-----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, PjHLhRQOcSyOGynsikqD13nfpcF6I+eXHBaURtxwTUbfiH2hejks/x0ctRogMBKw 26GYLiLEABAOKkNno9DwJw== 0000909226-07-000012.txt : 20070126 0000909226-07-000012.hdr.sgml : 20070126 20070126155458 ACCESSION NUMBER: 0000909226-07-000012 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061130 FILED AS OF DATE: 20070126 DATE AS OF CHANGE: 20070126 EFFECTIVENESS DATE: 20070126 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: 07556596 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 0000909226 S000008743 Templeton China World Fund C000023803 Class A TCWAX C000023804 Class B TCWBX C000023805 Class C TCWCX C000023806 Advisor Class TACWX N-Q 1 tch-nq_1106.txt TCH QRTLY INVESTMENTS PE 11/30/06 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: 11/30/06 -------- ITEM 1. SCHEDULE OF INVESTMENTS. Templeton China World Fund QUARTERLY STATEMENT OF INVESTMENTS NOVEMBER 30, 2006 - -------------------------------------------------------------------------------- CONTENTS Statement of Investments ................................................... 3 Notes to Statement of Investments .......................................... 7 [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, 2006 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ----------------------------------------------------------------------------------------------------------- COMMON STOCKS 94.0% AIR FREIGHT & LOGISTICS 0.2% Shenzhen International Holdings Ltd. ..................... China 23,932,000 $ 1,430,668 Sinotrans Ltd., H ........................................ China 1,238,000 445,642 ------------ 1,876,310 ------------ AIRLINES 0.1% Air China Ltd., H ........................................ China 448,000 228,076 a Air China Ltd., H, 144A .................................. China 500,000 254,549 ------------ 482,625 ------------ AUTO COMPONENTS 1.7% Cheng Shin Rubber Industry Co. Ltd. ...................... Taiwan 7,357,897 7,781,078 Norstar Founders Group Ltd. .............................. China 9,894,000 3,319,857 Weifu High-Technology Co. Ltd., B ........................ China 1,212,987 888,869 Xinyi Glass Holding Co. Ltd. ............................. China 2,020,000 895,937 ------------ 12,885,741 ------------ AUTOMOBILES 1.1% b Brilliance China Automotive Holdings Ltd. ................ China 8,878,000 1,518,007 China Motor Corp. ........................................ Taiwan 4,446,715 4,069,968 Chongqing Changan Automobile Co. Ltd., B ................. China 5,297,380 3,091,889 ------------ 8,679,864 ------------ CAPITAL MARKETS 0.2% Yuanta Core Pacific Securities Co. ....................... Taiwan 2,247,156 1,744,082 ------------ COMMERCIAL BANKS 13.5% a,b Bank of China Ltd., H, 144A .............................. China 41,306,000 20,019,878 China Construction Bank Corp., H ......................... China 1,003,000 523,521 a China Construction Bank Corp., H, 144A ................... China 30,832,000 16,092,913 a,b China Merchants Bank Co. Ltd., H, 144A ................... China 1,535,500 2,949,221 Chinatrust Financial Holding Co. Ltd. .................... Taiwan 14,035,842 11,978,641 HSBC Holdings PLC ........................................ United Kingdom 1,479,362 27,482,057 a,b Industrial and Commercial Bank of China, H, 144A ......... China 22,778,000 11,537,687 Mega Financial Holding Co. Ltd. .......................... Taiwan 18,334,000 13,889,394 ------------ 104,473,312 ------------ COMMUNICATIONS EQUIPMENT 0.6% D-Link Corp. ............................................. Taiwan 3,914,373 4,720,487 ------------ COMPUTERS & PERIPHERALS 5.1% Acer Inc. ................................................ Taiwan 4,008,559 8,651,745 Asustek Computer Inc. .................................... Taiwan 8,427,294 23,165,938 Lite-On It Corp. ......................................... Taiwan 3,955,160 3,540,565 Lite-On Technology Corp. ................................. Taiwan 3,125,877 4,054,748 ------------ 39,412,996 ------------ CONSTRUCTION MATERIALS 0.1% Anhui Conch Cement Co. Ltd., H ........................... China 304,000 951,655 ------------ DISTRIBUTORS 2.0% China Resources Enterprise Ltd. .......................... China 5,548,000 14,079,607 Test-Rite International Co. Ltd. ......................... Taiwan 2,162,468 1,163,480 ------------ 15,243,087 ------------
Quarterly Statement of Investments | 3 Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - -------------------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) DIVERSIFIED TELECOMMUNICATION SERVICES 3.2% China Telecom Corp. Ltd., H ..................... China 53,807,833 $24,764,837 ----------- ELECTRIC UTILITIES 2.4% Cheung Kong Infrastructure Holdings Ltd. ........ Hong Kong 6,024,548 18,356,072 ----------- ELECTRICAL EQUIPMENT 1.5% BYD Co. Ltd., H ................................. China 1,579,500 4,914,077 Phoenixtec Power Co. Ltd. ....................... Taiwan 5,599,055 6,198,088 Yorkey Optical International Cayman Ltd. ........ Hong Kong 322,000 102,663 ----------- 11,214,828 ----------- ELECTRONIC EQUIPMENT & INSTRUMENTS 3.0% AU Optronics Corp. .............................. Taiwan 4,066,000 5,469,109 Delta Electronics Inc. .......................... Taiwan 1,739,521 5,346,580 Synnex Technology International Corp. ........... Taiwan 9,007,680 10,180,294 b Yageo Corp. ..................................... Taiwan 5,208,000 2,270,649 ----------- 23,266,632 ----------- FOOD & STAPLES RETAILING 5.0% Dairy Farm International Holdings Ltd. .......... Hong Kong 10,219,776 31,681,306 President Chain Store Corp. ..................... Taiwan 2,844,088 7,035,468 ----------- 38,716,774 ----------- FOOD PRODUCTS 0.7% People's Food Holdings Ltd. ..................... China 2,791,000 2,157,733 Uni-President Enterprises Corp. ................. Taiwan 2,705,950 2,644,033 b Xiwang Sugar Holdings Co. Ltd. .................. China 1,782,000 991,979 ----------- 5,793,745 ----------- HOTELS, RESTAURANTS & LEISURE 0.9% The Hongkong and Shanghai Hotels Ltd. ........... Hong Kong 4,269,954 6,587,360 ----------- HOUSEHOLD DURABLES 0.1% Samson Holding Ltd. ............................. China 1,418,000 820,343 ----------- INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 3.4% Datang International Power Generation Co. Ltd., H China 11,586,320 9,801,179 Guangdong Electric Power Development Co. Ltd., B China 11,958,943 7,502,734 Huadian Power International Corp. Ltd., H ....... China 16,098,000 6,208,692 Huaneng Power International Inc., H ............. China 3,692,776 3,009,880 ----------- 26,522,485 ----------- INDUSTRIAL CONGLOMERATES 2.6% Citic Pacific Ltd. .............................. China 1,589,092 5,270,790 LG Corp. ........................................ South Korea 121,110 4,052,855 Shanghai Industrial Holdings Ltd. ............... China 4,870,253 10,368,568 ----------- 19,692,213 ----------- INSURANCE 1.2% China Life Insurance Co. Ltd., H ................ China 3,942,000 9,608,639 -----------
4 | Quarterly Statement of Investments Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ----------------------------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) INTERNET SOFTWARE & SERVICES 0.1% b Kongzhong Corp., ADR .................................... China 61,600 $ 503,272 b Sohu.com Inc. ........................................... China 1,500 36,705 ------------ 539,977 ------------ IT SERVICES 0.1% Travelsky Technology Ltd., H ............................ China 435,000 588,318 ------------ MACHINERY 1.2% China International Marine Containers (Group) Co. Ltd., B China 5,001,733 8,037,805 Yungtay Engineering Co. Ltd. ............................ Taiwan 2,524,000 1,471,162 ------------ 9,508,967 ------------ MEDIA 0.2% Next Media Ltd. ......................................... Hong Kong 80,000 32,192 a Next Media Ltd., 144A ................................... Hong Kong 3,510,000 1,412,402 ------------ 1,444,594 ------------ METALS & MINING 0.4% Aluminum Corp. of China Ltd., H ......................... China 3,452,000 2,773,689 ------------ OFFICE ELECTRONICS 0.2% Kinpo Electronics Inc. .................................. Taiwan 3,103,500 1,194,761 ------------ OIL, GAS & CONSUMABLE FUELS 20.3% China Petroleum and Chemical Corp., H ................... China 56,549,395 44,710,550 China Shenhua Energy Co. Ltd., H ........................ China 11,031,000 21,328,959 CNOOC Ltd. .............................................. China 36,015,000 31,762,485 a CNOOC Ltd., 144A ........................................ China 978,000 862,521 PetroChina Co. Ltd., H .................................. China 44,221,903 56,283,301 Yanzhou Coal Mining Co. Ltd., H ......................... China 2,020,000 1,436,096 ------------ 156,383,912 ------------ PAPER & FOREST PRODUCTS 1.3% Nine Dragons Paper Holdings Ltd. ........................ China 3,607,000 6,464,216 Shandong Chenming Paper Holdings Ltd., B ................ China 6,705,000 3,732,446 ------------ 10,196,662 ------------ PHARMACEUTICALS 0.2% Tong Ren Tang Technologies Co. Ltd., H .................. China 1,056,000 1,623,686 ------------ REAL ESTATE 2.7% Cheung Kong (Holdings) Ltd. ............................. Hong Kong 1,360,690 16,076,135 Henderson Investment Ltd. ............................... Hong Kong 2,641,756 4,680,032 ------------ 20,756,167 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.8% Faraday Technology Corp. ................................ Taiwan 1,257,229 2,285,871 Realtek Semiconductor Corp. ............................. Taiwan 3,182,550 4,949,977 Samsung Electronics Co. Ltd. ............................ South Korea 5,510 3,782,622 Sunplus Technology Co. Ltd. ............................. Taiwan 3,528,717 3,622,554 Taiwan Semiconductor Manufacturing Co. Ltd. ............. Taiwan 10,945,762 22,169,061 ------------ 36,810,085 ------------
Quarterly Statement of Investments | 5 Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
- ---------------------------------------------------------------------------------------------- COUNTRY SHARES VALUE - ---------------------------------------------------------------------------------------------- COMMON STOCKS (CONTINUED) TEXTILES, APPAREL & LUXURY GOODS 0.1% Tack Fat Group International Ltd. .............. Hong Kong 6,352,000 $ 906,443 ------------ TRANSPORTATION INFRASTRUCTURE 3.5% Cosco Pacific Ltd. ............................. China 1,641,449 3,621,193 b Hainan Meilan International Airport Co. Ltd., H China 3,717,000 1,639,055 Hopewell Holdings Ltd. ......................... Hong Kong 6,526,000 21,729,702 ------------ 26,989,950 ------------ WIRELESS TELECOMMUNICATION SERVICES 10.3% China Mobile Ltd. .............................. China 9,121,770 76,694,426 Taiwan Mobile Co. Ltd. ......................... Taiwan 2,496,930 2,497,703 ------------ 79,192,129 ------------ TOTAL COMMON STOCKS (COST $478,631,237) ........ 724,723,427 ------------ ----------- PRINCIPAL AMOUNT ----------- SHORT TERM INVESTMENTS 5.0% GOVERNMENT AND AGENCY SECURITIES 5.0% c Federal Home Loan Bank, 12/01/06 ............... United States $12,708,000 12,708,000 c U.S. Treasury Bill, 12/28/06 ................... United States 26,034,000 25,933,352 ------------ TOTAL SHORT TERM INVESTMENTS (COST $38,649,156) 38,641,352 ------------ TOTAL INVESTMENTS (COST $517,280,393) 99.0% .... 763,364,779 OTHER ASSETS, LESS LIABILITIES 1.0% ............ 7,636,553 ------------ NET ASSETS 100.0% .............................. $771,001,332 ============
a 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, 2006, the aggregate value of these securities was $53,129,171, representing 6.89% of net assets. b Non-income producing for the twelve months ended November 30, 2006. c The security is traded on a discount basis with no stated coupon rate. 6 | See Notes to Statement of Investments. | Quarterly Statement of Investments 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, 2006, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments ...................... $ 518,356,132 ============= Unrealized appreciation .................. $ 251,128,690 Unrealized depreciation .................. (6,120,043) ------------- Net unrealized appreciation (depreciation) $ 245,008,647 ============= 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. Quarterly Statement of Investments | 7 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 25, 2007 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 25, 2007 By /s/GALEN G. VETTER ------------------------------ Galen G. Vetter Chief Financial Officer Date January 25, 2007 EX-99.CERT 2 tch302nq1106.txt SECTION 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 25, 2007 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 25, 2007 S\GALEN G. VETTER Galen G. Vetter Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----