The Greater China Fund report for month ended April 30, 1995.

NEW YORK--(BUSINESS WIRE)--May 24, 1995--The stock markets of Greater China continued their consolidation in the month of April. Rumors about the health of Dang Xiaoping towards the end of the month exaggerated the process.

The 'H' shares and 'B' shares lost 10% in the month on the back of some disappointing 1994 final results. In general, except petrochemicals, most of the corporate earnings showed the adverse impacts of austerity measures. The steel and capital equipment industries, in particular, posted poor results. On the other hand, macro statistics for the first quarter of the year are continuing to suggest a slowing economy, declining inflation and an impressive trade performance. GDP growth moderated to 11.2% in the first quarter on slower industrial output and fixed asset investment. Inflation fell to a nationwide rate of 21.3% in March, down from 22.4% in February and the peak of 27.7% in October last year. Slower imports growth of 17% as against a 62% jump in exports resulted in a trade surplus of US$7 billion in the first quarter of the year. On the whole, the economy is seen to be moving in the right direction. Meanwhile, on politics, the death of Chen Yun early in the month and the resignation of Beijing's party secretary, Chen Xitong, on the back of series of corruption-related scandals are seen as confirmation of Jiang Zemin's improving power base.

In Hong Kong, the market was directionless with pedestrian turnover. Confidence has been shaken with sluggish retail sales figures, which showed almost no growth in volume terms for the first two months of 1995. Unemployment in the first quarter of 1995 rose to a ten-year high of 2.8%, also pointing to an economic slowdown. The market is expected to remain within its trading range in the near term, waiting for news on key factors like US interest rates and political and economic developments in China.

In Taiwan, worries over Deng's health and fears about investigations by the central bank into investment trust companies sent the market down. Given the positive outlook on corporate earnings, the market is attractive at current levels, though it has demonstrated that it is probably more sensitive to the issue of Deng's succession than is the Hong Kong market.

South Korea's market continued to be rather weak as worries over the mounting current account deficit drew attention to deteriorating liquidity. Suggestions that the foreign ownership restrictions in the equity market may be lifted from 12% to 15% in the third quarter this year did little to improve sentiment.

ASSET ALLOCATION  April 30 January 31

China 27.7% 29.6%

Hong Kong 66.1% 63.7%

Korea 2.8% 2.0%

Singapore 0.4% 0.4%

Taiwan 2.2% 2.3%

Cash 0.8% 2.0%

MONTH-END RESULTS April 30 January 31

Net Asset Value (NAV)

per share US$ 13.15 US$ 12.49

Closing Market Price

per share US$ 12.125 US$ 11.875

Premium/(Discount) (7.8%) (4.9%)

NAV AND MARKET PRICE PERFORMANCE

(NAV performance has been calculated on a total return dividend

reinvested basis)

As at April 30 NAV Market Price

Last 3 Months 5.3% 2.1%

Last 6 Months -23.4% -29.2%

Last 12 Months -21.7% -32.2%

Since Inception -1.9% -19.2%

Total Net Assets at April 30; US$ 126 million

Note: the figures contained in this report are unaudited.

The Fund's investment adviser is Baring International Investment (Far East) Limited.

CONTACT: Lillian C. Morea

212/713-2741