MERRILL LYNCH DRAGON FUND INC
NSAR-B, 1997-02-28
Previous: UNIVERSAL SEISMIC ASSOCIATES INC, SC 13D/A, 1997-02-28
Next: INTERMEDIA COMMUNICATIONS OF FLORIDA INC, 8-K, 1997-02-28



<PAGE>      PAGE  1
000 B000000 12/31/96
000 C000000 0000884842
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 MERRILL LYNCH DRAGON FUND, INC.
001 B000000 811-6581
001 C000000 6092822800
002 A000000 P.O. BOX 9011
002 B000000 PRINCETON
002 C000000 NJ
002 D010000 08543
002 D020000 9011
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 N
007 B000000  0
007 C010100  1
007 C010200  2
007 C010300  3
007 C010400  4
007 C010500  5
007 C010600  6
007 C010700  7
007 C010800  8
007 C010900  9
007 C011000 10
008 A000001 MERRILL LYNCH ASSET MANAGEMENT, L.P.
008 B000001 A
008 C000001 801-11583
008 D010001 PRINCETON
008 D020001 NJ
008 D030001 08543
008 D040001 9011
011 A000001 MERRILL LYNCH FUNDS DISTRIBUTOR, INC.
011 B000001 8-14663
011 C010001 PRINCETON
011 C020001 NJ
011 C030001 08543
011 C040001 9011
012 A000001 MERRILL LYNCH FINANCIAL DATA SERVICES, INC.
012 B000001 84-01339
012 C010001 JACKSONVILLE
012 C020001 FL
012 C030001 32246
<PAGE>      PAGE  2
012 C040001 6484
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 PRINCETON
013 B020001 NJ
013 B030001 08540
014 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
014 B000001 8-7221
015 A000001 BROWN BROTHERS HARRIMAN & CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02109
015 E010001 X
015 A000002 STANDARD CHARTERED BANK
015 B000002 S
015 C010002 LONDON
015 D010002 UNITED KINGDOM
015 E040002 X
015 A000003 HONG KONG & SHANGHAI BANKING CORP.
015 B000003 S
015 C010003 HONG KONG
015 D010003 HONG KONG
015 E040003 X
015 A000004 CITIBANK, N.A.
015 B000004 S
015 C010004 NEW YORK
015 C020004 NY
015 C030004 10015
015 E010004 X
015 A000005 MORGAN GUARANTY TRUST COMPANY OF NEW YORK
015 B000005 S
015 C010005 NEW YORK
015 C020005 NY
015 C030005 10260
015 E010005 X
015 A000006 SSCCRC
015 B000006 S
015 C010006 SHANGHAI
015 D010006 CHINA
015 E040006 X
015 A000007 SCRC
015 B000007 S
015 C010007 SHENZHEN
015 D010007 CHINA
015 E040007 X
015 A000008 CEDEL, S.A.
015 B000008 S
015 C010008 LUXEMBOURG
015 D010008 LUXEMBOURG
015 E040008 X
015 A000009 CCASS
<PAGE>      PAGE  3
015 B000009 S
015 C010009 HONG KONG
015 D010009 HONG KONG
015 E040009 X
015 A000010 KSD
015 B000010 S
015 C010010 KOREA
015 D010010 KOREA
015 E040010 X
015 A000011 MCD
015 B000011 S
015 C010011 MALAYSIA
015 D010011 MALAYSIA
015 E040011 X
015 A000012 CDP
015 B000012 S
015 C010012 SINGAPORE
015 D010012 SINGAPORE
015 E040012 X
015 A000013 PVT
015 B000013 S
015 C010013 SRI LANKA
015 D010013 SRI LANKA
015 E040013 X
015 A000014 TSCD
015 B000014 S
015 C010014 TAIWAN
015 D010014 TAIWAN
015 E040014 X
015 A000015 SDC
015 B000015 S
015 C010015 THAILAND
015 D010015 THAILAND
015 E040015 X
015 A000016 TVS
015 B000016 S
015 C010016 TURKEY
015 D010016 TURKEY
015 E040016 X
015 A000017 BANK NEGARA MALAYSIA
015 B000017 S
015 C010017 MALAYSIA
015 D010017 MALAYSIA
015 E040017 X
015 A000018 CGO
015 B000018 S
015 C010018 UNITED KINGDOM
015 D010018 UNITED KINGDOM
015 E040018 X
015 A000019 CMO
015 B000019 S
<PAGE>      PAGE  4
015 C010019 UNITED KINGDOM
015 D010019 UNITED KINGDOM
015 E040019 X
015 A000020 THE BANK OF NEW YORK
015 B000020 S
015 C010020 NEW YORK
015 C020020 NY
015 C030020 10015
015 E010020 X
015 A000021 BANKERS TRUST COMPANY
015 B000021 S
015 C010021 NEW YORK
015 C020021 NY
015 C030021 10006
015 E010021 X
015 A000022 CHEMICAL BANK
015 B000022 S
015 C010022 NEW YORK
015 C020022 NY
015 C030022 10017
015 E010022 X
015 A000023 CUSTODIAL TRUST CO.
015 B000023 S
015 C010023 NEW YORK
015 C020023 NY
015 C030023 10167
015 E010023 X
015 A000024 THE BANK OF ENGLAND
015 B000024 S
015 C010024 UNITED KINGDOM
015 D010024 UNITED KINGDOM
015 E040024 X
015 A000025 EUROCLEAR
015 B000025 S
015 C010025 BELGIUM
015 D010025 BELGIUM
015 E040025 X
015 A000026 HONG KONG BANK MALAYSIA BERHAD
015 B000026 S
015 C010026 KUALA LUMPUR
015 D010026 MALAYSIA
015 E040026 X
015 A000027 TAKASBANK
015 B000027 S
015 C010027 TURKEY
015 D010027 TURKEY
015 E040027 X
015 A000028 CREST
015 B000028 S
015 C010028 UNITED KINGDOM
015 D010028 UNITED KINGDOM
<PAGE>      PAGE  5
015 E040028 X
018  000000 Y
019 A000000 Y
019 B000000  184
019 C000000 MERRILLLYN
020 A000001 ROBERT FLEMING INC.
020 B000001 13-3298866
020 C000001    488
020 A000002 HG ASIA INC.
020 C000002    348
020 A000003 VICKERS BALLAS (USA) INC.
020 B000003 13-3749351
020 C000003    310
020 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
020 B000004 13-5674085
020 C000004    307
020 A000005 ING BARING (U.S.) SECURITIES, INC.
020 C000005    373
020 A000006 CROSBY SECURITIES INC.
020 B000006 13-3431728
020 C000006    256
020 A000007 CREDIT LYONNAIS SECURITIES (USA) INC.
020 C000007    216
020 A000008 BZW SECURITIES INC.
020 B000008 13-3551367
020 C000008    205
020 A000009 PEREGRINE CAPITAL MANAGEMENT
020 C000009    189
020 A000010 UBS SECURITIES LLC
020 B000010 13-3873456
020 C000010    177
021  000000     4114
022 A000001 GENERAL ELECTRIC CAPITAL CORP.
022 C000001   5950208
022 D000001         0
022 A000002 ASSOCIATE CORP. OF NORTH AMERICA
022 C000002    906900
022 D000002         0
022 A000003 FORD MOTOR CREDIT CORP.
022 C000003    859859
022 D000003         0
022 A000004 GENERAL MOTORS ACCEPTANCE CORP.
022 C000004    359091
022 D000004         0
022 A000005 HSBC JAMES CAPEL
022 C000005    206064
022 D000005     23637
022 A000006 CS FIRST BOSTON CORPORATION
022 B000006 13-5659485
022 C000006    183248
022 D000006      4685
<PAGE>      PAGE  6
022 A000007 GOLDMAN, SACHS & CO.
022 B000007 13-5108880
022 C000007    148509
022 D000007      4045
022 A000008 UBS SECURITIES LLC
022 B000008 13-3873456
022 C000008    112781
022 D000008      6866
022 A000009 DESHAW & CO.
022 C000009     28627
022 D000009     18950
022 A000010 MORGAN (J.P.) SECURITIES INC.
022 B000010 13-3224016
022 C000010     34175
022 D000010         0
023 C000000    8848601
023 D000000      91961
024  000000 N
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027  000000 Y
028 A010000    110092
028 A020000         0
028 A030000         0
028 A040000    138395
028 B010000     61868
028 B020000         0
028 B030000         0
028 B040000     85083
028 C010000     65685
028 C020000         0
028 C030000         0
028 C040000     81572
028 D010000     53655
028 D020000         0
028 D030000         0
028 D040000     79273
028 E010000     64680
028 E020000         0
028 E030000         0
028 E040000     86890
028 F010000     71548
028 F020000      5295
028 F030000         0
<PAGE>      PAGE  7
028 F040000    113641
028 G010000    427528
028 G020000      5295
028 G030000         0
028 G040000    584854
028 H000000     86473
029  000000 Y
030 A000000    945
030 B000000  5.25
030 C000000  0.00
031 A000000     65
031 B000000      0
032  000000      0
033  000000    880
034  000000 Y
035  000000   2170
036 A000000 N
036 B000000      0
037  000000 N
038  000000      0
039  000000 N
040  000000 Y
041  000000 Y
042 A000000   0
042 B000000   0
042 C000000 100
042 D000000   0
042 E000000   0
042 F000000   0
042 G000000   0
042 H000000   0
043  000000  13183
044  000000      0
045  000000 Y
046  000000 N
047  000000 Y
048  000000  1.000
048 A010000        0
048 A020000 0.000
048 B010000        0
048 B020000 0.000
048 C010000        0
048 C020000 0.000
048 D010000        0
048 D020000 0.000
048 E010000        0
048 E020000 0.000
048 F010000        0
048 F020000 0.000
048 G010000        0
048 G020000 0.000
<PAGE>      PAGE  8
048 H010000        0
048 H020000 0.000
048 I010000        0
048 I020000 0.000
048 J010000        0
048 J020000 0.000
048 K010000        0
048 K020000 0.000
049  000000 N
050  000000 N
051  000000 N
052  000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
055 A000000 Y
055 B000000 N
056  000000 Y
057  000000 N
058 A000000 N
059  000000 Y
060 A000000 N
060 B000000 N
061  000000        0
062 A000000 N
062 B000000   0.0
062 C000000   0.0
062 D000000   0.0
062 E000000   0.0
062 F000000   0.0
062 G000000   0.0
062 H000000   0.0
062 I000000   0.0
062 J000000   0.0
062 K000000   0.0
062 L000000   0.0
062 M000000   0.0
062 N000000   0.0
062 O000000   0.0
<PAGE>      PAGE  9
062 P000000   0.0
062 Q000000   0.0
062 R000000   0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067  000000 N
068 A000000 N
068 B000000 Y
069  000000 N
070 A010000 Y
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 Y
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 Y
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000    519885
<PAGE>      PAGE  10
071 B000000    457322
071 C000000   1492957
071 D000000   31
072 A000000 12
072 B000000     7661
072 C000000    26216
072 D000000        0
072 E000000        0
072 F000000    15984
072 G000000      125
072 H000000        0
072 I000000     2860
072 J000000     2064
072 K000000        0
072 L000000      221
072 M000000       38
072 N000000      208
072 O000000        0
072 P000000        0
072 Q000000        0
072 R000000       37
072 S000000       62
072 T000000    13183
072 U000000       17
072 V000000        0
072 W000000       60
072 X000000    34859
072 Y000000        0
072 Z000000     -982
072AA000000   118592
072BB000000    69387
072CC010000   128904
072CC020000        0
072DD010000        0
072DD020000        0
072EE000000     6181
073 A010000   0.0000
073 A020000   0.0000
073 B000000   0.0000
073 C000000   0.0000
074 A000000     4604
074 B000000        0
074 C000000    95215
074 D000000    81483
074 E000000        0
074 F000000  1403988
074 G000000        0
074 H000000        0
074 I000000        0
074 J000000     1864
074 K000000        0
<PAGE>      PAGE  11
074 L000000     4664
074 M000000      125
074 N000000  1591943
074 O000000        0
074 P000000     2495
074 Q000000        0
074 R010000        0
074 R020000        0
074 R030000        0
074 R040000    22269
074 S000000        0
074 T000000  1567179
074 U010000    19166
074 U020000    68232
074 V010000     0.00
074 V020000     0.00
074 W000000   0.0000
074 X000000   164043
074 Y000000        0
075 A000000        0
075 B000000  1589719
076  000000     0.00
077 A000000 Y
077 B000000 Y
078  000000 N
080 A000000 ICI MUTUAL INSURANCE CO.
080 C000000     1500
081 A000000 Y
081 B000000 111
082 A000000 N
082 B000000        0
083 A000000 N
083 B000000        0
084 A000000 N
084 B000000        0
085 A000000 Y
085 B000000 N
SIGNATURE   GERALD M. RICHARD                            
TITLE       TREASURER           
 


<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000884842
<NAME> MERRILL LYNCH DRAGON FUND, INC.
<SERIES>
   <NUMBER> 001
   <NAME> CLASS A
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                       1136974750
<INVESTMENTS-AT-VALUE>                      1580685763
<RECEIVABLES>                                  6527855
<ASSETS-OTHER>                                 4729242
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              1591942860
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                     24763678
<TOTAL-LIABILITIES>                           24763678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    1106491216
<SHARES-COMMON-STOCK>                          2760504
<SHARES-COMMON-PRIOR>                          1975424
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                       (9384694)
<ACCUMULATED-NET-GAINS>                       26375864
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     443696796
<NET-ASSETS>                                  49942833
<DIVIDEND-INCOME>                             26215944
<INTEREST-INCOME>                              7660994
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              (34859422)
<NET-INVESTMENT-INCOME>                       (982484)
<REALIZED-GAINS-CURRENT>                      49205560
<APPREC-INCREASE-CURRENT>                    128903659
<NET-CHANGE-FROM-OPS>                        177126735
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                      (191338)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                       12899901
<NUMBER-OF-SHARES-REDEEMED>                 (12124370)
<SHARES-REINVESTED>                               9549
<NET-CHANGE-IN-ASSETS>                       229779800
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                   (16371641)
<OVERDISTRIB-NII-PRIOR>                      (9723148)
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                         15984061
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                               34859422
<AVERAGE-NET-ASSETS>                          45872748
<PER-SHARE-NAV-BEGIN>                            15.99
<PER-SHARE-NII>                                    .14
<PER-SHARE-GAIN-APPREC>                           2.03
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        (.07)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              18.09
<EXPENSE-RATIO>                                   1.33
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000884842
<NAME> MERRILL LYNCH DRAGON FUND, INC.
<SERIES>
   <NUMBER> 002
   <NAME> CLASS B
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                       1136974750
<INVESTMENTS-AT-VALUE>                      1580685763
<RECEIVABLES>                                  6527855
<ASSETS-OTHER>                                 4729242
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              1591942860
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                     24763678
<TOTAL-LIABILITIES>                           24763678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    1106491216
<SHARES-COMMON-STOCK>                         64719334
<SHARES-COMMON-PRIOR>                         62051871
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                       (9384694)
<ACCUMULATED-NET-GAINS>                       26375864
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     443696796
<NET-ASSETS>                                1157944111
<DIVIDEND-INCOME>                             26215944
<INTEREST-INCOME>                              7660994
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              (34859422)
<NET-INVESTMENT-INCOME>                       (982484)
<REALIZED-GAINS-CURRENT>                      49205560
<APPREC-INCREASE-CURRENT>                    128903659
<NET-CHANGE-FROM-OPS>                        177126735
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                     (4598194)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                       25325787
<NUMBER-OF-SHARES-REDEEMED>                 (22886755)
<SHARES-REINVESTED>                             228431
<NET-CHANGE-IN-ASSETS>                       229779800
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                   (16371641)
<OVERDISTRIB-NII-PRIOR>                      (9723148)
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                         15984061
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                               34859422
<AVERAGE-NET-ASSETS>                        1173185648
<PER-SHARE-NAV-BEGIN>                            15.98
<PER-SHARE-NII>                                  (.04)
<PER-SHARE-GAIN-APPREC>                           2.02
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        (.07)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              17.89
<EXPENSE-RATIO>                                   2.36
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000884842
<NAME> MERRILL LYNCH DRAGON FUND, INC.
<SERIES>
   <NUMBER> 003
   <NAME> CLASS C
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                       1136974750
<INVESTMENTS-AT-VALUE>                      1580685763
<RECEIVABLES>                                  6527855
<ASSETS-OTHER>                                 4729242
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              1591942860
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                     24763678
<TOTAL-LIABILITIES>                           24763678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    1106491216
<SHARES-COMMON-STOCK>                          3512195
<SHARES-COMMON-PRIOR>                          1839500
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                       (9384694)
<ACCUMULATED-NET-GAINS>                       26375864
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     443696796
<NET-ASSETS>                                  62112801
<DIVIDEND-INCOME>                             26215944
<INTEREST-INCOME>                              7660994
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              (34859422)
<NET-INVESTMENT-INCOME>                       (982484)
<REALIZED-GAINS-CURRENT>                      49205560
<APPREC-INCREASE-CURRENT>                    128903659
<NET-CHANGE-FROM-OPS>                        177126735
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                      (250735)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                       10211909
<NUMBER-OF-SHARES-REDEEMED>                  (8552384)
<SHARES-REINVESTED>                              13170
<NET-CHANGE-IN-ASSETS>                       229779800
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                   (16371641)
<OVERDISTRIB-NII-PRIOR>                      (9723148)
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                         15984061
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                               34859422
<AVERAGE-NET-ASSETS>                          60356324
<PER-SHARE-NAV-BEGIN>                            15.79
<PER-SHARE-NII>                                  (.04)
<PER-SHARE-GAIN-APPREC>                           2.00
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        (.07)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              17.68
<EXPENSE-RATIO>                                   2.37
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000884842
<NAME> MERRILL LYNCH DRAGON FUND, INC.
<SERIES>
   <NUMBER> 004
   <NAME> CLASS D
       
<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<INVESTMENTS-AT-COST>                       1136974750
<INVESTMENTS-AT-VALUE>                      1580685763
<RECEIVABLES>                                  6527855
<ASSETS-OTHER>                                 4729242
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              1591942860
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                     24763678
<TOTAL-LIABILITIES>                           24763678
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    1106491216
<SHARES-COMMON-STOCK>                         16405188
<SHARES-COMMON-PRIOR>                         17789930
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                       (9384694)
<ACCUMULATED-NET-GAINS>                       26375864
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     443696796
<NET-ASSETS>                                 297179437
<DIVIDEND-INCOME>                             26215944
<INTEREST-INCOME>                              7660994
<OTHER-INCOME>                                       0
<EXPENSES-NET>                              (34859422)
<NET-INVESTMENT-INCOME>                       (982484)
<REALIZED-GAINS-CURRENT>                      49205560
<APPREC-INCREASE-CURRENT>                    128903659
<NET-CHANGE-FROM-OPS>                        177126735
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                            0
<DISTRIBUTIONS-OF-GAINS>                     (1140627)
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                       25831212
<NUMBER-OF-SHARES-REDEEMED>                 (27271316)
<SHARES-REINVESTED>                              55362
<NET-CHANGE-IN-ASSETS>                       229779800
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                   (16371641)
<OVERDISTRIB-NII-PRIOR>                      (9723148)
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                         15984061
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                               34859422
<AVERAGE-NET-ASSETS>                         310304377
<PER-SHARE-NAV-BEGIN>                            16.05
<PER-SHARE-NII>                                    .09
<PER-SHARE-GAIN-APPREC>                           2.04
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                        (.07)
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                              18.11
<EXPENSE-RATIO>                                   1.58
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission