Rule 497(e)
Registration No. 33-83822
CVO GREATER CHINA FUND, INC.
SUPPLEMENT DATED JUNE 30, 1997
TO PROSPECTUS DATED MAY 30, 1997
THE FOLLOWING TEXT REPLACES FOOTNOTE 4 ON PAGE 4 OF THE PROSPECTUS:
(4) The amounts set forth under "Other Expenses" are based on estimates for
the Fund's operating expenses for the current fiscal year giving effect
to voluntary waivers of administrative fees, which will be in effect
for at least the first full fiscal year of the Fund. Without the waiver
of administrative fees, "Other Expenses" would be 0.825% for Class I
Shares, and 1.075% for Class II Shares and "Total Operating Expenses"
would be 2.075% for Class I Shares and 2.325% for Class III Shares
(which does not include the Rule 12b-1 fee applicable to Class II
Shares which will not be in effect for at least the first full fiscal
year of the Fund). "Other Expenses" include (i) a 0.25% shareholder
servicing fee based on the Fund's assets attributable to Class II
Shares (which is paid by Class II Shares only), (ii) a 0.075%
administrative fee based on the average daily net assets of the Fund
(which includes a partial waiver of such fee), and (iii) audit,
accounting, custody, legal, registration, transfer agency and
miscellaneous other charges. See "Management of the Fund" for further
details.
THE FOLLOWING TEXT REPLACES THE FIRST FULL PARAGRAPH UNDER THE HEADING "PURCHASE
OF SHARES" ON PAGE 32 OF THE PROSPECTUS:
THE INITIAL MINIMUM INVESTMENT IS $1,000,000 FOR CLASS I SHARES AND
$250,000 FOR CLASS II SHARES. The Fund reserves the right, in its sole
discretion, to accept initial investments in the Fund from institutional
investors of less than $1,000,000. SHAREHOLDERS MAY MAKE ADDITIONAL INVESTMENTS
AT ANY TIME FOR AS LITTLE AS $10,000. Shares of the Fund may be purchased at the
net asset value per share next determined after the later of receipt of payment
or receipt of a completed account information form from a potential purchaser.
As described below, the net asset value of the Fund's equity securities is
determined as of 4:00 p.m., New York City time. See "Calculation of New Asset
Value." Investors whose purchase orders are received prior to 4:00 p.m. New York
City time will acquire their shares at the net asset value set as of that day.
An investor whose purchase order is received after 4:00 p.m. New York City time
will acquire shares at the net asset value set as of the next trading day.
THE FOLLOWING TEXT REPLACES THE LAST PARAGRAPH UNDER THE HEADING "REDEMPTION OF
SHARES" ON PAGE 34 OF THE PROSPECTUS:
As described below, the net asset value of the Fund's equity securities
is determined as of 4:00 p.m., New York City time. See "Calculation of Net Asset
Value." Investors whose purchase orders are received prior to 4:00 p.m. New York
City time will acquire their shares at the net asset value set as of that day.
An investor whose purchase order is received after 4:00 p.m. New York City time
will acquire shares at the net asset value set as of the next trading day.
<PAGE>
THE FOLLOWING TEXT REPLACES THE LAST PARAGRAPH UNDER THE HEADING "CALCULATION OF
NET ASSET VALUE" ON PAGE 36 OF THE PROSPECTUS:
The net asset value of the Fund's equity securities will be determined
as of 4:00 p.m., New York City time, on each day on which the New York Stock
Exchange is open. Exchange-traded securities will generally be valued at their
market value at the close of the primary exchange on which they are traded. As
the Fund will invest in securities traded on exchanges located in the Greater
China Region, the calculation of the Fund's net asset value will not occur
contemporaneously with the determination of the prices of certain of the
portfolio securities used in the calculation. If events materially affecting the
value of such securities occur during such period, then these securities, if
necessary, will be valued at their fair value as determined in good faith under
procedures established and monitored by the Board of Directors.
- 2 -
