N-Q 1 a07-15322_5nq.htm N-Q

[Annotated Form N-Q]

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

 

 

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-21926

 

MORGAN STANLEY CHINA A SHARE FUND, INC.

(Exact name of registrant as specified in charter) CIK: 0001368493

1221 AVENUE OF THE AMERICAS 5th FLOOR NEW YORK, NY

10020

(Address of principal executive offices)

(Zip code)

RONALD E. ROBISON
1221 AVENUE OF THE AMERICAS 5th FLOOR NEW YORK, NY, 10020

(Name and address of agent for service)

 

 

 

Registrant’s telephone number, including area code:

1-800-221-6726

 

 

Date of fiscal year end:

12/31

 

 

Date of reporting period:

3/31/07

 

 


 

Item 1.  Schedule of Investments.

 

The Fund’s schedule of investment as of the close of the reporting period prepared pursuant to Rule 12-12 Regulation S-X is as follows:

 


 

Morgan Stanley China A Share Fund, Inc.

First Quarter Report

March 31, 2007 (unaudited)

 

Portfolio of Investments

 

 

 

 

 

 

Value

 

 

 

 

 

Shares

 

(000)

 

COMMON STOCKS (95.1%)

 

 

 

 

 

 

 

(Unless Otherwise Noted)

 

 

 

 

 

 

 

Airlines (7.5%)

 

 

 

 

 

 

 

Air China Ltd.

 

(a)

 

20,631,947

 

$

21,165

 

Guangzhou Baiyun International Airport Co., Ltd.

 

 

 

8,393,618

 

12,813

 

 

 

 

 

 

 

33,978

 

Auto Components (2.2%)

 

 

 

 

 

 

 

Xingda International Holdings Ltd.

 

(a)

 

16,228,000

 

9,969

 

Commercial Banks (18.8%)

 

 

 

 

 

 

 

China Merchants Bank Co., Ltd.

 

 

 

11,839,404

 

26,619

 

Huaxia Bank Co., Ltd.

 

(a)

 

21,398,619

 

31,059

 

Shanghai Pudong Development Bank

 

 

 

7,180,287

 

24,819

 

Shenzhen Development Bank Co.

 

(a)

 

1,248,736

 

3,050

 

 

 

 

 

 

 

85,547

 

Construction & Engineering (2.3%)

 

 

 

 

 

 

 

China Communications Construction Co., Ltd.

 

(a)

 

8,636,000

 

10,412

 

Electronic Equipment & Instruments (2.9%)

 

 

 

 

 

 

 

Neo-Neon Holdings Ltd.

 

(a)

 

6,970,000

 

13,006

 

Food Products (1.9%)

 

 

 

 

 

 

 

Inner Mongolia Yili Industrial Group Co., Ltd.

 

 

 

2,598,399

 

8,571

 

Independent Power Producers & Energy Traders (2.6%)

 

 

 

 

 

 

 

Datang International Power Generation Co., Ltd.

 

 

 

12,342,000

 

11,689

 

Insurance (0.2%)

 

 

 

 

 

 

 

Ping An Insurance Group Co., of China Ltd.

 

(a)

 

149,184

 

908

 

Machinery (12.4%)

 

 

 

 

 

 

 

Guangxi Liugong Machinery

 

 

 

6,075,000

 

14,971

 

Hudong Heavy Machinery Co.

 

 

 

786,934

 

8,342

 

Shanghai Zhenhua Port Machinery Co.

 

 

 

6,667,600

 

14,301

 

Zhengzhou Yutong Bus Co.

 

 

 

8,899,288

 

18,742

 

 

 

 

 

 

 

56,356

 

Metals & Mining (12.5%)

 

 

 

 

 

 

 

Baoshan Iron & Steel Co., Ltd.

 

 

 

4,365,000

 

5,590

 

Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd.

 

 

 

7,019,477

 

12,949

 

Maanshan Iron & Steel

 

 

 

20,366,616

 

16,836

 

Wuhan Iron & Steel Co., Ltd.

 

 

 

18,478,875

 

21,705

 

 

 

 

 

 

 

57,080

 

Oil, Gas & Consumable Fuels (8.5%)

 

 

 

 

 

 

 

China Coal Energy Co.

 

(a)

 

17,061,000

 

18,233

 

Henan Shen Huo Coal Industry & Electricity Power Co.

 

 

 

4,734,912

 

9,451

 

Shanxi Xishan Coal & Electricity Power Co., Ltd.

 

 

 

6,212,000

 

10,969

 

 

 

 

 

 

 

38,653

 

Real Estate (2.8%)

 

 

 

 

 

 

 

China Merchants Property Development Co., Ltd.

 

 

 

3,454,908

 

12,872

 

Road & Rail (4.8%)

 

 

 

 

 

 

 

Daqin Railway Co., Ltd.

 

(a)

 

13,042,000

 

21,680

 

Specialty Retail (2.5%)

 

 

 

 

 

 

 

GOME Electrical Appliances Holdings Ltd.

 

 

 

10,435,000

 

11,606

 

Transportation Infrastructure (10.4%)

 

 

 

 

 

 

 

Anhui Expressway Co., Ltd.

 

 

 

12,899,090

 

13,383

 

Jiangxi Ganyue Expressway Co., Ltd.

 

 

 

9,992,999

 

15,099

 

Shenzhen Chiwan Wharf Holdings

 

 

 

6,163,974

 

19,073

 

 

 

 

 

 

 

47,555

 

 


 

Water Utilities (2.8%)

 

 

 

 

 

 

 

Shanghai Municipal Raw Water Co., Ltd.

 

 

 

12,321,299

 

12,703

 

TOTAL COMMON STOCKS

 

 

 

 

 

 

 

(Cost $264,869)

 

 

 

 

 

432,585

 

INVESTMENT COMPANIES (1.3%)

 

 

 

 

 

 

 

Diversified Financial Services (1.3%)

 

 

 

 

 

 

 

Jingyang Fund

 

(a)

 

2,792,111

 

920

 

Jiufu Fund

 

 

 

5,688,127

 

741

 

Kehui Fund

 

 

 

2,362,844

 

720

 

Kexun Fund

 

 

 

2,762,150

 

854

 

Tongde Fund

 

 

 

2,808,602

 

761

 

Xingan Fund

 

(a)

 

2,881,342

 

925

 

Xingke Fund

 

(a)

 

2,728,245

 

838

 

TOTAL INVESTMENT COMPANIES

 

 

 

 

 

 

 

(Cost $3,653)

 

 

 

 

 

5,759

 

 

 

 

 

No. of

 

 

 

 

 

 

 

Warrants

 

 

 

WARRANTS (0.4%)

 

 

 

 

 

 

 

Food Products (0.4%)

 

 

 

 

 

 

 

Inner Mongolia Yili Industrial Group Co., Ltd.

 

 

 

 

 

 

 

expiring 11/7/07 (Cost $0)

 

(a)

 

779,520

 

1,777

 

 

 

 

 

Face

 

 

 

 

 

 

 

Amount

 

 

 

 

 

 

 

(000)

 

 

 

SHORT-TERM INVESTMENT (2.6%)

 

 

 

 

 

 

 

Repurchase Agreement (2.6%)

 

 

 

 

 

 

 

J.P. Morgan Securities, Inc., 5.28%,

 

 

 

 

 

 

 

dated 3/30/07, due 4/2/07

 

 

 

 

 

 

 

repurchase price $11,793 (Cost $11,788)

 

$        (b)

 

$

11,788

 

11,788

 

TOTAL INVESTMENTS + (99.4%)

 

 

 

 

 

 

 

(Cost $280,310)

 

 

 

 

 

451,909

 

OTHER ASSETS IN EXCESS OF LIABILITIES (0.6%)

 

 

 

 

 

2,817

 

NET ASSETS (100%)

 

 

 

 

 

$

454,726

 

 

(a)

 

Non-income producing security.

(b)

 

Represents the Fund’s undivided interest in a joint repurchase agreement which has a total value of $1,580,364,000. The repurchase agreement was fully collateralized by U.S. government agency securities at the date of this Portfolio of Investments as follows: Federal Farm Credit Bank, 0.00% to 7.43%, due 5/7/07 to 3/2/21; Federal Home Loan Bank, 0.00% to 6.42%, due 4/2/07 to 3/9/26; Federal Home Loan Mortgage Corp., 0.00% to 7.00%, due 4/2/07 to 3/15/31; Federal National Mortgage Association, 0.00% to 7.13%, due 4/5/07 to 3/17/31; Tennessee Valley Authority, 4.88%, due 12/15/16, which had a total value of $1,661,974,119. The investment in the repurchase agreement is through participation in a joint account with affiliated parties pursuant to exemptive relief received by the Fund from the SEC.

+

 

At March 31, 2007, the U.S. Federal income tax cost basis of investments was approximately $280,310,000 and, accordingly, net unrealized appreciation for U.S. Federal income tax purposes was $171,599,000 of which $171,616,000 related to appreciated securities and $17,000 related to depreciated securities.

 


 

Item 2.  Controls and Procedures.

 

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

 

(b)  There were no changes in the Fund’s internal control over financial reporting that occurred during the registrant’s fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Fund’s internal control over financial reporting.

 

Item 3.  Exhibits.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)

Morgan Stanley China A Share Fund, Inc.

 

By:

/s/ Ronald E. Robison

 

Name:

Ronald E. Robison

 

Title:

Principal Executive Officer

 

Date:

5/22/07

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:

/s/ Ronald E. Robison

 

Name:

Ronald E. Robison

 

Title:

Principal Executive Officer

 

Date:

5/22/07

 

 

 

 

By:

/s/ James Garrett

 

Name:

James Garrett

 

Title:

Principal Financial Officer

 

Date:

5/22/07