JF China Region Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06686

 

 

JF China Region Fund, Inc.

(Exact name of registrant as specified in charter)

One Beacon Street, 18th Floor

Boston, MA 02108

(Address of principal executive offices) (Zip code)

Dechert LLP

1775 Eye Street NW

Washington, DC 20006

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 441 9800

Date of fiscal year end: December 31

Date of reporting period: September 30, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.

The Schedule(s) of Investments is attached herewith.

JF China Region Fund, Inc.

Investment portfolio

AT SEPTEMBER 30, 2012 (Unaudited)

 

DESCRIPTION

    HOLDINGS
(IN SHARES)		      MARKET
VALUE
(IN US$)		  

COMMON STOCK (unless otherwise noted)

      

CHINA (48.6%)

      

Airlines (0.5%)

      

China Eastern Airlines Corp., Ltd. (a)

      1,204,000         366,446   

China Southern Airlines Co., Ltd.

      172,000         75,640   
     

 

 

  
        442,086   
     

 

 

  

Auto Components (0.6%)

      

Minth Group Ltd.

      490,000         516,917   
     

 

 

  

Automobiles (1.5%)

      

Great Wall Motor Co., Ltd., ‘A’

      69,986         195,207   

Great Wall Motor Co., Ltd.

      294,000         775,375   

SAIC Motor Corp. Ltd., ‘A’

      203,231         437,835   
     

 

 

  
        1,408,417   
     

 

 

  

Beverages (1.6%)

      

Jiangsu Yanghe Brewery Joint-Stock Co., Ltd., ‘A’ (a)

      18,774         373,395   

Kweichow Moutai Co., Ltd., ‘A’

      28,575         1,117,557   
     

 

 

  
        1,490,952   
     

 

 

  

Capital Markets (2.2%)

      

CITIC Securities Co., Ltd., ‘A’

      1,067,937         2,003,370   
     

 

 

  

Commercial Banks (9.9%)

      

Agricultural Bank of China Ltd., ‘A’

      3,900,000         1,526,516   

Bank of Communications Co., Ltd., ‘A’ (a)

      599,930         406,641   

China Citic Bank Corp., Ltd.

      2,483,000         1,178,409   

China Construction Bank Corp., ‘A’

      3,538,100         2,240,551   

China Minsheng Banking Corp., Ltd.

      871,500         687,844   

Industrial & Commercial Bank of China Ltd.

      5,407,930         3,194,243   
     

 

 

  
        9,234,204   
     

 

 

  

Communications Equipment (0.8%)

      

AAC Technologies Holdings, Inc.

      207,500         749,286   
     

 

 

  

Construction Materials (3.1%)

      

Anhui Conch Cement Co., Ltd., ‘A’

      496,377         1,262,089   

Anhui Conch Cement Co., Ltd.

      110,500         344,153   

China National Building Material Co., Ltd.

      974,000         1,076,493   

China State Construction Engineering Corp., Ltd., ‘A’ (a)

      400,000         195,389   
     

 

 

  
        2,878,124   
     

 

 

  

Diversified Telecommunication Services (0.9%)

      

China Telecom Corp., Ltd.

      1,500,000         866,644   
     

 

 

  

Electrical Equipment (0.2%)

      

NARI Technology Development Co., Ltd., ‘A’ (f)

      73,651         207,890   
     

 

 

  

Energy Equipment & Services (1.8%)

      

China Oilfield Services Ltd.

      700,000         1,274,688   

Yantai Jereh Oilfield Services Group Co., Ltd., ‘A’

      50,349         353,290   
     

 

 

  
        1,627,978   
     

 

 

  

Food Products (1.5%)

      

Bright Dairy & Food Co., Ltd., ‘A’

      69,917         94,782   

Want Want China Holdings Ltd.

      1,051,000         1,340,511   
     

 

 

  
        1,435,293   
     

 

 

  

Hotels, Restaurants & Leisure (0.7%)

      

Sands China Ltd.

      172,000         642,168   
     

 

 

  

Household Durables (1.7%)

      

Gree Electric Appliances, Inc., ‘A’

      342,501         1,165,121   

Hisense Electric Co., Ltd., ‘A’

      283,755         442,006   
     

 

 

  
        1,607,127   
     

 

 

  

Insurance (2.7%)

      

New China Life Insurance Co., Ltd.

      302,900         970,727   

Ping An Insurance Group Co. of China Ltd., ‘A’

      236,865         1,580,633   
     

 

 

  
        2,551,360   
     

 

 

  

Internet Software & Services (5.3%)

      

Baidu, Inc., ADR (a)

      4,874         569,381   

NetEase, Inc., ADR (a)

      10,873         610,410   

Tencent Holdings Ltd.

      110,700         3,771,828   
     

 

 

  
        4,951,619   
     

 

 

  

Machinery (1.2%)

      

Hangzhou Hangyang Co., Ltd., ‘A’

      203,354         414,156   

Zhengzhou Coal Mining Machinery Group Co., Ltd., ‘A’

      154,808         254,938   

Zoomlion Heavy Industry Science and Technology Co., Ltd.

      351,200         399,027   
     

 

 

  
        1,068,121   
     

 

 

  

Metals & Mining (0.2%)

      

Shandong Gold Mining Co., Ltd., ‘A’

      30,000         199,144   
     

 

 

  

Multiline Retail (1.5%)

      

Intime Department Store Group Co., Ltd.

      717,000         776,730   

Springland International Holdings Ltd.

      885,000         438,274   

Wuhan Department Store Group Co., Ltd., ‘A’ (a)

      99,912         187,904   
     

 

 

  
        1,402,908   
     

 

 

  

Oil, Gas & Consumable Fuels (5.3%)

      

China Coal Energy Co., Ltd.

      687,000         627,280   

China Petroleum & Chemical Corp.

      1,468,000         1,370,680   

CNOOC Ltd.

      1,429,000         2,930,223   
     

 

 

  
        4,928,183   
     

 

 

  

Pharmaceuticals (1.4%)

      

China Resources Double Crane Pharmaceutical Co., Ltd., ‘A’

      193,389         702,489   

Kangmei Pharmaceutical Co., Ltd., ‘A’

      249,973         629,218   
     

 

 

  
        1,331,707   
     

 

 

  

Real Estate Investment Trusts (REITs) (0.4%)

      

Hui Xian Real Estate Investment Trust

      562,087         349,632   
     

 

 

  

Real Estate Management & Development (3.1%)

      

China Vanke Co., Ltd., ‘A’

      1,600,000         2,146,096   

Poly Real Estate Group Co., Ltd., ‘A’

      417,821         715,326   
     

 

 

  
        2,861,422   
     

 

 

  

Software (0.3%)

      

Shanda Games Ltd., ADR

      80,801         306,236   
     

 

 

  

Textiles, Apparel & Luxury Goods (0.2%)

      

China Lilang Ltd.

      373,000         196,264   
     

 

 

  

TOTAL CHINA

         45,257,052   
     

 

 

  

HONG KONG (28.4%)

      

Commercial Banks (1.9%)

      

BOC Hong Kong Holdings Ltd.

      319,500         1,015,685   

Dah Sing Financial Holdings Ltd.

      132,100         456,572   

Wing Hang Bank Ltd.

      35,823         336,330   
     

 

 

  
        1,808,587   
     

 

 

  

JF China Region Fund, Inc.

Investment portfolio

AT SEPTEMBER 30, 2012 (Unaudited)

 

DESCRIPTION

    HOLDINGS
(IN SHARES)		      MARKET
VALUE
(IN US$)		  

COMMON STOCKS — continued

      

Distributors (1.3%)

      

Dah Chong Hong Holdings Ltd.

      357,000         325,045   

Li & Fung Ltd.

      538,000         833,985   
     

 

 

  
        1,159,030   
     

 

 

  

Electric Utilities (0.9%)

      

Cheung Kong Infrastructure Holdings Ltd.

      140,000         847,686   
     

 

 

  

Gas Utilities (1.4%)

      

China Resources Gas Group Ltd.

      642,000         1,311,480   
     

 

 

  

Hotels, Restaurants & Leisure (0.8%)

      

Galaxy Entertainment Group Ltd. (a)

      105,000         352,074   

REXLot Holdings Ltd.

      5,425,000         412,784   
     

 

 

  
        764,858   
     

 

 

  

Industrial Conglomerates (2.5%)

      

Hutchison Whampoa Ltd.

      109,000         1,057,099   

Jardine Matheson Holdings Ltd.

      17,428         991,653   

NWS Holdings Ltd.

      167,000         268,353   
     

 

 

  
        2,317,105   
     

 

 

  

Insurance (3.3%)

      

AIA Group Ltd.

      818,000         3,048,755   
     

 

 

  

Media (0.3%)

      

Television Broadcasts Ltd.

      41,000         302,977   
     

 

 

  

Multiline Retail (0.6%)

      

Lifestyle International Holdings Ltd.

      268,500         554,726   
     

 

 

  

Real Estate Management & Development (10.1%)

      

Cheung Kong Holdings Ltd.

      201,000         2,947,324   

China Overseas Land & Investment Ltd.

      536,000         1,363,148   

China Resources Land Ltd.

      338,000         744,519   

Kerry Properties Ltd.

      127,000         642,039   

Midland Holdings Ltd.

      1,082,000         643,279   

New World Development Co., Ltd.

      656,300         1,017,369   

Wharf Holdings Ltd.

      299,400         2,079,261   
     

 

 

  
        9,436,939   
     

 

 

  

Specialty Retail (1.1%)

      

Belle International Holdings Ltd.

      581,000         1,051,997   
     

 

 

  

Wireless Telecommunication Services (4.2%)

      

China Mobile Ltd.

      350,000         3,879,586   
     

 

 

  

TOTAL HONG KONG

         26,483,726   
     

 

 

  

TAIWAN (22.2%)

      

Airlines (0.4%)

      

Eva Airways Corp. (a)

      613,700         360,095   
     

 

 

  

Chemicals (1.1%)

      

Formosa Chemicals & Fibre Corp.

      262,000         704,304   

Oriental Union Chemical Corp.

      261,800         298,743   
     

 

 

  
        1,003,047   
     

 

 

  

Commercial Banks (1.7%)

      

E.Sun Financial Holding Co., Ltd.

      1,070,479         606,204   

Mega Financial Holding Co., Ltd.

      1,210,813         933,507   
     

 

 

  
        1,539,711   
     

 

 

  

Computers & Peripherals (1.5%)

      

Catcher Technology Co., Ltd.

      72,000         338,957   

Foxconn Technology Co., Ltd.

      59,105         229,859   

Quanta Computer, Inc.

      297,000         789,271   
     

 

 

  
        1,358,087   
     

 

 

  

Diversified Financial Services (0.7%)

      

Chailease Holding Co., Ltd. (a)

      62,000         116,963   

Fubon Financial Holding Co., Ltd.

      527,989         574,577   
     

 

 

  
        691,540   
     

 

 

  

Electronic Equipment, Instruments & Components (2.7%)

      

Delta Electronics, Inc.

      243,000         940,880   

Hon Hai Precision Industry Co., Ltd.

      352,900         1,107,572   

TPK Holding Co., Ltd.

      36,349         476,783   
     

 

 

  
        2,525,235   
     

 

 

  

Food & Staples Retailing (0.4%)

      

President Chain Store Corp.

      75,000         401,692   
     

 

 

  

Food Products (1.5%)

      

Uni-President Enterprises Corp.

      786,450         1,395,105   
     

 

 

  

Internet Software & Services (0.3%)

      

PChome Online, Inc.

      52,025         294,613   
     

 

 

  

Leisure Equipment & Products (0.3%)

      

Johnson Health Tech Co., Ltd.

      119,595         308,029   
     

 

 

  

Real Estate Management & Development (1.3%)

      

Prince Housing & Development Corp.

      1,238,270         918,770   

Ruentex Development Co., Ltd. (a)

      155,000         293,466   
     

 

 

  
        1,212,236   
     

 

 

  

Semiconductors & Semiconductor Equipment (9.8%)

      

Advanced Semiconductor Engineering, Inc.

      1,042,802         803,975   

MediaTek, Inc.

      100,000         1,055,827   

Novatek Microelectronics Corp.

      68,000         245,894   

Powertech Technology, Inc. (a)

      343,000         658,772   

Taiwan Semiconductor Manufacturing Co., Ltd.

      1,962,057         6,010,634   

Win Semiconductors Corp.

      290,000         364,064   
     

 

 

  
        9,139,166   
     

 

 

  

Textiles, Apparel & Luxury Goods (0.5%)

      

Pou Chen Corp.

      406,000         415,508   
     

 

 

  

TOTAL TAIWAN

         20,644,064   
     

 

 

  

TOTAL INVESTMENTS

(99.2% of Net Assets)

(Cost $83,504,723)

         92,384,842   
     

 

 

  

Other assets in excess of liabilities

(0.8% of Net Assets)

         747,447   
     

 

 

  

NET ASSETS (100.0%)

       $ 93,132,289   
     

 

 

  

JF China Region Fund, Inc.

Investment portfolio

AT SEPTEMBER 30, 2012 (Unaudited)

As of September 30, 2012, aggregate cost for Federal income tax purposes was $83,504,723. The aggregate unrealized gain for all securities is as follows

 

Excess of market value over cost

      13,142,113   

Excess of cost over market value

      (4,261,994 ) 
  

 

 

  

Net unrealized gain

      8,880,119   
  

 

 

  

 

NOTES TO PORTFOLIO INVESTMENTS:

ADR — American Depositary Receipt.

(a) Non-income producing security.
(f) Security is fair valued in accordance with procedures established by and under the supervision and responsibility of the Board of Trustees. The Fund owns fair valued securities with a value of $207,890 which amounts to 0.2% of total investments.
A China A shares

The various inputs that are used in determining the fair value of the Fund’s investments are summarized into the three broad levels listed below.

 

•  

Level 1 – quoted prices in active markets for identical securities

•  

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

•  

Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input both individually and in the aggregate that is significant to the fair value measurement. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following table represents each valuation input by country as presented on the Investment Portfolio:

 

 

     Level 1
Quoted prices		      Level 2
Other significant observable
inputs		      Level 3
Significant unobservable
inputs		      Total  

Investments in Securities

            

Common Stocks

            

China

    $ 45,049,162       $ —         $ 207,890       $ 45,257,052   

Hong Kong

      26,483,726         —           —           26,483,726   

Taiwan

      20,644,064         —           —           20,644,064   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Investments in Securities

    $ 92,176,952       $ —         $ 207,890       $ 92,384,842   
  

 

 

     

 

 

     

 

 

     

 

 

  

There were no transfers between Levels 1 and 2 during the period ended September 30, 2012.

JF China Region Fund, Inc.

Investment portfolio

AT SEPTEMBER 30, 2012 (Unaudited)

The following is a summary of investments for which significant unobservable inputs (Level 3) were used in determining fair value:

 

     Balance as of
12/31/11		      Realized gain
(loss)		      Change in
unrealized
appreciation
(depreciation)		      Net accretion
(amortization)		      Purchases1      Sales2      Transfers
into Level 3		      Transfers out
of Level 3		    Balance
as of
09/30/12		  

Investments in Securities

  

                        

Common Stocks — China

    $ —         $ —         $ 11,659       $ —         $ 196,231       $ —         $ —            $ 207,890   

 

1 

Purchases include all purchases of securities and securities received in corporate actions.

2 

Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.

The change in unrealized appreciation (depreciation) attributable to securities owned at September 30, 2012, which were valued using significant unobservable inputs (Level 3), amounted to $11,659.

ITEM 2. CONTROLS AND PROCEDURES.

 

  (a) The registrant’s principal executive and principal financial officers have concluded based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding disclosure.

 

  (b) There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 3. EXHIBITS.

 

  (a) Certifications pursuant to Rule 30a-2(a) under the 1940 Act, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

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.

JF China Region Fund, Inc.

 

/s/ Simon Crinage

Simon Crinage
Director, President and Principal Executive
Officer of the JF China Region Fund, Inc.
November 29, 2012

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.

 

/s/ Simon Crinage

Simon Crinage
Director, President and Principal Executive
Officer of the JF China Region Fund, Inc.
November 29, 2012

 

/s/ Michael J. James

Michael J. James
Treasurer and Principal Financial
Officer of the JF China Region Fund, Inc.
November 29, 2012