UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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)
Cleary, Gottieb Steen & Hamilton
1 Liberty Plaza
New York, NY 10036
(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: January 1, 2009 through June 30, 2009
ITEM 1. REPORTS TO STOCKHOLDERS.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
Objectives | 1 | |||||
Management | 1 | |||||
Forward-Looking Statements | 2 | |||||
Market Information | 2 | |||||
Highlights | 3 | |||||
Chairman’s Statement | 4 | |||||
Investment Advisors’ Report | 5 | |||||
Top Ten Holdings | 7 | |||||
Investment Portfolio | 8 | |||||
Statement of Assets and Liabilities | 10 | |||||
Statement of Operations | 11 | |||||
Statement of Changes in Net Assets | 12 | |||||
Financial Highlights | 13 | |||||
Notes to Financial Statements | 14 | |||||
Results of the Annual Stockholders’ Meeting | 18 | |||||
Other Information | 18 | |||||
Fund Management | 19 | |||||
Dividend Reinvestment and Cash Purchase Plan | 22 | |||||
Directors and Administration | 23 |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 1 |
• | The Wall Street Journal (daily online at www.WSJ.com/Free) |
• | The Wall Street Journal under “Closed-End Funds” (every Saturday) |
• | www.jfchinaregion.com |
2 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
JUNE 30, 2009 US$ (Unaudited) | DECEMBER 31, 2008 US$ (Audited) | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net Assets | $ | 81.7 | million | $ | 61.3 | million | ||||||||
Net Asset Value Per Share | $ | 12.67 | $ | 9.50 | ||||||||||
Market Data | ||||||||||||||
Share Price on the New York Stock Exchange | $ | 11.56 | $ | 8.77 | ||||||||||
Discount to Net Asset Value | 8.8 | % | 7.6 | % | ||||||||||
Total Return for the Six Months Ended June 30, 2009 (Unaudited) | ||||||||||||||
Net Asset Value | 33.4 | % | ||||||||||||
Share Price | 31.8 | % | ||||||||||||
JFC Benchmark Index* | 36.3 | % | ||||||||||||
MSCI Hong Kong Index (Total) | 35.1 | % | ||||||||||||
MSCI China Index (Total) | 37.6 | % | ||||||||||||
MSCI Taiwan Index (Total) | 35.4 | % |
* | JFC Benchmark Index: MSCI Golden Dragon Index (Total). The MSCI Golden Dragon Index (Total) is comprised of 24.1% of the MSCI Hong Kong Index (Total), 42.7% of the MSCI China Index (Total) and 33.2% of the MSCI Taiwan Index (Total). |
Prior to March 2001, 25% Taiwan Weighted Index, 20% BNP Paribas China Index, 50% MSCI Hong Kong, 5% HSBC; Prior to March 1999, 60% Hong Kong All Ordinaries, 30% Credit Lyonnais Securities Asia All China B Index, 10% Taiwan Weighted Index; Prior to January 1997, Peregrine Greater China Index. |
** | Commencement of operations. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 3 |
JUNE 30, 2009
Chairman
4 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 5 |
6 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
AT JUNE 30, 2009 (Unaudited)
| % OF NET ASSETS | |||||
---|---|---|---|---|---|---|
China Mobile, Ltd. China Mobile Limited, through its subsidiaries, provides cellular telecommunications services in the People’s Republic of China and Hong Kong. | 7.4 | |||||
China Construction Bank Corp. ‘H’ China Construction Bank Corporation provides a complete range of banking services and other financial services to individual and corporate customers. The Bank’s services include retail banking, international settlement, project finance and credit card services. | 5.5 | |||||
Industrial & Commercial Bank of China ‘H’ Industrial and Commercial Bank of China, Limited provides a broad range of personal and corporate commercial banking services all over China. The Bank’s businesses include deposit, loan, credit card, fund underwriting and trust, and foreign currency settlement and trading. | 4.5 | |||||
China Life Insurance Co., Ltd. ‘H’ China Life Insurance Company, Limited offers a wide range of life, accident and health insurance products and services. | 4.3 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. (‘TSMC’) TSMC manufactures and markets integrated circuits. The company provides the following services: wafer manufacturing, wafer probing, assembly and testing, mask production and design services. The Company’s integrated circuits are used in computer, communication, consumer electronics, automotive and industrial equipment industries. | 4.2 | |||||
CNOOC, Ltd. CNOOC Limited, through its subsidiaries, explores, develops, produces, and sells crude oil and natural gas. | 4.0 | |||||
HON HAI Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Limited manufactures and markets personal computer (‘PC’) connectors and cable assemblies used in desktop PCs and PC servers. | 3.6 | |||||
Cheung Kong Holdings, Ltd. Cheung Kong Holdings Limited, through its subsidiaries, develops and invests in real estate. The Company also provides real estate agency and management services, operates hotels and invests in securities. | 3.0 | |||||
China Shenhua Energy Co., Ltd. ‘H’ China Shenhua Energy Company Limited is an integrated coal-based energy company focusing on the coal and power businesses in China. The Company also owns and operates an integrated coal transportation network consisting of dedicated rail lines and port facilities. | 2.8 | |||||
Bank of China, Ltd. ‘H’ Bank of China Limited provides a complete range of banking and other financial services to individual and corporation customers worldwide. The Bank’s services include retail banking, Great Wall credit card and debit card services, consumer credit, foreign currency transaction, corporate banking, settlement and clearing, investment banking, and fund management businesses. | 2.7 |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 7 |
AT JUNE 30, 2009 (Unaudited)
DESCRIPTION | | HOLDINGS (IN SHARES) | | MARKET VALUE (IN US$) | ||||||
---|---|---|---|---|---|---|---|---|---|---|
COMMON STOCKS — (unless otherwise noted) | ||||||||||
CHINA (46.9%) | ||||||||||
Commercial Banks (13.9%) | ||||||||||
Bank of China, Ltd. ‘H’ | 4,580,000 | 2,180,657 | ||||||||
Bank of Communications Co., Ltd. ‘H’ | 841,000 | 942,999 | ||||||||
China Construction Bank Corp. ‘H’ | 5,844,000 | 4,531,898 | ||||||||
Industrial & Commercial Bank of China ‘H’ | 5,286,000 | 3,683,125 | ||||||||
11,338,679 | ||||||||||
Construction & Engineering (0.5%) | ||||||||||
China Communications Construction Co., Ltd. ‘H’ | 355,000 | 415,004 | ||||||||
Construction Materials (1.5%) | ||||||||||
China National Building Material Co., Ltd. ‘H’ | 616,000 | 1,193,840 | ||||||||
Diversified Telecommunication Services (0.4%) | ||||||||||
China Telecom Corp., Ltd. ‘H’ | 596,000 | 296,845 | ||||||||
Food Products (1.0%) | ||||||||||
Tingyi Cayman Islands Holding Corp. | 518,000 | 854,193 | ||||||||
Insurance (5.2%) | ||||||||||
China Life Insurance Co., Ltd. ‘H’ | 959,000 | 3,526,622 | ||||||||
Ping An Insurance Group Co. of China, Ltd. ‘H’ | 109,000 | 737,679 | ||||||||
4,264,301 | ||||||||||
Internet Software & Services (1.8%) | ||||||||||
Tencent Holdings, Ltd. | 123,400 | 1,440,188 | ||||||||
Leisure Equipment & Products (0.9%) | ||||||||||
Li Ning Co., Ltd. | 255,000 | 751,834 | ||||||||
Marine (0.4%) | ||||||||||
Sinotrans Shipping, Ltd. | 854,500 | 372,670 | ||||||||
Metals & Mining (1.9%) | ||||||||||
Angang Steel Co., Ltd. ‘H’ | 300,000 | 497,803 | ||||||||
Jiangxi Copper Co., Ltd. ‘H’ | 155,000 | 253,999 | ||||||||
Maanshan Iron & Steel Co., Ltd. ‘H’ (a) | 1,270,000 | 799,685 | ||||||||
1,551,487 | ||||||||||
Multiline Retail (1.0%) | ||||||||||
Parkson Retail Group, Ltd. | 573,000 | 819,200 | ||||||||
Oil, Gas & Consumable Fuels (8.5%) | ||||||||||
China Petroleum & Chemical Corp. ‘H’ | 1,766,000 | 1,346,709 | ||||||||
China Shenhua Energy Co., Ltd. ‘H’ | 624,000 | 2,298,720 | ||||||||
CNOOC, Ltd. | 2,647,000 | 3,282,259 | ||||||||
6,927,688 | ||||||||||
Real Estate Management & Development (1.8%) | ||||||||||
China Vanke Co., Ltd. ‘B’ | 1,016,600 | 1,469,141 | ||||||||
Transportation Infrastructure (0.7%) | ||||||||||
Zhejiang Expressway Co., Ltd. ‘H’ | 724,000 | 574,525 | ||||||||
Wireless Telecommunication Services (7.4%) | ||||||||||
China Mobile, Ltd. | 607,000 | 6,077,793 | ||||||||
TOTAL CHINA | 38,347,388 | |||||||||
HONG KONG (22.4%) | ||||||||||
Commercial Banks (2.9%) | ||||||||||
Hang Seng Bank, Ltd. | 120,900 | 1,700,389 | ||||||||
Industrial & Commercial Bank of China Asia, Ltd. | 352,537 | 639,566 | ||||||||
2,339,955 | ||||||||||
Diversified Financial Services (1.6%) | ||||||||||
Hong Kong Exchanges and Clearing, Ltd. | 87,000 | 1,354,946 | ||||||||
Electric Utilities (0.2%) | ||||||||||
Cheung Kong Infrastructure Holdings, Ltd. | 37,000 | 129,857 | ||||||||
Industrial Conglomerates (2.2%) | ||||||||||
Hutchison Whampoa, Ltd. | 185,000 | 1,209,057 | ||||||||
Jardine Matheson Holdings, Ltd. | 22,400 | 614,208 | ||||||||
1,823,265 | ||||||||||
Machinery (0.3%) | ||||||||||
China Resources Gas Group, Ltd. | 330,000 | 225,676 | ||||||||
Marine (1.1%) | ||||||||||
Orient Overseas International, Ltd. | 203,500 | 869,137 | ||||||||
Real Estate Management & Development (14.1%) | ||||||||||
Cheung Kong Holdings, Ltd. | 216,000 | 2,483,287 | ||||||||
China Overseas Land & Investment, Ltd. | 854,000 | 1,983,471 | ||||||||
China Resources Land, Ltd. | 306,000 | 678,329 | ||||||||
Guangzhou Investment Co., Ltd. | 1,498,000 | 332,457 |
8 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
DESCRIPTION | | HOLDINGS (IN SHARES) | | MARKET VALUE (IN US$) | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
COMMON STOCKS — continued | |||||||||||
Real Estate Management & Development — continued | |||||||||||
Hang Lung Properties, Ltd. | 468,000 | 1,548,919 | |||||||||
Kerry Properties, Ltd. | 205,000 | 899,349 | |||||||||
Sun Hung Kai Properties, Ltd. | 162,000 | 2,023,419 | |||||||||
Wharf Holdings, Ltd. | 375,000 | 1,589,506 | |||||||||
11,538,737 | |||||||||||
TOTAL HONG KONG | 18,281,573 | ||||||||||
TAIWAN (27.7%) | |||||||||||
Chemicals (2.8%) | |||||||||||
Formosa Chemicals & Fibre Corp. (a) | 186,000 | 280,049 | |||||||||
Formosa Plastics Corp. | 667,000 | 1,189,256 | |||||||||
Taiwan Fertilizer Co., Ltd. | 269,000 | 798,555 | |||||||||
2,267,860 | |||||||||||
Commercial Banks (1.9%) | |||||||||||
First Financial Holding Co., Ltd. | 863,000 | 515,538 | |||||||||
Taishin Financial Holdings Co., Ltd. | 2,715,000 | 1,017,815 | |||||||||
1,533,353 | |||||||||||
Computers & Peripherals (2.9%) | |||||||||||
Acer, Inc. | 513,080 | 892,925 | |||||||||
HTC Corp. | 84,900 | 1,200,659 | |||||||||
Wistron Corp. | 168,000 | 279,061 | |||||||||
2,372,645 | |||||||||||
Diversified Financial Services (3.0%) | |||||||||||
Fubon Financial Holding Co., Ltd. | 1,559,000 | 1,458,741 | |||||||||
Yuanta Financial Holding Co., Ltd. | 1,529,000 | 1,029,897 | |||||||||
2,488,638 | |||||||||||
Electronic Equipment, Instruments & Components (6.0%) | |||||||||||
AU Optronics Corp. | 1,644,000 | 1,603,414 | |||||||||
HON HAI Precision Industry Co., Ltd. | 940,716 | 2,910,170 | |||||||||
Largan Precision Co. | 36,000 | 380,737 | |||||||||
4,894,321 | |||||||||||
Food & Staples Retailing (0.8%) | |||||||||||
President Chain Store Corp. | 240,000 | 615,178 | |||||||||
Industrial Conglomerates (1.1%) | |||||||||||
Far Eastern Textile Co., Ltd. | 792,000 | 917,281 | |||||||||
Metals & Mining (0.2%) | |||||||||||
China Steel Corp. | 235,000 | 201,981 | |||||||||
Real Estate Management & Development (0.3%) | |||||||||||
Huaku Development Co., Ltd. | 102,000 | 242,487 | |||||||||
Semiconductors & Semiconductor Equipment (7.9%) | |||||||||||
Advanced Semiconductor Engineering, Inc. | 1,494,000 | 862,886 | |||||||||
MediaTek, Inc. | 112,420 | 1,343,147 | |||||||||
Powertech Technology, Inc. | 137,300 | 286,652 | |||||||||
Richtek Technology Corp. | 81,000 | 509,799 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 2,077,699 | 3,463,887 | |||||||||
6,466,371 | |||||||||||
Wireless Telecommunication Services (0.8%) | |||||||||||
Far EasTone Telecommunications Co., Ltd. | 524,000 | 614,075 | |||||||||
TOTAL TAIWAN | 22,614,190 | ||||||||||
TOTAL INVESTMENTS (97.0% of Net Assets) (Cost $73,636,398) | 79,243,151 | ||||||||||
Assets in excess of liabilities (3.0% of Net Assets) | 2,454,095 | ||||||||||
NET ASSETS (100.0%) | 81,697,246 | ||||||||||
As of June 30, 2009, aggregate cost for Federal income tax purposes was $73,636,398. The aggregate unrealized gain for all securities is as follows | |||||||||||
Excess of market value over cost | 9,466,551 | ||||||||||
Excess of cost over market value | (3,859,798 | ) | |||||||||
Net unrealized gain | 5,606,753 |
(a) | Non-income producing security. |
B | Chinese security traded on Shenzhen Stock Exchange or Shanghai Stock Exchange. |
H | Chinese security traded on Hong Kong Stock Exchange. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 9 |
AT JUNE 30, 2009 (Unaudited)
| (in US$) | |||||
---|---|---|---|---|---|---|
ASSETS: | ||||||
Investments in non-affiliates, at value (cost $73,636,398) | 79,243,151 | |||||
Cash (including foreign currencies with a cost of $1,328,176 and value of $1,330,342) | 2,655,484 | |||||
Receivable for securities sold | 69,417 | |||||
Dividends receivable | 264,594 | |||||
Total Assets | 82,232,646 | |||||
LIABILITIES: | ||||||
Payables | ||||||
Payable for securities purchased | 387,890 | |||||
Accrued liabilities | ||||||
Investment advisory fees | 139,851 | |||||
Other | 7,659 | |||||
Total Liabilities | 535,400 | |||||
Net Assets | 81,697,246 | |||||
Net assets consist of: | ||||||
Common stock, $0.01 par value (100,000,000 shares authorized; 6,447,637 shares issued and outstanding) | 64,476 | |||||
Paid-in capital | 98,994,145 | |||||
Undistributed net investment income | 628,953 | |||||
Accumulated realized loss on investments and foreign currency transactions | (23,599,210 | ) | ||||
Accumulated net unrealized appreciation on investments, foreign currency holdings, and other assets and liabilities denominated in foreign currencies | 5,608,882 | |||||
Net Assets | 81,697,246 | |||||
Net Asset Value Per Share ($81,697,246 ÷ 6,447,637) | 12.67 |
10 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
FOR THE SIX MONTHS ENDED JUNE 30, 2009 (Unaudited)
| (in US$) | |||||
---|---|---|---|---|---|---|
INVESTMENT INCOME: | ||||||
Dividends from non-affiliates (net of foreign withholding tax of $56,060) | 1,001,099 | |||||
Interest income from affiliates | 6 | |||||
Total Investment Income | 1,001,105 | |||||
EXPENSES: | ||||||
Investment advisory fees | 330,006 | |||||
Directors’ fees and expenses | 85,490 | |||||
Custodian and accounting fees | 94,889 | |||||
Administration fees | 64,479 | |||||
Insurance fees | 22,149 | |||||
Shareholder service fees | 590 | |||||
Shareholder report fees | 17,577 | |||||
Audit fees | 44,922 | |||||
Legal fees | 73,486 | |||||
NYSE listing fee | 12,339 | |||||
Other expenses | 19,970 | |||||
Total Expenses | 765,897 | |||||
Net Investment Income | 235,208 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY HOLDINGS AND OTHER ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES: | ||||||
Net realized loss | ||||||
Investments in non-affiliates | (9,324,008 | ) | ||||
Foreign currency transactions | (42,969 | ) | ||||
Net realized loss | (9,366,977 | ) | ||||
Net change in unrealized appreciation/depreciation | ||||||
Investments in non-affiliates | 29,570,195 | |||||
Foreign currency translations | 2,269 | |||||
Change in net unrealized appreciation/depreciation | 29,572,464 | |||||
Net realized and unrealized gain on investments, foreign currency holdings and other assets and liabilities denominated in foreign currencies | 20,205,487 | |||||
Net increase in net assets resulting from operations | 20,440,695 |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 11 |
FOR THE PERIODS INDICATED
| Six Months Ended June 30, 2009 (Unaudited) (in US$) | | Year Ended December 31, 2008 (in US$) | |||||||
---|---|---|---|---|---|---|---|---|---|---|
INCREASE IN NET ASSETS: | ||||||||||
Operations | ||||||||||
Net investment income | 235,208 | 948,551 | ||||||||
Net realized loss on investment transactions | (9,366,977 | ) | (11,886,315 | ) | ||||||
Net change in unrealized appreciation (depreciation) on investments, foreign currency holdings and other assets and liabilities denominated in foreign currencies | 29,572,464 | (59,978,319 | ) | |||||||
Net increase (decrease) in net assets resulting from operations | 20,440,695 | (70,916,083 | ) | |||||||
DISTRIBUTIONS TO STOCKHOLDERS: | ||||||||||
Net investment income | — | (28,887 | ) | |||||||
Net realized gains | — | (21,498,439 | ) | |||||||
Total distributions to shareholders | — | (21,527,326 | ) | |||||||
Total increase (decrease) in net assets | 20,440,695 | (92,443,409 | ) | |||||||
CHANGE IN NET ASSETS FROM CAPITAL TRANSACTIONS: | ||||||||||
Dividends and distributions reinvested | — | 15,067,439 | ||||||||
Change in net assets from capital transactions | — | 15,067,439 | ||||||||
NET ASSETS: | ||||||||||
Beginning of period | 61,256,551 | 138,632,521 | ||||||||
End of period (including undistributed net investment income of $628,953 and $393,745, respectively) | 81,697,246 | 61,256,551 | ||||||||
SHARE TRANSACTIONS | ||||||||||
Opening number of shares | 6,447,637 | 4,585,160 | ||||||||
Reinvested | — | 1,862,477 | ||||||||
Closing number of shares | 6,447,637 | 6,447,637 |
12 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
FOR THE PERIODS INDICATED
| For the Six Months Ended June 30, 2009 (Unaudited) (in US$) | | For the Year Ended December 31, 2008 (in US$) | | For the Year Ended December 31, 2007 (in US$) | | For the Year Ended December 31, 2006 (in US$) | | For the Year Ended December 31, 2005 (in US$) | | For the Year Ended December 31, 2004 (in US$) | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
For a share outstanding throughout each year: | ||||||||||||||||||||||||||
Net asset value, beginning of period | 9.50 | 30.24 | 22.82 | 16.04 | 14.06 | 13.93 | ||||||||||||||||||||
Net investment income | 0.04 | 0.32 | 0.11 | 0.07 | 0.13 | 0.04 | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 3.13 | (16.36 | ) | 12.54 | 6.80 | 1.91 | 0.09 | |||||||||||||||||||
Total from investment operations | 3.17 | (16.04 | ) | 12.65 | 6.87 | 2.04 | 0.13 | |||||||||||||||||||
Dividends from net investment income | — | (0.01 | ) | (1.25 | ) | (0.09 | ) | (0.06 | ) | — | ||||||||||||||||
Distributions from net realized gains | — | (4.69 | ) | (3.98 | ) | — | — | — | ||||||||||||||||||
Total distributions | — | (4.70 | ) | (5.23 | ) | (0.09 | ) | (0.06 | ) | — | ||||||||||||||||
Net asset value, end of period | 12.67 | 9.50 | 30.24 | 22.82 | 16.04 | 14.06 | ||||||||||||||||||||
Market value, end of period | 11.56 | 8.77 | 25.47 | 22.80 | 13.71 | 12.80 | ||||||||||||||||||||
Total Investment Return | ||||||||||||||||||||||||||
Per share market value * | 31.8 | % | (45.6%) | 35.0 | % | 67.1 | % | 7.6 | % | (29.2%) | ||||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period | 81,697,246 | 61,256,551 | 138,632,521 | 104,623,906 | 73,558,649 | 64,487,971 | ||||||||||||||||||||
Ratios of total expenses to average net assets | 2.32 | %** | 1.92 | % | 1.54 | % | 1.95 | % | 2.08 | % | 2.22 | % | ||||||||||||||
Ratios of net investment income to average net assets | 0.71 | %** | 0.98 | % | 0.39 | % | 0.36 | % | 0.90 | % | 0.31 | % | ||||||||||||||
Portfolio turnover rate | 136.3 | %** | 114.8 | % | 118.8 | % | 192.4 | % | 121.8 | % | 168.6 | % | ||||||||||||||
Number of shares outstanding at end of period (in thousands) | 6,448 | 6,448 | 4,585 | 4,585 | 4,585 | 4,585 |
* | The total investment return excludes the effect of commissions. Dividends and distributions, if any, are assumed for the purpose of this calculation to be reinvested at prices obtained under the Fund’s dividend reinvestment plan or if specified in accordance with the terms of the distribution. |
** | Annualized for periods less than one year. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 13 |
AT JUNE 30, 2009 (Unaudited)
• | 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.) |
14 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
Valuation Inputs # | | Investments in Securities | | Other Financial Instruments* | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Level 1 — Quoted prices | $79,243,151 | $ — | ||||||||
Level 2 — Other significant observable inputs | — | — | ||||||||
Level 3 — Significant unobservable inputs | — | — | ||||||||
Total | $79,243,151 | $ — |
# | All portfolio holdings designated as Level 1 are disclosed individually in the Investment Portfolio. Please refer to the Investment Portfolio for industry specifics of the portfolio holdings. |
* | Other financial instruments may include futures, forwards and swap contracts. |
• | investments, other assets, and liabilities at the prevailing rates of exchange on the valuation date; |
• | investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 15 |
AT JUNE 30, 2009 (Unaudited) (continued)
16 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 17 |
Nominees | | Votes For | | Votes Withheld | | Shares Not Voted | | Total Voting Shares | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
The Rt. Hon. The Earl of Cromer | 3,962,403 | 1,311,831 | 1,173,403 | 6,447,637 | ||||||||||||||
Simon J. Crinage | 5,043,457 | 230,777 | 1,173,403 | 6,447,637 |
18 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
Name, (DOB), Address and Position(s) with Fund | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Director* | | Other Trusteeships/ Directorships Held by Director | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Independent Directors | |||||||||||||||||||
The Rt. Hon. The Earl of Cromer (June 3, 1946) Finsbury Dials 20 Finsbury Street London, EC2Y 9AQ United Kingdom Chairman and Class I Director | Three year term ends in 2012; Chairman and Director since 1994. | Chairman of the Board of the Fund; Chief Executive Officer of Cromer Associates Limited (family business). Director of Schroder Asia Pacific Fund Limited (financial), London Asia Capital plc (financial), Pedder Street Asia Absolute Return Fund Limited (financial); Chairman of Japan High Yield Property Fund Limited (financial), China IPO Group Limited (financial) and Western Provident Association (insurance). | 1 | See Principal Occupation. | |||||||||||||||
Alexander Reid Hamilton (October 4, 1941) P.O. Box 12343 General Post Office Hong Kong Class II Director | Three year term ends in 2010; Director since 1994. | Director of Citic Pacific Limited (infrastructure), China Cosco Holdings Company Limited (shipping), Esprit Holdings Limited (clothing retail), Shangri-La Asia Limited (hotels), Octopus Cards Limited (financial services) and China Central Properties Limited (property). | 1 | See Principal Occupation. | |||||||||||||||
Julian M. I. Reid (August 7, 1944) Finsbury Dials, 20 Finsbury Street London, EC2Y 9AQ United Kingdom Class III Director | Three year term ends in 2011; Director since 1998. | Chief Executive Officer of 3a Asset Management Limited (financial); Director and Chairman of Morgan’s Walk Properties Limited (property); Director and Chairman of Prosperity Voskhod Fund (financial); Director and Chairman of ASA Limited (financial) and Director of 3a Global Growth Fund Limited (financial). | 1 | Director and Chairman of The Korea Fund, Inc. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 19 |
(continued)
Name, (DOB), Address and Position(s) with Fund | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past 5 Years | | Number of Portfolios in Fund Complex Overseen by Director* | | Other Trusteeships/ Directorships Held by Director | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Independent DIRECTORS (continued) | |||||||||||||||||||
John R. Rettberg (September 1, 1937) 1 Beacon St. Boston, MA 02108 USA Class II Director | Term ends in 2010; Director since 2008 | Director of Enalasys (energy); Director of VLPS (lighting) | 1 | See Principal Occupation | |||||||||||||||
Interested Director & President of the Fund | |||||||||||||||||||
Simon J. Crinage (May 10, 1965) Finsbury Dials, 20 Finsbury Street London, EC2Y 9AQ United Kingdom Class I Director and President | Term as Director ends in 2012; Director since May, 2009 & President since 2003 | Managing Director, J.P. Morgan Asset Management | 1 | None |
* | The Fund is the only fund in the Fund Complex. |
20 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
Name, (DOB), Address and Position(s) with Fund | | Term of Office and Length of Time Served | | Principal Occupation(s) During Past 5 Years | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Officers who are not Directors | |||||||||||
Michael J. James (May 11, 1967) Finsbury Dials, 20 Finsbury Street London, EC2Y 9AQ United Kingdom Treasurer | Since 2006** | Treasurer of the Fund; Vice President, J.P. Morgan Asset Management. | |||||||||
Christopher D. Legg (March 12, 1982) Finsbury Dials, 20 Finsbury Street London, EC2Y 9AQ United Kingdom Secretary | Since 2008** | Secretary of the Fund; Associate, J.P. Morgan Asset Management. | |||||||||
Muriel Y.K. Sung (September 25, 1966) 8 Connaught Road Central/Hong Kong Chief Compliance Officer | Since 2004** | Chief Compliance Officer of the Fund; Vice President, J.P. Morgan Asset Management. |
** | The officers of the Fund serve at the discretion of the Board. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 21 |
(Unaudited)
a) | shareholders may elect to receive dividend and capital gain distributions in the form of additional shares of the Fund (the Share Distribution Plan). |
b) | shareholders may make optional payments (any amount between $100 and $3,000) which will be used to purchase additional shares in the open market (the Share Purchase Plan). |
Computershare Trust Company, N.A. P. O. Box 43010 Providence, RI 02940-3010 USA Telephone No.: 800-426-5523 (toll-free) www.computershare.com |
22 JF CHINA REGION FUND, INC. | JUNE 30, 2009 |
(Unaudited)
Officers and Directors | The Rt. Hon. The Earl of Cromer — Director and Chairman of the Board Alexander R. Hamilton — Director Julian M. I. Reid — Director John R. Rettberg — Director Simon J. Crinage — Director and President Michael J. James — Treasurer Christopher D. Legg — Secretary Muriel Y.K. Sung — Chief Compliance Officer | |||||||||
Investment Adviser | JF International Management Inc. P.O. Box 3151 Road Town, Tortola British Virgin Islands | |||||||||
Administrator | J.P. Morgan Investor Services, Co. 1 Beacon Street, 18th Floor Boston, Massachusetts 02108 U.S.A. | |||||||||
Custodian | JPMorgan Chase Bank N.A. 1 Beacon Street, 18th Floor Boston, Massachusetts 02108 U.S.A. | |||||||||
Independent Registered Public Accounting Firm | PricewaterhouseCoopers LLP 300 Madison Avenue New York, New York 10017 U.S.A. | |||||||||
Legal Counsel | Cleary Gottlieb Steen & Hamilton LLP New York: 1 Liberty Plaza New York, New York 10006 U.S.A. | |||||||||
Hong Kong: Bank of China Tower 1 Garden Road Hong Kong | ||||||||||
Registrar, Transfer Agent, and Dividend Paying Agent | Computershare Trust Company, N.A. P. O. Box 43010 Providence, Rhode Island 02940-3010 U.S.A. |
JUNE 30, 2009 | JF CHINA REGION FUND, INC. 23 |
© JPMorgan Chase & Co., 2009 All rights reserved. June 2009. |
ITEM 2. CODE OF ETHICS.
Not required for this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required for this filing.
Not applicable to a semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required for this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not required for this filing.
ITEM 6. SCHEDULE OF INVESTMENTS
(a) Schedule of Investments is included as part of Item 1.
(b) Not applicable to the Registrant.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not required for this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) Not applicable to a semi-annual report.
(b) There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph
(a) (1) of this Item in the registrant’s most recently filed annual report on Form N-CSR.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board of Directors during the period covered by this Form N-CSR filing.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant's principal executive and principal financial officers have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-CSR based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the 1934 Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the Registrant's second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
| (a)(1) Not required for this filing. |
.
| (a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940. |
| (a)(3) Not required for this filing. |
(b) The certifications required by Rule 30a-2(b) of the 1940 Act and Section 906 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.
By: | /s/_____________________________ |
Simon Crinage
President and Principal Executive Officer
September 4, 2009
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/___________________________ |
Simon Crinage
President and Principal Executive Officer
September 4, 2009
By: | /s/____________________________ |
Michael J. James
Treasurer and Principal Financial Officer
September 4, 2009