-----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, VbD/6mU8YhM2v1VajG58no9Cgie+bg80EJavzFpjd3Lk1iaWKcBKTifhEawjJogW b59aDpm5XYLBNRts261lyg== 0000909226-09-000006.txt : 20090128 0000909226-09-000006.hdr.sgml : 20090128 20090128161410 ACCESSION NUMBER: 0000909226-09-000006 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20081130 FILED AS OF DATE: 20090128 DATE AS OF CHANGE: 20090128 EFFECTIVENESS DATE: 20090128 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: 09551564 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_1108.txt TCH NQ FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY 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: 8/31 ----------- Date of reporting period: 11/30/08_ ---------- ITEM 1. SCHEDULE OF INVESTMENTS. Templeton China World Fund QUARTERLY STATEMENT OF INVESTMENTS NOVEMBER 30, 2008 CONTENTS Statement of Investments ................................................. 3 Notes to Statementof Investments ......................................... 7
(FRANKLIN TEMPLETON INVESTMENTS LOGO) Franklin - TEMPLETON - Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCKS AND OTHER EQUITY INTERESTS 99.5% AIR FREIGHT & LOGISTICS 0.1% Sinotrans Ltd., H .................................................. China 3,586,000 $ 485,792 ------------ AUTO COMPONENTS 1.8% Cheng Shin Rubber Industry Co. Ltd. ................................ Taiwan 7,773,423 6,864,053 Norstar Founders Group Ltd. ........................................ Hong Kong 15,182,000 2,037,103 (a) Zhejiang Glass Co. Ltd., H ......................................... China 2,869,000 340,541 ------------ 9,241,697 ------------ AUTOMOBILES 1.6% (a) Chongqing Changan Automobile Co. Ltd., B ........................... China 2,036,200 441,347 Dongfeng Motor Corp., H ............................................ China 26,316,000 5,975,623 Great Wall Motor Co. Ltd., H ....................................... China 2,496,500 718,269 Jiangling Motors Corp. Ltd., B ..................................... China 1,536,545 755,303 ------------ 7,890,542 ------------ COMMERCIAL BANKS 9.9% Bank of China Ltd., H .............................................. China 65,006,000 20,548,030 China Construction Bank Corp., H ................................... China 35,444,000 18,703,234 Industrial and Commercial Bank of China Ltd., H .................... China 21,499,000 10,540,289 ------------ 49,791,553 ------------ COMMUNICATIONS EQUIPMENT 0.4% ZTE Corp., H ....................................................... China 968,043 2,098,237 ------------ COMPUTERS & PERIPHERALS 4.1% Acer Inc. .......................................................... Taiwan 2,641,723 3,348,272 Asustek Computer Inc. .............................................. Taiwan 13,078,786 14,907,341 Compal Electronics Inc. ............................................ Taiwan 14,617 7,551 Lite-On IT Corp. ................................................... Taiwan 6,305,116 2,272,455 ------------ 20,535,619 ------------ CONSTRUCTION & ENGINEERING 0.0%(b) Baoye Group Co. Ltd., H ............................................ China 1,206,000 171,155 ------------ DISTRIBUTORS 1.9% China Resources Enterprise Ltd ..................................... Hong Kong 5,108,000 7,895,114 Dah Chong Hong Holdings Ltd. ....................................... Hong Kong 10,035,563 1,294,769 (c) Dah Chong Hong Holdings Ltd., 144A ................................. Hong Kong 502,000 64,767 ------------ 9,254,650 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 0.9% China Telecom Corp. Ltd., H ........................................ China 3,843,833 1,462,976 China Unicom (Hong Kong) Ltd ....................................... China 2,572,168 3,172,546 ------------ 4,635,522 ------------ ELECTRIC UTILITIES 4.4% Cheung Kong Infrastructure Holdings Ltd ............................ Hong Kong 5,700,548 22,064,217 ------------ ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 2.2% Synnex Technology International Corp. .............................. Taiwan 9,922,070 10,117,263 Wasion Group Ltd ................................................... Hong Kong 2,172,000 367,098 (c) Wasion Group Ltd., 144A ............................................ Hong Kong 3,884,000 656,449 ------------ 11,140,810 ------------
Quarterly Statement of Investments | 3 Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCK SAND OTHER EQUITY INTERESTS (CONTINUED) ENERGY EQUIPMENT & SERVICES 0.0%(b) Anhui Tianda Oil Pipe Co. Ltd., H .................................. China 1,545,000 $ 179,400 ------------ FOOD & STAPLES RETAILING 9.5% Beijing Jingkelong Supermarket Chain Group Co. Ltd., H ............. China 1,570,000 486,140 Dairy Farm International Holdings Ltd. ............................. Hong Kong 10,300,776 41,203,104 President Chain Store Corp ......................................... Taiwan 2,560,088 5,997,503 ------------ 47,686,747 ------------ FOOD PRODUCTS 1.4% China Foods Ltd .................................................... China 8,630,000 2,549,746 China Huiyuan Juice Group Ltd ...................................... China 717,500 860,906 People's Food Holdings Ltd ......................................... China 3,602,000 1,475,742 Uni-President Enterprises Corp. .................................... Taiwan 1,317,925 1,264,685 Xiwang Sugar Holdings Co. Ltd. ..................................... Hong Kong 8,826,000 1,070,391 ------------ 7,221,470 ------------ HOTELS, RESTAURANTS & LEISURE 0.4% NagaCorp Ltd ....................................................... Cambodia 16,609,000 2,228,576 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 4.0% Datang International Power Generation Co. Ltd., H .................. China 22,334,640 10,604,189 Guangdong Electric Power Development Co. Ltd., B ................... China 12,171,859 3,816,048 Huadian Power International Corp. Ltd., H .......................... China 2,594,000 562,251 Huaneng Power International Inc., H ................................ China 7,296,776 4,885,950 ------------ 19,868,438 ------------ INDUSTRIAL CONGLOMERATES 2.1% Hutchison Whampoa Ltd .............................................. Hong Kong 224,000 1,124,212 Shanghai Industrial Holdings Ltd ................................... China 4,944,253 9,338,829 ------------ 10,463,041 ------------ INSURANCE 0.8% China Life Insurance Co. Ltd., H ................................... China 1,586,000 4,080,177 ------------ IT SERVICES 0.1% Travelsky Technology Ltd., H ....................................... China 1,626,000 522,361 ------------ LEISURE EQUIPMENT & PRODUCTS 0.1% Yorkey Optical International Cayman Ltd ............................ China 7,845,000 587,045 ------------ MACHINERY 1.3% China International Marine Containers (Group) Co. Ltd., B .......... China 5,972,080 3,220,717 Lonking Holdings Ltd. .............................................. China 2,633,000 1,090,452 Shin Zu Shing Co. Ltd. ............................................. Taiwan 658,566 1,617,982 Zhongde Waste Technology AG ........................................ Germany 34,492 490,653 ------------ 6,419,804 ------------ MARINE 0.1% Sinotrans Shipping Ltd. ............................................ Hong Kong 1,795,000 426,121 ------------ MEDIA 0.1% Next Media Ltd. .................................................... Hong Kong 3,778,000 463,059 ------------ OFFICE ELECTRONICS 0.1% Kinpo Electronics Inc. ............................................. Taiwan 2,939,201 534,079 ------------
4 | Quarterly Statement of Investments Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCKSAND OTHER EQUITY INTERESTS (CONTINUED) OIL, GAS & CONSUMABLE FUELS 28.8% China Petroleum and Chemical Corp., H .............................. China 64,539,395 $ 42,882,765 China Shenhua Energy Co. Ltd., H ................................... China 9,112,500 17,047,324 CNOOC Ltd. ......................................................... China 42,221,000 34,045,459 PetroChina Co. Ltd., H ............................................. China 51,061,903 42,096,746 Yanzhou Coal Mining Co. Ltd., H .................................... China 15,486,000 8,591,290 ------------ 144,663,584 ------------ PHARMACEUTICALS 0.2% Tong Ren Tang Technologies Co. Ltd., H ............................. China 1,349,000 882,410 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 5.6% Cheung Kong (Holdings) Ltd. ........................................ Hong Kong 773,690 7,286,862 Hopewell Holdings Ltd. ............................................. Hong Kong 7,059,000 18,305,850 Soho China Ltd. .................................................... China 6,184,000 1,994,620 (c) Soho China Ltd., 144A .............................................. China 712,000 229,652 ------------ 27,816,984 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 4.8% MediaTek Inc. ...................................................... Taiwan 388,330 2,589,255 Novatek Microelectronics Corp. Ltd. ................................ Taiwan 1,189,843 1,018,487 Taiwan Semiconductor Manufacturing Co. Ltd ......................... Taiwan 16,761,526 20,539,729 ------------ 24,147,471 ------------ SOFTWARE 0.1% (a) Shanda Interactive Entertainment Ltd., ADR ......................... China 18,300 392,718 ------------ SPECIALTY RETAIL 0.1% GOME Electrical Appliances Holdings Ltd ............................ Hong Kong 2,616,000 378,013 ------------ TEXTILES, APPAREL & LUXURY GOODS 0.2% (a, d) Tack Fat Group International Ltd. .................................. Hong Kong 8,352,000 -- Victory City International Holdings Ltd. ........................... Hong Kong 5,724,015 679,422 Weiqiao Textile Co. Ltd., H ........................................ China 2,146,500 490,179 ------------ 1,169,601 ------------ TRANSPORTATION INFRASTRUCTURE 1.1% Cosco Pacific Ltd .................................................. China 5,759,449 4,235,518 (c) Rickmers Maritime, 144A(Trust Units) ............................... Singapore 4,523,000 1,225,421 ------------ 5,460,939 ------------ WIRELESS TELECOMMUNICATION SERVICES 11.3% China Mobile Ltd. .................................................. China 5,933,270 54,426,998 Taiwan Mobile Co. Ltd. ............................................. Taiwan 1,433,687 2,131,476 ------------ 56,558,474 ------------ TOTAL COMMON STOCKS AND OTHER EQUITY INTERESTS BEFORE SHORT TERM INVESTMENTS (COST $499,741,184) ...................... 499,460,306 ------------
Quarterly Statement of Investments | 5 Templeton China World Fund STATEMENT OF INVESTMENTS, NOVEMBER 30, 2008 (UNAUDITED) (CONTINUED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ SHORT TERM INVESTMENTS (COST $3,938,802) 0.8% MONEY MARKET FUNDS 0.8% (e) Franklin Institutional Fiduciary Trust Money Market Portfolio, 0.99% ................................................ United States 3,938,802 $ 3,938,802 ------------ TOTAL INVESTMENTS (COST $503,679,986) 100.3% . 503,399,108 OTHER ASSETS, LESS LIABILITIES (0.3)% (1,702,400) ------------ NET ASSETS 100.0% $501,696,708 ============
See Abbreviations on page 9. (a) Non-income producing for the twelve months ended November 30, 2008. (b) Rounds to less than 0.1% of net assets. (c) 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, 2008, the aggregate value of these securities was $2,176,289, representing 0.43% of net assets. (d) Security has been deemed illiquid because it may not be able to be sold within seven days. At November 30, 2008, the value of this security was $0. (e) The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed by an affiliate of the Fund's investment manager. The rate shown is the annualized seven-day yield at period end. See Notes to Statement of Investments. 6 | Quarterly Statement of Investments Templeton China World Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) 1. ORGANIZATION Templeton China World Fund (Fund) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end investment company. 2. SECURITY VALUATION Securities listed on a securities exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Over-the-counter securities and listed securities for which there is no reported sale are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Investments in open-end mutual funds are valued at the closing net asset value. Foreign securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded, or the NYSE, whichever is earlier. If no sale is reported at that time, the foreign security will be valued within the range of the most recent quoted bid and ask prices. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at the close of the NYSE on the day that the value of the foreign security is determined.Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert to the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Fund's Board of Trustees. The Fund has procedures to determine the fair value of individual securities and other assets for which market prices are not readily available or which may not be reliably priced. Methods for valuing these securities may include: fundamental analysis, matrix pricing, discounts from market prices of similar securities, or discounts applied due to the nature and duration of restrictions on the disposition of the securities. Due to the inherent uncertainty of valuations of such securities, the fair values may differ significantly from the values that would have been used had a ready market for such investments existed. Occasionally, events occur between the time at which trading in a security is completed and the close of the NYSE that might call into question the availability (including the reliability) of the value of a portfolio security held by the Fund. The investment manager monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depository Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred. If such an event occurs, the securities may be valued using fair value proce-dures, which may include the use of independent pricing services. All security valuation procedures are approved by the Fund's Board of Trustees. Quarterly Statement of Investments | 7 Templeton China World Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES At November 30, 2008, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments ......................... $ 504,292,507 ============= Unrealized appreciation ..................... $ 129,758,830 Unrealized depreciation ..................... (130,652,229) ------------- Net unrealized appreciation (depreciation) .. $ (893,399) =============
4. FAIR VALUE MEASUREMENTS The Fund adopted Financial Accounting Standards Board (FASB) issued FASB Statement No. 157, "Fair Value Measurement" (SFAS 157), on September 1, 2008. SFAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The Fund has determined that the implementation of SFAS 157 did not have a material impact on the Fund's financial statements. SFAS 157 establishes a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund's own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund's investments and are summarized in the following fair value hierarchy: - - Level 1 - quoted prices in active markets for identical securities - - Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.) - - Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. At November 30, 2008, $503,399,108 of the Fund's investments in securities carried at fair value were in Level 1 inputs. 8 | Quarterly Statement of Investments Templeton China World Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 5. NEW ACCOUNTING PRONOUNCEMENT In March 2008, FASB issued FASB Statement No. 161, "Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133" (SFAS 161), which expands disclosures about derivative investments and hedging activities. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. The Fund is currently evaluating the impact, if any, of applying the various provisions of SFAS 161. ABBREVIATIONS SELECTED PORTFOLIO ADR - American Depository Receipt For information on the Fund's policy regarding other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report. Quarterly Statement of Investments | 9 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) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Jennifer J. Bolt, Chief Executive Officer - Finance and Administration, and Laura F. Fergerson, Chief Financial Officer and Chief Accounting 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/JENNIFER J. BOLT -------------------------------- Jennifer J. Bolt Chief Executive Officer - Finance and Administration Date January 27, 2009 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/JENNIFER J. BOLT -------------------------------- Jennifer J. Bolt Chief Executive Officer - Finance and Administration Date January 27, 2009 By /s/LAURA F. FERGERSON ------------------------------- Laura F. Fergerson Chief Financial Officer and Chief Accounting Officer Date January 27, 2009 EX-99.CERT 2 tch302cert_1108.txt 302 CERTS FOR TCH Exhibit 3(a) I, Jennifer J. Bolt, 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. 1/27/2009 S\ JENNIFER J. BOLT Jennifer J. Bolt Chief Executive Officer - Finance and Administration I, Laura F. Fergerson, 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. 1/27/2009 S\ LAURA F. FERGERSON Laura F. Fergerson Chief Financial Officer and Chief Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----