NPORT-EX 2 TDF.htm
Templeton
Dragon
Fund,
Inc.
Consolidated
Statement
of
Investments
(unaudited),
September
30,
2020
See
Notes
to
Statement
of
Investments.
Quarterly
Statement
of
Investments
1
a
Country
Shares
a
Value
a
Common
Stocks
98.6%
Air
Freight
&
Logistics
1.3%
a
SF
Holding
Co.
Ltd.,
A
..................................
China
884,700
$
10,644,988
Auto
Components
0.7%
Minth
Group
Ltd.
......................................
China
1,422,000
6,209,547
Banks
3.5%
a
China
Construction
Bank
Corp.,
A
.........................
China
3,875,500
3,516,871
a
China
Merchants
Bank
Co.
Ltd.,
A
.........................
China
1,935,246
10,301,832
China
Merchants
Bank
Co.
Ltd.,
H
.........................
China
3,270,500
15,519,982
29,338,685
Beverages
2.6%
China
Resources
Beer
Holdings
Co.
Ltd.
....................
China
1,082,000
6,645,564
a
Kweichow
Moutai
Co.
Ltd.,
A
.............................
China
46,445
11,456,278
a
Luzhou
Laojiao
Co.
Ltd.,
A
...............................
China
202,956
4,310,078
22,411,920
Biotechnology
4.6%
b
BeiGene
Ltd.
.........................................
China
502,100
11,073,976
a
Hualan
Biological
Engineering,
Inc.,
A
......................
China
538,188
4,530,141
b
I-Mab,
ADR
..........................................
China
18,922
889,902
b,c,d
InnoCare
Pharma
Ltd.,
144A,
Reg
S
.......................
China
2,028,400
2,657,048
b,d
Innovent
Biologics,
Inc.,
144A,
Reg
S
......................
China
2,133,900
15,913,012
a
Jinyu
Bio-Technology
Co.
Ltd.,
A
..........................
China
988,700
3,946,610
39,010,689
Capital
Markets
0.5%
a
East
Money
Information
Co.
Ltd.,
A
........................
China
1,268,800
4,515,968
Chemicals
1.6%
a
Jiangsu
Yangnong
Chemical
Co.
Ltd.,
A
....................
China
277,900
3,598,703
a
Shenzhen
Capchem
Technology
Co.
Ltd.,
A
..................
China
1,218,410
10,309,913
13,908,616
Commercial
Services
&
Supplies
2.4%
d
A-Living
Services
Co.
Ltd.,
H,
144A,
Reg
S
..................
China
3,189,799
16,319,758
a
Beijing
Originwater
Technology
Co.
Ltd.,
A
...................
China
3,140,900
4,039,247
20,359,005
Construction
Materials
3.1%
Anhui
Conch
Cement
Co.
Ltd.,
H
..........................
China
1,615,000
11,186,030
a
Beijing
Oriental
Yuhong
Waterproof
Technology
Co.
Ltd.,
A
......
China
1,876,200
14,980,557
26,166,587
Containers
&
Packaging
1.6%
a
Shenzhen
YUTO
Packaging
Technology
Co.
Ltd.,
A
............
China
1,457,700
6,846,306
a
Zhejiang
Jiemei
Electronic
&
Technology
Co.
Ltd.,
A
...........
China
1,757,600
7,166,122
14,012,428
Diversified
Consumer
Services
4.5%
b,c
GSX
Techedu,
Inc.,
ADR
................................
China
122,745
11,060,552
b
New
Oriental
Education
&
Technology
Group,
Inc.,
ADR
........
China
180,291
26,953,504
38,014,056
Electrical
Equipment
1.8%
a
Hongfa
Technology
Co.
Ltd.,
A
............................
China
1,238,435
8,382,213
Templeton
Dragon
Fund,
Inc.
Consolidated
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statement
of
Investments.
2
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Electrical
Equipment
(continued)
a
Sunwoda
Electronic
Co.
Ltd.,
A
...........................
China
1,724,500
$
6,923,965
15,306,178
Electronic
Equipment,
Instruments
&
Components
2.7%
a
Hangzhou
Hikvision
Digital
Technology
Co.
Ltd.,
A
.............
China
556,800
3,143,191
a
Luxshare
Precision
Industry
Co.
Ltd.,
A
.....................
China
1,360,238
11,519,744
a
Shenzhen
Kinwong
Electronic
Co.
Ltd.,
A
...................
China
840,364
4,150,816
a
WUS
Printed
Circuit
Kunshan
Co.
Ltd.,
A
....................
China
1,348,970
3,759,057
22,572,808
Entertainment
1.8%
NetEase,
Inc.
........................................
China
853,061
15,316,354
Food
&
Staples
Retailing
2.0%
a
Laobaixing
Pharmacy
Chain
JSC,
A
.......................
China
783,860
9,595,389
Sun
Art
Retail
Group
Ltd.
...............................
China
6,741,304
7,484,617
17,080,006
Food
Products
2.0%
a
Inner
Mongolia
Yili
Industrial
Group
Co.
Ltd.,
A
...............
China
1,276,300
7,266,935
a
Jonjee
Hi-Tech
Industrial
And
Commercial
Holding
Co.
Ltd.,
A
....
China
971,300
9,421,989
16,688,924
Health
Care
Equipment
&
Supplies
1.2%
a
Autobio
Diagnostics
Co.
Ltd.,
A
...........................
China
161,000
3,835,364
a
Shanghai
Kinetic
Medical
Co.
Ltd.,
A
.......................
China
1,156,000
3,628,361
a
Shenzhen
Mindray
Bio-Medical
Electronics
Co.
Ltd.,
A
..........
China
57,800
2,969,377
10,433,102
Health
Care
Providers
&
Services
0.3%
a,b
Meinian
Onehealth
Healthcare
Holdings
Co.
Ltd.,
A
............
China
1,294,039
2,711,490
b
Hotels,
Restaurants
&
Leisure
1.6%
a
Songcheng
Performance
Development
Co.
Ltd.,
A
.............
China
1,942,700
5,244,014
Yum
China
Holdings,
Inc.
...............................
China
155,335
8,224,988
13,469,002
Household
Durables
3.0%
a
Midea
Group
Co.
Ltd.,
A
................................
China
1,169,916
12,575,520
a
Oppein
Home
Group,
Inc.,
A
.............................
China
175,600
2,797,625
a
Suofeiya
Home
Collection
Co.
Ltd.,
A
......................
China
1,730,400
6,745,960
a
TCL
Technology
Group
Corp.,
A
..........................
China
3,857,300
3,518,973
25,638,078
Insurance
2.9%
AIA
Group
Ltd.
.......................................
Hong
Kong
477,641
4,747,829
China
Life
Insurance
Co.
Ltd.,
H
..........................
China
3,919,966
8,886,527
a
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
A
................
China
689,150
7,771,793
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
H
................
China
332,000
3,446,463
24,852,612
Interactive
Media
&
Services
11.1%
b
Baidu,
Inc.,
ADR
......................................
China
66,358
8,400,259
Tencent
Holdings
Ltd.
..................................
China
1,269,900
85,773,905
94,174,164
Templeton
Dragon
Fund,
Inc.
Consolidated
Statement
of
Investments
(unaudited)
See
Notes
to
Statement
of
Investments.
Quarterly
Statement
of
Investments
3
a
Country
Shares
a
Value
a
Common
Stocks
(continued)
Internet
&
Direct
Marketing
Retail
21.4%
b
Alibaba
Group
Holding
Ltd.
..............................
China
2,486,496
$
91,282,642
b,c
Baozun,
Inc.,
ADR
.....................................
China
377,058
12,250,614
b
Baozun,
Inc.,
A
.......................................
China
475,500
4,969,742
b
JD.com,
Inc.,
A
.......................................
China
857,462
33,016,974
b,d
Meituan
Dianping,
B,
Reg
S
.............................
China
964,541
30,384,496
b
Vipshop
Holdings
Ltd.,
ADR
.............................
China
654,013
10,228,763
182,133,231
IT
Services
2.2%
b
GDS
Holdings
Ltd.,
ADR
................................
China
232,091
18,992,007
b
Life
Sciences
Tools
&
Services
2.6%
b,d
Wuxi
Biologics
Cayman,
Inc.,
144A,
Reg
S
..................
China
918,681
22,515,242
b
Machinery
2.1%
a
Shenzhen
Inovance
Technology
Co.
Ltd.,
A
..................
China
822,000
7,047,938
Weichai
Power
Co.
Ltd.,
H
..............................
China
5,124,940
10,370,145
17,418,083
Oil,
Gas
&
Consumable
Fuels
0.7%
CNOOC
Ltd.
.........................................
China
6,414,800
6,170,296
Paper
&
Forest
Products
0.5%
Nine
Dragons
Paper
Holdings
Ltd.
.........................
Hong
Kong
3,273,735
4,133,242
Pharmaceuticals
2.0%
CSPC
Pharmaceutical
Group
Ltd.
.........................
China
3,447,600
6,729,924
a
Jiangsu
Hengrui
Medicine
Co.
Ltd.,
A
......................
China
750,960
9,970,769
16,700,693
Real
Estate
Management
&
Development
4.0%
a
China
Merchants
Shekou
Industrial
Zone
Holdings
Co.
Ltd.,
A
....
China
600,658
1,347,360
China
Resources
Land
Ltd.
..............................
China
2,682,000
12,232,210
KWG
Group
Holdings
Ltd.
...............................
China
2,557,000
4,403,833
a
Poly
Developments
and
Holdings
Group
Co.
Ltd.,
A
............
China
3,060,600
7,205,245
Shimao
Group
Holdings
Ltd.
.............................
China
2,140,400
8,929,692
34,118,340
Semiconductors
&
Semiconductor
Equipment
0.7%
a
LONGi
Green
Energy
Technology
Co.
Ltd.,
A
.................
China
170,300
1,889,641
a
Will
Semiconductor
Ltd.,
A
...............................
China
145,051
3,815,009
5,704,650
Software
0.7%
a
Hundsun
Technologies,
Inc.,
A
............................
China
425,627
6,212,644
Specialty
Retail
2.0%
a
China
Tourism
Group
Duty
Free
Corp.
Ltd.,
A
................
China
511,500
16,852,458
Textiles,
Apparel
&
Luxury
Goods
2.6%
ANTA
Sports
Products
Ltd.
..............................
China
2,126,156
22,189,605
Wireless
Telecommunication
Services
0.3%
China
Mobile
Ltd.
.....................................
China
437,000
2,805,246
Total
Common
Stocks
(Cost
$500,421,212)
.....................................
838,780,944
Templeton
Dragon
Fund,
Inc.
Consolidated
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statement
of
Investments.
4
See
A
bbreviations
on
page
8.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
a
Convertible
Bonds
0.1%
Electrical
Equipment
0.0%
†
a
Sunwoda
Electronic
Co.
Ltd.
,
0.4
%
,
7/14/26
.................
China
1,230,800
CNY
$
263,349
Electronic
Equipment,
Instruments
&
Components
0.1%
a
Shenzhen
Kinwong
Electronic
Co.
Ltd.
,
Zero
Cpn.,
8/23/26
......
China
1,756,000
CNY
308,363
Total
Convertible
Bonds
(Cost
$430,563)
.......................................
571,712
Total
Long
Term
Investments
(Cost
$500,851,775)
...............................
839,352,656
a
Short
Term
Investments
2.1%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
0.6%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
5,551,858
5,551,858
Total
Money
Market
Funds
(Cost
$5,551,858)
...................................
5,551,858
a
a
a
a
a
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
1.5%
Money
Market
Funds
1.5%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
........
United
States
12,421,278
12,421,278
Total
Investments
from
Cash
Collateral
Received
for
Loaned
Securities
(Cost
$12,421,278)
...........................................................
12,421,278
Total
Short
Term
Investments
(Cost
$17,973,136
)
................................
17,973,136
a
Total
Investments
(Cost
$518,824,911)
100.8%
..................................
$857,325,792
Other
Assets,
less
Liabilities
(0.8)%
...........................................
(6,879,312)
Net
Assets
100.0%
...........................................................
$850,446,480
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
The
security
is
owned
by
Templeton
China
Opportunities
Fund,
Ltd.,
a
wholly-owned
subsidiary
of
the
Fund.
See
Note
6.
b
Non-income
producing.
c
A
portion
or
all
of
the
security
is
on
loan
at
September
30,
2020.
d
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
September
30,
2020,
the
aggregate
value
of
these
securities
was
$87,789,556,
representing
10.3%
of
net
assets.
e
See
Note
5
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Templeton
Dragon
Fund,
Inc.
5
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.
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined. 
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
Templeton
Dragon
Fund,
Inc.
Notes
to
Consolidated
Statement
of
Investments
(unaudited)
6
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 September
30,
2020,
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.
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
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.
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.
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.
5.
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,
2020,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows: 
a
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
a
Templeton
Dragon
Fund,
Inc.
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$21,610,576
$200,163,500
$(216,222,218)
$
—
$
—
$
5,551,858
5,551,858
$
54,649
2. Financial
Instrument
Valuation
(continued)
Templeton
Dragon
Fund,
Inc.
Notes
to
Consolidated
Statement
of
Investments
(unaudited)
7
6.
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,
2020,
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,
2020, the
net
assets
of
the
China
Fund
were
$274,256,084,
representing
32.2%
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. 
7. 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.
A
summary
of
inputs
used
as
of
September
30,
2020,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
a
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
a
Templeton
Dragon
Fund,
Inc.
(continued)
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0%
.........
$—
$121,147,689
$(108,726,411)
$
—
$
—
$
12,421,278
12,421,278
$
10,490
Total
Affiliated
Securities
....
$21,610,576
$321,311,189
$(324,948,629)
$—
$—
$17,973,136
$65,139
5.
Investments
in
Affiliated
Management
Investment
Companies 
(continued)
Templeton
Dragon
Fund,
Inc.
Notes
to
Consolidated
Statement
of
Investments
(unaudited)
8
8.
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
Level
1
Level
2
Level
3
Total
Templeton
Dragon
Fund,
Inc.
Assets:
Investments
in
Securities:
Common
Stocks
:
Air
Freight
&
Logistics
...................
$
—
$
10,644,988
$
—
$
10,644,988
Auto
Components
......................
—
6,209,547
—
6,209,547
Banks
...............................
—
29,338,685
—
29,338,685
Beverages
...........................
—
22,411,920
—
22,411,920
Biotechnology
.........................
889,902
38,120,787
—
39,010,689
Capital
Markets
........................
—
4,515,968
—
4,515,968
Chemicals
...........................
—
13,908,616
—
13,908,616
Commercial
Services
&
Supplies
...........
—
20,359,005
—
20,359,005
Construction
Materials
..................
—
26,166,587
—
26,166,587
Containers
&
Packaging
.................
—
14,012,428
—
14,012,428
Diversified
Consumer
Services
............
38,014,056
—
—
38,014,056
Electrical
Equipment
....................
—
15,306,178
—
15,306,178
Electronic
Equipment,
Instruments
&
Components
........................
—
22,572,808
—
22,572,808
Entertainment
.........................
—
15,316,354
—
15,316,354
Food
&
Staples
Retailing
.................
—
17,080,006
—
17,080,006
Food
Products
........................
—
16,688,924
—
16,688,924
Health
Care
Equipment
&
Supplies
.........
—
10,433,102
—
10,433,102
Health
Care
Providers
&
Services
..........
—
2,711,490
—
2,711,490
Hotels,
Restaurants
&
Leisure
.............
8,224,988
5,244,014
—
13,469,002
Household
Durables
....................
—
25,638,078
—
25,638,078
Insurance
............................
—
24,852,612
—
24,852,612
Interactive
Media
&
Services
..............
8,400,259
85,773,905
—
94,174,164
Internet
&
Direct
Marketing
Retail
..........
27,449,119
154,684,112
—
182,133,231
IT
Services
...........................
18,992,007
—
—
18,992,007
Life
Sciences
Tools
&
Services
............
—
22,515,242
—
22,515,242
Machinery
............................
—
17,418,083
—
17,418,083
Oil,
Gas
&
Consumable
Fuels
.............
—
6,170,296
—
6,170,296
Paper
&
Forest
Products
.................
—
4,133,242
—
4,133,242
Pharmaceuticals
.......................
—
16,700,693
—
16,700,693
Real
Estate
Management
&
Development
....
—
34,118,340
—
34,118,340
Semiconductors
&
Semiconductor
Equipment
.
—
5,704,650
—
5,704,650
Software
.............................
—
6,212,644
—
6,212,644
Specialty
Retail
........................
—
16,852,458
—
16,852,458
Textiles,
Apparel
&
Luxury
Goods
..........
—
22,189,605
—
22,189,605
Wireless
Telecommunication
Services
.......
—
2,805,246
—
2,805,246
Convertible
Bonds
.......................
—
571,712
—
571,712
Short
Term
Investments
...................
17,973,136
—
—
17,973,136
Total
Investments
in
Securities
...........
$119,943,467
$737,382,325
$—
$857,325,792
Currency
CNY
Chinese
Yuan
7. Fair
Value
Measurements 
(continued)
Templeton
Dragon
Fund,
Inc.
Notes
to
Consolidated
Statement
of
Investments
(unaudited)
9
Selected
Portfolio
ADR
American
Depositary
Receipts
For
additional
information
on
the
Fund's
significant
accounting
policies,
please
refer
to
the Fund's
most
recent
semiannual
or
annual
shareholder
report.