Templeton China World Fund (TCH) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07876

Templeton China World Fund

(Exact name of registrant as specified in charter)

300 S.E. 2^nd Street, Fort Lauderdale, FL 33301-1923

(Address of principal executive offices) Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA  94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: (954) 527-7500_

Date of fiscal year end: 8/31_

Date of reporting period: 2/28/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.

Semiannual

Report

and

Shareholder

Letter

Templeton

China

World

Fund

February

28,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

China’s

economy

was

the

only

major

economy

to

grow

in

full

calendar-year

2020,

underpinned

by

a

diversified

domestic

economy

driven

by

manufacturing,

innovation

and

digitization.

In

our

view,

China

has

successfully

navigated

the

economic

disruptions

caused

by

the

pandemic,

and

the

resulting

V-shaped

recovery

bodes

well

for

continued

strength

in

2021.

We

continue

to

see

the

emergence

of

high-quality

companies

that,

in

our

analysis,

are

well-placed

to

benefit

from

ongoing

market

consolidation

and

booming

domestic

consumption.

Geopolitical

tension

between

China

and

the

U.S.

remains

a

key

headwind

likely

to

persist,

despite

some

easing

under

the

new

U.S.

administration.

Although

this

tension

is

resulting

in

decoupling

between

the

two

countries

with

regard

to

technology-related

companies,

we

have

seen

continued

liberalization

in

China’s

financial

markets,

driving

increased

foreign

ownership.

Investor

interest

in

China’s

domestic

A-share

markets

is

rising

alongside

increased

bond

market

flows

as

China

is

added

to

international

equity

indexes.

The

Chinese

equity

market

has

presented

diverse

opportunities

to

investors,

and

the

depth

and

breadth

of

the

market

has

grown

exponentially.

Digitization,

adoption

of

technology

and

further

consolidation

across

certain

industries

should

all

feed

into

the

long-term

opportunities

that

we

have

long

been

watching

unfold

in

China.

We

are

particularly

interested

in

so-called

“new

economy”

stocks.

The

trajectory

of

companies

that

have

harnessed

technology

to

create

online

platforms

from

traditional

brick-and-mortar

businesses

has

led

to

various

Chinese

government

initiatives,

from

lower

transaction

costs

to

reaching

segments

of

society

that

previously

did

not

have

that

access

to

goods

and

services.

The

concept

of

digitization

extends

beyond

the

consumer

section

in

light

of

fifth-generation

(5G)

technology,

as

we

think

it

could

become

a

tailwind

for

other

sectors

to

capture

this

opportunity,

particularly

in

the

industrials

sector.

As

we

continue

to

keep

an

eye

on

quality

businesses

with

sustainable

business

models,

we

also

anticipate

ongoing

Chinese

initiatives

that

could

bring

fertile

investment

opportunities.

We

are

committed

to

our

long-term

perspective

and

disciplined

investment

approach

as

we

conduct

a

rigorous,

fundamental

analysis

of

securities

with

a

regular

emphasis

on

investment

risk

management.

Historically,

patient

investors

have

achieved

rewarding

results

by

evaluating

their

goals,

diversifying

their

assets

globally

and

maintaining

a

disciplined

investment

program,

all

hallmarks

of

the

Templeton

investment

philosophy.

We

continue

to

recommend

investors

consult

financial

professionals

and

review

their

portfolios

to

design

a

long-term

strategy

and

portfolio

allocation

that

meet

their

individual

needs,

goals

and

risk

tolerance.

Templeton

China

World

Fund’s

semiannual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

Please

remember

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin

Templeton,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

investment

needs

in

the

years

ahead.

Sincerely,

Manraj

S.

Sekhon,

CFA

Chief

Investment

Officer

Franklin

Templeton

Emerging

Markets

Equity

This

letter

reflects

our

analysis

and

opinions

as

of

February

28,

2021,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Templeton

China

World

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

8

Financial

Highlights

and

Statement

of

Investments

9

Financial

Statements

16

Notes

to

Financial

Statements

20

Shareholder

Information

29

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Templeton

China

World

Fund

This

semiannual

report

for

Templeton

China

World

Fund

covers

the

period

ended

February

28,

2021.

Your

Fund’s

Goals

and

Main

Investments

The

Fund

seeks

long-term

capital

appreciation.

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

in

securities

of

“China

companies.”

Such

companies

are

those

that

are

organized

under

the

laws

of,

or

with

a

principal

office

in,

the

People’s

Republic

of

China

(China),

Hong

Kong

or

Taiwan;

or

for

which

the

principal

trading

market

is

in

China,

Hong

Kong

or

Taiwan;

or

that

derive

at

least

50%

of

their

revenues

from

goods

or

services

sold

or

produced,

or

have

at

least

50%

of

their

assets,

in

China.

Performance

Overview

For

the

six

months

ended

February

28,

2021,

the

Fund’s

Class

A

shares

posted

a

total

return

of

+18.00%.

For

comparison,

the

Fund’s

new

benchmark,

the

MSCI

China

Index-NR,

which

measures

stock

market

performance

of

mid-

and

large-capitalization

companies

in

China,

posted

a

+14.93%

cumulative

total

return

for

the

same

period.

1

The

Fund’s

prior

benchmark,

the

MSCI

China

Index,

posted

a

+14.94%

return.

1

The

investment

manager

believes

the

MSCI

China

Index-NR

provides

a

more

consistent

basis

for

comparison

relative

to

the

Fund’s

peers.

For

the

10-

year

period

ended

February

28,

2021,

the

Fund’s

Class

A

shares

posted

a

+96.81%

cumulative

total

return,

compared

with

the

MSCI

China

Index-NR’s

+126.51%

and

the

MSCI

China

Index’s

+131.38%

cumulative

total

returns

for

the

same

period.

1

Please

note

index

performance

information

is

provided

for

reference

and

we

do

not

attempt

to

track

the

index

but

rather

undertake

investments

on

the

basis

of

fundamental

research.

You

can

find

more

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Economic

and

Market

Overview

China’s

economic

recovery

continued

during

the

six-

month

period

ended

February

28,

2021.

Year-on-year

gross

domestic

product

growth

rates

accelerated

in

the

third

and

fourth

quarters

of

2020,

driven

by

retail

sales

and

government-stimulated

industrial

production,

marking

three

consecutive

quarters

of

expansion

following

the

contraction

caused

by

the

novel

coronavirus

pandemic

in

the

first

quarter.

As

a

net

oil

importer,

generally

low

oil

prices

throughout

the

period

also

supported

the

economy.

In

late

2020,

the

government

signaled

its

five-year

annual

growth

targets

would

be

on

the

lower

end

of

prior

forecasts,

reflecting

continued

uncertainty

about

the

pandemic’s

long-

term

economic

impact.

During

the

six

months

under

review,

the

People’s

Bank

of

China

held

its

benchmark

loan

prime

rate

steady,

though

it

offered

a

record

amount

of

medium-term

lending

facility

in

December

2020

to

further

support

liquidity.

Chinese

equities

rose

during

the

period,

though

they

generally

lagged

their

emerging

market

peers.

The

country’s

continued

economic

recovery

has

been

the

most

robust

of

any

major

economy

and

provided

a

foundation

for

investor

confidence.

Gains

were

limited,

however,

by

investor

concerns

about

increased

Chinese

government

regulation

of

internet

companies,

new

U.S.

Department

of

Defense-mandated

restrictions

on

U.S.

investment

in

Chinese

companies

(scheduled

to

take

effect

in

late

2021),

asset

overvaluation

and

the

possibility

for

monetary

policy

tightening.

In

this

environment,

the

MSCI

China

Index-NR

posted

a

+14.93%

total

return

for

the

six

months

ended

February

28,

2021.

1

Geographic

Composition

2/28/21

%

of

Total

Net

Assets

China

97.1%

Hong

Kong

1.7%

Short-Term

Investments

&

Other

Net

Assets

1.2%

1.

Source:

Morningstar.

As

of

2/28/21,

the

Fund’s

Class

A

10-year

average

annual

total

return

not

including

sales

charges

was

+7.00%,

compared

with

the

10-year

average

annual

total

return

of

+8.52%

for

the

MSCI

China

Index-NR

and

+8.75%

for

the

MSCI

China

Index.

The

index

is

unmanaged

and

includes

reinvestment

of

any

income

or

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund's

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

13

.

Templeton

China

World

Fund

4

franklintempleton.com

Semiannual

Report

Investment

Strategy

Our

investment

strategy

employs

a

fundamental

research,

value-oriented,

long-term

approach.

We

focus

on

the

market

price

of

a

company’s

securities

relative

to

our

evaluation

of

the

company’s

long-term

earnings,

asset

value

and

cash

flow

potential.

We

also

consider

a

company’s

profit

and

loss

outlook,

balance

sheet

strength,

cash

flow

trends

and

asset

value

in

relation

to

the

current

price.

Our

analysis

considers

the

company’s

corporate

governance

behavior

as

well

as

its

position

in

its

sector,

the

economic

framework

and

political

environment.

Manager’s

Discussion

During

the

six

months

under

review,

key

contributors

to

the

Fund’s

absolute

performance

included

Tencent

Holdings,

Luzhou

Laojiao

and

Baidu.

Tencent

is

one

of

the

largest

internet

services

companies

in

China.

The

company

provides

online

gaming,

social

network,

financial

technology,

cloud

and

other

entertainment-related

services.

Above-consensus

revenue

and

net

profit

in

the

second

and

third

quarters

of

2020,

driven

by

strong

growth

in

its

online

gaming

business,

continued

to

support

the

upward

share-price

trend.

The

successful

listing

of

an

online

video

company

in

which

Tencent

has

a

stake

and

the

development

of

new

initiatives

led

investors

to

maintain

a

positive

view

on

the

stock.

Shares

faced

some

short-term

pressure,

however,

as

China

unveiled

draft

anti-monopoly

rules

for

its

internet

industry.

Luzhou

Laojiao

is

principally

engaged

in

the

design,

manufacture

and

distribution

of

Chinese

liquor

products

in

China,

and

is

most

well-known

for

the

production

of

a

Chinese

liquor

distilled

from

fermented

sorghum.

The

company

reported

better-than-expected

third-quarter

2020

earnings

that

benefited

from

an

improving

product

mix

and

buoyant

demand

for

high-end

spirits.

In

addition,

selling,

general

and

administrative

cost

control

measures

were

well-received.

Management

guidance

of

strong

growth

in

2020

earnings

further

drove

investor

confidence

in

the

stock.

Expectations

of

higher

product

prices

and

growth

in

the

premium

mid-end

liquor

segments

also

boded

well

for

the

share

price.

Baidu

is

China’s

premier

search

engine.

The

company

also

has

a

major

interest

in

China’s

leading

online

video

platform

and

is

also

involved

in

cloud

computing

and

various

artificial

intelligence

initiatives.

Baidu’s

fourth-quarter

2020

earnings

and

guidance

for

the

first

quarter

of

2021

exceeded

market

expectations.

News

of

a

strategic

partnership

with

one

of

China’s

leading

automobile

manufacturers

to

create

a

standalone

electric

car

company,

where

Baidu

would

be

the

majority

shareholder,

led

shares

to

jump

in

the

latter

part

of

the

reporting

period.

New

strategic

partnerships

with

leading

automobile

companies

for

Baidu’s

autonomous

driving

solutions

further

raised

investor

expectations.

Conversely,

major

detractors

from

absolute

performance

included

Alibaba

Group

Holding,

CSPC

Pharmaceutical

Group

and

Shimao

Group

Holdings.

Alibaba

is

the

leading

e-commerce

company

in

China.

It

also

provides

cloud

computing

services

and

is

also

involved

in

payment,

financing

and

logistics

services.

Shares

fell

as

regulators

stepped

up

their

scrutiny

of

the

internet

industry

through

a

series

of

actions,

including

the

release

of

draft

online

microlending

and

anti-monopoly

rules.

Alibaba

also

grappled

with

a

halt

to

its

plan

to

publicly

list

its

financial

technology

arm,

as

well

as

an

antitrust

probe

into

its

merchant

policy.

Operationally,

the

company

reported

solid

third-quarter

2020

revenue

and

earnings

growth,

which

also

exceeded

market

expectations.

Top

10

Holdings

2/28/21

Company

Sub-Industry

%

of

Total

Net

Assets

a

a

Tencent

Holdings

Ltd.

14.1%

Interactive

Media

&

Services

Alibaba

Group

Holding

Ltd.

10.2%

Internet

&

Direct

Marketing

Retail

Meituan

Dianping

4.9%

Internet

&

Direct

Marketing

Retail

JD.com,

Inc.

3.5%

Internet

&

Direct

Marketing

Retail

New

Oriental

Education

&

Technology

Group,

Inc.

3.3%

Education

Services

Wuxi

Biologics

Cayman,

Inc.

3.2%

Life

Sciences

Tools

&

Services

China

Merchants

Bank

Co.

Ltd.

3.1%

Diversified

Banks

Luzhou

Laojiao

Co.

Ltd.

2.9%

Distillers

&

Vintners

Baidu,

Inc.

2.8%

Interactive

Media

&

Services

Ping

An

Insurance

Group

Co.

of

China

Ltd.

2.8%

Life

&

Health

Insurance

Templeton

China

World

Fund

5

franklintempleton.com

Semiannual

Report

CSPC

is

a

Chinese

pharmaceutical

company

that

is

focused

on

three

key

business

segments:

innovative

drugs,

generics

and

bulk

drugs.

Although

the

company

reported

third-

quarter

2020

corporate

results

that

met

market

expectations,

concerns

of

Chinese

government-directed

price

cuts

for

a

key

product,

NBP

(a

treatment

for

acute

ischemic

strokes),

weighed

on

sentiment

in

the

stock

in

the

first

half

of

the

reporting

period.

Shares

recovered

off

their

recent

lows

in

2021,

providing

us

with

an

opportunity

to

sell

out

of

the

stock.

Shimao

is

engaged

in

the

development

of

residential,

hotel,

office

and

commercial

properties.

Shares

in

Shimao

and

the

sector

as

a

whole

were

negatively

impacted

by

the

rising

supply

of

new

shares

in

property

management

companies

via

initial

public

offerings

(IPOs).

The

group

also

completed

a

partial

spinoff

of

its

property

management

arm

via

an

IPO,

which

may

have

led

some

investors

to

adjust

their

positioning

from

the

parent

company

towards

the

property

management

company.

In

the

past

six

months,

we

increased

the

Fund’s

holdings

in

the

information

technology,

materials

and

industrials

sectors.

The

continued

search

for

undervalued

investments

led

to

the

addition

of

numerous

new

companies

to

the

portfolio.

Key

purchases

included

NIO,

a

major

Chinese

electric

vehicle

manufacturer,

Shenzhen

Capchem

Technology,

a

leading

electronic

chemicals

and

functional

materials

producer

in

China,

and

Daqo

New

Energy,

a

prominent

Chinese

manufacturer

of

high-purity

polysilicon

for

the

global

solar

photovoltaic

industry.

We

also

added

to

existing

investments

in

Chinese

clinical-stage

biopharmaceutical

company

I-Mab,

Chinese

designer

and

manufacturer

of

cable

assembly

and

connector

system

solutions

Luxshare

Precision

Industry,

and

leading

brewery

company

China

Resources

Beer

Holdings.

Meanwhile,

we

reduced

the

Fund’s

investments

in

the

financials,

consumer

discretionary

and

energy

sectors

in

favor

of

opportunities

we

found

more

compelling

and

to

raise

funds

for

dividend

and

capital

gains

distribution

during

the

reporting

period.

In

terms

of

key

sales,

we

reduced

holdings

in

Chinese

insurer

China

Life

Insurance,

the

aforementioned

Tencent

and

Chinese

commercial

bank

China

Merchants

Bank.

The

Fund

divested

its

positions

in

the

aforementioned

CSPC,

Hangzhou

Hikvision

Digital

Technology,

a

video

surveillance

products

and

solutions

provider

in

China,

and

CNOOC,

a

Chinese

energy

company.

Thank

you

for

your

continued

participation

in

Templeton

China

World

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Michael

Lai,

CFA

Lead

Portfolio

Manager

Eric

Mok

Portfolio

Manager

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

February

28,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

February

28,

2021

Templeton

China

World

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

2/28/21

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

6-Month

+18.00%

+11.51%

1-Year

+49.28%

+41.07%

5-Year

+139.88%

+17.78%

10-Year

+96.81%

+6.40%

Advisor

6-Month

+18.09%

+18.09%

1-Year

+49.69%

+49.69%

5-Year

+142.85%

+19.42%

10-Year

+102.20%

+7.29%

See

page

7

for

Performance

Summary

footnotes.

Templeton

China

World

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

government’s

participation

in

the

economy

is

still

high

and,

therefore,

the

Fund’s

investments

in

China

will

be

subject

to

larger

regulatory

risk

levels

compared

to

many

other

countries.

In

addition,

special

risks

are

associated

with

international

investing,

including

currency

fluctuations,

economic

instability

and

political

developments.

Investments

in

emerging

markets

involve

heightened

risks

related

to

the

same

factors.

The

Fund

may

also

experience

greater

volatility

than

a

fund

that

is

more

broadly

diversified

geographically.

Historically,

smaller

and

midsized

securities

have

experienced

more

price

volatility

than

larger

company

stocks,

especially

over

the

short

term.

Also,

as

a

nondiversified

fund

investing

in

China

companies,

the

Fund

may

invest

in

a

relatively

small

number

of

issuers

and,

as

a

result,

be

subject

to

a

greater

risk

of

loss

with

respect

to

its

portfolio

securities.

The

Fund

is

designed

for

the

aggressive

portion

of

a

well-diversified

portfolio.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(9/1/20–2/28/21)

Share

Class

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.2991

$3.9761

$4.2752

C

$0.2991

$3.9761

$4.2752

R6

$0.2991

$3.9761

$4.2752

Advisor

$0.2991

$3.9761

$4.2752

Total

Annual

Operating

Expenses

4

Share

Class

A

1.83%

Advisor

1.58%

Your

Fund’s

Expenses

Templeton

China

World

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

)

.

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

9/1/20

Ending

Account

Value

2/28/21

Expenses

Paid

During

Period

9/1/20–2/28/21

1,2

Ending

Account

Value

2/28/21

Expenses

Paid

During

Period

9/1/20–2/28/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,180.00

$9.07

$1,016.47

$8.39

1.68%

C

$1,000

$1,175.55

$13.10

$1,012.75

$12.12

2.43%

R6

$1,000

$1,182.09

$7.38

$1,018.03

$6.82

1.36%

Advisor

$1,000

$1,180.90

$7.73

$1,017.70

$7.15

1.43%

Templeton

China

World

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.71

$18.01

$22.42

$23.49

$21.51

$26.19

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.14)

(0.07)

0.14

0.29

c

0.15

0.17

Net

realized

and

unrealized

gains

(losses)

3.40

5.95

(1.76)

1.29

4.59

2.19

Total

from

investment

operations

........

3.26

5.88

(1.62)

1.58

4.74

2.36

Less

distributions

from:

Net

investment

income

..............

—

(0.13)

(0.30)

(0.25)

(0.19)

(0.46)

Net

realized

gains

.................

(4.28)

(3.05)

(2.49)

(2.40)

(2.57)

(6.58)

Total

distributions

...................

(4.28)

(3.18)

(2.79)

(2.65)

(2.76)

(7.04)

Net

asset

value,

end

of

period

..........

$19.69

$20.71

$18.01

$22.42

$23.49

$21.51

Total

return

d

.......................

18.00%

36.80%

(6.46)%

7.26%

26.00%

11.19%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.68%

1.86%

1.87%

1.85%

1.94%

1.91%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.68%

f

1.85%

1.83%

1.85%

f

1.94%

f,g

1.91%

f,g

Net

investment

income

(loss)

..........

(1.33)%

(0.39)%

0.76%

1.26%

c

0.71%

0.77%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$194,554

$164,145

$146,709

$178,315

$188,885

$186,850

Portfolio

turnover

rate

................

18.45%

59.87%

5.69%

12.15%

7.92%

3.87%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.83%.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

China

World

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.57

$17.91

$22.13

$23.12

$21.18

$25.76

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.21)

(0.20)

(—)

c

0.10

d

(0.03)

—

c

Net

realized

and

unrealized

gains

(losses)

3.36

5.91

(1.72)

1.31

4.54

2.17

Total

from

investment

operations

........

3.15

5.71

(1.72)

1.41

4.51

2.17

Less

distributions

from:

Net

investment

income

..............

—

—

(0.01)

(—)

c

—

(0.17)

Net

realized

gains

.................

(4.28)

(3.05)

(2.49)

(2.40)

(2.57)

(6.58)

Total

distributions

...................

(4.28)

(3.05)

(2.50)

(2.40)

(2.57)

(6.75)

Net

asset

value,

end

of

period

..........

$19.44

$20.57

$17.91

$22.13

$23.12

$21.18

Total

return

e

.......................

17.55%

35.80%

(7.16)%

6.52%

24.97%

10.41%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

2.43%

2.61%

2.62%

2.60%

2.69%

2.66%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

2.43%

g

2.60%

2.58%

2.60%

g

2.69%

g,h

2.66%

g,h

Net

investment

income

(loss)

..........

(2.06)%

(1.15)%

0.01%

i

0.51%

d

(0.04)%

0.02%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$12,593

$12,376

$15,744

$36,678

$42,577

$48,769

Portfolio

turnover

rate

................

18.45%

59.87%

5.69%

12.15%

7.92%

3.87%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Amount

rounds

to

less

than

$0.01

per

share.

d

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

0.08%.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

i

Ratio

is

calculated

based

on

the

Fund

level

net

investment

income,

as

reflected

in

the

Statement

of

Operations,

and

adjusted

for

class

specific

expenses.

The

amount

may

not

correlate

with

the

per

share

amount

due

to

the

timing

of

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund

in

relation

to

the

timing

of

sales

and

repurchases

of

Fund

shares.

Templeton

China

World

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.88

$18.14

$22.55

$23.66

$21.68

$26.41

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.10)

0.01

0.26

0.45

c

0.27

0.31

Net

realized

and

unrealized

gains

(losses)

3.42

5.99

(1.81)

1.25

4.59

2.18

Total

from

investment

operations

........

3.32

6.00

(1.55)

1.70

4.86

2.49

Less

distributions

from:

Net

investment

income

..............

—

(0.21)

(0.37)

(0.41)

(0.31)

(0.64)

Net

realized

gains

.................

(4.28)

(3.05)

(2.49)

(2.40)

(2.57)

(6.58)

Total

distributions

...................

(4.28)

(3.26)

(2.86)

(2.81)

(2.88)

(7.22)

Net

asset

value,

end

of

period

..........

$19.92

$20.88

$18.14

$22.55

$23.66

$21.68

Total

return

d

.......................

18.21%

37.42%

(6.08)%

7.75%

26.62%

11.76%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.41%

1.56%

1.57%

1.50%

1.49%

1.45%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.36%

1.42%

1.42%

1.42%

1.44%

f

1.42%

f

Net

investment

income

(loss)

..........

(1.01)%

0.05%

1.17%

1.69%

c

1.21%

1.26%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,287

$3,437

$3,395

$3,412

$1,213

$720

Portfolio

turnover

rate

................

18.45%

59.87%

5.69%

12.15%

7.92%

3.87%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.26%.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

China

World

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.94

$18.18

$22.60

$23.68

$21.68

$26.39

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

........

(0.11)

(0.02)

0.20

0.35

c

0.22

0.22

Net

realized

and

unrealized

gains

(losses)

3.43

6.01

(1.79)

1.30

4.60

2.22

Total

from

investment

operations

........

3.32

5.99

(1.59)

1.65

4.82

2.44

Less

distributions

from:

Net

investment

income

..............

—

(0.18)

(0.34)

(0.33)

(0.25)

(0.57)

Net

realized

gains

.................

(4.28)

(3.05)

(2.49)

(2.40)

(2.57)

(6.58)

Total

distributions

...................

(4.28)

(3.23)

(2.83)

(2.73)

(2.82)

(7.15)

Net

asset

value,

end

of

period

..........

$19.98

$20.94

$18.18

$22.60

$23.68

$21.68

Total

return

d

.......................

18.09%

37.20%

(6.25)%

7.54%

26.31%

11.51%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.43%

1.61%

1.62%

1.60%

1.69%

1.66%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.43%

f

1.60%

1.58%

1.60%

f

1.69%

f,g

1.66%

f,g

Net

investment

income

(loss)

..........

(1.08)%

(0.12)%

1.01%

1.51%

c

0.96%

1.02%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$85,702

$74,741

$67,189

$79,456

$83,172

$73,504

Portfolio

turnover

rate

................

18.45%

59.87%

5.69%

12.15%

7.92%

3.87%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Net

investment

income

per

share

includes

approximately

$0.10

per

share

related

to

income

received

in

the

form

of

special

dividends

in

connection

with

certain

Fund

holdings.

Excluding

this

amount,

the

ratio

of

net

investment

income

to

average

net

assets

would

have

been

1.08%.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Templeton

China

World

Fund

Statement

of

Investments

(unaudited),

February

28,

2021

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

a

Country

Shares

a

Value

a

Common

Stocks

98.8%

Air

Freight

&

Logistics

0.5%

SF

Holding

Co.

Ltd.,

A

..................................

China

100,221

$

1,624,580

Application

Software

0.7%

Hundsun

Technologies,

Inc.,

A

............................

China

156,520

2,113,714

Auto

Parts

&

Equipment

1.0%

Minth

Group

Ltd.

......................................

China

664,000

2,911,576

Automobile

Manufacturers

1.3%

a

NIO,

Inc.,

ADR

.......................................

China

84,696

3,877,383

a

Biotechnology

4.6%

a

BeiGene

Ltd.

.........................................

China

170,631

4,145,393

a

I-Mab,

ADR

..........................................

China

47,345

2,802,351

a,b,c

InnoCare

Pharma

Ltd.,

144A,

Reg

S

.......................

China

565,200

1,373,686

a,b,c

Innovent

Biologics,

Inc.,

144A,

Reg

S

......................

China

518,327

5,334,025

13,655,455

Brewers

1.3%

China

Resources

Beer

Holdings

Co.

Ltd.

....................

China

498,646

3,762,151

Construction

Machinery

&

Heavy

Trucks

1.7%

Weichai

Power

Co.

Ltd.,

H

..............................

China

1,742,693

5,129,537

Construction

Materials

2.6%

Anhui

Conch

Cement

Co.

Ltd.,

H

..........................

China

764,500

4,912,893

Asia

Cement

China

Holdings

Corp.

........................

China

71,271

67,014

Beijing

Oriental

Yuhong

Waterproof

Technology

Co.

Ltd.,

A

......

China

380,020

2,772,398

7,752,305

Distillers

&

Vintners

2.9%

Luzhou

Laojiao

Co.

Ltd.,

A

...............................

China

239,189

8,705,913

Diversified

Banks

3.1%

China

Merchants

Bank

Co.

Ltd.,

H

.........................

China

1,209,430

9,274,820

Diversified

Metals

&

Mining

0.6%

China

Molybdenum

Co.

Ltd.,

H

...........................

China

2,268,000

1,749,289

Education

Services

3.3%

a

New

Oriental

Education

&

Technology

Group,

Inc.,

ADR

........

China

55,878

9,925,050

a

Electrical

Components

&

Equipment

1.1%

Sunwoda

Electronic

Co.

Ltd.,

A

...........................

China

860,889

3,290,917

Electronic

Components

1.7%

Luxshare

Precision

Industry

Co.

Ltd.,

A

.....................

China

470,690

3,375,854

Sunny

Optical

Technology

Group

Co.

Ltd.

...................

China

66,710

1,662,184

5,038,038

Environmental

&

Facilities

Services

1.9%

b,c

A-Living

Smart

City

Services

Co.

Ltd.,

H,

144A,

Reg

S

.........

China

1,362,250

5,703,958

Financial

Exchanges

&

Data

1.8%

East

Money

Information

Co.

Ltd.,

A

........................

China

396,000

1,863,000

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

54,934

3,377,500

5,240,500

Footwear

2.4%

ANTA

Sports

Products

Ltd.

..............................

China

466,435

7,145,969

Templeton

China

World

Fund

Statement

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Health

Care

Services

0.6%

a,c

New

Horizon

Health

Ltd.,

144A,

Reg

S

.....................

China

221,500

$

1,714,841

a

Industrial

Machinery

0.6%

Jiangsu

Hengli

Hydraulic

Co.

Ltd.,

A

.......................

China

127,533

1,872,172

Interactive

Home

Entertainment

3.2%

a

Bilibili

,

Inc.,

ADR

......................................

China

28,132

3,543,788

NetEase

,

Inc.

........................................

China

269,129

5,874,782

9,418,570

Interactive

Media

&

Services

18.0%

a

Baidu,

Inc.,

ADR

......................................

China

29,386

8,329,756

a,c

Kuaishou

Technology,

144A,

Reg

S

........................

China

80,000

3,184,962

Tencent

Holdings

Ltd.

..................................

China

482,300

41,958,659

53,473,377

Internet

&

Direct

Marketing

Retail

21.7%

a

Alibaba

Group

Holding

Ltd.

..............................

China

1,009,592

30,337,418

a,b

Baozun

,

Inc.,

ADR

.....................................

China

109,940

5,049,544

a

JD.com,

Inc.,

A

.......................................

China

222,454

10,433,044

a,c

Meituan

Dianping

,

B,

144A,

Reg

S

........................

China

324,898

14,592,618

a

Vipshop

Holdings

Ltd.,

ADR

.............................

China

105,235

3,927,370

64,339,994

Internet

Services

&

Infrastructure

2.0%

a

GDS

Holdings

Ltd.,

ADR

................................

China

57,566

5,880,943

a

Life

&

Health

Insurance

3.2%

China

Life

Insurance

Co.

Ltd.,

H

..........................

China

606,497

1,280,832

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

H

................

China

662,500

8,198,156

9,478,988

Life

Sciences

Tools

&

Services

4.2%

c

WuXi

AppTec

Co.

Ltd.,

H,

144A,

Reg

S

.....................

China

148,800

3,098,141

a,c

Wuxi

Biologics

Cayman,

Inc.,

144A,

Reg

S

..................

China

756,848

9,376,531

12,474,672

Packaged

Foods

&

Meats

0.3%

Jonjee

Hi-Tech

Industrial

And

Commercial

Holding

Co.

Ltd.,

A

....

China

123,383

988,452

Paper

Products

0.5%

Nine

Dragons

Paper

Holdings

Ltd.

.........................

Hong

Kong

956,541

1,540,175

Pharmaceuticals

1.2%

Jiangsu

Hengrui

Medicine

Co.

Ltd.,

A

......................

China

233,594

3,673,685

Real

Estate

Development

3.2%

China

Resources

Land

Ltd.

..............................

China

1,196,000

5,683,555

Shimao

Group

Holdings

Ltd.

.............................

China

1,118,300

3,682,506

9,366,061

Real

Estate

Operating

Companies

0.1%

a,c

KWG

Living

Group

Holdings

Ltd.,

Reg

S

....................

China

178,249

211,939

a,c

Shimao

Services

Holdings

Ltd.,

144A,

Reg

S

.................

China

26,201

50,040

261,979

Restaurants

1.2%

Yum

China

Holdings,

Inc.

...............................

China

57,625

3,448,280

Templeton

China

World

Fund

Statement

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

See

A

bbreviations

on

page

28

.

a

a

Country

Shares

a

Value

a

Common

Stocks

(continued)

Semiconductor

Equipment

1.5%

a

Daqo

New

Energy

Corp.,

ADR

...........................

China

41,726

$

4,349,935

a

Semiconductors

1.9%

Will

Semiconductor

Co.

Ltd.

Shanghai,

A

....................

China

130,971

5,731,225

Specialty

Chemicals

1.1%

Shenzhen

Capchem

Technology

Co.

Ltd.,

A

..................

China

280,518

3,365,124

Specialty

Stores

1.8%

China

Tourism

Group

Duty

Free

Corp.

Ltd.,

A

................

China

110,757

5,266,489

Total

Common

Stocks

(Cost

$164,014,650)

.....................................

293,546,117

Short

Term

Investments

2.7%

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Money

Market

Funds

1.7%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

5,044,817

5,044,817

Total

Money

Market

Funds

(Cost

$5,044,817)

...................................

5,044,817

f

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

1.0%

Money

Market

Funds

1.0%

d,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

3,068,119

3,068,119

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$3,068,119)

.................................................................

3,068,119

Total

Short

Term

Investments

(Cost

$8,112,936

)

.................................

8,112,936

a

Total

Investments

(Cost

$172,127,586)

101.5%

..................................

$301,659,053

Other

Assets,

less

Liabilities

(1.5)%

...........................................

(4,524,186)

Net

Assets

100.0%

...........................................................

$297,134,867

a

Non-income

producing.

b

A

portion

or

all

of

the

security

is

on

loan

at

February

28,

2021.

See

Note

1(c).

c

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

February

28,

2021,

the

aggregate

value

of

these

securities

was

$44,640,741,

representing

15.0%

of

net

assets.

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

f

See

Note

1(c)

regarding

securities

on

loan.

Templeton

China

World

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

February

28,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

Templeton

China

World

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$164,014,650

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

8,112,936

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$3,951,605)

.................................

$293,546,117

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

8,112,936

Cash

....................................................................................

2,243

Receivables:

Capital

shares

sold

........................................................................

460,207

Other

assets

..............................................................................

437

Total

assets

..........................................................................

302,121,940

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

992,042

Capital

shares

redeemed

...................................................................

380,353

Management

fees

.........................................................................

348,414

Distribution

fees

..........................................................................

50,680

Transfer

agent

fees

........................................................................

47,051

Payable

upon

return

of

securities

loaned

(Note

1

c

)

..................................................

3,068,119

Accrued

expenses

and

other

liabilities

...........................................................

100,414

Total

liabilities

.........................................................................

4,987,073

Net

assets,

at

value

.................................................................

$297,134,867

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$158,686,810

Total

distributable

earnings

(losses)

.............................................................

138,448,057

Net

assets,

at

value

.................................................................

$297,134,867

Templeton

China

World

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

February

28,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

Templeton

China

World

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$194,553,578

Shares

outstanding

........................................................................

9,880,469

Net

asset

value

per

share

a

..................................................................

$19.69

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$20.84

Class

C:

Net

assets,

at

value

.......................................................................

$12,592,519

Shares

outstanding

........................................................................

647,701

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$19.44

Class

R6:

Net

assets,

at

value

.......................................................................

$4,286,625

Shares

outstanding

........................................................................

215,151

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$19.92

Advisor

Class:

Net

assets,

at

value

.......................................................................

$85,702,145

Shares

outstanding

........................................................................

4,289,645

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$19.98

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Templeton

China

World

Fund

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

February

28,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

Templeton

China

World

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$25,726)

Unaffiliated

issuers

........................................................................

$462,180

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

14,517

Total

investment

income

...................................................................

476,697

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,629,474

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

218,039

    Class

C

................................................................................

61,932

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

78,998

    Class

C

................................................................................

5,611

    Class

R6

...............................................................................

1,267

    Advisor

Class

............................................................................

35,940

Custodian

fees

.............................................................................

8,586

Reports

to

shareholders

......................................................................

43,453

Registration

and

filing

fees

....................................................................

50,235

Professional

fees

...........................................................................

51,669

Trustees'

fees

and

expenses

..................................................................

15,436

Other

....................................................................................

11,603

Total

expenses

.........................................................................

2,212,243

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(4,966)

Net

expenses

.........................................................................

2,207,277

Net

investment

income

(loss)

............................................................

(1,730,580)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

14,136,828

Foreign

currency

transactions

................................................................

(30,985)

Net

realized

gain

(loss)

..................................................................

14,105,843

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

31,220,372

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(16)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

31,220,356

Net

realized

and

unrealized

gain

(loss)

............................................................

45,326,199

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$43,595,619

Templeton

China

World

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

Templeton

China

World

Fund

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(1,730,580)

$(823,115)

Net

realized

gain

(loss)

.................................................

14,105,843

75,457,889

Net

change

in

unrealized

appreciation

(depreciation)

...........................

31,220,356

(2,201,973)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

43,595,619

72,432,801

Distributions

to

shareholders:

Class

A

.............................................................

(33,391,528)

(24,649,838)

Class

C

.............................................................

(2,395,172)

(2,304,710)

Class

R6

............................................................

(675,504)

(573,952)

Advisor

Class

........................................................

(15,703,973)

(11,698,806)

Total

distributions

to

shareholders

..........................................

(52,166,177)

(39,227,306)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

35,659,787

(4,000,337)

Class

C

.............................................................

578,609

(4,978,138)

Class

R6

............................................................

947,658

(446,417)

Advisor

Class

........................................................

13,820,928

(2,117,940)

Total

capital

share

transactions

............................................

51,006,982

(11,542,832)

Net

increase

(decrease)

in

net

assets

...................................

42,436,424

21,662,663

Net

assets:

Beginning

of

period

.....................................................

254,698,443

233,035,780

End

of

period

..........................................................

$297,134,867

$254,698,443

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

20

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Templeton

China

World

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

four

classes

of

shares:

Class

A,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

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

Trustees

(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.

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

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

February

28,

2021,

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

referred

to

as

“market

level

fair

value”.

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

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

21

franklintempleton.com

Semiannual

Report

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.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund.

Additionally,

the

Fund

received

$1,573,272

in

U.S.

Government

and

Agency

securities

as

collateral.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/

or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

d.

Income

and

Deferred

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

22

franklintempleton.com

Semiannual

Report

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

February

28,

2021,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

and

Deferred

Taxes

(continued)

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

23

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

February

28,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

February

28,

2021

Year

Ended

August

31,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

1,175,705

$24,482,180

1,637,185

$28,718,789

Shares

issued

in

reinvestment

of

distributions

..........

1,828,143

32,412,982

1,424,398

23,858,673

Shares

redeemed

...............................

(1,048,308)

(21,235,375)

(3,284,677)

(56,577,799)

Net

increase

(decrease)

..........................

1,955,540

$35,659,787

(223,094)

$(4,000,337)

Class

C

Shares:

Shares

sold

...................................

85,244

$1,767,648

89,115

$1,517,497

Shares

issued

in

reinvestment

of

distributions

..........

134,598

2,359,504

133,589

2,233,607

Shares

redeemed

a

..............................

(173,762)

(3,548,543)

(500,380)

(8,729,242)

Net

increase

(decrease)

..........................

46,080

$578,609

(277,676)

$(4,978,138)

Class

R6

Shares:

Shares

sold

...................................

63,654

$1,337,754

27,223

$484,613

Shares

issued

in

reinvestment

of

distributions

..........

37,670

675,419

34,097

573,857

Shares

redeemed

...............................

(50,763)

(1,065,515)

(83,905)

(1,504,887)

Net

increase

(decrease)

..........................

50,561

$947,658

(22,585)

$(446,417)

Advisor

Class

Shares:

Shares

sold

...................................

628,175

$13,377,862

815,555

$14,197,900

Shares

issued

in

reinvestment

of

distributions

..........

785,723

14,135,152

615,112

10,395,376

Shares

redeemed

...............................

(693,489)

(13,692,086)

(1,557,209)

(26,711,216)

Net

increase

(decrease)

..........................

720,409

$13,820,928

(126,542)

$(2,117,940)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Templeton

Asset

Management

Ltd.

(Asset

Management)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

24

franklintempleton.com

Semiannual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Asset

Management

based

on

the

average

weekly

net

assets

of

the

Fund

as

follows:

Effective

March

1,

2021,

the

Fund

will

pay

fees

to

Asset

Management

based

on

the

average

weekly

net

assets

of

the

Fund

as

follows:

For

the

period

ended

February

28,

2021,

the

annualized

gross

effective

investment

management

fee

rate

was

1.20%

of

the

Fund’s

average

weekly

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Asset

Management,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Asset

Management

based

on

the

Fund’s

average

weekly

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class A reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

Annualized

Fee

Rate

Net

Assets

1.200%

Up

to

and

including

$4

billion

1.150%

Over

$4

billion,

up

to

and

including

$10

billion

1.100%

Over

$10

billion,

up

to

and

including

$15

billion

1.050%

Over

$15

billion,

up

to

and

including

$20

billion

1.000%

In

excess

of

$20

billion

Annualized

Fee

Rate

Net

Assets

1.200%

Up

to

and

including

$1

billion

1.150%

Over

$1

billion,

up

to

and

including

$5

billion

1.100%

Over

$5

billion,

up

to

and

including

$10

billion

1.050%

Over

$10

billion,

up

to

and

including

$15

billion

1.000%

In

excess

of

$15

billion

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

3.

Transactions

with

Affiliates

(continued)

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

25

franklintempleton.com

Semiannual

Report

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

February

28,

2021,

the

Fund

paid

transfer

agent

fees

of

$121,816,

of

which $83,617

was

retained

by

Investor

Services.

f.

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.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

February

28,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$15,439

CDSC

retained

..............................................................................

$288

    aa

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  

Templeton

China

World

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$3,642,614

$45,875,640

$(44,473,437)

$—

$—

$5,044,817

5,044,817

$—

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$2,257,156

$34,799,319

$(33,988,356)

$

—

$

—

$3,068,119

3,068,119

$—

Total

Affiliated

Securities

....

$5,899,770

$80,674,959

$(78,461,793)

$—

$—

$8,112,936

$—

3.

Transactions

with

Affiliates

(continued)

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Asset

Management

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses)

for

each

class

of

the

Fund

do

not

exceed

1.60%,

based

on

the

average

net

assets

of

each

class

until

December

31,

2021.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Prior

to

January

1,

2021,

expenses

(excluding

certain

fees

and

expenses

as

previously

disclosed)

for

Class

R6

were

limited

to

1.42%

based

on

the

average

net

assets

of

the

class.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

December

31,

2021.

4.

Income

Taxes

At

February

28,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

period

ended

February

28,

2021,

aggregated

$48,582,781

and

$51,527,846,

respectively.

At

February

28,

2021,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$3,068,119

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

6.

Concentration

of

Risk

Investing

in

securities

of

"China

companies"

may

include

certain

risks

and

considerations

not

typically

associated

with

investing

in

U.S.

securities.

In

general,

China

companies

are

those

that

are

organized

under

the

laws

of,

or

with

a

principal

office

or

principal

trading

market

in,

the

People's

Republic

of

China,

Hong

Kong,

or

Taiwan.

Such

risks

include

fluctuating

currency

values

and

changing

local,

regional

and

global

economic,

political

and

social

conditions,

which

may

result

in

greater

market

volatility.

In

addition,

these

securities

may

not

be

as

liquid

as

U.S.

securities.

7. 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.

Cost

of

investments

..........................................................................

$172,127,586

Unrealized

appreciation

........................................................................

$132,367,065

Unrealized

depreciation

........................................................................

(2,835,598)

Net

unrealized

appreciation

(depreciation)

..........................................................

$129,531,467

3.

Transactions

with

Affiliates

(continued)

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

8.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

4,

2022.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

February

28,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

9.

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

February

28,

2021,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Templeton

China

World

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Air

Freight

&

Logistics

...................

$

—

$

1,624,580

$

—

$

1,624,580

Application

Software

....................

—

2,113,714

—

2,113,714

Auto

Parts

&

Equipment

.................

—

2,911,576

—

2,911,576

Automobile

Manufacturers

...............

3,877,383

—

—

3,877,383

Biotechnology

.........................

2,802,351

10,853,104

—

13,655,455

Brewers

.............................

—

3,762,151

—

3,762,151

Construction

Machinery

&

Heavy

Trucks

.....

—

5,129,537

—

5,129,537

Construction

Materials

..................

—

7,752,305

—

7,752,305

Distillers

&

Vintners

.....................

—

8,705,913

—

8,705,913

Diversified

Banks

......................

—

9,274,820

—

9,274,820

Diversified

Metals

&

Mining

...............

—

1,749,289

—

1,749,289

Education

Services

.....................

9,925,050

—

—

9,925,050

Electrical

Components

&

Equipment

........

—

3,290,917

—

3,290,917

Electronic

Components

..................

—

5,038,038

—

5,038,038

Environmental

&

Facilities

Services

.........

—

5,703,958

—

5,703,958

Financial

Exchanges

&

Data

..............

—

5,240,500

—

5,240,500

Footwear

............................

—

7,145,969

—

7,145,969

Health

Care

Services

...................

1,714,841

—

—

1,714,841

Templeton

China

World

Fund

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

10.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

11.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Templeton

China

World

Fund

(continued)

Assets:

Common

Stocks:

Industrial

Machinery

....................

$

—

$

1,872,172

$

—

$

1,872,172

Interactive

Home

Entertainment

...........

3,543,788

5,874,782

—

9,418,570

Interactive

Media

&

Services

..............

11,514,718

41,958,659

—

53,473,377

Internet

&

Direct

Marketing

Retail

..........

8,976,914

55,363,080

—

64,339,994

Internet

Services

&

Infrastructure

..........

5,880,943

—

—

5,880,943

Life

&

Health

Insurance

..................

—

9,478,988

—

9,478,988

Life

Sciences

Tools

&

Services

............

—

12,474,672

—

12,474,672

Packaged

Foods

&

Meats

................

—

988,452

—

988,452

Paper

Products

........................

—

1,540,175

—

1,540,175

Pharmaceuticals

.......................

—

3,673,685

—

3,673,685

Real

Estate

Development

................

—

9,366,061

—

9,366,061

Real

Estate

Operating

Companies

.........

—

261,979

—

261,979

Restaurants

..........................

3,448,280

—

—

3,448,280

Semiconductor

Equipment

...............

4,349,935

—

—

4,349,935

Semiconductors

.......................

—

5,731,225

—

5,731,225

Specialty

Chemicals

....................

—

3,365,124

—

3,365,124

Specialty

Stores

.......................

—

5,266,489

—

5,266,489

Short

Term

Investments

...................

8,112,936

—

—

8,112,936

Total

Investments

in

Securities

...........

$64,147,139

$237,511,914

a

$—

$301,659,053

a

Includes

foreign

securities

valued

at

$237,511,914,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

Selected

Portfolio

ADR

American

Depositary

Receipt

9.

Fair

Value

Measurements

(continued)

Templeton

China

World

Fund

Shareholder

Information

29

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

TEMPLETON

CHINA

WORLD

FUND

(Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

the

Fund,

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Templeton

Asset

Management

Ltd.

(Manager)

and

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Fund.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

Templeton

China

World

Fund

Shareholder

Information

30

franklintempleton.com

Semiannual

Report

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

China

region

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

that

its

annualized

total

return

for

the

three-year

period

was

above

and

for

the

five-

year

period

was

equal

to

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that,

over

the

past

few

years,

market

performance

was

largely

driven

by

the

internet

and

technology

sectors.

Management

further

explained

that,

while

the

Fund’s

benchmark

was

tilted

toward

these

two

sectors,

the

Fund

followed

its

long-term

value

strategy

and

held

positions

in

cyclical

sectors,

such

as

energy

and

materials,

which

did

not

perform

as

well

and

resulted

in

the

Fund’s

relative

underperformance

to

its

peers

and

benchmark.

Management

further

explained

that

the

Performance

Universe,

which

included

funds

that

follow

a

benchmark

that

is

weighted

40%

to

China

A-Shares

listed

in

Mainland

China,

was

not

directly

comparable

to

the

Fund,

in

part,

as

the

Fund

primarily

invested

in

Chinese

equities

listed

outside

of

Mainland

China,

which

is

the

primary

focus

of

the

Fund’s

benchmark.

This

difference

was

significant

in

that

the

China

A-Shares

market

returned

44%

for

the

one-

year

period.

Management

then

discussed

with

the

Board

the

actions

that

have

been

taken

in

an

effort

to

improve

Fund

performance,

in

particular

the

repositioning

of

the

Fund’s

portfolio

in

December

2019

toward

higher

quality

and

sustainable

growth,

enhancements

to

the

Fund’s

investment

process,

changes

to

the

benchmark

and

additions

to

the

Fund’s

portfolio

management

team.

The

Board

noted

the

favorable

34.68%

annualized

total

return

of

the

Fund

for

the

one-year

period

and

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

while

management’s

efforts

continue

to

be

closely

monitored.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

for

other

funds

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

eight

other

China

region

funds.

The

Board

noted

that

the

Management

Rate

was

above

the

median

of

its

Expense

Group

and

the

actual

total

expense

ratio

for

the

Fund

was

approximately

8.5

basis

points

above

the

median

of

its

Expense

Group.

The

Board

discussed

the

expenses

of

the

Fund

with

management

and

noted

that

two

of

the

nine

funds

in

the

Expense

Group

had

significantly

more

exposure

to

China

A-Shares

than

the

Fund

and

the

other

funds

in

the

Templeton

China

World

Fund

Shareholder

Information

31

franklintempleton.com

Semiannual

Report

Expense

Group.

Management

explained

that

the

expenses

for

the

Expense

Group

are

in

a

tight

range

and,

if

these

two

funds

with

outlier

strategies

were

removed

from

the

Expense

Group,

the

Fund’s

actual

total

expense

ratio

would

be

less

than

five

basis

points

above

the

median

of

the

remaining

funds.

Management

also

explained

that

the

cost

includes

factors

relating

to

the

Fund’s

operations,

such

as

the

quality

and

experience

of

its

portfolio

manager

and

research

staff,

and

the

depth

of

the

Manager’s

physical

presence

and

coverage

in

the

geographical

area

in

which

the

Fund

invests.

The

Board

recalled

that

management

had

reduced

the

Fund’s

Management

Rate

effective

July

1,

2019

and

again

on

July

1,

2020.

The

Board

then

noted

that,

at

the

request

of

the

Independent

Trustees

at

the

Meeting,

management

agreed

to

further

amend

the

Fund’s

current

Management

Rate

fee

schedule

by

lowering

the

level

of

net

assets

at

each

breakpoint

in

the

schedule,

effective

March

1,

2021.

The

Board

also

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

In

light

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

The

Board

recognized

that,

Templeton

China

World

Fund

Shareholder

Information

32

franklintempleton.com

Semiannual

Report

given

the

Fund

has

not

yet

reached

an

asset

size

that

would

enable

the

Fund

to

achieve

economies

of

scale,

the

Fund

is

not

expected

to

experience

additional

economies

of

scale

in

the

foreseeable

future.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

188

S

04/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Templeton

China

World

Fund

Investment

Manager

Distributor

Shareholder

Services

Templeton

Asset

Management

Ltd.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics. 

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial experts are Ann Torre Bates and David W. Niemiec they are "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.  N/A

Item 5. Audit Committee

of Listed Registrants.

  N/A

Item 6. Schedule of Investments.

  N/A

Item 7

. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.  N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.  N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.  N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a)

 Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives

.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b)

 Changes in Internal Controls. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                                        N/A

Item 13. Exhibits.

(a)(1)

Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section302

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section906

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.

TEMPLETON CHINA WORLD FUND

By S\Matthew T. Hinkle _______

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date April 23, 2021

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\Matthew T. Hinkle _______

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date April 23, 2021

By S\Robert G. Kubilis______

      Robert G. Kubilis

      Chief Financial Officer and Chief Accounting Officer

Date April 23, 2021