The Greater China Fund, Inc. and The Asia Pacific Fund, Inc.

1. The Greater China Fund, Inc. and The Asia Pacific Fund, Inc. Market Outlook and Investment Strategy June 2009

2. Asia vs World:Relative performance over past decade (May 31, 2009) MSCI Total Returns (in US$ terms) After 2008 setback, Asia’s out-performance is expected to continue Source: Factset as at 31 May 2009

3. Asia vs World:Long term performance MSCI Total Returns (in US$ terms) Asia is the clear long term winner Source: Factset as at 31 May 2009

4. How Asia has transformed itself:Pre- and post-financial crisis Derivative of global growth Driver of global growth More sustainable growth post restructuring

5. Asia’s Balance Sheet Revisited:Healthy 100% 90% Asia ex-Japan Net Debt-to-Equity Ratio GDP-wgt Loan-to-Deposit Ratio (major financial institutions) 95% 80% 70% 90% 60% 85% 50% 40% 80% 30% 75% 20% 10% 70% 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008E 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 Asia ex HK/Sing Total External Debt as % of GDP 8 31 Asia ex HK/Sing Current Account Balance as % of GDP 6 4 26 2 21 0 -2 16 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 -4 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 Asian corporate debt levels are close to 25 year lows Asian banks have capacity to lend The external position of Asia is healthier today than 20 years ago in terms of current account balance... ... as well as external debt levels % of GDP % of GDP Data prior to 1995 excludes Taiwan Data prior to 1995 excludes Taiwan It is most likely that Asia can weather this storm well Source: Citi (6/2009)

6. Ten years after crisis, restructured & ready to pounce!Rising returns on equity ASEAN corporates now recognise the importance of ROE and are focused on sustaining and increasing returns to shareholders Indonesia Malaysia Philippines Singapore Source: CSFB as at June 2009

7. Chinese Economy:Sustainable GDP Growth Real GDP Growth (Year-on-year Percentage, %) CREDIT TIGHENING 9% swing 4% swing 10% swing Sustainability preferred to boom and bust Source: BCA Research, JP Morgan as at May 2009, Bloomberg

8. ChinaFiscal policy has a lot of room to expand Source: CEIC, Credit Suisse estimates as at May 2009

9. China: Recent PMI and domestic property sales Property sales volume improving in primary market PMI new orders up faster than PMI finished good inventory Source: (left) CITICS as at May 2009 and (right) Goldman Sachs as at May 2009 (Primary market — Beijing, Tianjin, Shanghai, Hangzhou, Guangzhou, Shenzhen, Chengdu, Chongqing, Wuhan and Nanjing)

10. Corporate Earnings Growth:Downgrades bottoming out US: Earnings Revisions Index Asia Pacific ex-Japan: Earnings Revisions Index Room for upward surprise in 2009 ? Source: JP Morgan (6/2009)

11. Asian Equities’ ValuationsValuations not at extremes, earnings revisions the key * Market forecast numbers are derived from bottom-up calculations of each individual MSCI constituents using I/B/E/S estimates. US trailing PE is calculated as per reported earnings. For all other markets and sectors, forecast numbers are derived from bottom-up calculations of each individual MSCI constituents using JPM estimates for covered stocks and I/B/E/S estimates for the rest. Companies with different yearends are calendarised to December yearends and are free float adjusted for aggregation. Historical numbers are from MSCI. Source: JP Morgan (6/2009)

12. Asia and ChinaStrategy and Outlook Massive monetary injection stabilises liquidity environment and asset prices Little evidence of sharp broad based recovery yet selected regions and industry segments stand a good chance to see growth re-accelerating Asian economies and consumers are underleveraged with China continuing to drive growth and reflation in the whole Asian region Markets will re-focus on secular and above market earnings growth following the strong share price rebound from distressed valuations Our high alpha approach seeks to capture the best opportunities in the region through companies with the most attractively priced growth

13. Asia and ChinaStrategy and Outlook Asia Pacific Fund • Country - Overweight China, Taiwan, Singapore and Indonesia • Sector – Overweight Financials and Energy • Key themes : Chinese domestic consumption, regional asset reflation, return of liquidity in Taiwan, energy and niche growth technology • Prefer secular growth to cyclicals. Underweight defensives Greater China Fund • Prefer China to Hong Kong • Look for beneficiaries of strong infrastructure spending and stimulus package – construction companies and building materials • Quality China properties stock benefit from government policy support and market recovery • Bombed out cyclical stocks – material and technology – to lead early rally in restocking expectation • Focus on market leaders which play consolidator roles and with restructuring angle • Stock selection focus switching from valuation support to earnings delivery following the strong share price rebound from distressed levels

14. The China and Asia Conundrum What is the share of China and Asia ex-Japan in the world’s economy five years from now? What is the potential size of the Chinese economy compared to Japan? What is China and Asia ex-Japan’s market capitalization relative to that of the US? What was Japan’s market capitalization relative to that of the US in 1990? How are you positioned in China and Asia ex-Japan? Is it consistent with your economic view?

15. Asia and China The World’s Biggest “Underweighting” Source: JPM as at June 2009

16. Important Information – Regulatory Disclosure This document is provided as a service to professional investors/advisers. It is issued in the United Kingdom by Baring Asset Management Limited and/or by its investment adviser affiliates in other jurisdictions. The affiliate serving as the Greater China Fund/the Asia Pacific Fund’s investment adviser is Baring Asset Management (Asia) Limited. In the United Kingdom this document is issued only to persons falling within a permitted category under (i) the FSA’s rules made under section 238(5) of the Financial Services and Markets Act 2000 and (ii) the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001. This is not an offer nor a solicitation to buy or sell any investment referred to in this document. Baring Asset Management group companies, their affiliates and/or their directors, officers and employees may own or have positions in any investment mentioned herein or any investment related thereto and from time to time add to or dispose of any such investment. The contents of this document are based upon sources of information from third party sources which are believed to be reliable but no guarantee, warranty or representation, express or implied, is given as to their accuracy or completeness. This document may include forward-looking statements, which are based upon our current opinions, expectations and projections as of the date on the cover hereof. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. Changes in rates of exchange may have an adverse effect on the value, price or income of an investment. There are additional risks associated with investments (made directly or through investment vehicles which invest) in emerging or developing markets. Compensation arrangements under the Financial Services and Markets Act 2000 of the United Kingdom will not be available. Private investors in the Company referred to herein should obtain their own independent financial advise before making investments. This document must not be relied on for purposes of any investment decisions. Before investing in the Company, we recommend that all relevant documents, such as reports and accounts and prospectus should be read, which specify the particular risks associated with investment in the Company, together with any specific restrictions applying and the basis of dealing. The Company may not be available for investment in all jurisdictions. There may also be prohibitions or restrictions on distribution of this document and other material relating to the Company and accordingly recipients of any such documents are advised to inform themselves about and to observe any such restrictions. Compliance (Boston): June 10, 2009