-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NGZS2nsriBSm4nQwK8AaFb6EyZhnV7GLK889DKadzzLWOV6j4JgmIWNrkZtSbUEL hNM6Ude9A2tWpRLZyc0nZA== 0000909226-06-000004.txt : 20060127 0000909226-06-000004.hdr.sgml : 20060127 20060127114141 ACCESSION NUMBER: 0000909226-06-000004 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20051130 FILED AS OF DATE: 20060127 DATE AS OF CHANGE: 20060127 EFFECTIVENESS DATE: 20060127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLETON CHINA WORLD FUND CENTRAL INDEX KEY: 0000909226 IRS NUMBER: 593192206 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-07876 FILM NUMBER: 06555903 BUSINESS ADDRESS: STREET 1: BROWARD FINANCIAL CENTRE STREET 2: 500 EAST BROWARD BLVD SUITE 2100 CITY: FORT LAUDERDALE STATE: FL ZIP: 33394 BUSINESS PHONE: 9545277500 MAIL ADDRESS: STREET 1: BROWARD FINANCIAL CENTRE STREET 2: 500 EAST BROWARD BLVD SUITE 2100 CITY: FORT LAUDERDALE STATE: FL ZIP: 33394 FORMER COMPANY: FORMER CONFORMED NAME: TEMPLETON CHINA WORLD FUND INC DATE OF NAME CHANGE: 19930716 N-Q 1 tch-nq1105.txt TEMPLETON CHINA WORLD FUND QUARTERLY REPORT FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07876 --------- TEMPLETON CHINA WORLD FUND -------------------------------------------------- (Exact name of registrant as specified in charter) 500 EAST BROWARD BLVD., SUITE 2100, FORT LAUDERDALE, FL 33394-3091 -------------------------------------------------------------------- (Address of principal executive offices) (Zip code) CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 ------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (954) 527-7500 -------------- Date of fiscal year end: 08/31 ----- Date of reporting period: 11/30/05 -------- ITEM 1. SCHEDULE OF INVESTMENTS. TEMPLETON CHINA WORLD FUND QUARTERLY STATEMENT OF INVESTMENTS NOVEMBER 30, 2005 - -------------------------------------------------------------------------------- CONTENTS Statement of Investments .............................................. 3 Notes to Statement of Investments ..................................... 6 [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS Franklin o TEMPLETON o Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. TEMPLETON CHINA WORLD FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SHARES VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS 90.2% AIR FREIGHT & LOGISTICS 0.1% Sinotrans Ltd., H ............................................... China 1,238,000 $ 443,021 ------------- AIRLINES 0.6% (a)Air China Ltd., H ............................................... China 6,088,000 2,100,096 (a),(b)Air China Ltd., H, 144A ......................................... China 500,000 172,478 ------------- 2,272,574 ------------- AUTO COMPONENTS 1.5% Cheng Shin Rubber Industry Co. Ltd. ............................. Taiwan 6,876,540 5,293,513 Weifu High-Technology Co. Ltd., B ............................... China 1,160,687 672,051 ------------- 5,965,564 ------------- AUTOMOBILES 0.3% Brilliance China Automotive Holdings Ltd. ....................... China 3,642,000 521,319 Chongqing Changan Automobile Co. Ltd., B ........................ China 2,703,800 812,402 ------------- 1,333,721 ------------- CAPITAL MARKETS 0.6% Yuanta Core Pacific Securities Co. .............................. Taiwan 3,784,156 2,269,444 ------------- COMMERCIAL BANKS 13.1% (a)China Construction Bank, H ...................................... China 4,062,000 1,335,736 (a),(b)China Construction Bank, H, 144A ................................ China 43,532,000 14,314,936 Chinatrust Financial Holding Co. Ltd. ........................... Taiwan 7,653,002 6,153,822 DBS Group Holdings Ltd. ......................................... Singapore 193,000 1,871,681 HSBC Holdings PLC ............................................... United Kingdom 1,218,202 19,558,217 Mega Financial Holding Co. Ltd. ................................. Taiwan 14,406,000 9,456,281 ------------- 52,690,673 ------------- COMMUNICATIONS EQUIPMENT 1.0% D-Link Corp. .................................................... Taiwan 3,558,521 4,093,061 ------------- COMPUTERS & PERIPHERALS 6.3% Acer Inc. ....................................................... Taiwan 6,580,960 14,589,229 Asustek Computer Inc. ........................................... Taiwan 1,212,268 3,436,185 Lite-On Technology Corp. ........................................ Taiwan 5,675,586 7,154,705 ------------- 25,180,119 ------------- CONSTRUCTION MATERIALS 0.6% Anhui Conch Cement Co. Ltd., H .................................. China 2,192,000 2,416,836 ------------- DISTRIBUTORS 3.3% China Resources Enterprise Ltd. ................................. China 6,700,000 11,923,246 Test-Rite International Co. Ltd. ................................ Taiwan 2,225,980 1,461,161 ------------- 13,384,407 ------------- DIVERSIFIED TELECOMMUNICATION SERVICES 0.8% China Telecom Corp. Ltd., H ..................................... China 9,073,833 3,130,078 ------------- ELECTRIC UTILITIES 2.7% Cheung Kong Infrastructure Holdings Ltd. ........................ Hong Kong 3,320,548 10,747,911 ------------- ELECTRICAL EQUIPMENT 0.1% Phoenixtec Power Co. Ltd. ....................................... Taiwan 454,055 475,521 -------------
Quarterly Statement of Investments | 3 TEMPLETON CHINA WORLD FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SHARES VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS (CONT.) ELECTRONIC EQUIPMENT & INSTRUMENTS 3.3% Delta Electronics Inc. .................................................... Taiwan 3,838,163 $ 7,730,035 Synnex Technology International Corp. ..................................... Taiwan 4,770,800 5,622,670 ------------- 13,352,705 ------------- FOOD & STAPLES RETAILING 10.2% Dairy Farm International Holdings Ltd. (USD Traded) ....................... Hong Kong 10,219,776 35,769,216 President Chain Store Corp. ............................................... Taiwan 2,844,088 5,218,821 ------------- 40,988,037 ------------- FOOD PRODUCTS 1.5% COFCO International Ltd. .................................................. China 5,038,000 2,014,005 Uni-President Enterprises Corp. ........................................... Taiwan 9,058,950 3,838,137 ------------- 5,852,142 ------------- HOTELS RESTAURANTS & LEISURE 2.2% The Hongkong and Shanghai Hotels Ltd. ..................................... Hong Kong 7,985,978 8,753,619 ------------- HOUSEHOLD DURABLES 0.2% TCL Multimedia Technology Holdings Ltd. ................................... China 5,052,000 794,811 ------------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 3.5% Datang International Power Generation Co. Ltd., H ......................... China 9,620,320 7,133,423 Guangdong Electric Power Development Co. Ltd., B .......................... China 8,354,963 3,458,519 Huadian Power International Corp. Ltd., H ................................. China 11,836,000 3,243,429 Huaneng Power International, Inc., H ...................................... China 590,776 403,775 ------------- 14,239,146 ------------- INDUSTRIAL CONGLOMERATES 3.6% CITIC Pacific Ltd. ........................................................ China 860,092 2,356,918 (a)LG Corp. .................................................................. South Korea 254,910 6,928,638 Shanghai Industrial Holdings Ltd. ......................................... China 2,784,253 5,224,110 ------------- 14,509,666 ------------- LEISURE EQUIPMENT & PRODUCTS 0.4% Premier Image Technology Corp. ............................................ Taiwan 1,445,090 1,793,670 ------------- MACHINERY 1.5% China International Marine Containers (Group), Co. Ltd., B ................ China 5,591,330 4,347,835 Yungtay Engineering Co. Ltd. .............................................. Taiwan 2,524,000 1,589,008 ------------- 5,936,843 ------------- METALS & MINING 0.1% Aluminum Corp. of China Ltd., H ........................................... China 372,000 268,641 ------------- OFFICE ELECTRONICS 0.3% Kinpo Electronics Inc. .................................................... Taiwan 3,042,648 1,252,810 ------------- OIL, GAS & CONSUMABLE FUELS 10.3% China Petroleum & Chemical Corp., H ....................................... China 37,309,395 16,719,128 PetroChina Co. Ltd., H .................................................... China 27,131,903 21,167,825 (b)PetroChina Co. Ltd., H, 144A .............................................. China 4,460,000 3,479,613 ------------- 41,366,566 ------------- PAPER & FOREST PRODUCTS 0.5% Shandong Chenming Paper Holdings Ltd., B .................................. China 4,620,200 1,870,816 -------------
4 | Quarterly Statement of Investments TEMPLETON CHINA WORLD FUND STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SHARES VALUE - ------------------------------------------------------------------------------------------------------------------------------------ COMMON STOCKS (CONT.) REAL ESTATE 5.9% Cheung Kong Holdings Ltd. ........................................... Hong Kong 1,360,690 $ 14,160,328 Henderson Investment Ltd. ........................................... Hong Kong 2,888,756 4,861,407 Hongkong Land Holdings Ltd. (USD Traded) ............................ Hong Kong 1,521,000 4,867,200 ------------- 23,888,935 ------------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.1% Faraday Technology Corp. ............................................ Taiwan 309,560 514,463 Realtek Semiconductor Corp. ......................................... Taiwan 1,631,000 1,829,768 Samsung Electronics Co. Ltd. ........................................ South Korea 5,510 3,175,884 Siliconware Precision Industries Co. ................................ Taiwan 1,297,666 1,376,439 Sunplus Technology Co. Ltd. ......................................... Taiwan 2,435,247 2,448,653 Taiwan Semiconductor Manufacturing Co. Ltd. ......................... Taiwan 3,910,189 6,941,751 ------------- 16,286,958 ------------- SPECIALTY RETAIL 0.2% GOME Electrical Appliances Holdings Ltd. ............................ China 1,439,000 848,970 ------------- TEXTILES APPAREL & LUXURY GOODS 0.2% Tack Fat Group International Ltd. ................................... Hong Kong 6,352,000 630,728 ------------- TRANSPORTATION INFRASTRUCTURE 3.5% China Merchants Holdings (International) Co. Ltd. ................... China 1,303,451 2,739,826 Cosco Pacific Ltd. .................................................. China 1,777,449 2,968,298 Hainan Meilan International Airport Co. Ltd., H ..................... China 2,273,000 1,055,219 Hopewell Holdings Ltd. .............................................. Hong Kong 3,048,000 7,487,736 ------------- 14,251,079 ------------- WIRELESS TELECOMMUNICATION SERVICES 7.7% China Mobile (Hong Kong) Ltd. ....................................... China 5,828,770 28,637,987 Taiwan Mobile Co. Ltd. .............................................. Taiwan 2,496,930 2,212,671 ------------- 30,850,658 ------------- TOTAL COMMON STOCKS (COST $252,113,327) ............................. 362,139,730 ------------- ---------------- PRINCIPAL AMOUNT ---------------- SHORT TERM INVESTMENTS (COST $38,001,388) 9.4% U.S. GOVERNMENT & AGENCY SECURITIES 9.4% (c)U.S. Treasury Bills, 12/01/05 - 2/23/06 ............................. United States $ 38,177,000 38,005,429 ------------- TOTAL INVESTMENTS (COST $290,114,715) 99.6% ......................... 400,145,159 OTHER ASSETS, LESS LIABILITIES 0.4% ................................. 1,406,929 ------------- NET ASSETS 100.0% ................................................... $ 401,552,088 =============
(a) Non-income producing. (b) Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. At November 30, 2005, the aggregate value of these securities was $17,967,027, representing 4.47% of net assets. (c) The security is traded on a discount basis with no stated coupon rate. Quarterly Statement of Investments | See Notes to Statement of Investments. | 5 TEMPLETON CHINA WORLD FUND NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) Templeton China World Fund (the Fund) is registered under the Investment Company Act of 1940 as a non-diversified, open-end investment company. 1. INCOME TAXES At November 30, 2005, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments.................................... $291,190,455 ============ Unrealized appreciation................................ $116,366,202 Unrealized depreciation................................ (7,411,498) ------------ Net unrealized appreciation (depreciation)............. $108,954,704 ============ For information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report. 6 | Quarterly Statement of Investments ITEM 2. CONTROLS AND PROCEDURES. (a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. ITEM 3. EXHIBITS. (a) Certifications pursuant to Section 30a-2 of the Investment Company Act of 1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and Galen G. Vetter, Chief Financial Officer. 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. TEMPLETON CHINA WORLD FUND By /s/JIMMY D. GAMBILL ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date January 23, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/JIMMY D. GAMBILL ----------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date January 23, 2006 By /s/GALEN G. VETTER ------------------------------ Galen G. Vetter Chief Financial Officer Date January 23, 2006 EX-99.CERT 2 tch302nq1105.txt TCH 302 CERTIFICATIONS Exhibit 3 (a) I, Jimmy D. Gambill, certify that: 1. I have reviewed this report on Form N-Q of TEMPLETON CHINA WORLD FUND; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. January 23, 2006 /s/JIMMY D. GAMBILL Jimmy D. Gambill Chief Executive Officer - Finance and Administration I, Galen G. Vetter, certify that: 1. I have reviewed this report on Form N-Q of TEMPLETON CHINA WORLD FUND; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. January 23, 2006 /s/GALEN G. VETTER Galen G. Vetter Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----