The Greater China Fund, Inc. (NYSE: GCH) Announces Tender Offer Program and Stock Repurchase Program

NEW YORK, NY--(Marketwire - May 25, 2011) - The Greater China Fund, Inc. (NYSE: GCH) (the "Fund") announced today that the Fund's Board of Directors approved up to two consecutive tender offers each for up to 5% of the Fund's outstanding shares at a price per share equal to 98% of the Fund's net asset value per share ("NAV") as determined by the Fund on the next business day following the expiration date of the tender offer, or such later date to which the offer is extended. The Fund will conduct a tender offer if the average discount to NAV of the per share trading price of the Fund's shares on the NYSE is greater than 10% during the applicable twelve-week measurement period. The first measurement period will commence on July 1, 2011 and end on September 16, 2011. The commencement of the second measurement period is expected to be January 6, 2012, subject to change depending on whether a tender offer is to be commenced following the completion of the first measurement period.

The Board of Directors also approved the establishment of a Share Repurchase Plan pursuant to which the Fund is authorized to repurchase up to 5% of the Fund's outstanding common shares on June 30, 2011 during the period July 1, 2011 through June 30, 2012. Repurchases will be made opportunistically from time to time when they are believed to be in the best interests of the Fund and will be subject to various factors including the limitations imposed by the federal securities laws governing the repurchase of an issuer's stock by the issuer and the ability of the Fund's investment adviser to raise cash to repurchase the Fund's common shares in a tax-efficient manner.

The Board of Directors believes that the programs represent a responsible allocation of the Fund's assets by providing additional value to shareholders who wish to tender their shares when discounts have been at higher levels for a prolonged period of time as well as enhancing NAV for all shareholders through the Fund's purchase of shares at market discounts that have an accretive effect on NAV. There can be no assurance that the programs will be effective in reducing the discount from NAV at which the Fund's shares either temporarily or for any extended period of time.

The Board of Directors of the Fund may amend or terminate the Fund's Share Repurchase Plan solely in its discretion, at any time during the duration of the Plan. The Board may amend the Plan in response to various events, including, but not limited to, changing market conditions, material variations in the Fund's discount level, potential and meaningful adverse effects upon the Fund's expense ratio and changes in the ability of the Fund to raise cash to repurchase its common shares in a tax-efficient manner.

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). Any amendment to the Fund's announced Share Repurchase Plan will be publicly disclosed. The Fund will disclose certain information about its repurchases, including the total dollar amount, number of shares repurchased and accretion to the Fund's NAV per share, in its shareholder reports.

A potential consequence of the tender offers and share repurchases may be a higher expense ratio as certain fixed expenses are distributed over a smaller asset base, as the Fund's assets could be reduced as a result of these actions by more than 15%.

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, which are companies that (i) are organized under the laws of, and have their principal place of business in, China or Hong Kong or (ii) during their most recent fiscal year derived at least 50% of their revenues or profits from goods produced or sold, investments made or services performed in China or Hong Kong or have at least 50% of their assets in China or Hong Kong. The Fund's investment adviser is Baring Asset Management (Asia) Limited.

Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are sold in the open market through a share exchange. Shares of closed-end funds frequently trade at a discount to the net asset value. The price of a fund's shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, a fund cannot predict whether its shares will trade at, below or above net asset value.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of the Fund's shares in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.