The Taiwan Greater China Fund Monthly Update.

Market Environment Co November 2006

NEW YORK -- The Taiwan Greater China Fund's net asset value (NAV) in November lagged both its primary benchmarks, the Taiwan China Strategy Index (TCS Index) as computed by MSCI, and the Taiwan Stock Exchange Index (TAIEX). The Fund's share price, however, outperformed the TCS Index although it lagged the TAIEX in US$ terms. The Fund's NAV increased 8.3% and its share price grew 10.0% compared to a 9.3% increase of the TCS Index and a 10.7% growth in US$ terms of the TAIEX. The Fund's discount to net asset value averaged 8.4% during October, with a low of 6.2%, a high of 9.8%, and a closing value of 7.2%. During the month, the Taiwan dollar appreciated 2.6% against the U.S. dollar.

November was an excellent month for the Taiwan market, with market rising steadily during the month and ending at its monthly high. Financials outperformed the overall market as did the steel and cement sectors. Tech performance slightly lagged the overall market, although it picked up in the 2nd half of the month. In particular, the display segment turned in a slightly negative performance while semiconductors outperformed the overall market. Semiconductor strength may be partially attributable to the offer by Carlyle Group, US-based private equity group, to buy out the existing shareholders of Advanced Semiconductor Engineering (ASE), the global leader in semiconductor packaging and test. ASE's financial performance during 2006 has been very strong but its share price has not reflected that performance. The company believes that Carlyle, given its participation in the recent acquisition of Freescale Semiconductor, can boost ASE's market access. The acquisition also may provide ASE more flexibility in expanding into China.

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(*) Past results are not necessarily indicative of future performance of the Fund. Rates of return and principal value will fluctuate and you may have a gain or a loss when you sell shares. Performance figures reflect reinvested dividends and capital gains. Dividends and capital gains reinvested are on a net basis, after the deduction of applicable taxes. The returns shown above for the TCS Index are also calculated on a net basis but the TAIEX is measured on a gross return basis, with the full reinvestment of all dividends received. February 27, 2004 is a significant date for measurement as it is when the Fund fully implemented its China-focused investment strategy. Returns for the Fund, TCS Index and TAIEX in US Dollars. Source: Bloomberg except MSCI for TCS Index. For more information and important disclosures on the TCS Index please see the Fund's website at http://www.taiwangreaterchinafund.com/. Returns, except 12-month period, are not annualized.

(**)Total returns reflect changes in NAV per share during each period and assume that dividends and capital gains distributions, if any, were reinvested. These percentages are not an indication of the performance of a shareholder's investment in the Fund based on market price.

Portfolio Management

The Fund holds about 100% of its assets in equities. Such holdings are well diversified among top quality stocks, with investment decisions based on a fundamental approach to securities and economic analysis. Portfolio holdings and sector composition are subject to change.

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Per Share Standing at November 30, 2006:

 NAV       NYSE
$6.91     $6.41

The opinions and forecasts expressed are those of the portfolio manager and may not actually come to pass. The information presented is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of a particular security. Fund shares are not FDIC insured and are not deposits or other obligations of, or guaranteed by, any bank. Fund shares involve investment risk, including possible loss of principal.