0001868420-22-000094.txt : 20220426 0001868420-22-000094.hdr.sgml : 20220426 20220426114740 ACCESSION NUMBER: 0001868420-22-000094 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20220228 FILED AS OF DATE: 20220426 DATE AS OF CHANGE: 20220426 EFFECTIVENESS DATE: 20220426 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07876 FILM NUMBER: 22852597 BUSINESS ADDRESS: STREET 1: 300 S.E. 2ND STREET CITY: FORT LAUDERDALE STATE: FL ZIP: 33301-1923 BUSINESS PHONE: 9545277500 MAIL ADDRESS: STREET 1: 300 S.E. 2ND STREET CITY: FORT LAUDERDALE STATE: FL ZIP: 33301-1923 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 C000023805 Class C TCWCX C000023806 Advisor Class TACWX C000128752 Class R6 FCWRX N-CSRS 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSRS
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
Investment Company Act file number 811-07876
 
Templeton China World Fund
(Exact name of registrant as specified in charter)
 
300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923

(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: 2/28/22
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report.
Not Applicable
.
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Templeton
China
World
Fund
February
28,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
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FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
We
believe
China’s
market
valuations
may
be
nearing
a
floor
following
significant
negative
news
over
2021,
paired
with
near-term
headwinds
during
2022.
These
include
continued
COVID-19
outbreaks
and
audit-related
concerns
impacting
U.S.
listings.
We
expect
China
to
maintain
its
zero-
COVID-19
stance
well
into
the
year
to
safeguard
the
success
of
the
Chinese
Communist
Party’s
20th
National
Congress
in
late
2022.
Investor
sentiment
has
also
been
dampened
by
the
government’s
“Common
Prosperity”
campaign,
which
is
driving
new
regulation
across
industries.
In
our
opinion,
the
recent
regulatory
changes
are
partly
a
function
of
China’s
political
cycle,
which
is
likely
to
culminate
in
the
National
Congress.
As
the
political
dust
settles,
we
believe
regulatory
clarity
should
eventually
return,
as
it
has
in
past
political
cycles.
On
a
positive
note,
China’s
authorities
have
shown
that
they
still
have
a
strong
pro-growth
agenda
and
have
no
intention
to
choke
the
private
sector
with
rules.
They
have
the
policy
tools
to
stabilize
growth,
and
we
believe
they
are
ready
to
use
them
if
needed,
as
evidenced
by
the
recent
cut
in
the
country’s
reserve
requirement
ratio.
Decarbonization
is
an
important
trend
to
watch,
in
our
view.
China’s
efforts
to
achieve
net
zero
carbon
by
2060
could
contribute
significantly
to
the
world,
as
the
country
accounts
for
a
large
portion
of
global
carbon
emissions,
and
its
pledge
represents
the
majority
of
aggregate
emissions
across
countries
that
have
committed
to
net
zero.
The
transformation
of
China’s
energy
mix
will
be
critical,
in
our
opinion,
as
most
of
its
emissions
come
from
power
generation
and
industry.
Policymakers
have
targeted
these
areas
with
guidelines
that
enforce
the
adoption
of
green
energy,
carbon-efficient
manufacturing
and
energy
storage.
We
have
seen
growth
for
Chinese
solar
energy
companies
accelerate
sharply,
lifting
them
to
world-leading
industry
positions
in
the
process.
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
Historically,
patient
investors
have
achieved
rewarding
results
by
evaluating
their
goals,
diversifying
their
assets
globally
and
maintaining
a
disciplined
investment
program,
all
hallmarks
of
the
Templeton
investment
philosophy.
We
continue
to
recommend
investors
consult
financial
professionals
and
review
their
portfolios
to
design
a
long-term
strategy
and
portfolio
allocation
that
meet
their
individual
needs,
goals
and
risk
tolerance.
Templeton
China
World
Fund’s
semiannual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
Please
remember
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
investment
needs
in
the
years
ahead.
Sincerely,
Manraj
S.
Sekhon,
CFA
Chief
Investment
Officer
Franklin
Templeton
Emerging
Markets
Equity
This
letter
reflects
our
analysis
and
opinions
as
of
February
28,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Templeton
China
World
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
8
Financial
Highlights
and
Statement
of
Investments
9
Financial
Statements
16
Notes
to
Financial
Statements
20
Tax
Information
29
Shareholder
Information
30
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Templeton
China
World
Fund
This
semiannual
report
for
Templeton
China
World
Fund
covers
the
period
ended
February
28,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
long-term
capital
appreciation.
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
securities
of
“China
companies.”
Such
companies
are
those
that
are
organized
under
the
laws
of,
or
with
a
principal
office
in,
the
People’s
Republic
of
China
(China),
Hong
Kong
or
Taiwan;
or
for
which
the
principal
trading
market
is
in
China,
Hong
Kong
or
Taiwan;
or
that
derive
at
least
50%
of
their
revenues
from
goods
or
services
sold
or
produced,
or
have
at
least
50%
of
their
assets,
in
China.
Performance
Overview
For
the
six
months
ended
February
28,
2022,
the
Fund’s
Class
A
shares
posted
a
cumulative
total
return
of
-18.70%.
For
comparison,
the
MSCI
China
Index-NR,
which
measures
stock
market
performance
of
mid-
and
large-capitalization
companies
in
China,
posted
a
-16.79%
cumulative
total
return
for
the
same
period.
1
Please
note
index
performance
information
is
provided
for
reference
and
we
do
not
attempt
to
track
the
index
but
rather
undertake
investments
on
the
basis
of
fundamental
research.
You
can
find
more
performance
data
in
the
Performance
Summary
beginning
on
page
6
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
*Rounds
to
less
than
0.1%.
Economic
and
Market
Overview
China’s
economy
continued
to
grow
during
the
six
months
ended
February
28,
2022,
though
it
faced
several
challenges
during
the
period.
The
Chinese
government’s
“zero-COVID-19”
policy
led
to
strict
lockdowns
to
contain
outbreaks
of
the
virus,
which
particularly
hurt
consumer
spending.
China’s
year-on-year
growth
rate
moderated
in
2021’s
third
and
fourth
quarters
due
to
supply
chain
issues,
domestic
COVID-19
outbreaks,
power
shortages
and
a
speculative
bubble
in
the
property
market.
The
People’s
Bank
of
China
(PBOC)
cut
its
benchmark
loan
prime
rate
twice
during
the
period
to
spur
growth,
the
first
cuts
since
April
2020.
The
PBOC
also
made
a
significant
cash
injection
into
the
banking
system
in
October
2021
to
support
liquidity.
Chinese
equities
declined
during
the
period.
New
regulations
of
internet,
education
and
property
companies,
enacted
under
the
government’s
“common
prosperity”
campaign,
weighed
on
stocks.
Investor
sentiment
was
also
hurt
by
a
debt
crisis
at
a
major
Chinese
property
developer,
new
U.S.
government
restrictions
on
investments
in
Chinese
companies,
the
global
spread
of
the
COVID-19
Delta
and
Omicron
variants,
and
the
February
2022
Russian
invasion
of
Ukraine.
In
this
environment,
the
MSCI
China
All
Shares
Total
Return
Index-NR,
which
measures
the
performance
of
China
share
classes
listed
in
Hong
Kong,
Shanghai,
Shenzhen
and
outside
of
China,
posted
a
-11.32%
total
return,
and
the
MSCI
China
Index-NR
posted
a
-16.79%
total
return
for
the
six
months
ended
February
28,
2022.
1
Geographic
Composition
2/28/22
%
of
Total
Net
Assets
China
98.2%
Hong
Kong
1.8%
Short-Term
Investments
&
Other
Net
Assets*
(0.0)%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Net
Returns
(NR)
include
income
net
of
tax
withholding
when
dividends
are
paid.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
13
.
Templeton
China
World
Fund
4
franklintempleton.com
Semiannual
Report
Investment
Strategy
Our
investment
strategy
employs
a
fundamental
research,
value-oriented,
long-term
approach.
We
focus
on
the
market
price
of
a
company’s
securities
relative
to
our
evaluation
of
the
company’s
long-term
earnings,
asset
value
and
cash
flow
potential.
We
also
consider
a
company’s
profit
and
loss
outlook,
balance
sheet
strength,
cash
flow
trends
and
asset
value
in
relation
to
the
current
price.
Our
analysis
considers
the
company’s
corporate
governance
behavior
as
well
as
its
position
in
its
sector,
the
economic
framework
and
political
environment.
In
addition,
we
consider
the
overall
potential
impacts
of
material
environmental,
social
and
governance
(ESG)
factors
on
the
long-term
risk
and
return
profile
of
a
company
in
its
assessment.
Manager’s
Discussion
During
the
six
months
under
review,
key
contributors
to
the
Fund’s
absolute
performance
included
Luzhou
Laojiao,
Luxshare
Precision
Industry
and
China
Resources
Land.
Luzhou
Laojiao
is
a
leading
Chinese
liquor
producer.
Shares
rose
during
the
reporting
period
as
investors
returned
to
the
sector
following
a
sharp
correction
in
June
and
July
of
2021
amid
regulatory
concerns.
Investors
also
responded
positively
to
the
approval
of
a
new
share
incentive
program,
which
aligned
management
performance
with
corporate
earnings,
on
expectations
that
it
could
further
unlock
the
company’s
growth
potential.
Better-than-expected
revenue
and
net
profit
for
the
first
nine
months
of
2021,
supported
by
growth
in
mid-range
and
high-end
products,
further
drove
market
sentiment
in
the
stock.
Expectations
of
improving
retail
sales
and
regional
expansion
coupled
with
Luzhou
Laojiao’s
premium
brand
and
solid
distribution
network
also
supported
investor
sentiment.
Luxshare
Precision
is
one
of
the
world’s
largest
manufacturers
of
electronic
cables
and
connectors
for
use
in
a
wide
range
of
products,
including
personal
computers,
smartphones,
wearable
smart
devices
and
automobiles.
A
major
supplier
to
Apple
(not
a
Fund
holding),
sentiment
in
Luxshare
Precision
improved
due
to
anticipated
upward
earnings
revisions
amid
recovering
demand
in
wearables
from
key
customers
and
the
expansion
of
the
company’s
new
businesses.
Luxshare
Precision’s
plans
to
build
a
massive
iPhone
manufacturing
complex
in
eastern
China
also
came
into
focus,
raising
hopes
the
company
could
gain
even
more
Apple
business.
Investors
also
viewed
joint
venture
plans
with
a
Chinese
automobile
manufacturer
to
enter
the
automobile
assembly
business
positively.
In
late-
February
2022,
the
company
announced
a
private
placement
at
a
discount
to
market
price
to
fund
several
projects,
including
upgrading
and
constructing
production
facilities
for
smart
wearables
and
precision
components.
China
Resources
Land
is
one
of
the
leading
property
investment
and
development
companies
in
China
with
a
focus
on
first-
and
second-tier
cities.
China
Resources
Holdings
(not
a
Fund
holding),
a
central
state-owned
enterprise,
is
the
single
largest
shareholder
of
the
company.
Despite
industry
headwinds,
China
Resources
Land’s
2021
contracted
sales
recorded
double-digit
growth
and
exceeded
the
company’s
target.
Investors
also
favored
the
company’s
solid
recurring
income
yield—which
grew
substantially
in
2021—from
its
investment
properties
portfolio,
which
consists
largely
of
shopping
malls
and,
to
a
lesser
extent,
office
and
hotel
properties.
In
January
2022,
the
company
and
its
majority-held
subsidiary
China
Resources
Mixc
Lifestyle
Services
(not
a
Fund
holding)
signed
an
agreement
with
China
Merchants
Bank
(also
a
Fund
holding)
for
a
multi-
billion
U.S.
dollar
credit
line
to
finance
potential
merger
and
acquisitions.
Conversely,
major
detractors
from
absolute
performance
included
Alibaba
Group
Holding,
Wuxi
Biologics
Cayman
and
Meituan
Dianping.
Alibaba
is
the
leading
e-commerce
company
in
China.
Weakening
consumption
trends
amid
repeated
COVID-19
outbreaks
and
concerns
about
intensified
competition
in
the
domestic
e-commerce
market
weighed
on
sentiment
in
the
stock.
An
organizational
restructure
in
late
2021,
following
the
launch
of
several
strategic
initiatives,
suggested
Top
10
Holdings
2/28/22
Company
Sub-Industry
%
of
Total
Net
Assets
a
a
Tencent
Holdings
Ltd.
12.2%
Interactive
Media
&
Services
Alibaba
Group
Holding
Ltd.
8.1%
Internet
&
Direct
Marketing
Retail
China
Merchants
Bank
Co.
Ltd.
5.4%
Diversified
Banks
Meituan
Dianping
4.5%
Internet
&
Direct
Marketing
Retail
JD.com,
Inc.
4.4%
Internet
&
Direct
Marketing
Retail
ANTA
Sports
Products
Ltd.
4.1%
Apparel,
Accessories
&
Luxury
Goods
Luzhou
Laojiao
Co.
Ltd.
3.9%
Distillers
&
Vintners
NetEase
,
Inc.
3.3%
Interactive
Home
Entertainment
Guangzhou
Tinci
Materials
Technology
Co.
Ltd.
3.2%
Commodity
Chemicals
Wuxi
Biologics
Cayman,
Inc.
3.1%
Life
Sciences
Tools
&
Services
Templeton
China
World
Fund
5
franklintempleton.com
Semiannual
Report
management
had
been
actively
seeking
solutions
to
challenges
faced
by
the
company.
Alibaba
reported
mixed
fourth-quarter
2021
corporate
results
with
above-consensus
earnings,
but
slightly
lower-than-expected
revenue.
News
of
the
Chinese
government
monitoring
domestic
banks’
exposure
to
Alibaba’s
financial
technology
arm
Ant
Group
also
weighed
on
investor
sentiment.
We
remain
confident
in
the
strength
of
Alibaba’s
e-commerce
ecosystem.
The
company
has
also
been
pursuing
a
multi-engine
growth
strategy
for
the
longer
term,
which
includes
building
up
its
cloud
and
international
e-commerce
businesses.
Wuxi
Biologics
is
a
leading,
global
open-access
biologics
technology
platform
offering
end-to-end
solutions
to
clients
in
the
discovery,
development
and
manufacturing
of
biologics.
Returns
were
pressured
by
concerns
that
the
success
of
oral
COVID-19
therapies
could
reduce
the
use
of
vaccines
and
result
in
a
decline
in
COVID-19
related
projects
for
contract
development
and
manufacturing
organization
companies
such
as
Wuxi
Biologics.
In
early
February
2022,
the
U.S.
Bureau
of
Industry
and
Security
(BIS)
added
two
Wuxi
Biologics
subsidiaries
in
China
to
its
Unverified
List,
which
could
introduce
additional
requirements
for
business
deals
involving
American
companies.
However,
this
step
can
be
viewed
as
more
technical
in
nature,
primarily
because
the
BIS
has
been
unable
to
conduct
the
required
onsite
end-user
verifications
due
to
COVID-19-related
travel
restrictions,
and
the
company
has
consistently
received
approvals
over
the
past
decade.
Wuxi
Biologics
noted
limited
near-term
earnings
impact
was
expected
and
that
the
company
was
actively
engaged
with
the
U.S.
Department
of
Commerce
to
rectify
the
situation.
We
remain
confident
of
Wuxi
Biologic’s
earnings
growth
outlook
and
expertise
and
believe
the
share
price
correction
was
larger
than
justified,
though
we
continue
to
closely
monitor
developments.
Meituan
operates
one
of
the
largest
online
platforms
for
local
services
and
is
also
the
biggest
on-demand
delivery
operator
in
China.
The
company’s
key
segments
include
food
delivery,
in-store,
and
hotel
and
travel,
along
with
new
initiatives.
In
February
2022,
Chinese
authorities
announced
a
series
of
measures
aimed
at
helping
the
recovery
of
the
service
industries
that
were
severely
impacted
by
the
COVID-19
pandemic.
Among
the
measures
intended
to
help
reduce
the
operating
costs
for
food
and
beverage
businesses,
the
policy
called
for
a
reduction
in
service
fees
charged
by
food
delivery
platforms.
Shares
in
Meituan
fell
sharply
following
the
news
due
to
worries
about
the
impact
of
prolonged
regulatory
actions
on
profitability.
Although
we
could
see
more
volatility
in
the
short-term,
Meituan’s
solid
competitive
position
in
core
markets
and
strong
execution
track
record
bode
well
for
the
company’s
longer-term
prospects.
In
the
past
six
months,
we
increased
the
Fund’s
holdings
in
the
materials
and
financials
sectors.
The
continued
search
for
what
we
view
as
undervalued
investments
led
to
the
addition
of
numerous
new
companies
to
the
portfolio.
Key
purchases
included
Aier
Eye
Hospital
Group,
a
China-based
ophthalmic
medical
institution,
Country
Garden
Services
Holdings,
a
Chinese
residential
property
management
service
company,
and
BYD,
a
Chinese
electric
vehicle
(EV)
and
rechargeable
battery
manufacturer.
We
also
added
to
existing
investments
in
Guangzhou
Tinci
Materials
Technology,
which
produces
electrolytes
for
EV
batteries,
NIO,
a
Chinese
EV
manufacturer,
and
East
Money
Information,
a
Chinese
internet
financial
services
platform
operator.
Meanwhile,
we
reduced
the
Fund’s
investments
in
the
communication
services,
information
technology
and
consumer
staples
sectors
in
favor
of
opportunities
that
we
found
more
compelling,
and
to
raise
funds
for
dividend
and
capital
gains
distribution
during
the
reporting
period.
In
terms
of
key
sales,
we
reduced
holdings
in
Chinese
internet
services
provider
Tencent
Holdings,
the
previously
mentioned
Luzhou
Laojiao,
and
Chinese
biopharmaceutical
company
BeiGene.
The
Fund
also
divested
its
positions
in
Vipshop
Holdings,
an
online
discount
retailer
for
brands
in
China,
and
Chinese
property
management
services
providers
Shimao
Services
Holdings
and
KWG
Living
Group
Holdings
during
the
period.
Thank
you
for
your
continued
participation
in
Templeton
China
World
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Michael
Lai,
CFA
Lead
Portfolio
Manager
Eric
Mok,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Templeton
China
World
Fund
6
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
5.50%
and
the
minimum
is
0%.
Class
A
:
5.50%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3
6-Month
-18.70%
-23.17%
1-Year
-35.09%
-38.66%
5-Year
+23.47%
+3.13%
10-Year
+22.53%
+1.48%
Advisor
6-Month
-18.60%
-18.60%
1-Year
-34.93%
-34.93%
5-Year
+24.97%
+4.56%
10-Year
+25.83%
+2.32%
See
page
7
for
Performance
Summary
footnotes.
Templeton
China
World
Fund
Performance
Summary
7
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
government’s
participation
in
the
economy
is
still
high
and,
therefore,
the
Fund’s
investments
in
China
will
be
subject
to
larger
regulatory
risk
levels
compared
to
many
other
countries.
In
addition,
special
risks
are
associated
with
international
investing,
including
currency
fluctuations,
economic
instability
and
political
developments.
Investments
in
emerging
markets
involve
heightened
risks
related
to
the
same
factors.
The
Fund
may
also
experience
greater
volatility
than
a
fund
that
is
more
broadly
diversified
geographically.
Historically,
smaller
and
midsized
securities
have
experienced
more
price
volatility
than
larger
company
stocks,
especially
over
the
short
term.
Also,
as
a
nondiversified
fund
investing
in
China
companies,
the
Fund
may
invest
in
a
relatively
small
number
of
issuers
and,
as
a
result,
be
subject
to
a
greater
risk
of
loss
with
respect
to
its
portfolio
securities.
The
Fund
is
designed
for
the
aggressive
portion
of
a
well-diversified
portfolio.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Prior
to
9/10/18,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
5.75%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
5.50%.
4.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(9/1/21–2/28/22)
Share
Class
Long-Term
Capital
Gain
A
$0.4745
C
$0.4745
R6
$0.4745
Advisor
$0.4745
Total
Annual
Operating
Expenses
4
Share
Class
A
1.73%
Advisor
1.48%
Your
Fund’s
Expenses
Templeton
China
World
Fund
8
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$813.00
$8.10
$1,015.86
$9.00
1.80%
C
$1,000
$809.80
$11.45
$1,012.14
$12.73
2.55%
R6
$1,000
$814.30
$6.34
$1,017.80
$7.05
1.41%
Advisor
$1,000
$814.00
$6.97
$1,017.11
$7.75
1.55%
Templeton
China
World
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
February
28,
2022
(unaudited)
Year
Ended
August
31,
2021
2020
2019
2018
2017
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.72
$20.71
$18.01
$22.42
$23.49
$21.51
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.11)
(0.19)
(0.07)
0.14
0.29
c
0.15
Net
realized
and
unrealized
gains
(losses)
(2.79)
(0.52)
5.95
(1.76)
1.29
4.59
Total
from
investment
operations
........
(2.90)
(0.71)
5.88
(1.62)
1.58
4.74
Less
distributions
from:
Net
investment
income
..............
—
—
(0.13)
(0.30)
(0.25)
(0.19)
Net
realized
gains
.................
(0.47)
(4.28)
(3.05)
(2.49)
(2.40)
(2.57)
Total
distributions
...................
(0.47)
(4.28)
(3.18)
(2.79)
(2.65)
(2.76)
Net
asset
value,
end
of
period
..........
$12.35
$15.72
$20.71
$18.01
$22.42
$23.49
Total
return
d
.......................
(18.70)%
(5.79)%
36.80%
(6.46)%
7.26%
26.00%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.80%
1.73%
1.86%
1.87%
1.85%
1.94%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.80%
f
1.72%
1.85%
1.83%
1.85%
f
1.94%
f,g
Net
investment
income
(loss)
..........
(1.57)%
(0.98)%
(0.39)%
0.76%
1.26%
c
0.71%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$105,557
$146,131
$164,145
$146,709
$178,315
$188,885
Portfolio
turnover
rate
................
4.43%
27.52%
59.87%
5.69%
12.15%
7.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.10
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.83%.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Templeton
China
World
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
February
28,
2022
(unaudited)
Year
Ended
August
31,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.46
$20.57
$17.91
$22.13
$23.12
$21.18
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.17)
(0.34)
(0.20)
(—)
c
0.10
d
(0.03)
Net
realized
and
unrealized
gains
(losses)
(2.73)
(0.49)
5.91
(1.72)
1.31
4.54
Total
from
investment
operations
........
(2.90)
(0.83)
5.71
(1.72)
1.41
4.51
Less
distributions
from:
Net
investment
income
..............
—
—
—
(0.01)
(—)
c
—
Net
realized
gains
.................
(0.47)
(4.28)
(3.05)
(2.49)
(2.40)
(2.57)
Total
distributions
...................
(0.47)
(4.28)
(3.05)
(2.50)
(2.40)
(2.57)
Net
asset
value,
end
of
period
..........
$12.09
$15.46
$20.57
$17.91
$22.13
$23.12
Total
return
e
.......................
(19.02)%
(6.51)%
35.80%
(7.16)%
6.52%
24.97%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
..........................
2.55%
2.47%
2.61%
2.62%
2.60%
2.69%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
2.55%
g
2.47%
g
2.60%
2.58%
2.60%
g
2.69%
g,h
Net
investment
income
(loss)
..........
(2.34)%
(1.76)%
(1.15)%
0.01%
i
0.51%
d
(0.04)%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$4,429
$6,502
$12,376
$15,744
$36,678
$42,577
Portfolio
turnover
rate
................
4.43%
27.52%
59.87%
5.69%
12.15%
7.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Amount
rounds
to
less
than
$0.01
per
share.
d
Net
investment
income
per
share
includes
approximately
$0.10
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
0.08%.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Ratio
is
calculated
based
on
the
Fund
level
net
investment
income,
as
reflected
in
the
Statement
of
Operations,
and
adjusted
for
class
specific
expenses.
The
amount
may
not
correlate
with
the
per
share
amount
due
to
the
timing
of
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund
in
relation
to
the
timing
of
sales
and
repurchases
of
Fund
shares.
Templeton
China
World
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
February
28,
2022
(unaudited)
Year
Ended
August
31,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.94
$20.88
$18.14
$22.55
$23.66
$21.68
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.08)
(0.11)
0.01
0.26
0.45
c
0.27
Net
realized
and
unrealized
gains
(losses)
(2.84)
(0.55)
5.99
(1.81)
1.25
4.59
Total
from
investment
operations
........
(2.92)
(0.66)
6.00
(1.55)
1.70
4.86
Less
distributions
from:
Net
investment
income
..............
—
—
(0.21)
(0.37)
(0.41)
(0.31)
Net
realized
gains
.................
(0.47)
(4.28)
(3.05)
(2.49)
(2.40)
(2.57)
Total
distributions
...................
(0.47)
(4.28)
(3.26)
(2.86)
(2.81)
(2.88)
Net
asset
value,
end
of
period
..........
$12.55
$15.94
$20.88
$18.14
$22.55
$23.66
Total
return
d
.......................
(18.57)%
(5.46)%
37.42%
(6.08)%
7.75%
26.62%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.54%
1.46%
1.56%
1.57%
1.50%
1.49%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.41%
1.37%
1.42%
1.42%
1.42%
1.44%
f
Net
investment
income
(loss)
..........
(1.15)%
(0.59)%
0.05%
1.17%
1.69%
c
1.21%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$2,551
$3,148
$3,437
$3,395
$3,412
$1,213
Portfolio
turnover
rate
................
4.43%
27.52%
59.87%
5.69%
12.15%
7.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.10
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.26%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Templeton
China
World
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
February
28,
2022
(unaudited)
Year
Ended
August
31,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$15.97
$20.94
$18.18
$22.60
$23.68
$21.68
Income
from
investment
operations
a
:
Net
investment
income
(loss)
b
........
(0.10)
(0.14)
(0.02)
0.20
0.35
c
0.22
Net
realized
and
unrealized
gains
(losses)
(2.83)
(0.55)
6.01
(1.79)
1.30
4.60
Total
from
investment
operations
........
(2.93)
(0.69)
5.99
(1.59)
1.65
4.82
Less
distributions
from:
Net
investment
income
..............
—
—
(0.18)
(0.34)
(0.33)
(0.25)
Net
realized
gains
.................
(0.47)
(4.28)
(3.05)
(2.49)
(2.40)
(2.57)
Total
distributions
...................
(0.47)
(4.28)
(3.23)
(2.83)
(2.73)
(2.82)
Net
asset
value,
end
of
period
..........
$12.57
$15.97
$20.94
$18.18
$22.60
$23.68
Total
return
d
.......................
(18.60)%
(5.61)%
37.20%
(6.25)%
7.54%
26.31%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.55%
1.48%
1.61%
1.62%
1.60%
1.69%
Expenses
net
of
waiver
and
payments
by
affiliates
..........................
1.55%
f
1.47%
1.60%
1.58%
1.60%
f
1.69%
f,g
Net
investment
income
(loss)
..........
(1.33)%
(0.73)%
(0.12)%
1.01%
1.51%
c
0.96%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$45,735
$63,106
$74,741
$67,189
$79,456
$83,172
Portfolio
turnover
rate
................
4.43%
27.52%
59.87%
5.69%
12.15%
7.92%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Net
investment
income
per
share
includes
approximately
$0.10
per
share
related
to
income
received
in
the
form
of
special
dividends
in
connection
with
certain
Fund
holdings.
Excluding
this
amount,
the
ratio
of
net
investment
income
to
average
net
assets
would
have
been
1.08%.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Templeton
China
World
Fund
Statement
of
Investments
(unaudited),
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Country
Shares
a
Value
a
Common
Stocks
100.0%
Advertising
0.3%
a,b
Mobvista
,
Inc.,
144A,
Reg
S
.............................
China
651,000
$
523,811
a
Air
Freight
&
Logistics
0.8%
SF
Holding
Co.
Ltd.,
A
..................................
China
124,421
1,195,185
Apparel,
Accessories
&
Luxury
Goods
4.1%
ANTA
Sports
Products
Ltd.
..............................
China
421,635
6,439,763
Auto
Parts
&
Equipment
1.4%
Minth
Group
Ltd.
......................................
China
634,000
2,292,436
Automobile
Manufacturers
2.7%
BYD
Co.
Ltd.,
H
......................................
China
16,000
495,801
Geely
Automobile
Holdings
Ltd.
...........................
China
162,365
302,430
a
NIO,
Inc.,
ADR
.......................................
China
153,806
3,512,929
4,311,160
Biotechnology
1.6%
a,c
BeiGene
Ltd.
.........................................
China
45,999
745,427
a,c
I-Mab,
ADR
..........................................
China
37,926
937,531
a,b
Innovent
Biologics,
Inc.,
144A,
Reg
S
......................
China
172,998
780,742
2,463,700
Brewers
2.1%
China
Resources
Beer
Holdings
Co.
Ltd.
....................
China
429,671
3,407,058
Commodity
Chemicals
3.2%
Guangzhou
Tinci
Materials
Technology
Co.
Ltd.,
A
.............
China
299,997
5,097,424
Construction
Machinery
&
Heavy
Trucks
1.2%
Weichai
Power
Co.
Ltd.,
H
..............................
China
1,101,589
1,864,043
Construction
Materials
2.3%
Beijing
Oriental
Yuhong
Waterproof
Technology
Co.
Ltd.,
A
......
China
511,520
3,688,457
Distillers
&
Vintners
3.9%
Luzhou
Laojiao
Co.
Ltd.,
A
...............................
China
180,739
6,249,861
Diversified
Banks
5.4%
China
Merchants
Bank
Co.
Ltd.,
H
.........................
China
1,012,508
8,534,802
Diversified
Metals
&
Mining
1.0%
China
Molybdenum
Co.
Ltd.,
H
...........................
China
2,529,409
1,522,468
Electrical
Components
&
Equipment
5.1%
Contemporary
Amperex
Technology
Co.
Ltd.,
A
...............
China
46,563
3,993,328
Sunwoda
Electronic
Co.
Ltd.,
A
...........................
China
687,150
4,035,518
8,028,846
Electronic
Components
3.3%
Luxshare
Precision
Industry
Co.
Ltd.,
A
.....................
China
528,197
3,667,477
Sunny
Optical
Technology
Group
Co.
Ltd.
...................
China
66,710
1,598,646
5,266,123
Financial
Exchanges
&
Data
3.4%
East
Money
Information
Co.
Ltd.,
A
........................
China
560,200
2,390,584
Hong
Kong
Exchanges
&
Clearing
Ltd.
.....................
Hong
Kong
61,067
2,959,123
5,349,707
Health
Care
Facilities
0.6%
Aier
Eye
Hospital
Group
Co.
Ltd.,
A
........................
China
168,279
974,173
Templeton
China
World
Fund
Statement
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Health
Care
Services
0.6%
a,b
New
Horizon
Health
Ltd.,
144A,
Reg
S
.....................
China
235,523
$
883,689
a
Interactive
Home
Entertainment
3.8%
a,c
Bilibili
,
Inc.,
ADR
......................................
China
28,132
889,253
NetEase
,
Inc.
........................................
China
269,129
5,205,448
6,094,701
Interactive
Media
&
Services
15.6%
a
Baidu,
Inc.,
ADR
......................................
China
29,386
4,479,602
a,b
Kuaishou
Technology,
144A,
Reg
S
........................
China
80,000
925,799
Tencent
Holdings
Ltd.
..................................
China
356,648
19,245,320
24,650,721
Internet
&
Direct
Marketing
Retail
16.9%
a
Alibaba
Group
Holding
Ltd.
..............................
China
973,557
12,815,866
a,d
JD.com,
Inc.,
A
.......................................
China
193,947
6,927,724
a,b
Meituan
Dianping
,
B,
144A,
Reg
S
........................
China
317,463
7,052,536
26,796,126
Internet
Services
&
Infrastructure
1.5%
a,c
GDS
Holdings
Ltd.,
ADR
................................
China
53,869
2,398,248
a
Life
&
Health
Insurance
2.9%
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
H
................
China
600,443
4,655,664
Life
Sciences
Tools
&
Services
4.7%
b
Hangzhou
Tigermed
Consulting
Co.
Ltd.,
H,
144A,
Reg
S
.......
China
54,300
610,936
b
WuXi
AppTec
Co.
Ltd.,
H,
144A,
Reg
S
.....................
China
136,031
1,936,339
a,b
Wuxi
Biologics
Cayman,
Inc.,
144A,
Reg
S
..................
China
589,898
4,879,325
7,426,600
Real
Estate
Development
1.3%
China
Resources
Land
Ltd.
..............................
China
415,467
2,020,970
Real
Estate
Operating
Companies
1.1%
b
A-Living
Smart
City
Services
Co.
Ltd.,
H,
144A,
Reg
S
.........
China
460,769
825,944
Country
Garden
Services
Holdings
Co.
Ltd.
..................
China
157,500
942,164
1,768,108
Restaurants
0.6%
Yum
China
Holdings,
Inc.
...............................
China
18,460
960,289
Semiconductor
Equipment
1.1%
a
Daqo
New
Energy
Corp.,
ADR
...........................
China
34,780
1,668,049
a
Semiconductors
5.2%
a,b
Hua
Hong
Semiconductor
Ltd.,
144A,
Reg
S
.................
China
695,083
3,621,247
Will
Semiconductor
Co.
Ltd.
Shanghai,
A
....................
China
117,381
4,611,876
8,233,123
Specialty
Stores
2.3%
China
Tourism
Group
Duty
Free
Corp.
Ltd.,
A
................
China
110,757
3,581,612
Total
Common
Stocks
(Cost
$125,458,391)
.....................................
158,346,917
Templeton
China
World
Fund
Statement
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
Short
Term
Investments
0.8%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
0.3%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
406,347
$
406,347
Total
Money
Market
Funds
(Cost
$406,347)
.....................................
406,347
g
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
0.5%
Money
Market
Funds
0.5%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
867,146
867,146
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$867,146)
...................................................................
867,146
Total
Short
Term
Investments
(Cost
$1,273,493
)
.................................
1,273,493
a
Total
Investments
(Cost
$126,731,884)
100.8%
..................................
$159,620,410
Other
Assets,
less
Liabilities
(0.8)%
...........................................
(1,348,531)
Net
Assets
100.0%
...........................................................
$158,271,879
See
Abbreviations
on
page
28
.
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$22,040,368,
representing
13.9%
of
net
assets.
c
A
portion
or
all
of
the
security
is
on
loan
at
February
28,
2022.
See
Note
1(d).
d
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
e
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
g
See
Note
1(d)
regarding
securities
on
loan.
Templeton
China
World
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
February
28,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
Templeton
China
World
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$125,458,391
Cost
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
1,273,493
Value
-
Unaffiliated
issuers
(Includes
securities
loaned
of
$1,865,198)
.................................
$158,346,917
Value
-
Non-controlled
affiliates
(Note
3
f
)
........................................................
1,273,493
Cash
....................................................................................
5,419
Receivables:
Capital
shares
sold
........................................................................
50,994
Total
assets
..........................................................................
159,676,823
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
156,526
Management
fees
.........................................................................
162,706
Distribution
fees
..........................................................................
24,944
Transfer
agent
fees
........................................................................
24,926
Professional
fees
.........................................................................
72,659
Trustees'
fees
and
expenses
.................................................................
10,322
Payable
upon
return
of
securities
loaned
(Note
1
d
)
..................................................
867,146
Accrued
expenses
and
other
liabilities
...........................................................
85,715
Total
liabilities
.........................................................................
1,404,944
Net
assets,
at
value
.................................................................
$158,271,879
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$124,296,325
Total
distributable
earnings
(losses)
.............................................................
33,975,554
Net
assets,
at
value
.................................................................
$158,271,879
Templeton
China
World
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
February
28,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
Templeton
China
World
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$105,557,316
Shares
outstanding
........................................................................
8,547,078
Net
asset
value
per
share
a
..................................................................
$12.35
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
94.50%)
................................
$13.07
Class
C:
Net
assets,
at
value
.......................................................................
$4,428,556
Shares
outstanding
........................................................................
366,201
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$12.09
Class
R6:
Net
assets,
at
value
.......................................................................
$2,550,653
Shares
outstanding
........................................................................
203,207
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$12.55
Advisor
Class:
Net
assets,
at
value
.......................................................................
$45,735,354
Shares
outstanding
........................................................................
3,638,876
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$12.57
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Templeton
China
World
Fund
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
February
28,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
Templeton
China
World
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$12,728)
Unaffiliated
issuers
........................................................................
$210,212
Non-controlled
affiliates
(Note
3
f
)
.............................................................
22
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
12,330
Non-controlled
affiliates
(Note
3
f
)
.............................................................
32
Total
investment
income
...................................................................
222,596
Expenses:
Management
fees
(Note
3
a
)
...................................................................
1,158,248
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
161,270
    Class
C
................................................................................
28,155
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
110,921
    Class
C
................................................................................
4,840
    Class
R6
...............................................................................
2,438
    Advisor
Class
............................................................................
48,238
Custodian
fees
.............................................................................
8,842
Reports
to
shareholders
fees
..................................................................
30,119
Registration
and
filing
fees
....................................................................
51,235
Professional
fees
...........................................................................
59,952
Trustees'
fees
and
expenses
..................................................................
12,375
Other
....................................................................................
11,263
Total
expenses
.........................................................................
1,687,896
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(1,266)
Net
expenses
.........................................................................
1,686,630
Net
investment
income
(loss)
............................................................
(1,464,034)
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
6,730,559
Foreign
currency
transactions
................................................................
(2,862)
Net
realized
gain
(loss)
..................................................................
6,727,697
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(43,131,518)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(138)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(43,131,656)
Net
realized
and
unrealized
gain
(loss)
............................................................
(36,403,959)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(37,867,993)
Templeton
China
World
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
Templeton
China
World
Fund
Six
Months
Ended
February
28,
2022
(unaudited)
Year
Ended
August
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
(loss)
............................................
$(1,464,034)
$(2,503,988)
Net
realized
gain
(loss)
.................................................
6,727,697
9,638,771
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(43,131,656)
(22,290,912)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(37,867,993)
(15,156,129)
Distributions
to
shareholders:
Class
A
.............................................................
(4,088,071)
(33,391,528)
Class
C
.............................................................
(182,703)
(2,395,172)
Class
R6
............................................................
(94,644)
(675,504)
Advisor
Class
........................................................
(1,781,749)
(15,703,974)
Total
distributions
to
shareholders
..........................................
(6,147,167)
(52,166,178)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(11,247,810)
25,270,800
Class
C
.............................................................
(778,601)
(3,202,083)
Class
R6
............................................................
83,476
680,766
Advisor
Class
........................................................
(4,656,079)
8,760,434
Total
capital
share
transactions
............................................
(16,599,014)
31,509,917
Net
increase
(decrease)
in
net
assets
...................................
(60,614,174)
(35,812,390)
Net
assets:
Beginning
of
period
.....................................................
218,886,053
254,698,443
End
of
period
..........................................................
$158,271,879
$218,886,053
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
20
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Templeton
China
World
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
four
classes
of
shares:
Class
A,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
listed
on
an
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.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
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.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day.
Events
can
occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
February
28,
2022,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
within
the
fair
value
hierarchy
(referred
to
as
"market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information. 
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
21
franklintempleton.com
Semiannual
Report
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation 
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
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
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Purchased
on
a
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
d.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the Fund.
Additionally,
at
February
28,
2022,
the
Fund
held
$1,040,660
in
U.S.
Government
and
Agency
securities
as
collateral.
These
securities
are
held
as
collateral
in
segregated
accounts
with
the
Fund’s
custodian.
The
Fund
cannot
repledge
or
resell
these
securities
held
as
collateral.
As
such,
the
non-cash
collateral
is
excluded
from
the
Statement
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statement
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation 
(continued)
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
22
franklintempleton.com
Semiannual
Report
e.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
February
28,
2022,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Estimated
expenses
are
accrued
daily.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
h.
Guarantees
and
Indemnifications
Under
the
Fund's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Fund
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
Currently,
the
Fund
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
23
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
February
28,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Six
Months
Ended
February
28,
2022
Year
Ended
August
31,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
510,826
$7,510,613
2,040,801
$39,821,253
Shares
issued
in
reinvestment
of
distributions
..........
291,219
3,969,320
1,828,143
32,412,982
Shares
redeemed
...............................
(1,550,610)
(22,727,743)
(2,498,230)
(46,963,435)
Net
increase
(decrease)
..........................
(748,565)
$(11,247,810)
1,370,714
$25,270,800
Class
C
Shares:
Shares
sold
...................................
15,648
$224,792
147,071
$2,855,255
Shares
issued
in
reinvestment
of
distributions
..........
13,591
181,578
134,598
2,359,504
Shares
redeemed
a
..............................
(83,573)
(1,184,971)
(462,755)
(8,416,842)
Net
increase
(decrease)
..........................
(54,334)
$(778,601)
(181,086)
$(3,202,083)
Class
R6
Shares:
Shares
sold
...................................
19,609
$292,206
89,251
$1,812,885
Shares
issued
in
reinvestment
of
distributions
..........
6,839
94,644
37,670
675,420
Shares
redeemed
...............................
(20,740)
(303,374)
(94,012)
(1,807,539)
Net
increase
(decrease)
..........................
5,708
$83,476
32,909
$680,766
Advisor
Class
Shares:
Shares
sold
...................................
223,400
$3,304,545
1,124,126
$22,740,914
Shares
issued
in
reinvestment
of
distributions
..........
116,366
1,612,832
785,723
14,135,152
Shares
redeemed
...............................
(652,503)
(9,573,456)
(1,527,472)
(28,115,632)
Net
increase
(decrease)
..........................
(312,737)
$(4,656,079)
382,377
$8,760,434
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Templeton
Asset
Management
Ltd
(Asset
Management)
Investment
manager
Franklin
Templeton
Investment
Management
Limited
(FTIML)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
24
franklintempleton.com
Semiannual
Report
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
computed
weekly
and
paid
monthly,
to
Asset
Management
based
on
the
average
weekly
net
assets
of
the
Fund
as
follows:
For
the
period
ended
February
28,
2022,
the
annualized
gross
effective
investment
management
fee
rate
was
1.20%
of
the
Fund’s
average
weekly
net
assets. 
Under
a
subadvisory
agreement,
FTIML,
an
affiliate
of
Asset
Management,
provides
subadvisory
services
to
the
Fund.
The
subadvisory
fee
is
paid
by
Asset
Management
based
on
the
Fund's
average
weekly
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
Effective
March
1,
2022,
the
subadvisory
agreement
was
terminated.
b.
Administrative
Fees
Under
an
agreement
with
Asset
Management,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Asset
Management
based
on
the
Fund’s
average
weekly
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class A reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
Under
the
Class
A
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
The
Board
has
set
the
current
rate
at
0.25%
per
year
for
Class
A
shares
until
further
notice
and
approval
by
the
Board.
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
Annualized
Fee
Rate
Net
Assets
1.200%
Up
to
and
including
$1
billion
1.150%
Over
$1
billion,
up
to
and
including
$5
billion
1.100%
Over
$5
billion,
up
to
and
including
$10
billion
1.050%
Over
$10
billion,
up
to
and
including
$15
billion
1.000%
In
excess
of
$15
billion
Class
A
....................................................................................
0.35%
Class
C
....................................................................................
1.00%
3.
Transactions
with
Affiliates
(continued)
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
25
franklintempleton.com
Semiannual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
February
28,
2022,
the
Fund
paid
transfer
agent
fees
of
$166,437,
of
which
$81,130
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
February
28,
2022,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$4,985
CDSC
retained
..............................................................................
$4,373
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Templeton
China
World
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
769,213
$
10,202,570
$
(10,565,436)
$
—
$
—
$
406,347
406,347
$
22
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$—
$10,514,090
$(9,646,944)
$—
$—
$867,146
867,146
$32
Total
Affiliated
Securities
...
$769,213
$20,716,660
$(20,212,380)
$—
$—
$1,273,493
$54
3.
Transactions
with
Affiliates
(continued)
d.
Sales
Charges/Underwriting
Agreements
(continued)
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
26
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Asset
Management
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Fund
so
that
the
operating expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses)
for
each
class
of
the
Fund
do
not
exceed
1.60%
based
on
the
average
net
assets
of
each
class
until
December
31,
2022.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Fund’s
fiscal
year
end.
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
December
31,
2022.
4.
Income
Taxes
For
tax
purposes,
the
Fund
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
August
31,
2021,
the
Fund
deferred
post-October
capital
losses
of
$1,108,661
and
late-year
ordinary
losses
of
$1,038,183.
At
February
28,
2022,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
5.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
February
28,
2022,
aggregated
$8,562,373
and
$32,481,303,
respectively.
At
February
28,
2022,
in
connection
with
securities
lending
transactions,
the
Fund
loaned
equity
investments
and
received
$867,146
of
cash
collateral.
The
gross
amount
of
recognized
liability
for
such
transactions
is
included
in
payable
upon
return
of
securities
loaned
in
the
Statement
of
Assets
and
Liabilities.
The
agreements
can
be
terminated
at
any
time.
6.
Concentration
of
Risk
Investing
in
securities
of
"China
companies"
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities.
In
general,
China
companies
are
those
that
are
organized
under
the
laws
of,
or
with
a
principal
office
or
principal
trading
market
in,
the
People's
Republic
of
China
(PRC),
Hong
Kong,
or
Taiwan.
Such
risks
include
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
In
addition,
these
securities
may
not
be
as
liquid
as
U.S.
securities.
Investing
in
China
A
shares
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities.
In
general,
A
shares
are
issued
by
companies
incorporated
in
the
PRC
and
listed
on
the
Shanghai
and
Shenzhen
Stock
Exchanges
and
available
for
investment
by
domestic
(Chinese)
investors
and
holders
of
a
Qualified
Foreign
Institutional
Investor
(QFII)
license
and,
in
the
case
of
certain
eligible
A
shares,
through
the
Shanghai
and
Shenzhen
Stock
Connect
programs.
The
Shanghai
and
Shenzhen
Stock
Exchanges
are,
however,
substantially
smaller,
less
liquid
and
more
volatile
than
the
major
securities
markets
in
the
United
States.
Cost
of
investments
..........................................................................
$126,731,884
Unrealized
appreciation
........................................................................
$48,688,045
Unrealized
depreciation
........................................................................
(15,799,519)
Net
unrealized
appreciation
(depreciation)
..........................................................
$32,888,526
3.
Transactions
with
Affiliates
(continued)
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
27
franklintempleton.com
Semiannual
Report
7.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
8.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
9.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
February
28,
2022,
the Fund
did
not
use
the
Global
Credit
Facility.
10.
Fair
Value
Measurements
The
Fund
follows
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 financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Templeton
China
World
Fund
Notes
to
Financial
Statements
(unaudited)
28
franklintempleton.com
Semiannual
Report
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
February
28,
2022,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
11.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure,
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Level
1
Level
2
Level
3
Total
Templeton
China
World
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Advertising
...........................
$
—
$
523,811
$
—
$
523,811
Air
Freight
&
Logistics
...................
—
1,195,185
—
1,195,185
Apparel,
Accessories
&
Luxury
Goods
.......
—
6,439,763
—
6,439,763
Auto
Parts
&
Equipment
.................
—
2,292,436
—
2,292,436
Automobile
Manufacturers
...............
3,512,929
798,231
—
4,311,160
Biotechnology
.........................
937,531
1,526,169
—
2,463,700
Brewers
.............................
—
3,407,058
—
3,407,058
Commodity
Chemicals
..................
—
5,097,424
—
5,097,424
Construction
Machinery
&
Heavy
Trucks
.....
—
1,864,043
—
1,864,043
Construction
Materials
..................
—
3,688,457
—
3,688,457
Distillers
&
Vintners
.....................
—
6,249,861
—
6,249,861
Diversified
Banks
......................
—
8,534,802
—
8,534,802
Diversified
Metals
&
Mining
...............
—
1,522,468
—
1,522,468
Electrical
Components
&
Equipment
........
—
8,028,846
—
8,028,846
Electronic
Components
..................
—
5,266,123
—
5,266,123
Financial
Exchanges
&
Data
..............
—
5,349,707
—
5,349,707
Health
Care
Facilities
...................
—
974,173
—
974,173
Health
Care
Services
...................
—
883,689
—
883,689
Interactive
Home
Entertainment
...........
889,253
5,205,448
—
6,094,701
Interactive
Media
&
Services
..............
4,479,602
20,171,119
—
24,650,721
Internet
&
Direct
Marketing
Retail
..........
—
26,796,126
—
26,796,126
Internet
Services
&
Infrastructure
..........
2,398,248
—
—
2,398,248
Life
&
Health
Insurance
..................
—
4,655,664
—
4,655,664
Life
Sciences
Tools
&
Services
............
—
7,426,600
—
7,426,600
Real
Estate
Development
................
—
2,020,970
—
2,020,970
Real
Estate
Operating
Companies
.........
—
1,768,108
—
1,768,108
Restaurants
..........................
960,289
—
—
960,289
Semiconductor
Equipment
...............
1,668,049
—
—
1,668,049
Semiconductors
.......................
—
8,233,123
—
8,233,123
Specialty
Stores
.......................
—
3,581,612
—
3,581,612
Short
Term
Investments
...................
1,273,493
—
—
1,273,493
Total
Investments
in
Securities
...........
$16,119,394
$143,501,016
a
$—
$159,620,410
a
Includes
foreign
securities
valued
at
$143,501,016,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
Selected
Portfolio
ADR
American
Depositary
Receipt
10.
Fair
Value
Measurements
(continued)
Templeton
China
World
Fund
Tax
Information
(unaudited)
29
franklintempleton.com
Semiannual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
was
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
Under
Section
853
of
the
Internal
Revenue
Code,
the
Fund
elected
to
pass
through
to
its
shareholders
the
following
amounts,
or
amounts
as
finally
determined,
of
foreign
taxes
paid
and
foreign
source
income
earned
by
the
Fund
during
the
fiscal
year
ended
August
31,
2021:
Amount
Reported
Foreign
Taxes
Paid
$117,600
Foreign
Source
Income
Earned
$701,949
Templeton
China
World
Fund
Shareholder
Information
30
franklintempleton.com
Semiannual
Report
Board
Approval
of
Investment
Management
Agreements
TEMPLETON
CHINA
WORLD
FUND
(Fund)
At
an
in-person
meeting
held
on
February
28,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Templeton
Asset
Management
Ltd.
(Manager)
and
the
Trust,
on
behalf
of
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
then
met
with
senior
leadership
regarding
the
performance
of
the
global
equity
funds,
as
well
as
expected
enhancements
to
the
Templeton
Global
Equity
Group
leadership;
and
last
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
later
had
an
opportunity
for
an
expanded
discussion
with
the
leadership
of
the
Templeton
Global
Equity
Group
to
hear
about
strategies
to
deliver
improved
investment
returns
to
shareholders.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Fund.
The
Board
noted
management’s
continued
focus
on
enhancing
the
leadership
of
the
Templeton
Global
Equity
Group
and
commitment
to
providing
the
resources
important
to
delivering
sustainable
returns.
The
Board
also
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
Templeton
China
World
Fund
Shareholder
Information
31
franklintempleton.com
Semiannual
Report
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
November
30,
2021.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
China
region
funds.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
discussed
this
performance
with
management
and
management
noted
that
the
Fund
outperformed
its
benchmark,
the
MSCI
China
Index-NR,
on
both
a
gross
and
net
basis
for
the
one-,
three-
and
five-year
periods.
Management
explained
that
the
Performance
Universe,
which
included
funds
that
were
single
country
or
sector/thematic
passively
managed
exchange-traded
funds
and
funds
that
had
more
exposure
to
China
A-Shares
than
the
Fund,
were
not
directly
comparable
to
the
Fund.
Management
further
explained
that
China-A
Shares
largely
outperformed
offshore
counterparts
(stocks
listed
in
Hong
Kong
and
overseas)
primarily
invested
in
by
the
Fund.
Management
also
explained
that
the
Fund’s
performance
had
recently
improved,
ranking
in
the
34th
percentile
of
the
Performance
Universe
for
the
one-
month
period
ended
January
31,
2022.
Management
then
discussed
with
the
Board
the
actions
that
are
being
taken
in
an
effort
to
improve
the
performance
of
the
Fund
and
the
global
equity
funds
as
a
whole.
Management
specifically
highlighted
the
strategic
initiatives
being
undertaken
in
the
Templeton
Global
Equity
Group,
including
enhancements
to
the
leadership
of
the
group
and
the
commitment
of
additional
resources
important
to
delivering
sustainable
returns.
The
Board
concluded
that
the
Fund’s
Management
Agreement
should
be
continued
for
an
additional
one-year
period,
while
management’s
efforts
continue
to
be
closely
monitored.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A
shares
for
the
Fund
and
Class
A
or
Class
M
for
other
funds
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
eight
other
China
region
funds.
The
Board
noted
that
the
Management
Rate
was
above
the
median
of
its
Expense
Group
and
the
actual
total
expense
ratio
for
the
Fund
was
approximately
six
basis
points
above
the
median
of
its
Templeton
China
World
Fund
Shareholder
Information
32
franklintempleton.com
Semiannual
Report
Expense
Group.
The
Board
noted
that
the
Fund’s
actual
total
expense
ratio
reflected
a
fee
waiver
from
management.
After
consideration
of
the
above,
the
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Templeton
China
World
Fund
Shareholder
Information
33
franklintempleton.com
Semiannual
Report
Quarterly
Statement
of
Investments
The
Fund
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund's
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
188
S
04/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Templeton
China
World
Fund
Investment
Manager
Distributor
Shareholder
Services
Templeton
Asset
Management
Ltd.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics. 
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial experts are Ann Torre Bates and David W. Niemiec they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
Item 4.
Principal Accountant Fees and Services.  N/A
 
Item 5. Audit Committee
of Listed Registrants.
   N/A
 
 
Item 6. Schedule of Investments.
  N/A
 
 
Item 7
. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.  N/A
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.  N/A
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.  N/A
 
 
Item 10. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a)
 Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, 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 Shareholder Report on Form N-CSR, 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 changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                                         N/A
 
 
Item 13. Exhibits.
 
(a)(1)
Code of Ethics
 
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
 
 
 
 
 
 
 
 

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\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  April 26, 2022
 
 
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\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  April 26, 2022
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  April 26, 2022
 
 EX-99.CODE ETH 2 codeofethics.htm
Code of Ethics for Principal Executives & Senior Financial Officers
 
 

Procedures
 
Revised December 19, 2014
 
 
 

FRANKLIN TEMPLETON FUNDS

 
CODE OF ETHICS FOR PRINCIPAL EXECUTIVES AND SENIOR FINANCIAL OFFICERS

I.
            
Covered Officers and Purpose of the
Code

 
This code of ethics (the "Code") applies to the Principal Executive Officers, Principal Financial Officer and Principal Accounting Officer (the "Covered Officers," each of whom is set forth in Exhibit A) of each investment company advised by a Franklin Resources subsidiary and that is registered with the United States Securities & Exchange Commission (“SEC”) (collectively, "FT Funds") for the purpose of promoting:
 
·
        
Honest and ethical conduct, including the ethical resolution of actual or apparent conflicts of interest between personal and professional
relationships;
·
        
Full, fair, accurate, timely and understandable disclosure in reports and documents
that a registrant files with, or submits to, the SEC and in other public communications made by or on behalf of the FT
Funds;
·
        
Compliance with applicable laws and governmental rules and
regulations;
·
        
The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code;
and
·
        
Accountability for adherence to the
Code.
 
Each Covered Officer will be expected to adhere to a high standard of business ethics and must be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.
 
 
 
 
*
Rule
38a-1
under
the Investment
Company
Act
of
1940
(“1940
Act”)
and
Rule
206(4)-7
under
the
Investment
Advisers
Act
of 1940 (“Advisers Act”) (together the “Compliance Rule”) require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws (“Compliance Rule Policies and
Procedures”).
 
CONFIDENTIAL INFORMATION. This document is the proprietary product of Franklin Templeton Investments. It may NOT be distributed outside the company unless it is made subject to a non-disclosure agreement and/or such release receives authorization by an FTI Chief Compliance Officer. Any unauthorized use, reproduction or transfer of this document is strictly prohibited. Franklin Templeton Investments © 2014. All Rights
Reserved.
 

II.
            
Other Policies and
Procedures

 
This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder.
 
Franklin Resources, Inc. has separately adopted the Code of Ethics and Business Conduct (“Business Conduct”), which is applicable to all officers, directors and employees of Franklin Resources, Inc., including Covered Officers. It summarizes the values, principles and business practices that guide the employee’s business conduct and also provides a set of basic principles to guide officers, directors and employees regarding the minimum ethical requirements expected of them. It supplements the values, principles and business conduct identified in the Code and other existing employee
policies.
 
Additionally, the Franklin Templeton Funds have separately adopted the FTI Personal Investments and Insider Trading Policy governing personal securities trading and other related matters. The Code for Insider Trading provides for separate requirements that apply to the Covered Officers and others, and therefore is not part of this Code.
 
Insofar as other policies or procedures of Franklin Resources, Inc., the Funds, the Funds’ adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superceded by this Code to the extent that they overlap or conflict with the provisions of this Code. Please review these other documents or consult with the Legal Department if have questions regarding the applicability of these policies to
you.
 

III.
            
Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

 
Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the FT Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of apposition with the FT Funds.
 
Certain conflicts of interest arise out of the relationships between Covered Officers and the FT Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the FT Funds because of their status as "affiliated persons" of the FT Funds. The FT Funds’ and the investment advisers’ compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.
 
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the FT Funds, the investment advisers and the fund administrator of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the FT Funds, for the adviser, the administrator, or

2


for all three), be involved in establishing policies and implementing decisions that will have different effects on the adviser, administrator and the FT Funds. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the FT Funds, the adviser, and the administrator and is consistent with the performance by the Covered Officers of their duties as officers of the FT Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the FT Funds' Boards of Directors ("Boards") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.
 
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the FT Funds.
 
Each Covered Officer must:
·
        
Not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the FT Funds whereby the Covered
Officer would benefit personally to the detriment of the FT
Funds;
·
        
Not cause the FT Funds to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the FT
Funds;
·
        
Not retaliate against any other Covered Officer or any employee of the FT Funds or their affiliated persons for reports of potential violations that are made in good
faith;
·
        
Report at least annually the following affiliations or other
relationships:
1
o
   
all directorships for public companies and all companies that are required to file reports with the
SEC;
o
   
any direct or indirect business relationship with any independent directors of
the FT
Funds;
o
   
any direct or indirect business relationship with any independent public accounting firm (which are not related to the routine issues related to the
firm’s service as the Covered Persons accountant);
and
o
   
any direct or indirect interest in any transaction with any FT Fund that will benefit the officer (not including benefits derived from the advisory, sub-advisory, distribution or service agreements with affiliates of Franklin
Resources).
These reports will be reviewed by the Legal Department for compliance with the Code.
There are some conflict of interest situations that should always be approved in writing by Franklin Resources General Counsel or Deputy General Counsel, if material. Examples of these include
2
:
·
        
Service as a director on the board of any public or private
Company.
 

1
 
Reporting
of
these
affiliations
or
other
relationships
shall
be
made
by
completing
the
annual
Directors
and
Officers
Questionnaire and returning the questionnaire to Franklin Resources Inc, General Counsel or Deputy General
Counsel.
2
    
Any
activity
or
relationship
that
would
present
a
conflict
for
a
Covered Officer
may
also
present
a
conflict
for
the
Covered Officer
if a member of the Covered Officer's immediate family engages in such an activity or has such a relationship. The Cover Person should also obtain written approval by FT’s General Counsel in such situations.
 

3


·
        
The receipt of any gifts in excess of $100 from any person, from any corporation
or association.
·
        
The receipt of any entertainment from any Company with which the FT Funds has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise
any question of impropriety. Notwithstanding the foregoing, the Covered Officers must obtain prior approval from the Franklin Resources General Counsel for any entertainment with a value in excess of
$1000.
·
        
Any ownership interest in, or any consulting or employment relationship with, any of
the FT Fund’s service providers, other than an investment adviser, principal underwriter, administrator or any affiliated person
thereof.
·
        
A direct or indirect financial interest in commissions, transaction charges or spreads paid by the FT Funds for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity
ownership.
·
        
Franklin Resources General Counsel or Deputy General Counsel will provide a report
to the FT Funds Audit Committee of any approvals granted at the next regularly scheduled meeting.
 

IV.
            
Disclosure and
Compliance

·
        
Each Covered Officer should familiarize himself with the disclosure
requirements generally applicable to the FT
Funds;
·
        
Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the FT Funds to others, whether within or outside the FT Funds, including to the FT Funds’ directors and auditors, and to governmental
regulators and self-regulatory
organizations;
·
        
Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the FT Funds, the FT Fund’s adviser and the administrator with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the FT Funds file with, or submit to, the SEC and in other public communications made by the FT Funds;
and
·
        
It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and
regulations.
 

V.
            
Reporting and Accountability

 
Each Covered Officer must:
·
        
Upon becoming a covered officer affirm in writing to the Board that he or she has received, read, and understands the Code (see Exhibit
B);
·
        
Annually thereafter affirm to the Board that he has complied with the requirements of
the Code;
and
·
        
Notify Franklin Resources’ General Counsel or Deputy General Counsel promptly if he or she knows of any violation of this Code. Failure to do so is itself is a violation of
this

4


Code.
Franklin Resources’ General Counsel and Deputy General Counsel are responsible for applying this Code to specific situations in which questions are presented under it and have the authority to interpret this Code in any particular situation.
3
 
However, the Independent Directors of the respective FT Funds will consider any approvals or waivers
4
 
sought by any Chief Executive Officers of the Funds.
 
The FT Funds will follow these procedures in investigating and enforcing this Code:
 
·
        
Franklin Resources General Counsel or Deputy General Counsel will take all
appropriate action to investigate any potential violations reported to the Legal
Department;
·
        
If, after such investigation, the General Counsel or Deputy General Counsel believes that no violation has occurred, The General Counsel is not required to take any
further action;
·
        
Any matter that the General Counsel or Deputy General Counsel believes is a
violation will be reported to the Independent Directors of the appropriate FT
Fund;
·
        
If the Independent Directors concur that a violation has occurred, it will inform and make a recommendation to the Board of the appropriate FT Fund or Funds, which will
consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered
Officer;
·
        
The Independent Directors will be responsible for granting waivers, as appropriate;
and
·
        
Any changes to or waivers of this Code will, to the extent required, are disclosed
as provided by SEC
rules.
5

VI.
            
Other Policies and
Procedures

 
This Code shall be the sole code of ethics adopted by the FT Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the FT Funds, the FT Funds' advisers, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The FTI Personal Investments and Insider Trading Policy, adopted by the FT Funds, FT investment advisers and FT Fund’s principal underwriter pursuant to Rule 17j-1 under the Investment Company Act, the Code of Ethics and Business Conduct and more detailed policies and procedures set forth in FT’s Employee Handbook are separate requirements applying to the Covered Officers and others, and are not part of this
Code.
 
 
 

3
 
Franklin
Resources
General
Counsel
and
Deputy
General
Counsel
are
authorized
to
consult,
as
appropriate,
with
members
of
the Audit
Committee, counsel
to
the
FT
Funds
and
counsel
to
the
Independent
Directors,
and
are
encouraged
to
do
so.
4
  
Item
2
of
Form
N-CSR
defines
"waiver"
as
"the
approval
by
the
registrant
of
a
material
departure
from
a
provision
of
the
code
of
ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. See Part X.
5
   
See Part
X.

VII.
            
Amendments

 
Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the FT Funds’ Board including a majority of independent directors.

VIII.
            
Confidentiality

 
All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the FT Funds’ Board and their counsel.

IX.
            
Internal
Use

 
The Code is intended solely for the internal use by the FT Funds and does not constitute an admission, by or on behalf of any FT Funds, as to any fact, circumstance, or legal conclusion.
 
X.
           
Disclosure on Form
N-CSR
 
Item 2 of Form N-CSR requires a registered management investment company to disclose annually whether, as of the end of the period covered by the report, it has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these officers are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, it must explain why it has not done so.
The registrant must also: (1) file with the SEC a copy of the code as an exhibit to its annual report; (2) post the text of the code on its Internet website and disclose, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted the code on its Internet website; or (3) undertake in its most recent report on Form N-CSR to provide to any person without charge, upon request, a copy of the code and explain the manner in which such request may be made. Disclosure is also required of amendments to, or waivers (including implicit waivers) from, a provision of the code in the registrant's annual report on Form N-CSR or on its website. If the registrant intends to satisfy the requirement to disclose amendments and waivers by posting such information on its website, it will be required to disclose its Internet address and this
intention.
The Legal Department shall be responsible for ensuring that:
·
        
a copy of the Code is filed with the SEC as an exhibit to each Fund’s annual report;
and
·
        
any amendments to, or waivers (including implicit waivers) from, a provision of the
Code is disclosed in the registrant's annual report on Form
N-CSR.
In the event that the foregoing disclosure is omitted or is determined to be incorrect, the Legal Department shall promptly file such information with the SEC as an amendment to Form N-CSR.
In such an event, the Fund Chief Compliance Officer shall review the Code and propose such changes to the Code as are necessary or appropriate to prevent reoccurrences.

EXHIBIT A

 
Persons Covered by the Franklin Templeton Funds Code of Ethics
January 1, 2022
 
 

FRANKLIN GROUP OF FUNDS

 
Edward
Perks                           President and Chief Executive Officer – Investment Management
Rupert H.
Johnson,
Jr.               Chairman of the Board and Vice
President
Michael
McCarthy                      President and Chief Executive Officer – Investment Management
Sonal Desai,
Ph
D                     President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Christopher Kings                     Chief Financial Officer and Chief Accounting Officer and Treasurer
 
           
 

FRANKLIN MUTUAL SERIES FUNDS

 
Christian K. Correa                    Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and Administration
Christopher Kings                     Chief Financial Officer and Chief Accounting Officer and Treasurer
 
 

FRANKLIN ALTERNATIVE STRATEGIES FUNDS

 
Brooks
Ritchey                          President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Christopher Kings                     Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 

TEMPLETON GROUP OF FUNDS

 
Rupert H.
Johnson
Jr.                Chairman of the Board and Vice
President
Manraj
S.
Sekhon                      President and Chief Executive Officer – Investment Management
Michael Hasenstab, Ph.D.          President and Chief Executive Officer – Investment Management
Alan
Bartlett                              President and Chief Executive Officer – Investment Management
Matthew
Hinkle                          Chief Executive Officer – Finance and
Administration
Christopher Kings                     Chief Financial Officer, Chief Accounting Officer and Treasurer

Exhibit B ACKNOWLEDGMENT FORM

 

Franklin Templeton Funds Code of Ethics

For Principal Executives and Senior Financial Officers
 
 

Instructions:

1.
     
Complete all sections of this
form.
2.
     
Print the completed form, sign, and
date.
3.
     
Submit completed form to FT’s General Counsel c/o Code of Ethics Administration within 10 days of becoming a Covered Officer and by February 15th of each subsequent year.
 
E-mail:      Code of Ethics Inquiries & Requests (internal address);
lpreclear@franklintempleton.com
(external
address)
 
 
Covered Officer’s Name:
 
Title:
 
Department:
 
Location:
 
Certification for Year Ending:
 
 
 
To: Franklin Resources General Counsel, Legal Department
 
I acknowledge receiving, reading and understanding the Franklin Templeton Fund’s Code of Ethics for Principal Executive Officers and Senior Financial Officers (the “Code”). I will comply fully with all provisions of the Code to the extent they apply to me during the period of my employment. I further understand and acknowledge that any violation of the Code may subject me to disciplinary action, including termination of employment.
 
 
 
 

Signature
 
Date signed
 
 EX-99.CERT 3 tcwf302.htm
 
 
I, Matthew T. Hinkle, certify that:
 
1.
      
I have reviewed this report on Form N-CSR 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
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 second fiscal quarter of the period covered by this report 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.
 
4/26/2022
 
 
 
S\MATTHEW T. HINKLE
 
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
 

I, Christopher Kings, certify that:
 
1.
      
I have reviewed this report on Form N-CSR 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
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 second fiscal quarter of the period covered by this report 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.
 
4/26/2022
 
 
 
S\CHRISTOPHER KINGS
 
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 EX-99.906 CERT 4 tcwf906.htm
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Matthew T. Hinkle, Chief Executive Officer of the Templeton China World Fund (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                  
The periodic report on Form N-CSR of the Registrant for the period ended 2/28/2022 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                  
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  4/26/2022
 
                                                S\MATTHEW T. HINKLE
                                                                                                           
                                                Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
                        

 
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 
I, Christopher Kings, Chief Financial Officer of the Templeton China World Fund (the “Registrant”), certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
 
1.
                  
The periodic report on Form N-CSR of the Registrant for the period ended 2/28/2022 (the “Form N-CSR”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
 
2.
                  
The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
Dated:  4/26/2022
 
                                                S\CHRISTOPHER KINGS
                                                                                                           
                                                Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer