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GREATER CHINA CORPORATION

Participating in China's Economic Success

GREATER CHINA CORPORATION

Tel: 212.765.4547, Fax: 212.722.4818

"Our mission is to build Greater China Corporation into the ideal public company for investors and partners who wish to share in the growth of China and related economies."

Letter to Shareholders:

July 2012

Dear Greater China Shareholders:

I have previously referred to the fundamental shifts that are occurring in the world, and how they affect Greater China Corporation (“GCC”). Here is an update:

First, our mission is unchanged, and that is to build value and liquidity for all GCC shareholders. This has proven to be challenging given the financial collapse over the past few years from which the world has yet to recover. This has delayed GCC projects and postponed the re-listing of our shares.

In order to weather the storm we cut all corporate expenses and temporarily de-listed our shares. This has enabled us to keep our corporate resources intact and to avoid having to dilute our shareholders. A few family members and friends have provided the means to sustain the company during these difficult times.

However, many positive events have also been occurring. We have greatly expanded the breadth and depth of our relationships with key Chinese and international financial, corporate and government leaders. (See our partner organizations, www.chineseculturalfoundation.org and www.chinainvestmentgroupllc.com). We have also participated in a number of prestigious international conferences that have provided Greater China Corporation with beneficial exposure and contacts. Locations have included: the London School of Economics, Columbia University, Yale University, Bloomberg and several other venues. Several of these are available on our web-site: www.greaterchinacorp.com.

China continues to get stronger and as a result is opening its capital markets and allowing more outgoing investment. The relationships that GCC has established place us in an ideal position to benefit from this trend. A recent study by the Hong Kong Monetary Authority predicts that over the next decade, Chinese companies and the Chinese government could invest abroad as much as $5.3 trillion (up from $310 billion in 2010). China is already sitting on $3.4 trillion of reserves. GCC has several programs that cater to this outflow: our EB-5 program that assists Chinese individuals to invest in the U.S. and at the same time enables them to obtain U.S. visas for themselves and family members. Also, we are working with several large Chinese companies, institutions and banks to provide investment-banking services for M&A and financings that can earn fees and obtain equity for GCC.

Other initiatives that we have been developing over time and that now appear to be ready to be activated include: Greater China Associates, a way for Chinese companies listed in the U.S. to collectively reduce perceived risk and gain higher multiples and liquidity; our South-East Asia and Vietnamese hospitality initiative, which now has new openings; our art leasing and sub-leasing program that allows investors and collectors to have access to exceptional Chinese and other art on a leased basis as well as to gain liquidity as art investors; and a number of other projects. In several cases GCC will establish new subsidiaries (and thus benefit with founder’s stock) that can then attract additional investment and operating partners. GCC’s shareholders benefit both as holders of GCC shares and also as potential direct investors.

As we begin to achieve results from these initiatives we are continuing to examine ways to increase value and liquidity for our shareholders. For example, we are considering: a) providing bonus shares related to length of GCC share ownership, b) the ability to convert GCC shares into one or more operating subsidiaries, and c) a share buy-back or buy-out (with third parties) program.

In order to accomplish these and other initiatives we plan to bring on new director and advisory investors who share a common interest with all other shareholders of increasing share value and liquidity, but who can also contribute directly to successful operating results.

My thanks to all our shareholders for your patience and support. In spite of global difficulties we feel that Greater China Corporation is very well positioned to benefit from the trends and initiatives mentioned above and we look forward to reporting our progress as this takes place.

Sincerely,

John W. Allen
Chairman & CEO