The Greater China Fund, Inc. (NYSE: GCH) Announces Update on Investment Manager Replacement; Receives Unsolicited Merger Proposal

NEW YORK, NY--(Marketwire - Aug 1, 2012) - The Greater China Fund, Inc. (NYSE: GCH) (the "Fund") announced today that it has underway a search for a replacement of the Fund's current investment manager. This follows the Fund's June 29, 2012 announcement that the Fund's Board would meet in due course to consider an appropriate course of action following the stockholder vote to terminate the Fund's agreement with the Fund's current investment manager, Baring Asset Management (Asia) Ltd. ("Baring"). Following termination of the Fund's current agreement with Baring, the Fund will enter into an agreement with Baring to continue providing services to the Fund on an interim basis for up to 150 days.

The process in place for finding a successor to Baring includes requesting proposals from a short list of highly regarded investment managers as well as consultation with major shareholders. The process is intended to result in the identification of a well qualified investment manager for the Fund that will be voted on and approved by stockholders.

The Fund also announced that its Board of Directors recently received a letter from the Chairman of JF China Region Fund, Inc. ("JFC"), outlining the terms of an unsolicited proposal to merge the Fund with and into JFC. JFC would be the continuing fund. JFC is also listed on the New York Stock Exchange but it is significantly smaller than the Fund, with less than one-third of the net assets of the Fund at March 31, 2012. On July 31, 2012, the Chairman of the Board of the Fund sent a letter to the Chairman of JFC stating that the Board of the Fund discussed the JFC proposal and has concluded that such a merger would not appear to be in the best interests of the Fund and its shareholders.

For more information on the Fund, including the most recent month-end performance, visit www.greaterchinafund.com or call 1-877-FUND-GCH (1-877-386-3424).

The Fund is a non-diversified, closed-end management investment company that seeks long-term capital appreciation through investing primarily in listed securities of China companies.