loss carryforward for federal
income tax purposes of $1,132,756, which expires in the year 2007.
FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund enters into forward exchange currency contracts for investment
purposes and to hedge its exposure to changes in foreign currency exchange
rates on its foreign portfolio holdings and to hedge certain firm purchase and
sale commitments denominated in foreign currencies. A forward exchange currency
contract is a commitment to purchase or sell a foreign currency at a future
date at a negotiated forward rate. The gain or loss arising from the difference
between the original contracts and the closing of such contracts is included in
net realized gains or losses on foreign currency transactions. Fluctuations in
the value of forward exchange currency contracts are recorded for financial
reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Fund having a value equal
to the aggregate amount of the Fund's commitments under forward exchange
currency contracts entered into with respect to position hedges. Risks may
arise from the potential inability of a counterparty to meet the terms of a
contract and from unanticipated movements in the value of for-
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 19
eign currencies relative to the U.S. dollar. There were no forward exchange
currency contracts outstanding at January 31, 2000.
NOTE E
CAPITAL STOCK
There are 12,000,000,000 shares of $.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class. Each class consists of 3,000,000,000 authorized shares. Transactions in
capital stock were as follows:
SHARES AMOUNT
------------------------- -------------------------
Six Months Six Months
Ended Ended
January 31, January 31,
2000 Year Ended 2000 Year Ended
(unaudited) July 31, 1999 (unaudited) July 31, 1999
----------- ------------- ----------- -------------
CLASS A
Shares sold 201,477 107,452 $ 2,001,621 $ 813,635
Shares redeemed (155,602) (76,310) (1,575,669) (563,178)
NET INCREASE 45,875 31,142 $ 425,952 $ 250,457
CLASS B
Shares sold 626,050 327,834 $ 5,766,766 $ 2,338,138
Shares redeemed (555,496) (415,218) (5,167,878) (2,923,975)
NET INCREASE
(DECREASE) 70,554 (87,384) $ 598,888 $ (585,837)
CLASS C
Shares sold 139,092 13,684 $ 1,447,926 $ 106,827
Shares redeemed (114,118) (14,842) (1,256,174) (107,177)
NET INCREASE
(DECREASE) 24,974 (1,158) $ 191,752 $ (350)
ADVISOR CLASS
Shares sold 16,602 30,587 $ 180,610 $ 250,877
Shares redeemed (5,240) (23,385) (55,358) (194,387)
NET INCREASE 11,362 7,202 $ 125,252 $ 56,490
NOTE F
BANK BORROWING
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
the miscellaneous expenses in the statement of operations. The Fund did not
utilize the Facility during the six months ended January 31, 2000.
_______________________________________________________________________________
20 o ALLIANCE GREATER CHINA '97 FUND
NOTE G
CONCENTRATION OF RISK
Investing in securities of foreign companies involves special risk which
include the possibility of future political and economic developments which
could adversely affect the value of such securities. Moreover, securities of
many foreign companies and their markets may be less liquid and their prices
more volatile than those of United States companies.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 21
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
CLASS A
------------------------------------
SIX MONTHS SEPTEMBER 3,
ENDED YEAR 1997(A)
JANUARY 31, ENDED TO
2000 JULY 31, JULY 31,
(UNAUDITED) 1999 1998
-------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 8.20 $ 4.84 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(b)(c) (.01) .02 .08
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 2.81 3.34 (5.18)
Net increase (decrease) in net asset
value from operations 2.80 3.36 (5.10)
LESS: DIVIDENDS
Dividends from net investment income -0- -0- (.06)
Net asset value, end of period $11.00 $ 8.20 $ 4.84
TOTAL RETURN
Total investment return based on net
asset value(d) 34.15% 69.42% (51.20)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,860 $1,011 $445
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements(c)(e) 2.51%(f) 2.52% 2.52%(f)
Expenses, before waivers/
reimbursements 13.64%(f) 19.68% 18.27%(f)
Net investment income (loss) (.13)%(f) .36% 1.20%(f)
Portfolio turnover rate 212% 94% 58%
</TABLE>
SEE FOOTNOTE SUMMARY ON PAGE 25.
_______________________________________________________________________________
22 o ALLIANCE GREATER CHINA '97 FUND
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
CLASS B
------------------------------------
SIX MONTHS SEPTEMBER 3,
ENDED YEAR 1997(A)
JANUARY 31, ENDED TO
2000 JULY 31, JULY 31,
(UNAUDITED) 1999 1998
-------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 8.12 $ 4.82 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(b)(c) (.04) (.01) .03
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 2.74 3.31 (5.17)
Net increase (decrease) in net asset
value from operations 2.70 3.30 (5.14)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- (.03)
Distributions in excess of net investment
income -0- -0- (.01)
Total dividends and distributions -0- -0- (.04)
Net asset value, end of period $10.82 $ 8.12 $ 4.82
TOTAL RETURN
Total investment return based on net
asset value(d) 33.25% 68.46% (51.53)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $3,299 $1,902 $1,551
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements(c)(e) 3.21%(f) 3.22% 3.22%(f)
Expenses, before waivers/
reimbursements 14.25%(f) 20.22% 19.18%(f)
Net investment income (loss) (.80)%(f) (.22)% .53%(f)
Portfolio turnover rate 212% 94% 58%
</TABLE>
SEE FOOTNOTE SUMMARY ON PAGE 25.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 23
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
CLASS C
------------------------------------
SIX MONTHS SEPTEMBER 3,
ENDED YEAR 1997(A)
JANUARY 31, ENDED TO
2000 JULY 31, JULY 31,
(UNAUDITED) 1999 1998
-------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 8.11 $ 4.82 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss)(b)(c) (.06) (.03) .03
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 2.76 3.32 (5.17)
Net increase (decrease) in net asset
value from operations 2.70 3.29 (5.14)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- (.03)
Distributions in excess of net investment
income -0- -0- (.01)
Total dividends and distributions -0- -0- (.04)
Net asset value, end of period $10.81 $ 8.11 $ 4.82
TOTAL RETURN
Total investment return based on net
asset value(d) 33.29% 68.26% (51.53)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $486 $162 $102
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements(c)(e) 3.21%(f) 3.22% 3.22%(f)
Expenses, before waivers/
reimbursements 13.91%(f) 20.41% 19.37%(f)
Net investment income (loss) (1.29)%(f) (.49)% .50%(f)
Portfolio turnover rate 212% 94% 58%
</TABLE>
SEE FOOTNOTE SUMMARY ON PAGE 25.
_______________________________________________________________________________
24 o ALLIANCE GREATER CHINA '97 FUND
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
ADVISOR CLASS
------------------------------------
SIX MONTHS SEPTEMBER 3,
ENDED YEAR 1997(A)
JANUARY 31, ENDED TO
2000 JULY 31, JULY 31,
(UNAUDITED) 1999 1998
-------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 8.24 $ 4.85 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income(b)(c) .01 .04 .10
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 2.81 3.35 (5.18)
Net increase (decrease) in net asset
value from operations 2.82 3.39 (5.08)
LESS: DIVIDENDS
Dividends from net investment income -0- -0- (.07)
Net asset value, end of period $11.06 $ 8.24 $ 4.85
TOTAL RETURN
Total investment return based on net
asset value(d) 34.22% 69.90% (51.06)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $342 $161 $60
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements(c)(e) 2.21%(f) 2.22% 2.22%(f)
Expenses, before waivers/
reimbursements 13.88%(f) 19.01% 18.13%(f)
Net investment income .13%(f) .58% 1.51%(f)
Portfolio turnover rate 212% 94% 58%
</TABLE>
(A) COMMENCEMENT OF OPERATIONS.
(B) BASED ON AVERAGE SHARES OUTSTANDING.
(C) NET OF EXPENSES WAIVED/REIMBURSED BY THE ADVISER.
(D) TOTAL INVESTMENT RETURN IS CALCULATED ASSUMING AN INITIAL INVESTMENT MADE
AT THE NET ASSET VALUE AT THE BEGINNING OF THE PERIOD, REINVESTMENT OF ALL
DIVIDENDS AND DISTRIBUTIONS AT NET ASSET VALUE DURING THE PERIOD, AND
REDEMPTION ON THE LAST DAY OF THE PERIOD. INITIAL SALES CHARGES OR CONTINGENT
DEFERRED SALES CHARGES ARE NOT REFLECTED IN THE CALCULATION OF TOTAL INVESTMENT
RETURN. TOTAL INVESTMENT RETURN CALCULATED FOR A PERIOD OF LESS THAN ONE YEAR
IS NOT ANNUALIZED.
(E) RATIOS REFLECT EXPENSES GROSSED UP FOR EXPENSE OFFSET ARRANGEMENT WITH THE
TRANSFER AGENT. FOR THE PERIODS SHOWN BELOW, THE NET EXPENSE RATIOS WERE AS
FOLLOWS:
SIX MONTHS SEPTEMBER 3,
ENDED YEAR 1997(A)
JANUARY 31, ENDED TO
2000(F) JULY 31, JULY 31,
(UNAUDITED) 1999 1998(F)
--------------------------------------------
Class A 2.50% 2.50% 2.50%
Class B 3.20% 3.20% 3.20%
Class C 3.20% 3.20% 3.20%
Advisor Class 2.20% 2.20% 2.20%
(F) ANNUALIZED
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 25
GLOSSARY OF INVESTMENT TERMS
BENCHMARK
A standard by which a fund's performance can be measured. A benchmark is
usually an unmanaged index, such as the Standard & Poor's 500 Stock Index or
the Lehman Brothers Aggregate Bond Index.
DIVERSIFICATION
A technique of allocating assets among many types of investments.
EQUITY
Another term for stock.
INDEX
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market.
An index is often used as a benchmark for a mutual fund. An investor cannot
invest directly in an index.
LIQUIDITY
The ability of an asset to be quickly converted into cash and without penalty.
NET ASSET VALUE (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by
the number of shares outstanding.
PORTFOLIO
The collection of securities that make up a Fund's or an investor's investments.
SECTOR
Refers to a distinct part of the market, for example, the technology sector.
SHARE
A unit which represents ownership in a mutual fund or stock.
_______________________________________________________________________________
26 o ALLIANCE GREATER CHINA '97 FUND
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $368
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 31 of the FORTUNE 100 companies and public retirement funds in 31
states as well as by hundreds of foundations, endowments and foreign
institutions. By sharing this institutional money management experience with
millions of mutual fund investors as well, Alliance stands out as a "manager of
choice" for thousands of investment professionals around the world.
At Alliance Capital, we place a premium on investment research. We carefully
select securities based on our proprietary research, conducted by over 277
investment professionals in 21 investment offices worldwide. Our commitment to
this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
ALL INFORMATION ON ALLIANCE CAPITAL IS AS OF 12/31/99.
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 27
ALLIANCE CAPITAL AT YOUR SERVICE
At Alliance Capital, shareholder satisfaction is among our top priorities.
That's why we provide our shareholders with a wide variety of products and
time-saving services to meet their needs.
o LOW MINIMUM INVESTMENTS
You can begin investing in Alliance Capital funds with as little as $250
(except for Alliance Select Investor Series Premier Portfolio and Alliance
Select Investor Series Technology Portfolio, which generally have a $10,000
minimum initial investment) and may make subsequent investments of $50 or more.
o AUTOMATIC REINVESTMENT
You may choose to reinvest fund dividend and capital-gains distributions
automatically at no charge.
o AUTOMATIC INVESTMENT PROGRAM
Build your investment account by having money automatically transferred from
your bank account on a regular basis.
o DIVIDEND DIRECTION PLANS
You may cross-invest dividends from one fund into the same class of shares in
any other fund without incurring a sales charge. This can be a good way to
diversify your assets.
o THE ALLIANCE ADVANCE
A quarterly newsletter discussing investment strategies, economic news and
other matters that could affect your mutual fund investment.
o AUTO EXCHANGE
You may choose to automatically exchange money from one Alliance Capital fund
to another on a regular basis. This can be a good way to dollar cost average*,
helping you to invest with discipline.
o SYSTEMATIC WITHDRAWALS
Regular checks for specified amounts can be sent to you or to your brokerage or
bank account.
o A CHOICE OF PURCHASE PLANS
Most funds are available in A, B, and C Class shares. Many funds are also
available in Advisor Class shares.
o TELEPHONE TRANSACTION
Purchases, transfers and redemptions can be made by calling (800) 221-5672. Our
knowledgeable representatives are available to assist you Monday through Friday
from 8:30 a.m. to 8:00 p.m. Eastern Standard Time.
o ALLIANCE ANSWER: 24-HOUR INFORMATION
For your convenience, our computerized audio response system is available to
you 24-hours a day by calling (800) 251-0539. Using any touch tone phone, you
can hear share prices, get account balances, review details of your last
transaction, obtain dividend information, order statements/checkbooks, review
fund objectives, literature and Watchlist information, order additional copies
of statements and request additional year-end tax forms (available from
February 1 to May 31).
o ALLIANCE CAPITAL ON THE WORLD WIDE WEB at www.alliancecapital.com. Here,
you can access updated account information, make additional investments,
request more information, exchange between Alliance funds and view fund
performance, press releases and articles.
* DOLLAR COST AVERAGING DOES NOT ASSURE A PROFIT NOR PROTECT AGAINST LOSS IN
A DECLINING MARKET. SINCE THIS STRATEGY INVOLVES CONTINUOUS INVESTMENTS IN
SECURITIES, REGARDLESS OF FLUCTUATING PRICES, INVESTORS SHOULD CONSIDER THEIR
FINANCIAL ABILITY TO INVEST DURING PERIODS OF LOW PRICE LEVELS.
_______________________________________________________________________________
28 o ALLIANCE GREATER CHINA '97 FUND
BOARD OF DIRECTORS
JOHN D. CARIFA, Chairman and President
DAVID H. DIEVLER(1)
WILLIAM H. FOULK, JR.(1)
TAK-LUNG TSIM
OFFICERS
MATTHEW W. S. LEE, Chief Investment Officer
KATHLEEN A. CORBET, Senior Vice President
MAMURO YAMAOKA, Vice President
EDMUND P. BERGAN, JR., Secretary
MARK D. GERSTEN, Treasurer and Chief Financial Officer
VINCENT S. NOTO, Controller
DISTRIBUTOR
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
CUSTODIAN
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
LEGAL COUNSEL
Seward & Kissel LLP
One Battery Park Plaza
New York, NY10004
TRANSFER AGENT
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free (800) 221-5672
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue
New York, NY10019
(1) MEMBER OF THE AUDIT COMMITTEE
_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 29
ALLIANCE CAPITAL FAMILY OF FUNDS
DOMESTIC EQUITY FUNDS
Balanced Shares
Conservative Investors Fund
Disciplined Value Fund
Growth & Income Fund
Growth Fund
Growth Investors Fund
Health Care Fund
Premier Growth Fund
Quasar Fund
Real Estate Investment Fund
Technology Fund
The Alliance Fund
Utility Income Fund
GLOBAL & INTERNATIONAL EQUITY FUNDS
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
SELECT INVESTOR SERIES
Premier Portfolio
Technology Portfolio
FIXED INCOME FUNDS
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield Fund
Limited Maturity Government Fund
Mortgage Securities Income Fund
Multi-Market Strategy Trust
North American Government Income Trust
Quality Bond Portfolio
U.S. Government Portfolio
MUNICIPAL INCOME FUNDS
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Alliance also offers AFD Exchange Reserves, which serves as the money market
fund exchange vehicle for the Alliance mutual funds.
To obtain a prospectus for any Alliance Capital fund, call your investment
professional, or call Alliance at (800) 227-4618.
_______________________________________________________________________________
30 o ALLIANCE GREATER CHINA '97 FUND
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_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 31
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_______________________________________________________________________________
32 o ALLIANCE GREATER CHINA '97 FUND
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_______________________________________________________________________________
ALLIANCE GREATER CHINA '97 FUND o 33
ALLIANCE GREATER CHINA '97 FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
R THESE REGISTERED SERVICE MARKS USED UNDER
LICENSE FROM THE OWNER, ALLIANCE CAPITAL
MANAGEMENT L.P.
GCFSR0100
