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: March 31, 2012

ITEM 1. SCHEDULE OF INVESTMENTS.

The Schedule(s) of Investments is attached herewith.

JF China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2012 (Unaudited)

 

DESCRIPTION

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

COMMON STOCK (unless otherwise noted)

      

CHINA (40.6%)

      

Auto Components (0.6%)

      

Minth Group Ltd.

      490,000         567,893   
     

 

 

  

Commercial Banks (10.9%)

      

China Construction Bank Corp.

      7,051,330         5,448,163   

Industrial & Commercial Bank of China

      7,193,930         4,641,215   
     

 

 

  
        10,089,378   
     

 

 

  

Construction Materials (1.7%)

      

China National Building Material Co., Ltd.

      1,266,000         1,596,041   
     

 

 

  

Diversified Telecommunication Services (1.1%)

      

China Telecom Corp. Ltd.

      1,814,000         1,004,462   
     

 

 

  

Energy Equipment & Services (1.2%)

      

China Oilfield Services Ltd.

      748,000         1,073,037   
     

 

 

  

Food & Staples Retailing (0.1%)

      

Beijing Jingkelong Co., Ltd.

      106,000         94,868   
     

 

 

  

Food Products (1.7%)

      

Want Want China Holdings Ltd.

      1,426,000         1,593,922   
     

 

 

  

Hotels, Restaurants & Leisure (2.2%)

      

Sands China Ltd.

      529,600         2,069,829   
     

 

 

  

Insurance (2.7%)

      

New China Life Insurance Co., Ltd. (a)

      162,200         661,078   

Ping An Insurance Group Co.

      237,000         1,791,489   
     

 

 

  
        2,452,567   
     

 

 

  

Internet Software & Services (3.7%)

      

Tencent Holdings Ltd.

      123,100         3,433,557   
     

 

 

  

Machinery (0.5%)

      

Zoomlion Heavy Industry Science and Technology Co., Ltd.

      352,800         469,761   
     

 

 

  

Metals & Mining (0.8%)

      

Jiangxi Copper Co., Ltd.

      335,000         770,467   
     

 

 

  

Multiline Retail (1.9%)

      

Intime Department Store Group Co., Ltd.

      845,000         1,056,583   

Springland International Holdings Ltd.

      919,000         665,089   
     

 

 

  
        1,721,672   
     

 

 

  

Oil, Gas & Consumable Fuels (8.1%)

      

China Petroleum & Chemical Corp.

      2,270,000         2,472,999   

CNOOC Ltd.

      1,878,000         3,859,724   

Yanzhou Coal Mining Co., Ltd.

      530,000         1,149,333   
     

 

 

  
        7,482,056   
     

 

 

  

Real Estate Investment Trusts (REITs) (0.5%)

      

Hui Xian Real Estate Investment Trust

      808,000         500,349   
     

 

 

  

Real Estate Management & Development (2.1%)

      

China Vanke Co., Ltd., ‘B’

      1,634,195         1,938,167   
     

 

 

  

Specialty Retail (0.4%)

      

China ZhengTong Auto Services Holdings Ltd. (a)

      341,000         341,634   

Textiles, Apparel & Luxury Goods (0.4%)

      

China Lilang Ltd.

      321,000         342,679   
     

 

 

  

TOTAL CHINA

         37,542,339   
     

 

 

  

HONG KONG (26.0%)

      

Commercial Banks (2.0%)

      

BOC Hong Kong Holdings Ltd.

      272,000         751,318   

Dah Sing Financial Holdings Ltd.

      142,100         492,237   

Wing Hang Bank Ltd.

      56,582         562,137   
     

 

 

  
        1,805,692   
     

 

 

  

Containers & Packaging (0.8%)

      

AMVIG Holdings Ltd.

      1,404,000         759,354   
     

 

 

  

Distributors (0.5%)

      

Dah Chong Hong Holdings Ltd.

      451,000         478,555   
     

 

 

  

Electric Utilities (0.8%)

      

Power Assets Holdings Ltd.

      95,000         697,311   
     

 

 

  

Gas Utilities (1.6%)

      

China Resources Gas Group Ltd.

      776,000         1,484,938   
     

 

 

  

Hotels, Restaurants & Leisure (0.6%)

      

REXLot Holdings Ltd.

      6,325,000         562,001   
     

 

 

  

Industrial Conglomerates (2.1%)

      

Hutchison Whampoa Ltd.

      50,000         499,642   

Jardine Matheson Holdings Ltd.

      22,628         1,131,400   

NWS Holdings Ltd.

      214,184         327,666   
     

 

 

  
        1,958,708   
     

 

 

  

Insurance (3.4%)

      

AIA Group Ltd.

      871,200         3,191,743   
     

 

 

  

Marine (0.5%)

      

Pacific Basin Shipping Ltd.

      850,000         459,723   
     

 

 

  

Real Estate Management & Development (8.6%)

      

Cheung Kong Holdings Ltd.

      221,000         2,854,440   

China Overseas Land & Investment Ltd.

      482,000         916,139   

China Resources Land Ltd.

      220,000         380,192   

Kerry Properties Ltd.

      176,000         792,114   

Midland Holdings Ltd.

      1,062,000         557,972   

New World Development Co., Ltd.

      644,000         773,740   

Wharf Holdings Ltd.

      310,400         1,686,794   
     

 

 

  
        7,961,391   
     

 

 

  

Specialty Retail (1.0%)

      

Belle International Holdings Ltd.

      177,000         317,734   

IT Ltd.

      522,000         304,507   

Luk Fook Holdings International Ltd.

      97,000         294,789   
     

 

 

  
        917,030   
     

 

 

  

Wireless Telecommunication Services (4.1%)

      

China Mobile Ltd.

      341,000         3,752,271   
     

 

 

  

TOTAL HONG KONG

         24,028,717   
     

 

 

  

TAIWAN (24.5%)

      

Airlines (0.2%)

      

Eva Airways Corp.

      340,700         209,514   
     

 

 

  

Chemicals (2.1%)

      

Formosa Chemicals & Fibre Corp.

      194,000         566,596   

Formosa Plastics Corp.

      386,000         1,136,506   

Oriental Union Chemical Corp.

      181,000         233,958   
     

 

 

  
        1,937,060   
     

 

 

  

Commercial Banks (1.6%)

      

E.Sun Financial Holding Co., Ltd.

      860,504         472,316   

Mega Financial Holding Co., Ltd.

      1,409,920         996,013   
     

 

 

  
        1,468,329   
     

 

 

  

JF China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2012 (Unaudited)

 

DESCRIPTION

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

COMMON STOCK — continued

      

Computers & Peripherals (2.6%)

      

Catcher Technology Co., Ltd.

      107,000         755,883   

Foxconn Technology Co., Ltd.

      212,100         876,728   

Quanta Computer, Inc.

      300,000         785,716   
     

 

 

  
        2,418,327   
     

 

 

  

Diversified Financial Services (1.0%)

      

Chailease Holding Co., Ltd. (a)

      138,000         197,781   

Fubon Financial Holding Co., Ltd.

      679,877         765,925   
     

 

 

  
        963,706   
     

 

 

  

Electronic Equipment, Instruments & Components (2.6%)

      

Hon Hai Precision Industry Co., Ltd.

      299,000         1,159,955   

Largan Precision Co., Ltd.

      27,700         544,343   

TPK Holding Co., Ltd. (a)

      45,050         728,841   
     

 

 

  
        2,433,139   
     

 

 

  

Food & Staples Retailing (0.7%)

      

President Chain Store Corp.

      114,000         633,451   
     

 

 

  

Food Products (1.2%)

      

Uni-President Enterprises Corp.

      779,000         1,078,187   
     

 

 

  

Internet Software & Services (0.3%)

      

PChome Online, Inc.

      45,000         253,858   
     

 

 

  

Leisure Equipment & Products (0.4%)

      

Johnson Health Tech Co., Ltd.

      107,000         331,356   
     

 

 

  

Marine (0.7%)

      

Evergreen Marine Corp., Taiwan Ltd.

      1,015,000         698,114   
     

 

 

  

Real Estate Management & Development (1.6%)

      

Huaku Development Co., Ltd.

      325,370         825,703   

Prince Housing & Development Corp.

      842,700         632,428   
     

 

 

  
        1,458,131   
     

 

 

  

Semiconductors & Semiconductor Equipment (9.2%)

      

Advanced Semiconductor Engineering, Inc.

      1,742,640         1,753,593   

MediaTek, Inc.

      100,000         957,157   

Taiwan Semiconductor Manufacturing Co., Ltd.

      2,013,057         5,790,663   
     

 

 

  
        8,501,413   
     

 

 

  

Textiles, Apparel & Luxury Goods (0.3%)

      

Pou Chen Corp.

      351,000         305,042   
     

 

 

  

TOTAL TAIWAN

         22,689,627   
     

 

 

  

INVESTMENT COMPANIES HONG KONG (5.3%)

      

BOCI-Prudential — W.I.S.E. — CSI China Tracker Fund (a)

      227,400         853,605   

JF China Pioneer A-Share Fund (a)

      177,358         4,026,037   
     

 

 

  

TOTAL HONG KONG

         4,879,642   
     

 

 

  

TOTAL INVESTMENTS (96.4% of Net Assets)

(Cost $79,962,216)

         89,140,325   
     

 

 

  

Other assets in excess of liabilities (3.6% of Net Assets)

         3,352,651   
     

 

 

  

NET ASSETS (100.0%)

         92,492,976   
     

 

 

  

As of March 31, 2012, aggregate cost for Federal income tax purposes was $79,962,216. The aggregate unrealized gain for all securities is as follows

 

Excess of market value over cost

      13,338,483   

Excess of cost over market value

      (4,160,374 ) 
  

 

 

  

Net unrealized gain

      9,178,109   
  

 

 

  

 

NOTES TO PORTFOLIO INVESTMENTS:

 

(a) Non-income producing security.
B Chinese security traded on Shenzhen Stock Exchange or Shanghai Stock Exchange.

JF China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2012 (Unaudited)

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 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 as presented on the Investment Portfolio:

 

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

Total Investments in Securities (a)

    $ 89,140,325       $ —         $ —         $ 89,140,325   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) All portfolio holdings designated as Level 1 are disclosed individually in the Investment Portfolio.

There were no transfers between Levels 1 and 2 during the period ended March 31, 2012.

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.

May 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.

May 29, 2012

 

/s/ Michael J. James

Michael J. James

Treasurer and Principal Financial

Officer of the JF China Region Fund, Inc.

May 29, 2012