The Greater China Fund, Inc. Announces Increased Focus on Taiwan and Change to Its Primary Benchmark

NEW YORK, NY--(Marketwire - Aug 24, 2011) - The Greater China Fund, Inc. (NYSE: GCH) ("GCH" or "the Fund"), a closed-end fund, has announced that, due to the increasing economic integration of Taiwan and mainland China, it is expanding its definition of "China companies" to include companies that (i) are organized under the laws of, and have their principal place of business in, Taiwan 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 Taiwan or have at least 50% of their assets in Taiwan. The change will take effect on October 23, 2011. Under normal circumstances, at least 80% of the Fund's net assets will be invested in listed equity securities of China companies. Consistent with this change, the Fund will change its primary benchmark to the MSCI Golden Dragon Index effective immediately. The MSCI Golden Dragon Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the China region, consisting of China, Hong Kong and Taiwan. The MSCI Golden Dragon Index reflects more appropriately the Fund's intended increased investment in Taiwan and the Fund will use this standard to evaluate its investment performance going forward. The Fund previously used the MSCI Zhong Hua Index as its primary benchmark.

Organized in 1992, the Fund's investment objective is to achieve long-term capital appreciation. It seeks to achieve its objective by in listed equity securities of China companies. The Fund's expanded strategy reflects the belief that Taiwan-related companies conducting business in China offer a uniquely attractive and risk-moderated way to invest in China's economic growth.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the U.S. Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Fund or any other person that the events or circumstances described in such statement are material.