NPORT-EX 2 TDF_581.htm
Templeton Dragon Fund, Inc.
Consolidated Statement of Investments, September 30, 2019 (unaudited)
    Country Shares   Value
  Common Stocks 96.5%        
  Air Freight & Logistics 0.9%        
a,b
SF Holding Co. Ltd., A
China  1,134,000     $6,253,510
  Auto Components 0.2%        
 
Weifu High-Technology Co. Ltd., B
China    580,692       920,169
a
Xinchen China Power Holdings Ltd.
China  1,900,000        75,148
          995,317
  Automobiles 2.0%        
 
Chongqing Changan Automobile Co. Ltd., B
China 1,619,509   716,990
 
Dongfeng Motor Group Co. Ltd., H
China 5,738,000   5,454,025
 
Jiangling Motors Corp. Ltd., B
China 4,665,208   4,112,911
b
SAIC Motor Corp. Ltd., A
China 985,300   3,277,740
          13,561,666
  Banks 9.9%        
b
China Construction Bank Corp., A
China 4,493,500   4,393,960
 
China Construction Bank Corp., H
China 29,282,272   22,341,187
b
China Merchants Bank Co. Ltd., A
China 1,780,446   8,655,214
 
China Merchants Bank Co. Ltd., H
China 1,816,000   8,642,213
b
Industrial and Commercial Bank of China Ltd., A
China 11,575,618   8,954,957
 
Industrial and Commercial Bank of China Ltd., H
China 21,737,155   14,560,030
          67,547,561
  Beverages 1.8%        
b
Kweichow Moutai Co. Ltd., A
China 55,419   8,915,603
b
Wuliangye Yibin Co. Ltd., A
China 182,600   3,315,657
          12,231,260
  Biotechnology 0.5%        
a,b
Jinyu Bio-Technology Co. Ltd., A
China 1,155,300   3,049,726
  Capital Markets 0.2%        
 
China Everbright Ltd.
China 1,098,500   1,285,197
  Chemicals 1.0%        
a,b
Shenzhen Capchem Technology Co. Ltd., A
China 1,233,410   4,368,832
a,b
Shenzhen Senior Technology Material Co. Ltd., A
China 613,940   2,370,441
          6,739,273
  Communications Equipment 0.8%        
b
Hytera Communications Corp. Ltd., A
China 770,900   1,106,470
b
Shenzhen Sunway Communication Co. Ltd., A
China 855,500   4,284,471
          5,390,941
  Construction Materials 1.5%        
 
Anhui Conch Cement Co. Ltd., H
China 854,000   5,071,984
b
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., A
China 1,779,000   5,231,218
          10,303,202
  Diversified Consumer Services 1.6%        
a
New Oriental Education & Technology Group Inc., ADR
China 96,541   10,692,881
  Electric Utilities 0.6%        
 
CK Infrastructure Holdings Ltd.
Hong Kong 642,600   4,324,775
Quarterly Statement of Investments  |  See Notes to Consolidated Statement of Investments.  |  1
Templeton Dragon Fund, Inc.
Consolidated Statement of Investments (unaudited)
    Country Shares   Value
  Common Stocks (continued)        
  Electrical Equipment 1.0%        
a,b
Sunwoda Electronic Co. Ltd., A
China  3,044,200     $6,451,787
  Electronic Equipment, Instruments & Components 3.4%        
b
AVIC Jonhon Optronic Technology Co. Ltd., A
China    622,790     3,587,750
 
Flytech Technology Co. Ltd.
Taiwan    405,000       943,165
b
Hangzhou Hikvision Digital Technology Co. Ltd., A
China  1,339,100     6,050,757
b
Luxshare Precision Industry Co. Ltd., A
China  1,477,460     5,530,903
a,b
Shenzhen Kinwong Electronic Co. Ltd., A
China 514,460   3,319,933
b
Zhejiang Jiemei Electronic & Technology Co. Ltd., A
China 749,450   3,521,655
          22,954,163
  Entertainment 0.5%        
 
Poly Culture Group Corp. Ltd., H
China 1,083,500   870,903
b
Zhejiang Huace Film & TV Co. Ltd., A
China 2,976,253   2,747,945
          3,618,848
  Food & Staples Retailing 2.2%        
 
Beijing Jingkelong Co. Ltd., H
China 3,959,929   687,111
 
Dairy Farm International Holdings Ltd.
China 1,730,478   10,902,011
a,b
Laobaixing Pharmacy Chain JSC, A
China 331,700   3,514,047
          15,103,169
  Food Products 4.9%        
b
Inner Mongolia Yili Industrial Group Co. Ltd., A
China 1,096,700   4,375,539
 
Uni-President China Holdings Ltd.
China 24,204,700   26,125,845
 
Uni-President Enterprises Corp.
Taiwan 1,181,831   2,847,419
          33,348,803
  Health Care Equipment & Supplies 0.8%        
a,b
Autobio Diagnostics Co. Ltd., A
China 140,400   1,738,416
 
Ginko International Co. Ltd.
Taiwan 631,000   3,577,143
          5,315,559
  Health Care Providers & Services 1.9%        
b
China National Accord Medicines Corp. Ltd., A
China 412,901   2,512,057
b
Huadong Medicine Co. Ltd., A
China 668,422   2,449,888
a,b
Meinian Onehealth Healthcare Holdings Co. Ltd.
China 3,137,239   5,336,732
 
Sinopharm Group Co. Ltd., H
China 898,000   2,812,730
          13,111,407
  Hotels, Restaurants & Leisure 1.4%        
b
Songcheng Performance Development Co. Ltd., A
China 1,081,200   4,225,972
 
Yum China Holdings Inc.
China 112,820   5,125,413
          9,351,385
  Household Durables 1.5%        
b
Gree Electric Appliances Inc. of Zhuhai, A
China 101,476   813,415
b
Midea Group Co. Ltd., A
China 1,296,616   9,268,863
          10,082,278
  Industrial Conglomerates 0.5%        
 
CK Hutchison Holdings Ltd.
Hong Kong 366,000   3,231,376
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Templeton Dragon Fund, Inc.
Consolidated Statement of Investments (unaudited)
    Country Shares   Value
  Common Stocks (continued)        
  Insurance 7.9%        
 
AIA Group Ltd.
Hong Kong  3,312,980    $31,299,987
 
China Life Insurance Co. Ltd., H
China  4,398,000    10,189,934
b
Ping An Insurance (Group) Co. of China Ltd., A
China    986,350    12,010,031
          53,499,952
  Interactive Media & Services 9.7%        
a
Baidu Inc., ADR
China     40,792     4,191,786
 
Tencent Holdings Ltd.
China 1,465,200   61,726,871
          65,918,657
  Internet & Direct Marketing Retail 10.4%        
a
Alibaba Group Holding Ltd., ADR
China 340,010   56,859,872
a
Baozun Inc., ADR
China 228,685   9,764,850
a
Ctrip.com International Ltd., ADR
China 145,300   4,255,837
          70,880,559
  IT Services 1.3%        
 
TravelSky Technology Ltd., H
China 4,367,059   9,070,761
  Machinery 0.4%        
b
Shenzhen Inovance Technology Co. Ltd., A
China 879,000   2,991,749
  Marine 0.3%        
 
COSCO SHIPPING Energy Transportation Co. Ltd., H
China 4,680,000   2,071,933
  Oil, Gas & Consumable Fuels 4.3%        
 
China Petroleum & Chemical Corp., H
China 22,779,000   13,543,186
 
CNOOC Ltd.
China 4,628,800   7,063,174
 
PetroChina Co. Ltd., H
China 17,219,500   8,853,722
          29,460,082
  Paper & Forest Products 1.2%        
 
Nine Dragons Paper Holdings Ltd.
China 9,453,301   7,960,268
  Pharmaceuticals 2.7%        
 
CSPC Pharmaceutical Group Ltd.
China 3,640,000   7,309,815
b
Jiangsu Hengrui Medicine Co. Ltd., A
China 877,443   9,903,279
 
Tong Ren Tang Technologies Co. Ltd., H
China 1,330,300   1,210,150
          18,423,244
  Real Estate Management & Development 3.8%        
b
China Merchants Shekou Industrial Zone Holdings Co. Ltd., A
China 1,594,958   4,237,097
 
China Overseas Land & Investment Ltd.
China 1,410,000   4,434,415
 
China Resources Land Ltd.
China 1,634,000   6,848,378
 
CK Asset Holdings Ltd.
Hong Kong 974,000   6,598,629
b
Poly Developments and Holdings Group Co. Ltd., A
China 1,856,100   3,713,057
          25,831,576
  Semiconductors & Semiconductor Equipment 7.3%        
 
Taiwan Semiconductor Manufacturing Co. Ltd.
Taiwan 5,697,136   49,913,709
  Software 0.6%        
b
Beijing Thunisoft Corp. Ltd., A
China 1,401,500   4,264,288
  Specialty Retail 0.2%        
 
Luk Fook Holdings (International) Ltd.
China 394,000   989,285
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Templeton Dragon Fund, Inc.
Consolidated Statement of Investments (unaudited)
    Country Shares   Value
  Common Stocks (continued)        
  Textiles, Apparel & Luxury Goods 5.3%        
 
Anta Sports Products Ltd.
China  4,354,000    $36,024,560
  Transportation Infrastructure 0.5%        
 
COSCO SHIPPING Ports Ltd.
China  4,095,953     3,271,369
  Wireless Telecommunication Services 1.5%        
 
China Mobile Ltd.
China  1,264,500    10,462,347
 
Total Common Stocks (Cost $409,758,295)
      655,978,423
  Short Term Investments (Cost $34,389,393) 5.1%        
  Money Market Funds 5.1%        
c,d
Institutional Fiduciary Trust Money Market Portfolio, 1.71%
United States 34,389,393   34,389,393
 
Total Investments (Cost $444,147,688) 101.6%
      690,367,816
 
Other Assets, less Liabilities (1.6)%
      (10,692,653)
 
Net Assets 100.0%
      $679,675,163
  
See Abbreviations on page 7.
aNon-income producing.
bThe security is owned by Templeton China Opportunities Fund, Ltd., a wholly-owned subsidiary of the Fund. See Note 5.
cSee  Note 4 regarding investments in affiliated management investment companies.
dThe rate shown is the annualized seven-day effective yield at period end.
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Templeton Dragon Fund, Inc.
Notes to Consolidated Statement of Investments (unaudited)
1.   ORGANIZATION
Templeton Dragon Fund, Inc. (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). 
2.  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 Directors (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. Occasionally, events 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, the VC monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.
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Templeton Dragon Fund, Inc.
Notes to Consolidated Statements of Investments (unaudited)
2.  FINANCIAL INSTRUMENT VALUATION (continued)
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 of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.  
3.  CONCENTRATION OF RISK
Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in securities in Europe. In addition, certain foreign 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 People’s Republic of China (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. 
4.  INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES
The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended September 30, 2019, the Fund held investments in affiliated management investment companies as follows:
  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 		Dividend
Income
Non-Controlled Affiliates
Institutional Fiduciary Trust Money Market Portfolio, 1.71%
$539,399 $111,984,469 $(78,134,475) $  — $  — $34,389,393 34,389,393 $288,591
5.  INVESTMENTS IN TEMPLETON CHINA OPPORTUNITIES FUND, LTD. (China Fund)
The Fund invests in certain China A-shares through its investment in the China Fund. The China Fund is a Cayman Islands exempted company, and is a wholly-owned subsidiary of the Templeton Dragon Fund, and is able to invest directly in China A-shares consistent with the investment objective of the Templeton Dragon Fund. At September 30, 2019, the China Fund’s investments as well as any other assets and liabilities of the China Fund are reflected in the Fund’s Consolidated Statement of Investments. At September 30, 2019, the net assets of the China Fund were $175,483,167, representing 25.8% of the Fund’s consolidated net assets.
The China Fund gains access to the A-shares market through Templeton Investment Counsel, LLC (TIC), which serves as the registered QFII for the China Fund. Investment decisions related to the China Fund A-shares are specific to the Fund and it bears the resultant economic and tax consequences of its holdings and transactions in A-shares. The China Fund is subject to certain restrictions and administrative processes relating to its ability to repatriate cash balances, investment proceeds, and earnings associated with its A-shares and may incur substantial delays in gaining access to its assets or a loss of value in the event of noncompliance with applicable Chinese rules or requirements. 
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Templeton Dragon Fund, Inc.
Notes to Consolidated Statements of Investments (unaudited)
6.  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)
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
At September 30, 2019, all of the Fund’s’ investments in financial instruments carried at fair value were valued using Level 1 inputs. For detailed categories, see the accompanying Consolidated Statement of Investments. 
7.   SUBSEQUENT EVENTS
The Fund has evaluated subsequent events through the issuance of the Consolidated Statement of Investments and determined that no events have occurred that require disclosure. 
Abbreviations
Selected Portfolio
ADR American Depositary Receipt
 
For additional information on the Fund’s significant accounting policies, please refer to the Fund’s most recent semiannual or annual shareholder report.
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