Company: CAF
Filing Date: 2025-03-06
Form Type: N-CSR
Source: 0001104659-25-021323
Chunk: 15

Company: Morgan Stanley China A Share Fund, Inc.
Filing Date: 2025-03-06
Form: N-CSR
Chunk 15
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 or permanent in nature. Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses. The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2024. At December 31, 2024, the components of distributable earnings for the Fund on a tax basis were as follows:

| Undistributed Ordinary 
 Income                 
 (000)                  |    |     | Undistributed          
 Long-Term Capital Gain 
 (000)                  |   |
|:-----------------------|---:|:----|:-----------------------|:--|
| $                      | 23 |     | $                      | — |

At December 31, 2024, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $48,180,000 and $128,654,000, respectively, that do not have an expiration date. To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the stockholders.

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Morgan Stanley China A Share Fund, Inc.

December 31, 2024

Notes to Financial Statements (cont'd)

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2024, the Fund intends to defer to January 1, 2025 for U.S. federal income tax purposes the following losses:

| Qualified 
 Late Year 
 Ordinary  
 Losses    
 (000)     |   |     | Post-October 
 Capital      
 Losses       
 (000)        |       |
|:----------|:--|:----|:-------------|------:|
| $         | — |     | $            | 4,104 |

Due to recent changes mentioned above, failure to provide the tax payment confirmation on a timely basis could adversely affect the Fund's ability to distribute taxable income and capital gains. Therefore, the Fund reserves the right not to pay any dividends, or to delay the payment thereof, in the event