UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6686
--------
Jardine Fleming China Region Fund, Inc.
---------------------------------------------------------
(Exact name of registrant as specified in charter)
301 Bellevue Parkway
Wilmington, DE 19809
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(Address of principal executive offices) (Zip code)
Cleary, Gottlieb, Steen & Hamilton
1 Liberty Plaza
New York, NY 10006
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(Name and address of agent for service)
Registrant's telephone number, including area code: 800-441-9800
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Date of fiscal year end: December 31, 2003
-----------------
Date of reporting period: June 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 2003
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
CONTENTS
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PAGE
Objectives 1
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Management 1
- --------------------------------------------------------------------------------
Market Information 1
- --------------------------------------------------------------------------------
Highlights 2
- --------------------------------------------------------------------------------
Chairman's Statement 3
- --------------------------------------------------------------------------------
Major Holdings 4
- --------------------------------------------------------------------------------
Investment Portfolio 6
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities 11
- --------------------------------------------------------------------------------
Statement of Operations 12
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Statements of Changes in Net Assets 13
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Financial Highlights 14
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Notes to Financial Statements 15
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Results of the Annual Shareholders Meeting 20
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Other Information 20
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Dividend Reinvestment and Cash Purchase Plan 21
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Directors and Administration 22
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[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
OBJECTIVES
- --------------------------------------------------------------------------------
Jardine Fleming China Region Fund, Inc. (the "Fund") seeks to achieve
long-term capital appreciation through investments primarily in equity
securities of companies with substantial assets in, or revenues derived from,
the People's Republic of China (PRC or China), Hong Kong, Taiwan, and
Macau--collectively, the China Region.
The Fund provides investors with an opportunity to participate in the
growing economies of the China Region, especially that of the PRC, although
investments are expected to be predominantly in securities listed on the Stock
Exchange of Hong Kong. Hong Kong enterprises have made substantial investments
in the PRC, in Guangdong Province in particular, where abundant cheap labor and
land are available. Hong Kong is also the largest trading partner of the PRC.
The economies of the PRC, Hong Kong, Taiwan, and Macau have become
increasingly linked over the past 10 years and are expected to become further
integrated now that Hong Kong and Macau have reverted to Chinese sovereignty.
Investments made by the Fund will seek to take advantage of opportunities
resulting from this linkage among the China Region markets.
MANAGEMENT
- --------------------------------------------------------------------------------
JF International Management Inc. ("JFIM") (formerly Jardine Fleming
International Management Inc.) is the investment management company appointed to
advise and manage the Fund's portfolio. JFIM is part of J.P. Morgan Chase & Co.
("JPMC"), one of the world's premier financial services institutions. In asset
management, JPMC operates globally under the name of JPMorgan Fleming Asset
Management ("JPMFAM"), although in Asia it uses the sub-brand JF Asset
Management. Funds under management for the global asset management business of
JPMFAM were US $512 billion as of June 30, 2003.
Chung Man Wing is the portfolio manager of the Fund. Mr. Chung joined JFIM
in late 2000 as head of the Greater China team. Previously, he was chief
investment officer at HSBC Asset Management (Asia).
MARKET INFORMATION
- --------------------------------------------------------------------------------
THE FUND IS LISTED ON THE NEW YORK STOCK EXCHANGE (SYMBOL JFC). THE SHARE PRICE
IS PUBLISHED IN
- --------------------------------------------------------------------------------
_ The Wall Street Journal (daily)
_ The Asian Wall Street Journal (daily)
_ Reuters (page JFC)
THE NET ASSET VALUE IS PUBLISHED IN
- --------------------------------------------------------------------------------
_ The Wall Street Journal under "Closed-End Funds" (every Monday)
_ The Asian Wall Street Journal under "Closed-End Funds" (every Monday)
_ Reuters (page JFC)
-- 1 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
HIGHLIGHTS
- --------------------------------------------------------------------------------
JUNE 30, 2003 December 31, 2002
US$ US$
- -------------------------------------------------------------------------------------------------------
Net Assets $42.6 MILLION $34.2 million
Net Asset Value Per Share $9.30 $7.47
MARKET DATA
Share Price on the
New York Stock Exchange $8.60 $6.50
Discount to Net Asset Value -7.5% -13.0%
TOTAL RETURN FOR THE PERIOD ENDED JUNE 30, 2003
- -------------------------------------------------------------------------------------------------------
Net Asset Value 24.5%
Share Price 32.3%
JFC Benchmark Index* 9.3%
MSCI Hong Kong Index (Total) 3.5%
BNP Prime Peregrine China Index 10.5%
Taiwan Weighted Index 9.9%
NET ASSET VALUE AND SHARE PRICE VS. BENCHMARK INDEX
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
NET ASSET VALUE SHARE PRICE JFC BENCHMARK INDEX*
7/16/92** $100.00 $100.00 $100.00
7/27/92 99.78 98.33 89.81
8/28/92 100.43 94.20 91.11
9/30/92 100.94 80.00 79.15
10/30/92 108.60 92.53 90.31
11/30/92 111.05 96.67 91.95
12/31/92 109.29 93.02 90.21
1/29/93 110.16 96.37 87.65
2/26/93 117.49 98.85 97.55
3/31/93 120.54 108.90 94.28
4/30/93 125.48 118.95 97.84
5/28/93 129.84 122.30 92.05
6/30/93 122.35 120.09 83.13
7/30/93 120.67 116.73 77.96
8/27/93 124.75 129.29 82.27
9/30/93 128.39 126.81 84.74
10/29/93 147.17 150.32 102.63
11/26/93 156.34 166.71 113.90
12/31/93 188.96 187.39 128.98
1/28/94 175.52 183.65 111.34
2/25/94 158.91 148.41 103.16
3/31/94 136.56 136.08 91.08
4/29/94 132.14 134.18 87.30
5/27/94 136.06 148.41 90.89
6/30/94 123.99 123.29 82.84
7/29/94 130.78 126.47 87.48
8/26/94 130.78 135.83 92.18
9/30/94 132.98 129.56 94.14
10/28/94 132.34 126.47 89.14
11/23/94 124.35 110.76 80.63
12/30/94 115.72 94.29 72.23
1/27/95 101.37 90.10 62.02
2/24/95 108.27 98.48 66.92
3/31/95 109.37 94.29 67.13
4/30/95 105.33 90.10 63.43
5/26/95 113.68 107.01 70.35
6/30/95 111.93 92.33 69.32
7/28/95 116.08 95.51 73.64
8/31/95 108.89 88.13 69.66
9/30/95 112.85 94.42 68.82
10/31/95 110.46 89.22 67.02
11/30/95 104.65 85.02 64.06
12/29/95 103.54 84.52 63.34
1/31/96 112.35 107.76 72.64
2/29/96 113.37 95.08 73.99
3/31/96 110.12 95.08 70.65
4/30/96 111.70 96.18 68.52
5/31/96 112.25 94.07 71.64
6/30/96 111.98 87.73 71.47
7/31/96 110.21 81.39 71.69
8/30/96 110.68 84.52 73.69
9/30/96 112.16 85.62 74.73
10/31/96 113.18 83.51 77.45
11/29/96 125.79 90.86 89.15
12/31/96 132.84 95.25 97.43
1/31/97 135.63 99.49 99.27
2/28/97 138.13 99.49 100.73
3/27/97 133.96 99.49 99.65
4/30/97 148.44 106.94 106.53
5/31/97 159.48 115.41 111.06
6/30/97 170.35 124.89 114.45
7/31/97 178.89 130.22 117.43
8/31/97 187.33 126.50 121.24
9/30/97 167.65 124.38 116.19
10/31/97 124.12 87.29 88.50
11/28/97 107.96 84.67 82.92
12/31/97 110.00 82.89 83.73
1/30/98 85.88 79.75 70.48
2/28/98 114.29 88.25 86.61
3/31/98 107.58 80.77 83.66
4/30/98 98.27 74.90 76.62
5/29/98 83.74 60.57 69.04
6/30/98 72.75 54.24 63.53
7/31/98 57.28 44.10 56.17
8/31/98 51.32 29.76 50.16
9/30/98 60.82 40.91 56.88
10/30/98 70.51 50.48 65.12
11/30/98 72.47 53.14 64.68
12/31/98 69.86 46.76 61.44
1/29/99 63.27 45.70 55.92
2/26/99 63.43 44.63 56.22
3/31/99 69.67 47.82 62.49
4/30/99 82.25 62.17 74.33
5/31/99 76.94 57.39 69.97
6/30/99 90.35 74.39 80.74
7/30/99 84.95 60.57 75.80
8/31/99 88.77 61.11 78.44
9/30/99 84.11 56.86 73.92
10/29/99 87.65 59.51 75.69
11/30/99 99.29 68.01 82.85
12/31/99 110.11 72.07 90.38
1/31/00 108.99 69.94 90.33
2/29/00 113.38 73.68 91.87
3/31/00 118.43 75.28 96.89
4/28/00 100.86 64.07 87.24
5/31/00 94.69 62.46 82.27
6/30/00 98.52 66.73 85.48
7/31/00 102.07 69.94 89.73
8/31/00 103.94 71.54 88.73
9/29/00 95.34 66.73 79.73
10/31/00 87.40 64.07 72.78
11/30/00 83.00 61.93 68.48
12/29/00 87.30 60.33 71.12
1/31/01 95.81 71.33 78.24
2/28/01 91.42 67.57 76.15
3/30/01 84.59 60.73 69.80
4/30/01 86.09 63.89 69.03
5/31/01 87.12 66.46 67.29
6/29/01 84.69 66.20 65.30
7/31/01 78.98 60.22 61.21
8/31/01 73.10 54.24 57.47
9/28/01 66.37 50.83 48.34
10/31/01 71.51 51.34 51.10
11/30/01 76.18 55.95 57.64
12/31/01 76.09 56.12 63.41
1/31/02 75.34 55.52 63.09
2/28/02 75.53 57.92 60.84
3/28/02 81.23 63.64 65.43
4/30/02 80.95 64.92 66.68
5/31/02 81.88 65.18 64.55
6/28/02 76.65 58.94 60.36
7/31/02 73.94 54.24 57.39
8/30/02 70.29 53.39 54.89
9/30/02 65.71 49.71 49.30
10/31/02 68.42 52.96 52.07
11/29/02 70.48 55.78 54.34
12/31/02 69.82 55.52 50.92
1/31/03 77.58 62.36 53.73
2/28/03 77.30 66.63 50.72
3/31/03 73.94 64.41 48.90
4/30/03 73.75 63.21 48.38
5/30/03 82.63 65.43 53.24
6/30/03 86.93 73.46 55.68
* JFC Benchmark: MSCI Golden Dragon Index (Total)
Prior to March 2001: 25% Taiwan Weighted Index, 20% BNP Prime Peregrine China
Index, 50% MSCI Hong Kong Index, 5% HSBC
Prior to March 1999: 60% Hong Kong All Ordinaries Index, 30% Credit Lyonnais
Securities Asia All China B Index, 10% Taiwan Weighted Index
Prior to January 1997: Peregrine Greater China Index
** Commencement of operations
Source: JP Morgan Fleming Asset Management
-- 2 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
CHAIRMAN'S STATEMENT
- --------------------------------------------------------------------------------
Dear Fellow Shareholders,
The first half of 2003 has been a relatively upbeat period for investment in
the China region markets. During the six-month period, the Fund managed to
achieve a positive return. Your Fund's net asset value gained 24.5% while the
share price was up 32.3% during this six-month period. This compares to JFC's
benchmark index (MSCI Golden Dragon Index) return of 9.3%.
During the same period, the Fund's prevailing share price discount to net
asset value continued to improve. Whilst the Board is encouraged by this
improvement, the Directors will continue to monitor this situation and endeavor
to take appropriate action to further reduce this discount.
Your Board remains hopeful for the investment environment over the balance
of the Fund's fiscal year and notes that the performance of the Fund during the
period since the half-year has continued to be positive.
Respectfully submitted,
/s/ THE RT. HON. THE EARL OF CROMER
The Rt. Hon. The Earl of Cromer
Chairman
August 15, 2003
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[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
MAJOR HOLDINGS
- --------------------------------------------------------------------------------
AT JUNE 30, 2003
- --------------------------------------------------------------------------------
% of Net
Assets
- --------------------------------------------------------------------------------
BRILLIANCE CHINA AUTOMOTIVE HOLDINGS 4.5
Brilliance China Automotive Holdings Limited, through its
subsidiaries, manufactures and distributes minibuses and sedans in the
People's Republic of China. The company also manufactures and trades
automotive components.
CHINA MERCHANTS HOLDINGS INTERNATIONAL 4.1
China Merchants Holdings International Company Limited, through
its subsidiaries and associated companies, operates container and
cargo terminals, port transportation, and airport cargo handling. The
company also manufactures containers, paint, and trailers as well as
operates toll road and shipping businesses.
FOUNTAIN SET HOLDINGS 4.1
Fountain Set manufactures and sells knitted fabrics, sewing
threads, dyed yarns, and garments. The company also provides knitting,
dyeing, printing and fabric finishing services and trades raw yarns.
TECHTRONIC INDUSTRIES 3.9
Techtronic Industries engineers, manufactures and trades power
tools, outdoor power products, floor care and electronic products for
the home improvement industry. The group partners with brand name
customers worldwide.
MAANSHAN IRON AND STEEL 'H' 3.5
Maanshan Iron and Steel Company Limited manufactures and markets
iron and steel products which can be divided into four categories,
wire rods, steel section, medium or thick steel plates, and train
wheels and tires. The production process mainly comprises coking,
sintering, iron smelting, steel smelting, and steel rolling.
CHINA PETROLEUM AND CHEMICAL 'H' 3.4
China Petroleum and Chemical Corporation (Sinopec) explores for
and produces crude oil and natural gas in China. The company also owns
refineries that make petroleum and petrochemical products such as
gasoline, diesel, jet fuel, kerosene, ethylene, synthetic fibers,
synthetic rubber, synthetic resins, and chemical fertilizers. In
addition, Sinopec trades petrochemical products.
- --------------------------------------------------------------------------------
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[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
MAJOR HOLDINGS (CONTINUED)
- --------------------------------------------------------------------------------
AT JUNE 30, 2003
- --------------------------------------------------------------------------------
% of Net
Assets
- --------------------------------------------------------------------------------
SHANDONG INTERNATIONAL POWER DEVELOPMENT 'H' 3.2
Shandong International Power Development Company Limited generates
and sells electricity which is all fed into the Shandong Provincial
grid operated by Shandong Electric Power Group Corporation, the
immediate holding company of the company. The company also sells heat.
HOPEWELL HOLDINGS 3.1
Hopewell, based in Hong Kong is invested in infrastructure
development, property investment and development, engineering and
construction and hotels activity in the Greater China region.
BEIJING DATANG POWER GENERATION 'H' 3.0
Beijing Datang Power Generation Company Limited develops and
operates power plants, sells electricity, repairs and maintains power
equipment, and provides power-related technical services.
CHINA SHIPPING DEVELOPMENT 'H' 3.0
China Shipping Development Company Limited operates crude oil and
refined oil shipment, coal shipment, and dry bulk shipment along the
People's Republic of China coast as well as internationally.
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TOTAL MAJOR HOLDINGS 35.8
-- 5 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO
- ------------------------------------------------------------------------------------------------------
AT JUNE 30, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------
Holdings Market
(in shares Value
Description or par) (in US$)
- ------------------------------------------------------------------------------------------------------
COMMON STOCKS (UNLESS OTHERWISE NOTED)
- ------------------------------------------------------------------------------------------------------
CHINA (44.5%)
- ------------------------------------------------------------------------------------------------------
AIRLINES (1.2%)
* China Eastern Airlines 'H' 3,950,000 491,334
- ------------------------------------------------------------------------------------------------------
AUTOMOBILES (6.7%)
Brilliance China Automotive Holdings 'H' 6,800,000 1,918,404
Chongqing Changan Automobile 'B' 1,180,000 957,843
- ------------------------------------------------------------------------------------------------------
2,876,247
- ------------------------------------------------------------------------------------------------------
BIOTECHNOLOGY (2.9%)
Tong Ren Tang Technologies 'H' 790,000 1,235,934
- ------------------------------------------------------------------------------------------------------
CHEMICALS (1.0%)
Sinopec Shanghai Petrochemical 'H' 2,200,000 428,820
- ------------------------------------------------------------------------------------------------------
COMMERCIAL SERVICES & SUPPLIES (0.7%)
CCID Consulting 'H' 4,300,000 136,750
* Shenzhen Dongjiang Evironmental 'H' 3,860,000 183,146
- ------------------------------------------------------------------------------------------------------
319,896
- ------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (2.1%)
Anhui Conch Cement 'H' 1,550,000 879,536
- ------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES (6.2%)
Beijing Datang Power Generation 'H' 2,950,000 1,295,660
Shandong International Power Development 'H' 4,750,000 1,355,289
- ------------------------------------------------------------------------------------------------------
2,650,949
- ------------------------------------------------------------------------------------------------------
MACHINERY (1.7%)
* China International Marine Containers 'B' 640,000 731,250
- ------------------------------------------------------------------------------------------------------
MARINE (3.0%)
China Shipping Development 'H' 3,600,000 1,281,073
- ------------------------------------------------------------------------------------------------------
-- 6 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
- ------------------------------------------------------------------------------------------------------
AT JUNE 30, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------
Holdings Market
(in shares Value
Description or par) (in US$)
- ------------------------------------------------------------------------------------------------------
METALS & MINING (8.9%)
Aluminum Corporation of China 'H' 1,130,000 252,137
Angang New Steel 'H' 2,800,000 621,173
Chongqing Iron & Steel 'H' 4,000,000 820,707
Jiangxi Copper 'H' 4,000,000 620,660
Maanshan Iron and Steel 'H' 8,700,000 1,472,657
- ------------------------------------------------------------------------------------------------------
3,787,334
- ------------------------------------------------------------------------------------------------------
OIL & GAS (3.4%)
China Petroleum and Chemical 'H' 5,956,000 1,428,252
- ------------------------------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.9%)
Shandong Chenming Paper Holdings 'B' 630,000 365,971
- ------------------------------------------------------------------------------------------------------
PHARMACEUTICALS (1.4%)
* HUA Han Bio-Pharmaceutical Holdings 'H' 3,760,000 573,777
- ------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (4.4%)
Cosco Pacific 1,200,000 1,261,838
Shenzhen Expressway 'H' 2,426,000 622,199
- ------------------------------------------------------------------------------------------------------
1,884,037
- ------------------------------------------------------------------------------------------------------
TOTAL CHINA 18,934,410
- ------------------------------------------------------------------------------------------------------
HONG KONG (30.2%)
- ------------------------------------------------------------------------------------------------------
CONTAINERS & PACKAGING (4.7%)
Hung Hing Printing Group 1,350,000 943,493
Singamas Container Holdings 2,500,000 1,065,958
- ------------------------------------------------------------------------------------------------------
2,009,451
- ------------------------------------------------------------------------------------------------------
HEALTHCARE EQUIPMENT & SUPPLIES (1.1%)
Hengan International Group 1,200,000 457,801
- ------------------------------------------------------------------------------------------------------
HOUSEHOLD DURABLES (3.9%)
Techtronic Industries 1,000,000 1,679,886
- ------------------------------------------------------------------------------------------------------
-- 7 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
- ------------------------------------------------------------------------------------------------------
AT JUNE 30, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------
Holdings Market
(in shares Value
Description or par) (in US$)
- ------------------------------------------------------------------------------------------------------
INDUSTRIAL CONGLOMERATES (5.2%)
China Merchants Holdings International 1,950,000 1,737,912
Hutchison Whampoa 80,000 487,295
- ------------------------------------------------------------------------------------------------------
2,225,207
- ------------------------------------------------------------------------------------------------------
INSURANCE (2.8%)
China Insurance International Holdings 2,510,000 1,207,017
- ------------------------------------------------------------------------------------------------------
MACHINERY (2.5%)
Fong's Industries 1,900,000 1,059,867
- ------------------------------------------------------------------------------------------------------
MISCELLANEOUS (0.0%)
Health Asia MediCentres Beijing++ 1,000,000 0
- ------------------------------------------------------------------------------------------------------
MULTILINE RETAIL (0.8%)
Aeon Stores (Hong Kong) 1,000,000 333,412
- ------------------------------------------------------------------------------------------------------
REAL ESTATE (1.1%)
Cheung Kong (Holdings) 75,000 451,068
- ------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (4.1%)
Fountain Set (Holdings) 1,950,000 1,737,912
- ------------------------------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (4.0%)
GZI Transport 2,000,000 392,401
Hopewell Holdings 1,250,000 1,330,444
- ------------------------------------------------------------------------------------------------------
1,722,845
- ------------------------------------------------------------------------------------------------------
TOTAL HONG KONG 12,884,466
- ------------------------------------------------------------------------------------------------------
SINGAPORE (1.6%)
- ------------------------------------------------------------------------------------------------------
MARINE (1.6%)
* Neptune Orient Lines 840,000 706,143
- ------------------------------------------------------------------------------------------------------
TOTAL SINGAPORE 706,143
- ------------------------------------------------------------------------------------------------------
-- 8 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
- ------------------------------------------------------------------------------------------------------
AT JUNE 30, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------
Holdings Market
(in shares Value
Description or par) (in US$)
- ------------------------------------------------------------------------------------------------------
SOUTH KOREA (1.1%)
- ------------------------------------------------------------------------------------------------------
MARINE (1.1%)
Hanjin Shipping 56,000 460,377
- ------------------------------------------------------------------------------------------------------
TOTAL SOUTH KOREA 460,377
- ------------------------------------------------------------------------------------------------------
TAIWAN (20.8%)
- ------------------------------------------------------------------------------------------------------
AIRLINES (0.0%)
* Eva Airways 650 233
- ------------------------------------------------------------------------------------------------------
AUTO COMPONENTS (2.1%)
Cheng Shin Rubber Industries 335,000 408,087
TYC Brothers Industrial 275,000 481,409
- ------------------------------------------------------------------------------------------------------
889,496
- ------------------------------------------------------------------------------------------------------
AUTOMOBILES (1.2%)
China Motor 285,000 523,655
- ------------------------------------------------------------------------------------------------------
CHEMICALS (2.2%)
Oriental Union Chemical 480,000 479,167
* Taiwan Styrene Monomer 500,000 445,602
- ------------------------------------------------------------------------------------------------------
924,769
- ------------------------------------------------------------------------------------------------------
COMPUTERS & PERIPHERALS (1.6%)
Compal Electronics 500,000 671,296
- ------------------------------------------------------------------------------------------------------
CONSTRUCTION & ENGINEERING (1.3%)
CTCI 891,000 577,500
- ------------------------------------------------------------------------------------------------------
CONSTRUCTION MATERIALS (1.1%)
* Taiwan Cement 1,400,000 463,831
- ------------------------------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (2.9%)
Hon Hai Precision Industry 175,000 635,489
Synnex Technology International 420,000 589,410
- ------------------------------------------------------------------------------------------------------
1,224,899
- ------------------------------------------------------------------------------------------------------
-- 9 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
- ------------------------------------------------------------------------------------------------------
AT JUNE 30, 2003 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------
Holdings Market
(in shares Value
Description or par) (in US$)
- ------------------------------------------------------------------------------------------------------
MACHINERY (1.0%)
Kaulin Manufacturing 275,000 437,645
- ------------------------------------------------------------------------------------------------------
METALS & MINING (0.9%)
* Yieh Phui Enterprise 450,000 395,833
- ------------------------------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (6.5%)
* Nanya Technology 1,200,000 871,528
* Taiwan Semiconductor Manufacturing 475,000 783,420
* United Microelectronics 650,000 419,416
Via Technologies 520,000 690,625
- ------------------------------------------------------------------------------------------------------
2,764,989
- ------------------------------------------------------------------------------------------------------
TEXTILES, APPAREL &LUXURY GOODS (0.0%)
* Pou Chen 710 696
- ------------------------------------------------------------------------------------------------------
TOTAL TAIWAN 8,874,842
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(98.2% of Net Assets) (Cost $34,374,269) 41,860,238
======================================================================================================
Other assets in excess of liabilities (1.8% of Net Assets) 760,129
======================================================================================================
NET ASSETS (100.0%) 42,620,367
======================================================================================================
Aggregate cost for Federal income tax purposes is $34,669,573. The aggregate
unrealized gain for all securities is as follows:
Excess of market value over cost 8,017,900
Excess of cost over market value (827,235)
- ------------------------------------------------------------------------------------------------------
Net unrealized gain 7,190,665
======================================================================================================
<FN>
* Non-income producing security.
++ At fair value as determined under the supervision of the Board of
Directors.
</FN>
See accompanying notes to financial statements.
-- 10 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------
AT JUNE 30, 2003 (UNAUDITED)
- -------------------------------------------------------------------------------------------------
(in US$)
- -------------------------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------------------------
Investments at value (cost $34,374,269) 41,860,238
Cash (including foreign currencies with a cost of $787,580 and value of $787,701) 789,068
Receivable for securities sold 194,240
Dividend receivable 242,472
Prepaid expenses 16,675
- -------------------------------------------------------------------------------------------------
TOTAL ASSETS 43,102,693
- -------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------
Payable for securities purchased 109,579
Accrued expenses payable 306,205
Due to Investment Advisor 66,542
- -------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 482,326
- -------------------------------------------------------------------------------------------------
NET ASSETS 42,620,367
=================================================================================================
NET ASSETS CONSIST OF:
Common stock, $0.01 par value
(100,000,000 shares authorized;
4,585,160 shares issued and outstanding) 45,852
Paid-in capital 96,210,312
Undistributed net investment income 38,532
Accumulated realized loss on investments
and foreign currency transactions (61,160,442)
Accumulated net unrealized appreciation on investments,
and foreign currency holdings, and other assets
and liabilities denominated in foreign currencies 7,486,113
- -------------------------------------------------------------------------------------------------
NET ASSETS 42,620,367
=================================================================================================
NET ASSET VALUE PER SHARE ($42,620,367 / 4,585,160) 9.30
=================================================================================================
See accompanying notes to financial statements.
-- 11 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 30, 2003 (UNAUDITED)
- --------------------------------------------------------------------------------
(in US$)
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividend 644,563
Interest (net of foreign withholding tax of $188) 3,306
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 647,869
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 188,608
Legal fees 137,261
Directors' fees and expenses 74,584
Administration and accounting fees 68,757
Custodian fees 44,576
Audit fees 26,912
Shareholder service fees 24,340
NYSE listing fee 12,397
Shareholder report and meeting expenses 10,397
Other expenses 21,505
- --------------------------------------------------------------------------------
TOTAL EXPENSES 609,337
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 38,532
================================================================================
REALIZED AND UNREALIZED GAIN ON INVESTMENTS, FOREIGN CURRENCY
HOLDINGS AND OTHER ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
- --------------------------------------------------------------------------------
NET REALIZED GAIN
Investments 1,769,612
Foreign currency transactions 9,008
NET CHANGE IN UNREALIZED APPRECIATION
Investments and foreign currency holdings and
other assets and liabilities denominated
in foreign currencies 6,564,691
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
FOREIGN CURRENCY HOLDINGS AND OTHER ASSETS
AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES 8,343,311
================================================================================
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 8,381,843
================================================================================
See accompanying notes to financial statements.
-- 12 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------
Six Months Ended
June 30, 2003 Year Ended
(in US$) December 31, 2002
(unaudited) (in US$)
- --------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment gain (loss) 38,532 (164,107)
Net realized gain (loss) on investment
transactions 1,769,612 (4,384,675)
Net realized gain (loss) on foreign currency transactions 9,008 (65,414)
Net change in unrealized appreciation
on investments, foreign currency holdings
and other assets and liabilities
denominated in foreign currencies 6,564,691 1,424,348
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 8,381,843 (3,189,848)
- --------------------------------------------------------------------------------------------------------
CAPITAL SHARES REPURCHASED (10,191) (731,318)
========================================================================================================
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,371,652 (3,921,166)
Net Assets:
Beginning of period 34,248,715 38,169,881
- --------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $38,532 at June 30, 2003) 42,620,367 34,248,715
========================================================================================================
See accompanying notes to financial statements.
-- 13 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------
For the
Six Months
Ended For the For the For the For the For the
June 30, Year Ended Year Ended Year Ended Year Ended Year Ended
2003 December 31, December 31, December 31, December 31, December 31,
(in US$) 2002 2001 2000 1999 1998
(unaudited) (in US$) (in US$) (in US$) (in US$) (in US$)
- -----------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
- -----------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of period 7.47 8.14 9.34 11.78 7.50 11.81
=================================================================================================================
Net investment income
(loss) 0.01 (0.04) (0.11) (0.06) 0.03 0.02
Net realized and
unrealized gain (loss)
on investment and
foreign currency-
related transactions 1.82 (0.66) (1.31) (2.73) 4.29 (4.33)
- -----------------------------------------------------------------------------------------------------------------
Total from investment
operations 1.83 (0.70) (1.42) (2.79) 4.32 (4.31)
=================================================================================================================
Dividends from net
investment income - - - - (0.04) -
=================================================================================================================
Capital shares repurchased -* 0.03 0.22 0.35 - -
=================================================================================================================
NET ASSET VALUE, END OF
PERIOD 9.30 7.47 8.14 9.34 11.78 7.50
=================================================================================================================
Market value, end of
period 8.60 6.50 6.57 7.06 8.44 5.50
=================================================================================================================
TOTAL INVESTMENT RETURN
Per share market value 32.3% (1.07%) (6.9%) (16.3%) 54.2% (43.6%)
Per share net asset
value 24.5% (8.23%) (12.8%) (20.7%) 57.6% (36.5%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period 42,620,367 34,248,715 38,169,881 56,150,319 107,250,954 68,288,936
Ratios of total expenses
to average net assets 3.23%++ 2.62% 3.51%+ 2.02% 2.28% 2.49%
Ratios of net investment
income (loss) to
average net assets 0.20%++ (0.44%) (1.25%) (0.36%) 0.37% 0.24%
Portfolio turnover rate 90.2% 245.0% 212.1% 94.8% 90.8% 111.9%
Number of shares
outstanding at end of
period (in thousands) 4,585 4,587 4,689 6,012 9,101 9,101
<FN>
+ The ratio of total expenses to average net assets for the year ended December
31, 2001 is relatively higher than that of previous years as a result of the
expenses incurred in relation to a tender offer and share repurchases that
decreased the size of the Fund following similar actions in the previous
year.
++ Annualized.
* Less than $0.01 per share.
</FN>
See accompanying notes to financial statements.
-- 14 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
JUNE 30, 2003
- --------------------------------------------------------------------------------
1. ORGANIZATION AND CAPITAL
Jardine Fleming China Region Fund, Inc. (the "Fund") was incorporated in
the State of Maryland on May 22, 1992, and is registered as a
non-diversified, closed-end management investment company under the
Investment Company Act of 1940. The Fund commenced operations on July 16,
1992.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are in conformity
with accounting principles generally accepted in the United States of
America for investment companies, are consistently followed by the Fund in
the preparation of its financial statements.
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America ("GAAP")
requires management to make estimates and assumptions that affect the
reported amounts and disclosures in the financial statements. Actual
results could differ from these estimates.
i) SECURITY VALUATION
All securities for which market quotations are readily available are
valued at the last sales price prior to the time of determination, or, if
no sales price is available at that time, at the mean between the last
current bid and asked prices. Securities that are traded over-the-counter
are valued, if bid and asked quotations are available, at the mean between
the current bid and asked prices. Investments in short-term debt
securities having a maturity of 60 days or less are valued at amortized
cost. All other securities and assets are valued at fair value as
determined in good faith by the Board of Directors. In valuing the Fund's
assets, quotations of foreign securities in a foreign currency are
translated to U.S. dollar equivalents at the exchange rate in effect on
the valuation date.
ii) U.S. FEDERAL INCOME TAXES
No provision for federal income taxes is required since the Fund intends
to continue to qualify as a regulated investment company and distribute
all of its taxable income.
Income and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from GAAP.
-- 15 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
At December 31, 2002, the components of net assets (excluding paid in
capital) on a tax basis were as follows:
Tax basis capital loss carryover ...................... $(61,255,744)
Plus/Less:Cumulative Timing Differences ............... (1,028,183)
------------
Accumulated capital loss ............................................. $(62,283,927)
------------
Book unrealized foreign exchange gain ................................ 935
------------
Book unrealized appreciation .......................... $ 920,486
Plus/Less:Cumulative Timing Differences ............... (655,134)
-----------
Unrealized appreciation .............................................. 265,352
------------
Net assets (excluding paid in capital) ............................... $(62,017,640)
============
The differences between book and tax basis unrealized appreciation is
primarily attributable to wash sales. The cumulative timing difference
for the capital loss carryover is due to post-October Losses.
Net Asset Value ...................................................... $ 34,248,715
Paid in Capital ...................................................... (96,266,355)
------------
Net assets (excluding paid in capital) ............................... $(62,017,640)
============
As of December 31, 2002, the Fund has capital loss carryforwards for
federal income tax purposes of $61,255,744, of which $42,188,946 expires
in 2006, $11,676,567 expires in 2007, $3,780,058 expires in 2009 and
3,610,173 expires in 2010. The Fund intends to retain gains realized in
future periods that may be offset by available capital loss carryforward.
During the year ended December 31, 2002, the Fund reclassified $65,414
from accumulated net realized loss on investments to accumulated net
investment loss as a result of permanent book and tax differences relating
primarily to realized foreign currency losses. The Fund also reclassified
$234,447 from accumulated net investment loss to paid-in capital as a
result of permanent tax differences relating to the net operating loss for
the year ended December 31, 2002. Net assets were not affected by the
reclassifications. The Fund's realized capital losses incurred after
October 31, 2002, but before December 31, 2002, are deemed to arise on the
first business day of the following year. The Fund incurred and elected to
defer such realized capital losses of $1,028,183.
-- 16 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
iii) FOREIGN CURRENCY TRANSLATION
The books and records of the Fund are maintained in United States dollars.
Foreign currency amounts are translated into U.S. dollars at the
mid-market price of such currencies against U.S. dollars as follows:
o investments, other assets, and liabilities at the prevailing
rates of exchange on the valuation date;
o investment transactions and investment income at the prevailing
rates of exchange on the dates of such transactions.
Although the net assets of the Fund are presented at the foreign
exchange rates and market values at the close of the period, the Fund
does not isolate that portion of the results of operations arising as
a result of changes in the foreign exchange rates from the
fluctuations arising from changes in the market prices of the
securities held at period-end. Similarly, the Fund does not isolate
the effect of changes in foreign exchange rates from the fluctuations
arising from changes in the market prices of securities sold during
the period. Accordingly, realized and unrealized foreign currency
gains (losses) are included in the reported net realized and
unrealized gains (losses) on investments.
Unrealized currency gains (losses) from valuing foreign currency
denominated assets and liabilities at period-end exchange rates are
reflected as a component of accumulated net unrealized gain (loss) on
investments, foreign currency holdings, and other assets and
liabilities denominated in foreign currencies.
iv) DISTRIBUTION OF INCOME AND GAINS
The Fund intends to distribute to shareholders, at least annually,
substantially all of its net investment income and expects to
distribute annually any net long-term capital gains in excess of net
short-term capital losses. An additional distribution may be made to
the extent necessary to avoid the payment of a 4% federal excise tax.
Income and capital gain distributions are determined in accordance
with federal income tax regulations and may differ from those
determined in accordance with generally accepted accounting
principles.
v) OTHER
Security transactions are accounted for on the date the securities are
purchased or sold. Realized gains and losses on the sale of investment
securities are determined on the identified cost basis. Interest
income is recognized on the accrual basis. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Portfolio turnover rate is calculated by dividing the lesser of
purchases or sales of investment securities having maturities greater
than one year at the time of acquisition by the average monthly market
value of those investment securities.
-- 17 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
Consistent with its investment objective, the Fund engages in the
following transactions practices. The investment objective, policies,
program, and risk factors of the Fund are described more fully in the
Fund's Prospectus.
i) FOREIGN TRANSACTIONS
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of U.S.
dollar denominated transactions as a result of, among other factors,
the level of governmental supervision and regulation of foreign
securities markets and the possibility of political or economic
instability.
ii) OTHER
During the six months ended June 30, 2003, the Fund made purchases of
$32,652,184 and sales of $33,319,268 of investment securities other
than short-term investments. There were no purchases or sales of U.S.
government securities.
4. RELATED PARTY AND OTHER SERVICE PROVIDER TRANSACTIONS
i) JF International Management Inc. (formerly Jardine Fleming
International Management Inc.) (the "Adviser") an indirect
wholly-owned subsidiary of J.P. Morgan Chase & Co., provides
investment advisory services to the Fund under the terms of an
investment advisory agreement. Under the investment advisory agreement
effective November 1, 2001, the Advisor is paid a fee, computed weekly
and payable monthly, at the annual rate of 1.00% of the Fund's weekly
net assets. Prior to November 2001, the Adviser was paid a fee,
computed weekly and payable monthly, at the annual rate of 1.25% of
the first $75 million and 1.00% of the excess over $75 million of the
Fund's weekly net assets.
ii) Effective June 1, 2001 PFPC Inc. (the "Administrator") provides
administrative and accounting services to the Fund under an
Administrative and Accounting Services Agreement. The Administrator
receives a fee, payable monthly, at an annual rate of 0.135% of the
first $100 million, 0.095% of the next $50 million, 0.08% of the next
$50 million and 0.065% of the excess over $200 million of the Fund's
average weekly net assets, subject to a minimum annual fee of
$138,000, plus reimbursement for certain out-of-pocket expenses.
iii) Prior to June 1, 2001, T. Rowe Price Associates, Inc., the former
Administrator provided administrative services to the Fund under an
Administrative Services Agreement. The former Administrator received a
fee, payable monthly, at an annual rate of 0.10% of the first $250
million, 0.075% of the next $250 million and 0.05% of the excess over
$500 million of the Fund's average weekly net assets, subject to a
minimum annual fee of $200,000, plus reimbursement for certain
out-of-pocket expenses. The former Administrator also received an
annual fee of $85,000 for fund accounting services pursuant to an
Accounting Services Agreement.
iv) During the six months ended June 30, 2003, the Fund paid $19,397 in
brokerage commissions to J.P. Morgan Chase Group companies, affiliated
brokers/dealers.
-- 18 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS
During the year ended December 31, 2002, the Fund's Board of Directors
authorized the Fund to purchase shares of its common stock from Fund
shareholders, as described below. Any purchase of shares by the Fund has
the effect of increasing the net asset value per share of the Fund's
remaining shares outstanding. All shares purchased by the Fund are
thereafter considered authorized and unissued.
i) SHARE REPURCHASE PROGRAM
The Fund was authorized to repurchase up to 460,761 shares (10% of its
issued and outstanding shares) in the open market through July 22,
2003. Repurchases were made only when the Fund's shares were trading
at less than net asset value and at such times and amounts as were
believed to be in the best interest of the Fund's shareholders. On
July 23, 2003, the Fund's Board of Directors approved a new 10% share
repurchase program which authorized the Fund to repurchase up to
458,516 shares in the open market during 2003 and 2004.
During the year ended December 31, 2002, the Fund paid $731,318 to
repurchase 102,114 shares, at a per-share weighted average discount to
net asset value of 14.85%.
During the six months ended June 30, 2003, the Fund paid $10,191 to
repurchase 1,550 shares at a per-share weighted average discount to
net asset value of 13.07%.
-- 19 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
RESULTS OF THE ANNUAL SHAREHOLDERS MEETING (UNAUDITED)
- --------------------------------------------------------------------------------
The Fund held its annual shareholders meeting on May 8, 2003. At this meeting,
shareholders elected the following nominees proposed for election to the Fund's
Board of Directors. Shareholders also voted on a proposal to liquidate and
dissolve the Fund. The following tables provide information concerning the
matters voted on at the meeting:
I) ELECTION OF DIRECTORS
NOMINEE VOTES FOR VOTES ABSTAINED NON-VOTING SHARES TOTAL VOTING SHARES
------- --------- --------------- ----------------- -------------------
The Rt. Hon.
The Earl of Cromer 3,765,345 52,819 766,996 4,585,160
Alexander Reid Hamilton 3,765,490 52,674 766,996 4,585,160
II) PROPOSAL TO LIQUIDATE AND DISSOLVE THE FUND
VOTES FOR VOTES AGAINST VOTES ABSTAINED NON-VOTING SHARES TOTAL VOTING SHARES
--------- ------------- --------------- ----------------- -------------------
1,599,970 111,330 9,340 2,864,520 4,585,160
OTHER INFORMATION
- --------------------------------------------------------------------------------
On July 15, 2002, the Board of Directors amended the Fund's investment policy to
better reflect its historical investment approach by requiring that under normal
circumstances at least 80% of the Fund's net assets, plus the amount of any
borrowings for investment purposes, be invested in equity securities issued by
China Region companies or China Region associated companies (the policy
previously had a 65% requirement).
-- 20 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
- --------------------------------------------------------------------------------
THE FUND OPERATES AN OPTIONAL DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (THE
"PLAN") WHEREBY:
a) shareholders may elect to receive dividend and capital gain distributions
in the form of additional shares of the Fund (the Share Distribution
Plan).
b) shareholders may make optional payments (any amount between $100 and
$3,000) which will be used to purchase additional shares in the open
market (the Share Purchase Plan).
FOR A COPY OF THE PLAN BROCHURE, AS WELL AS A DIVIDEND REINVESTMENT
AUTHORIZATION CARD, PLEASE CONTACT:
EquiServe Trust Company N.A.
(the Plan Agent):
P. O. Box 43010 Providence, RI 02940-3010
Telephone No: 800-426-5523 (toll-free)
The following should be noted with respect to the Plan:
If you participate in the Share Distribution Plan, whenever the Board of
Directors of the Fund declares an income dividend or net capital gain
distribution, you will automatically receive your distribution in newly issued
shares (cash will be paid in lieu of fractional shares) if the market price of
the shares on the date of the distribution is at or above the net asset value of
the shares. The number of shares to be issued to you by the Fund will be
determined by dividing the amount of the cash distribution to which you are
entitled (net of any applicable withholding taxes) by the greater of the net
asset value (NAV) per share on such date or 95% of the market price of a share
on such date. If the market price of the shares on such a distribution date is
below the NAV, the Plan Agent will, as agent for the participants, buy shares on
the open market, on the New York Stock Exchange or elsewhere, for the
participant's account on, or after, the payment date. There is no service charge
for purchases under this Plan.
For U.S. federal income tax purposes, shareholders receiving newly issued shares
pursuant to the Share Distribution Plan will be treated as receiving income or
capital gains in an amount equal to the fair market value (determined as of the
distribution date) of the shares received and will have a cost basis equal to
such fair market value. Shareholders receiving a distribution in the form of
shares purchased in the open market pursuant to the Plan will be treated as
receiving a distribution of the cash distribution that such shareholder would
have received had the shareholder not elected to have such distribution
reinvested and will have a cost basis in such shares equal to the amount of the
distribution.
There will be no brokerage charge to participants for shares issued directly by
the Fund under the Plan. Each participant will pay a pro rata share of brokerage
commissions incurred with respect to the Plan Agent's open market purchases of
shares in connection with the Plan. The Fund will pay the fees of the Plan Agent
for handling the Plan.
You may terminate your account under the Share Distribution Plan by notifying
the Plan Agent in writing. The Plan may be terminated by the Plan Agent or the
Fund with notice to you at least 30 days prior to any record date for the
payment of any distribution by the Fund. Upon any termination, the Plan Agent
will deliver a certificate or certificates for the full shares held for you
under the Plan and a cash adjustment for any fractional shares.
You also have the option of instructing the Plan Agent to make semiannual cash
purchases of shares in the open market. There is a service charge of $1.25 for
each purchase under this Share Purchase Plan.
-- 21 --
[GRAPHIC OMITTED]
JARDINE FLEMING
CHINA REGION FUND, INC.
DIRECTORS AND ADMINISTRATION
- ---------------------------------------------------------------------------------------------------------
OFFICERS AND DIRECTORS THE RT. HON. THE EARL OF CROMER - DIRECTOR AND
CHAIRMAN OF THE BOARD
A. Douglas Eu - Director, President, and Treasurer
Simon J. Crinage* - Director
Alexander R. Hamilton - Director
Julian M. I. Reid - Director
Lauren Pan - Secretary
INVESTMENT ADVISER JF INTERNATIONAL MANAGEMENT INC.
P.O. Box 3151
Road Town, Tortola
British Virgin Islands
ADMINISTRATOR PFPC INC.
301 Bellevue Parkway
Wilmington, Delaware 19809
U.S.A.
CUSTODIAN CITIBANK N.A.
NEW YORK:
111 Wall Street, 16th Floor
New York, New York 10005
U.S.A.
HONG KONG:
Citibank Tower
Citibank Plaza
3 Garden Road
Hong Kong
INDEPENDENT ACCOUNTANTS PRICEWATERHOUSECOOPERS LLP
250 West Pratt Street
Baltimore, Maryland 21201
U.S.A.
LEGAL COUNSEL CLEARY, GOTTLIEB, STEEN & HAMILTON
NEW YORK:
1 Liberty Plaza
New York, New York 10006
U.S.A.
HONG KONG:
Bank of China Tower
1 Garden Road
Hong Kong
REGISTRAR, TRANSFER AGENT, AND EQUISERVE TRUST COMPANY N.A.
DIVIDEND PAYING AGENT P. 0. Box 43010
Providence, RI 02940-3010
U.S.A.
<FN>
*DIRECTOR EFFECTIVE AUGUST 1, 2003.
NOTICE IS HEREBY GIVEN IN ACCORDANCE WITH SECTION 23(C) OF THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED, THAT FROM TIME TO TIME THE FUND MAY PURCHASE
SHARES OF ITS COMMON STOCK IN THE OPEN MARKET.
</FN>
-- 22 --
THIS REPORT, INCLUDING THE FINANCIAL STATEMENTS HEREIN, IS SENT TO THE
SHAREHOLDERS OF THE FUND FOR THEIR INFORMATION. IT IS NOT A PROSPECTUS, CIRCULAR
OR REPRESENTATION INTENDED FOR USE IN THE PURCHASE OR SALE OF SHARES OF THE FUND
OR OF ANY SECURITIES MENTIONED IN THIS REPORT.
JFCRM-SR-01 F01-051 6/30/03
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
Act") (17 CFR 270.30a-3(c))) are effective (as they provide reasonable
assurances that material information relating to the registrant is made
known to such officers by the appropriate persons), as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
half-year (the registrant's second fiscal half-year in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 10. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002 are attached hereto.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) Jardine Fleming China Region Fund, Inc.
-------------------------------------------------------
By (Signature and Title)*/s/ Douglas Eu
-------------------------------------------------------
Douglas Eu, President & Treasurer
(principal executive officer)
Date AUGUST 28, 2003
----------------------------------------------------------------------------
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 (Signature and Title)*/s/ Douglas Eu
-------------------------------------------------------
Douglas Eu, President & Treasurer
(principal executive and principal financial officer)
Date AUGUST 28, 2003
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.