"Chinese markets have been absolutely soaring this year," says long-standing global income expert Carla Pasternak.

In her High Yield Investing, she suggests, "The China Fund (NYSE: CHN) - ranked in the top 1% of funds in the Pacific/Asia ex-Japan category for the latest ten-year period -- should be an excellent way to play this growth story over the long term."

"China's massive stimulus spending and interest rate reductions have succeeded in igniting domestic demand.

" As a result, GDP throughout Asian emerging markets has jumped to over 10% in the second quarter on an annualized basis, and the Shanghai Composite Index has exploded 67% year to date, four times the gains on the S&P 500.

"One fund that is in a good position to continue to benefit from China's growth is the China Fund. This fund focuses lesser followed small and medium sized companies in the greater China region including the mainland, Taiwan, and Hong Kong. The average market cap of the fund's holdings is $1.5 billion.

"Management sweats the details as it personally visits over 1,000 companies per year. The fund also can invest up to 25% of the assets in unlisted or direct securities, which are often overlooked by other managers.

"Up over 42% this year, CHN has lagged the Shanghai and its benchmark MSCI Golden Dragon Index. Management explains it's cautious in sticking with more steady consumer growth plays and steering away from high-flying commodity and property stocks.

"As the Chinese markets get more richly valued, CHN seems to have an attractive strategy. The strategy seems to be working as CHN has achieved tremendous long-term returns, averaging a staggering 20% per year over the last ten years through August 31st.

"The fund is ranked in the top 1% of funds in the Pacific/Asia ex-Japan category for the ten-year period, according to Morningstar. Despite stellar long-term returns, CHN sells at a -6% discount to NAV.

"CHN pays a distribution once a year in January. The last distribution was $5.82, consisting of $5.34 long-term capital gains and $0.48 dividend income. At today's price the current yield is 24%.

"The average distribution over the last five years was $5.61 with a dividend composition breakdown over the period of 84% long-term capital gains, 10% short-term capital gains and 6% dividend income.

"Since most of the distribution is taxable at the 15% capital gains rate, the fund is suited for a taxable brokerage account.

"China fund seems to know where to find under-followed growth opportunities in the fastest growing economy in the world while paying a fat distribution.

"Management takes a cautious and proven long-term strategy even in the soaring markets and CHN should be an excellent way to play the China growth story over the long term."