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<PAGE> PAGE 2
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SIGNATURE DANIEL FOLEY
TITLE COMP. ADMINISTRAOTR
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000845379
<NAME> THE CHINA FUND, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 152,904,899
<INVESTMENTS-AT-VALUE> 186,000,589
<RECEIVABLES> 552,625
<ASSETS-OTHER> 2,964,953
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 189,518,167
<PAYABLE-FOR-SECURITIES> 4,964,322
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 518,416
<TOTAL-LIABILITIES> 5,482,738
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 145,572,565
<SHARES-COMMON-STOCK> 10,844,937
<SHARES-COMMON-PRIOR> 10,844,937
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,366,354
<OVERDISTRIBUTION-GAINS> 0
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<INTEREST-INCOME> 596,697
<OTHER-INCOME> 0
<EXPENSES-NET> 4,355,184
<NET-INVESTMENT-INCOME> (218,014)
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<APPREC-INCREASE-CURRENT> 23,962,519
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</TABLE>
The Board of Directors
The China Fund, Inc.:
In planning and performing our audit of the financial statements of The China
Fund, Inc. for the year ended October 31, 1997, we considered its internal
control, including control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR,
not to provide assurance on internal control.
The management of The China Fund, Inc. is responsible for establishing
and maintaining internal control. In fulfilling this responsibility, estimates
and judgments by management are required to assess the expected benefits
and related costs of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisitions, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risks that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in the internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as defined
above as of October 31, 1997.
This report is intended solely for the information and use of management, the
Board of Directors of The China Fund, Inc. and the Securities and Exchange
Commission.
KPMGPeatMarwick LLP
Boston, Massachusetts
December 19, 1997
The China Fund, Inc.
Registration # 811- 6672
CIK # 0000845379
N-SAR - October 31, 1997
Sub-item 77Q2
Section 16(a) of the Securities Exchange Act of 1934 requires the
Fund's officers and directors, and persons who own more than ten percent
of a registered class of the Fund's equity securities, to file reports of
ownership and changes in ownership with the Securities and Exchange
Commission and the New York Stock Exchange, Inc. The Fund believes
that its officers and directors have complied with all applicable filing
requirements. Section 30(f) of the Investment Company Act of 1940
extends the reporting requirements under Section 16(a) of the Securities
Exchange Act of 1934 to the investment advisers of the Fund and officers
and directors of such investment advisers. The Form 4 - Statement of
Changes in Beneficial Ownership of Securities for Mr. Joe Rogers was
inadvertently filed late by management of the Fund, which had undertaken
to file the forms on his behalf.
