On June 22, 2018, The China Fund, Inc. and City of London Investment Management Company Limited jointly announced that a preliminary agreement has been reached related to several matters, including but not limited to the following: 1) the Company intends to withdraw the lawsuit that had been filed in the Federal Court in the Southern District of New York against City of London Investment and other defendants, 2) City of London Investment intends to withdraw the lawsuit that had been filed against the Company and other defendants in the Circuit Court of Baltimore County, Maryland, 3) the Board has agreed to enter into a comprehensive search for an investment manager at the earliest practicable date, 4) the Company has agreed to reimburse the legal costs incurred by City of London Investment up to $500,000, subject to the Company and City of London Investment requesting and obtaining such regulatory approval as necessary or required, and 5) a Committee of the Board and City of London Investment would meet to resolve all other outstanding matters including, but not limited to, the ultimate size and structure of the Company, a shareholder event such as a significant tender, and the adoption of enhanced Corporate Governance standards for the Board.