-----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, Rbkx15nbwn3CXjs20xKvomTJJMe25LkRInKcafZ0so88MtEV+a4ih3+XPJ+w96Pi 0xJ8RxQK83aLLmnJ/zWgmw== 0000909226-09-000015.txt : 20090728 0000909226-09-000015.hdr.sgml : 20090728 20090728150551 ACCESSION NUMBER: 0000909226-09-000015 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090531 FILED AS OF DATE: 20090728 DATE AS OF CHANGE: 20090728 EFFECTIVENESS DATE: 20090728 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: 09967045 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_0509.txt TCH NQ 5-31-09 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: 05/31/09 ---------- ITEM 1. SCHEDULE OF INVESTMENTS. Templeton China World Fund QUARTERLY STATEMENT OF INVESTMENTS MAY 31, 2009 CONTENTS Statement of Investments ................................................. 3 Notes to Statement of Investments ........................................ 7
(FRANKLIN TEMPLETON INVESTMENTS(R) LOGO) Franklin - TEMPLETON - Mutual Series Quarterly Statement of Investments | 1 This page intentionally left blank. Templeton China World Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCKS AND OTHER EQUITY INTERESTS 96.1% AIR FREIGHT & LOGISTICS 0.1% Sinotrans Ltd., H ............................................. China 3,586,000 $ 929,789 ------------ AUTO COMPONENTS 1.9% Cheng Shin Rubber Industry Co. Ltd. ........................... Taiwan 7,773,423 13,068,985 (a) Norstar Founders Group Ltd. ................................... Hong Kong 15,182,000 -- ------------ 13,068,985 ------------ AUTOMOBILES 3.8% (b) Chongqing Changan Automobile Co. Ltd., B ...................... China 2,216,100 909,064 Dongfeng Motor Corp., H ....................................... China 22,509,478 21,603,106 Great Wall Motor Co. Ltd., H .................................. China 2,383,038 1,967,382 (c) Jiangling Motors Corp. Ltd., B ................................ China 2,303,145 2,180,696 ------------ 26,660,248 ------------ BEVERAGES 0.2% (b) Yantai Changyu Pioneer Wine Co. Ltd., B ....................... China 284,500 1,553,123 ------------ COMMERCIAL BANKS 7.7% Bank of China Ltd., H ......................................... China 43,374,000 19,470,923 (d) Bank of China Ltd., H, 144A ................................... China 8,165,000 3,665,332 China Construction Bank Corp., H .............................. China 31,198,000 20,283,137 Industrial and Commercial Bank of China Ltd., H ............... China 16,801,000 10,576,276 ------------ 53,995,668 ------------ COMMUNICATIONS EQUIPMENT 0.5% ZTE Corp., H .................................................. China 1,028,875 3,437,480 ------------ COMPUTERS & PERIPHERALS 2.6% Acer Inc. ..................................................... Taiwan 617,723 1,114,346 Asustek Computer Inc. ......................................... Taiwan 9,804,786 13,776,935 Lite-On IT Corp. .............................................. Taiwan 6,305,116 3,520,574 ------------ 18,411,855 ------------ DISTRIBUTORS 2.1% China Resources Enterprise Ltd. ............................... Hong Kong 5,108,000 11,241,073 Dah Chong Hong Holdings Ltd. .................................. Hong Kong 10,035,563 3,249,326 (d) Dah Chong Hong Holdings Ltd., 144A ............................ Hong Kong 502,000 162,538 ------------ 14,652,937 ------------ DIVERSIFIED TELECOMMUNICATION SERVICES 0.6% China Telecom Corp. Ltd., H ................................... China 2,195,833 1,031,047 (b) China Unicom (Hong Kong) Ltd. ................................. China 2,572,168 3,152,106 ------------ 4,183,153 ------------ ELECTRIC UTILITIES 2.8% Cheung Kong Infrastructure Holdings Ltd. ...................... Hong Kong 5,263,548 19,452,752 ------------ ELECTRICAL EQUIPMENT 0.2% Dongfang Electric Co. Ltd., H ................................. China 408,200 1,579,691 ------------
Quarterly Statement of Investments | 3 Templeton China World Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCKS AND OTHER EQUITY INTERESTS (CONTINUED) ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 2.8% (b) China Security & Surveillance Technology Inc. ................. United States 161,300 $ 1,130,713 Synnex Technology International Corp. ......................... Taiwan 9,264,070 15,148,793 Wasion Group Holdings Ltd. .................................... Hong Kong 2,172,000 1,255,208 (d) Wasion Group Holdings Ltd., 144A .............................. Hong Kong 3,884,000 2,244,580 ------------ 19,779,294 ------------ ENERGY EQUIPMENT & SERVICES 0.1% Anhui Tianda Oil Pipe Co. Ltd., H ............................. China 1,083,000 378,596 ------------ FOOD & STAPLES RETAILING 9.1% Beijing Jingkelong Co. Ltd., H ................................ China 2,631,553 1,463,077 Dairy Farm International Holdings Ltd. ........................ Hong Kong 10,278,276 55,502,690 President Chain Store Corp. ................................... Taiwan 2,560,088 6,597,558 ------------ 63,563,325 ------------ FOOD PRODUCTS 1.8% China Foods Ltd. .............................................. China 9,352,000 5,223,604 (c) China Yurun Food Group Ltd. ................................... China 1,947,000 2,732,579 People's Food Holdings Ltd. ................................... China 3,602,000 1,533,774 Uni-President Enterprises Corp. ............................... Taiwan 1,154,925 1,277,344 (b) Xiwang Sugar Holdings Co. Ltd. Hong Kong 9,746,000 2,086,951 ------------ 12,854,252 ------------ HOTELS, RESTAURANTS & LEISURE 0.3% NagaCorp Ltd. ................................................. Cambodia 16,718,549 2,264,466 ------------ INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 3.1% Datang International Power Generation Co. Ltd., H ............. China 22,334,640 11,351,494 Guangdong Electric Power Development Co. Ltd., B .............. China 12,171,859 4,945,900 Huaneng Power International Inc., H ........................... China 8,732,776 5,722,606 ------------ 22,020,000 ------------ INDUSTRIAL CONGLOMERATES 3.0% Hutchison Whampoa Ltd. ........................................ Hong Kong 224,000 1,570,455 Shanghai Industrial Holdings Ltd. ............................. China 4,822,253 19,097,046 ------------ 20,667,501 ------------ INSURANCE 1.4% China Life Insurance Co. Ltd., H .............................. China 2,701,000 9,842,850 ------------ INTERNET SOFTWARE & SERVICES 0.7% (b) Sohu.com Inc. ................................................. China 83,275 5,257,983 ------------ IT SERVICES 0.2% Travelsky Technology Ltd., H .................................. China 2,347,294 1,232,366 ------------ LEISURE EQUIPMENT & PRODUCTS 0.2% Yorkey Optical International Cayman Ltd. ...................... China 7,845,000 1,396,529 ------------ MACHINERY 1.6% China International Marine Containers (Group) Co. Ltd., B ..... China 3,619,080 2,894,461 Lonking Holdings Ltd. ......................................... China 7,928,000 4,100,963 Shin Zu Shing Co. Ltd. ........................................ Taiwan 658,566 3,141,801 Zhongde Waste Technology AG ................................... Germany 36,266 785,127 ------------ 10,922,352 ------------
4 | Quarterly Statement of Investments Templeton China World Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCKS AND OTHER EQUITY INTERESTS (CONTINUED) MARINE 0.7% China Shipping Development Co. Ltd., H ........................ China 2,540,000 $ 3,754,881 Sinotrans Shipping Ltd. ....................................... Hong Kong 1,795,000 930,826 ------------ 4,685,707 ------------ MEDIA 0.1% Next Media Ltd. ............................................... Hong Kong 3,778,000 623,806 ------------ METALS & MINING 0.5% (c) Angang Steel Co. Ltd., H ...................................... China 2,138,000 3,171,636 China Steel Corp. ............................................. Taiwan 498,000 423,212 ------------ 3,594,848 ------------ OFFICE ELECTRONICS 0.1% Kinpo Electronics Inc. ........................................ Taiwan 2,939,201 753,849 ------------ OIL, GAS & CONSUMABLE FUELS 28.0% China Coal Energy Co., H ...................................... China 724,000 861,087 China Petroleum and Chemical Corp., H ......................... China 65,461,395 52,523,478 China Shenhua Energy Co. Ltd., H .............................. China 8,344,500 27,717,585 CNOOC Ltd. .................................................... China 40,565,000 53,373,967 PetroChina Co. Ltd., H ........................................ China 36,907,903 42,325,195 Yanzhou Coal Mining Co. Ltd., H ............................... China 15,486,000 19,217,291 ------------ 196,018,603 ------------ PHARMACEUTICALS 0.3% Tong Ren Tang Technologies Co. Ltd., H ........................ China 1,349,000 2,088,195 ------------ REAL ESTATE MANAGEMENT & DEVELOPMENT 4.5% Cheung Kong (Holdings) Ltd. ................................... Hong Kong 651,690 8,053,495 (b) Greentown China Holdings Ltd. ................................. Hong Kong 588,000 637,139 Hopewell Holdings Ltd. ........................................ Hong Kong 5,935,500 18,260,957 Soho China Ltd. ............................................... China 6,184,000 3,940,708 (d) Soho China Ltd., 144A China 712,000 453,717 ------------ 31,346,016 ------------ SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 5.1% MediaTek Inc. ................................................. Taiwan 366,330 4,495,536 Taiwan Semiconductor Manufacturing Co. Ltd. ................... Taiwan 16,761,526 31,059,861 ------------ 35,555,397 ------------ SOFTWARE 0.4% (b) Shanda Interactive Entertainment Ltd., ADR .................... China 54,800 3,157,576 ------------ SPECIALTY RETAIL 0.1% (a) GOME Electrical Appliances Holdings Ltd. ...................... Hong Kong 2,616,000 377,949 ------------ TEXTILES, APPAREL & LUXURY GOODS 0.3% Victory City International Holdings Ltd. ...................... Hong Kong 8,586,022 874,977 Weiqiao Textile Co. Ltd., H ................................... China 2,146,500 1,193,400 ------------ 2,068,377 ------------
Quarterly Statement of Investments | 5 Templeton China World Fund STATEMENT OF INVESTMENTS, MAY 31, 2009 (UNAUDITED) (CONTINUED)
COUNTRY SHARES/UNITS VALUE ------------- ------------ ------------ COMMON STOCKS AND OTHER EQUITY INTERESTS (CONTINUED) TRANSPORTATION INFRASTRUCTURE 1.6% Cosco Pacific Ltd. ............................................ China 5,759,449 $ 7,800,960 Hopewell Highway Infrastructure Ltd. .......................... Hong Kong 593,550 336,124 Rickmers Maritime (Trust Units) ............................... Singapore 4,523,000 1,816,340 (b) Sichuan Expressway Co. Ltd., H ................................ China 3,122,000 1,043,063 ------------ 10,996,487 ------------ WIRELESS TELECOMMUNICATION SERVICES 7.6% China Mobile Ltd. ............................................. China 5,267,770 51,439,948 Taiwan Mobile Co. Ltd. ........................................ Taiwan 1,096,687 1,944,731 ------------ 53,384,679 ------------ TOTAL COMMON STOCKS AND OTHER EQUITY INTERESTS (COST $452,223,085) ........................................ 672,756,684 ------------ SHORT TERM INVESTMENTS (COST $19,491,667) 2.8% MONEY MARKET FUNDS 2.8% (e) Institutional Fiduciary Trust Money Market Portfolio, 0.02% ... United States 19,491,667 19,491,667 ------------ TOTAL INVESTMENTS (COST $471,714,752) 98.9% ................... 692,248,351 OTHER ASSETS, LESS LIABILITIES 1.1% ........................... 7,832,557 ------------ NET ASSETS 100.0% ............................................. $700,080,908 ============
See Abbreviations on page 10. (a) Security has been deemed illiquid because it may not be able to be sold within seven days. At May 31, 2009, the aggregate value of these securities was $377,949, representing 0.05% of net assets. (b) Non-income producing. (c) A portion or all of the security purchased on a delayed delivery basis. (d) 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 May 31, 2009, the aggregate value of these securities was $6,526,167, representing 0.93% of net assets. (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 an 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 procedures, 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 May 31, 2009, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows: Cost of investments .......................... $475,322,495 Unrealized appreciation ...................... $267,681,508 Unrealized depreciation ...................... (50,755,652) ------------ Net unrealized appreciation (depreciation) ... $216,925,856 ============
4. FAIR VALUE MEASUREMENTS The Fund adopted Financial Accounting Standards Board (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. The following is a summary of the inputs used as of May 31, 2009, in valuing the Fund's assets carried at fair value:
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------ ------- -------- ------------ ASSETS: Investments in Securities .... $691,870,402 $-- $377,949 $692,248,351
8 | Quarterly Statement of Investments Templeton China World Fund NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED) 4. FAIR VALUE MEASUREMENTS (CONTINUED) At May 31, 2009, the reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value, is as follows:
INVESTMENTS IN SECURITIES -------------- Beginning Balance - September 1, 2008 ..................... $ -- Net realized gain (loss) ............................... -- Net change in unrealized appreciation (depreciation) ... (1,428,951) Net purchases (sales) .................................. -- Transfers in and/or out of Level 3 ..................... 1,806,900 ----------- Ending Balance ............................................ $ 377,949 ----------- Net change in unrealized appreciation (depreciation) attributable to assets still held at end of period ..... $(1,428,951) -----------
5. NEW ACCOUNTING PRONOUNCEMENTS In April 2009, FASB issued FASB Staff Position FSP FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly" (FSP FAS 157-4), which provides additional guidance when the volume and level of activity for the asset or liability measured at fair value have significantly decreased. Additionally, FSP FAS 157-4 amends SFAS 157, expanding disclosure requirements by reporting entities surrounding the major categories of assets and liabilities carried at fair value. FSP FAS 157-4 is effective for interim and annual periods ending after June 15, 2009. The Fund believes applying FSP FAS 157-4 will not have a material impact on its financial statements. In May 2009, FASB issued Statement No. 165, "Subsequent Events", which is intended to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before the statements are issued or are available to be issued. FASB 165 is effective for interim or annual financial periods ending after June 15, 2009, the adoption of FASB 165 will not have a material impact on the financial statements. 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 Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and Mark H. Otani, 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/LAURA F. FERGERSON --------------------------------- Laura F. Fergerson Chief Executive Officer - Finance and Administration Date July 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/LAURA F. FERGERSON --------------------------------- Laura F. Fergerson Chief Executive Officer - Finance and Administration Date July 27, 2009 By /s/MARK H. OTANI -------------------------------- Mark H. Otani Chief Financial Officer and Chief Accounting Officer Date July 27, 2009 EX-99.CERT 2 tch302cert_509.txt 302 CERTS FOR TCH Exhibit 3 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. 7/27/2009 S\ LAURA F. FERGERSON Laura F. Fergerson Chief Executive Officer - Finance and Administration I, Mark H. Otani, 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. 7/27/2009 S\ MARK H. OTANI Mark H. Otani Chief Financial Officer and Chief Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----