JF China Region Fund Updates Merger Proposals Put to the Board of The Greater China Fund

The Board of the JF China Region Fund

announces that it has consulted with a number of The Greater China Fund, Inc. (GCH) shareholders regarding the merger proposals announced by JFC on August 2, 2012 and September 25, 2012. Following this consultation exercise, the JFC Board believes that there is significant GCH shareholder support for the proposal to merge GCH into JFC. The JFC Board continues to believe that the merger proposals are in the best interests of its shareholders as a whole and further offer significant potential benefits to GCH's shareholders including: A post merger tender offer that would provide shareholders with the choice of exiting a portion of their holding at close to net asset value or continuing with their investment. Such a tender offer would help address market perceptions that there is an oversupply of Chinese product in the US closed-end fund sector; Access to an investment mandate differentiated through the inclusion of direct China A-share investments (subject to necessary regulatory approvals), the ability to utilize leverage and greater exposure to mid and small cap companies which JFC would seek to maintain for the enlarged fund at levels similar to those currently in place for JFC; A commitment to an enhanced ongoing share repurchase program and/or other measure(s), during normal market conditions, in an effort to reduce discount levels of the enlarged JFC; An open and transparent Board that operates to high corporate governance standards, offers regular and proactive engagement, has good working relationships with, and is responsive to, its shareholders; A solution to the apparent “stalemate” between GCH and its shareholders which should not trigger a tax event; and Access to J.P. Morgan's well resourced and experienced Greater China investment team managing in excess of USD 5.7bn in that space. Given the apparent level of support indicated by GCH shareholders in favor of the merger proposals, the JFC Board urges the GCH Board to review its stance on the merger proposals, consult with GCH shareholders and enter into a dialogue with JFC to give effect to the wishes of many GCH shareholders.