N-Q 1 d901221dnq.htm JPMORGAN CHINA REGION FUND, INC. JPMorgan China Region Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-06686

 

 

JPMorgan China Region Fund, Inc.

(Exact name of registrant as specified in charter)

One Beacon Street, 18th Floor

Boston, MA 02108

(Address of principal executive offices) (Zip code)

Dechert LLP

1095 Avenue of the Americas

New York, NY 10036

(Name and address of agent for service)

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

Date of fiscal year end: December 31

Date of reporting period: March 31, 2015


ITEM 1. SCHEDULE OF INVESTMENTS.

The Schedule(s) of Investments is attached herewith.


JPMorgan China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2015 (Unaudited)

 

DESCRIPTION

   HOLDINGS
(IN SHARES)
     VALUE
(IN US$)
 

COMMON STOCK (unless otherwise noted)

  

CHINA (63.4%)

  

Aerospace & Defense (0.3%)

  

AVIC Aircraft Co., Ltd., ‘A’

     52,400         229,561   

China Avic Electronics Co., Ltd., ‘A’

     33,006         162,911   
     

 

 

 
        392,472   
     

 

 

 

Auto Components (0.7%)

     

Fuyao Glass Industry Group Co., Ltd. (a) (e)

     150,800         369,577   

Fuyao Glass Industry Group Co., Ltd., ‘A’

     61,978         167,251   

Huayu Automotive Systems Co., Ltd., ‘A’

     109,900         354,362   
     

 

 

 
        891,190   
     

 

 

 

Automobiles (1.4%)

     

Chongqing Changan Automobile Co., Ltd., ‘A’

     91,502         299,467   

Chongqing Changan Automobile Co., Ltd., ‘B’ (i)

     412,678         1,126,891   

FAW CAR Co., Ltd., ‘A’

     52,000         164,398   

SAIC Motor Corp., Ltd., ‘A’

     82,200         329,617   
     

 

 

 
        1,920,373   
     

 

 

 

Banks (12.6%)

     

Agricultural Bank of China Ltd.

     6,639,000         3,288,393   

Agricultural Bank of China Ltd., ‘A’

     847,700         501,816   

Bank of Communications Co., Ltd., ‘A’

     740,800         763,551   

China Construction Bank Corp.

     5,983,000         4,969,981   

China Merchants Bank Co., Ltd.

     348,500         851,398   

China Merchants Bank Co., Ltd., ‘A’

     418,981         1,052,251   

China Minsheng Banking Corp., Ltd.

     1,726,400         2,108,828   

China Minsheng Banking Corp., Ltd., ‘A’

     408,900         639,772   

Industrial Bank Co., Ltd., ‘A’

     353,300         1,046,292   

Ping An Bank Co., Ltd., ‘A’

     317,668         807,031   

Shanghai Pudong Development Bank Co., Ltd., ‘A’

     361,800         921,482   
     

 

 

 
            16,950,795   
     

 

 

 

Beverages (0.2%)

     

Kweichow Moutai Co., Ltd., ‘A’

     10,500         331,889   
     

 

 

 

Capital Markets (3.5%)

     

China Cinda Asset Management Co., Ltd. (a)

     1,152,000         570,602   

China Merchants Securities Co., Ltd., ‘A’

     50,000         256,710   

CITIC Securities Co., Ltd., ‘A’

     311,937         1,651,360   

GF Securities Co., Ltd. (a)

     162,000         393,891   

GF Securities Co., Ltd., ‘A’

     63,200         284,419   

Haitong Securities Co., Ltd., ‘A’

     302,000         1,140,367   

Huatai Securities Co., Ltd., ‘A’

     90,000         437,109   
     

 

 

 
        4,734,458   
     

 

 

 

Chemicals (0.6%)

     

Qinghai Salt Lake Industry Co., Ltd., ‘A’

     74,249         352,945   

Zhejiang Longsheng Group Co., Ltd., ‘A’

     90,979         430,124   
     

 

 

 
        783,069   
     

 

 

 

Commercial Services & Supplies (0.2%)

     

Beijing Originwater Technology Co., Ltd., ‘A’

     37,000         258,659   
     

 

 

 

Communications Equipment (0.1%)

  

Guangzhou Haige Communications Group, Inc. Co., ‘A’

     40,000         180,721   
     

 

 

 

Construction & Engineering (1.2%)

     

China Communications Construction Co., Ltd., ‘A’

     115,700         345,070   

China Railway Construction Corp., Ltd., ‘A’

     130,700         391,914   

China State Construction Engineering Corp., Ltd., ‘A’

     202,000         249,910   

Power Construction Corp of China Ltd., ‘A’

     60,000         95,716   

Suzhou Gold Mantis Construction Decoration Co., Ltd., ‘A’

     83,500         473,691   
     

 

 

 
        1,556,301   
     

 

 

 

Construction Materials (0.6%)

     

Anhui Conch Cement Co., Ltd., ‘A’

     50,000         184,205   

BBMG Corp.

     226,500         208,893   

Tangshan Jidong Cement Co., Ltd., ‘A’

     143,700         381,989   
     

 

 

 
        775,087   
     

 

 

 

Diversified Consumer Services (0.4%)

     

China Maple Leaf Educational Systems Ltd. (a)

     1,670,000         501,906   
     

 

 

 

Diversified Financial Services (0.1%)

     

Avic Capital Co., Ltd., ‘A’

     50,000         192,754   
     

 

 

 

Diversified Telecommunication Services (1.8%)

     

China Telecom Corp., Ltd.

     3,482,000         2,232,210   

Dr Peng Telcom & Media Group Co., Ltd., ‘A’

     28,600         150,621   
     

 

 

 
        2,382,831   
     

 

 

 

Electrical Equipment (0.4%)

     

Henan Pinggao Electric Co., Ltd., ‘A’

     64,600         215,903   

Luxshare Precision Industry Co., Ltd., ‘A’

     25,000         156,865   

Shenzhen Desay Battery Technology Co., ‘A’

     29,600         194,895   
     

 

 

 
        567,663   
     

 

 

 

Electronic Equipment, Instruments & Components (1.7%)

     

AAC Technologies Holdings, Inc.

     176,000         1,086,287   

Hangzhou Hikvision Digital Technology Co., Ltd., ‘A’

     120,380         596,114   

Shenzhen O-film Tech Co., Ltd., ‘A’

     78,900         341,073   

Zhejiang Dahua Technology Co., Ltd., ‘A’

     35,800         211,060   
     

 

 

 
        2,234,534   
     

 

 

 

Food & Staples Retailing (0.1%)

     

Yonghui Superstores Co., Ltd., ‘A’

     107,000         198,998   
     

 

 

 

Food Products (1.7%)

     

China Mengniu Dairy Co., Ltd.

     120,000         637,718   

Heilongjiang Agriculture Co., Ltd., ‘A’

     69,000         173,290   

Henan Shuanghui Investment & Development Co., Ltd., ‘A’

     15,500         92,256   

Inner Mongolia Yili Industrial Group Co., Ltd., ‘A’

     96,654         480,963   

Tingyi Cayman Islands Holding Corp.

     190,000         408,789   

Want Want China Holdings Ltd.

     467,000         495,754   
     

 

 

 
        2,288,770   
     

 

 

 


JPMorgan China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2015 (Unaudited) (continued)

 

DESCRIPTION

   HOLDINGS
(IN SHARES)
     VALUE
(IN US$)
 

COMMON STOCK — continued

  

Health Care Equipment & Supplies (0.1%)

  

Shinva Medical Instrument Co., Ltd., ‘A’

     22,800         165,678   
     

 

 

 

Health Care Providers & Services (1.6%)

     

Aier Eye Hospital Group Co., Ltd., ‘A’

     29,411         170,073   

Cachet Pharmaceutical Co., Ltd., ‘A’

     49,473         322,792   

iKang Healthcare Group, Inc. ADR (a)

     49,779         807,416   

Phoenix Healthcare Group Co., Ltd.

     474,000         838,846   
     

 

 

 
        2,139,127   
     

 

 

 

Hotels, Restaurants & Leisure (0.1%)

     

China International Travel Service Corp., Ltd., ‘A’

     25,050         207,524   
     

 

 

 

Household Durables (1.7%)

     

Gree Electric Appliances, Inc. of Zhuhai, ‘A’

     46,001         324,847   

Hisense Electric Co., Ltd., ‘A’

     48,000         179,857   

JANUS Dongguan Precision Components Co., Ltd., ‘A’

     32,901         177,199   

Midea Group Co., Ltd., ‘A’

     50,500         268,400   

Ozner Water International Holding Ltd. (a) (e)

     1,195,000         426,970   

Qingdao Haier Co., Ltd., ‘A’

     86,000         358,449   

TCL Corp., ‘A’ (a)

     545,000         518,663   
     

 

 

 
        2,254,385   
     

 

 

 

Independent Power & Renewable Electricity Producers (1.4%)

     

China Longyuan Power Group Corp., Ltd.

     1,067,000         1,160,224   

China Yangtze Power Co., Ltd., ‘A’

     209,000         367,122   

GD Power Development Co., Ltd., ‘A’

     200,000         140,331   

SDIC Power Holdings Co., Ltd., ‘A’

     118,100         205,736   
     

 

 

 
        1,873,413   
     

 

 

 

Insurance (7.0%)

     

China Life Insurance Co., Ltd., ‘A’

     32,000         191,238   

China Pacific Insurance Group Co., Ltd.

     577,800         2,750,133   

China Pacific Insurance Group Co., Ltd., ‘A’

     88,700         485,020   

Ping An Insurance Group Co. of China Ltd.

     335,500         4,033,279   

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

     154,776         1,953,299   
     

 

 

 
        9,412,969   
     

 

 

 

Internet Software & Services (6.6%)

     

Alibaba Group Holding Ltd. ADR (a)

     8,883         739,421   

Tencent Holdings Ltd.

     405,200         7,693,555   

Wangsu Science & Technology Co., Ltd., ‘A’

     29,400         423,909   
     

 

 

 
        8,856,885   
     

 

 

 

IT Services (0.5%)

     

Beijing eGOVA Co., Ltd., ‘A’

     13,000         130,658   

Hand Enterprise Solutions Co., Ltd., ‘A’

     56,500         346,404   

Wonders Information Co., Ltd., ‘A’

     21,926         233,350   
     

 

 

 
        710,412   
     

 

 

 

Machinery (2.0%)

     

China CNR Corp., Ltd., ‘A’

     169,900         504,526   

China Conch Venture Holdings Ltd.

     513,000         1,098,437   

China Shipbuilding Industry Co., Ltd., ‘A’

     293,600         475,473   

XCMG Construction Machinery Co., Ltd., ‘A’

     144,000         355,378   

Zhengzhou Yutong Bus Co., Ltd., ‘A’

     50,000         239,290   
     

 

 

 
        2,673,104   
     

 

 

 

Media (0.8%)

     

China South Publishing & Media Group Co., Ltd., ‘A’

     95,500         345,055   

Guangdong Advertising Co., Ltd., ‘A’

     52,364         346,131   

Zhejiang Huace Film & TV Co., Ltd., ‘A’

     54,000         330,902   
     

 

 

 
        1,022,088   
     

 

 

 

Metals & Mining (1.4%)

     

Angang Steel Co., Ltd.

     578,000         425,710   

Baoshan Iron & Steel Co., Ltd., ‘A’

     227,000         260,701   

Hebei Iron & Steel Co., Ltd., ‘A’

     262,000         182,989   

Jiangxi Copper Co., Ltd.

     320,000         595,203   

Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd., ‘A’

     219,000         450,392   
     

 

 

 
        1,914,995   
     

 

 

 

Multiline Retail (0.4%)

     

Intime Retail Group Co., Ltd.

     810,500         563,497   
     

 

 

 

Oil, Gas & Consumable Fuels (2.4%)

     

China Petroleum & Chemical Corp.

     2,741,400         2,181,762   

China Shenhua Energy Co., Ltd., ‘A’

     31,400         101,753   

CNOOC Ltd.

     630,000         890,637   
     

 

 

 
        3,174,152   
     

 

 

 

Personal Products (0.5%)

     

Hengan International Group Co., Ltd.

     51,000         612,449   
     

 

 

 

Pharmaceuticals (1.9%)

     

CSPC Pharmaceutical Group Ltd.

     482,000         407,850   

Jiangsu Hengrui Medicine Co., Ltd., ‘A’

     52,988         394,017   

Kangmei Pharmaceutical Co., Ltd., ‘A’

     53,300         266,603   

Luye Pharma Group Ltd. (a)

     802,000         969,313   

Tasly Pharmaceutical Group Co., Ltd., ‘A’

     59,447         462,374   
     

 

 

 
        2,500,157   
     

 

 

 

Professional Services (0.1%)

     

BlueFocus Communication Group Co., Ltd., ‘A’

     18,000         105,829   
     

 

 

 

Real Estate Management & Development (4.0%)

     

Beijing Capital Development Co., Ltd., ‘A’

     149,000         286,723   

Beijing Huaye Realestate Co., Ltd., ‘A’ (a)

     137,000         290,812   

China Vanke Co., Ltd. (a)

     679,600         1,612,950   

China Vanke Co., Ltd., ‘A’

     381,000         849,316   

E-House China Holdings Ltd. ADR

     81,936         444,913   

Financial Street Holdings Co., Ltd., ‘A’

     95,000         182,504   

Poly Real Estate Group Co., Ltd., ‘A’

     409,450         758,852   

Shanghai Shimao Co., Ltd., ‘A’

     55,000         175,923   

Sunac China Holdings Ltd.

     901,000         782,149   
     

 

 

 
              5,384,142   
     

 

 

 

Road & Rail (0.9%)

     

CAR, Inc. (a)

     492,000         932,894   

Daqin Railway Co., Ltd., ‘A’

     97,980         174,321   


JPMorgan China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2015 (Unaudited) (continued)

 

DESCRIPTION

   HOLDINGS
(IN SHARES)
     VALUE
(IN US$)
 

COMMON STOCK — continued

  

Guangshen Railway Co., Ltd., ‘A’

     85,000         66,085   
     

 

 

 
        1,173,300   
     

 

 

 

Semiconductors & Semiconductor Equipment (0.4%)

     

Hua Hong Semiconductor Ltd. (a) (e)

     420,000         521,164   
     

 

 

 

Software (0.7%)

     

Aisino Co., Ltd., ‘A’

     55,000         439,940   

Beijing Thunisoft Corp., Ltd., ‘A’

     22,000         203,478   

Neusoft Corp., ‘A’

     36,800         166,857   

Yonyou Network Technology Co., Ltd., ‘A’

     16,000         117,814   
     

 

 

 
        928,089   
     

 

 

 

Specialty Retail (0.4%)

     

Pang Da Automobile Trade Co., Ltd., ‘A’ (a)

     139,908         188,662   

Suning Commerce Group Co., Ltd., ‘A’

     165,200         348,275   
     

 

 

 
        536,937   
     

 

 

 

Trading Companies & Distributors (0.2%)

     

Xiamen C & D, Inc., ‘A’

     151,000         343,182   
     

 

 

 

Transportation Infrastructure (0.3%)

     

Huabei Expressway Co., Ltd., ‘A’

     125,000         132,266   

Shanghai International Airport Co., Ltd., ‘A’

     46,000         179,115   

Sichuan Haite High-tech Co., Ltd., ‘A’

     18,900         105,176   
     

 

 

 
        416,557   
     

 

 

 

Water Utilities (0.4%)

     

SIIC Environment Holdings Ltd. (a)

     3,880,400         486,340   
     

 

 

 

TOTAL CHINA

            85,118,845   
     

 

 

 

HONG KONG (28.5%)

     

Auto Components (0.2%)

     

Xinyi Glass Holdings Ltd.

     444,000         274,327   
     

 

 

 

Banks (2.3%)

     

BOC Hong Kong Holdings Ltd.

     497,000         1,772,562   

Dah Sing Financial Holdings Ltd.

     156,169         924,607   

HSBC Holdings plc

     38,444         330,505   
     

 

 

 
        3,027,674   
     

 

 

 

Commercial Services & Supplies (1.1%)

     

China Everbright International Ltd.

     906,000         1,516,885   
     

 

 

 

Distributors (0.2%)

     

Dah Chong Hong Holdings Ltd.

     578,000         284,801   
     

 

 

 

Diversified Financial Services (0.9%)

     

Hong Kong Exchanges and Clearing Ltd.

     46,800         1,146,963   
     

 

 

 

Diversified Telecommunication Services (2.4%)

     

China Unicom Hong Kong Ltd.

     1,358,000         2,066,958   

CITIC Telecom International Holdings Ltd.

     1,257,000         452,365   

HKBN Ltd. (a)

     213,000         264,854   

HKT Trust & HKT Ltd.

     373,000         480,645   
     

 

 

 
        3,264,822   
     

 

 

 

Electric Utilities (0.7%)

     

Cheung Kong Infrastructure Holdings Ltd.

     59,000         507,227   

Power Assets Holdings Ltd.

     37,000         378,464   
     

 

 

 
        885,691   
     

 

 

 

Electronic Equipment, Instruments & Components (0.3%)

     

Cowell e Holdings, Inc. (a)

     750,000         370,518   
     

 

 

 

Gas Utilities (0.7%)

  

China Resources Gas Group Ltd.

     312,000         969,888   
     

 

 

 

Hotels, Restaurants & Leisure (0.9%)

     

Melco Crown Entertainment Ltd. ADR

     30,626         657,234   

Sands China Ltd.

     134,400         556,486   
     

 

 

 
        1,213,720   
     

 

 

 

Household Durables (0.2%)

     

Techtronic Industries Co., Ltd.

     84,500         285,567   
     

 

 

 

Household Products (0.4%)

     

Vinda International Holdings Ltd.

     352,000         574,812   
     

 

 

 

Industrial Conglomerates (2.1%)

     

Hutchison Whampoa Ltd.

     132,000         1,832,044   

Shun Tak Holdings Ltd.

     2,150,000         1,039,967   
     

 

 

 
        2,872,011   
     

 

 

 

Insurance (3.7%)

     

AIA Group Ltd.

     783,400         4,931,207   
     

 

 

 

Marine (0.9%)

     

Orient Overseas International Ltd.

     199,500         1,217,177   
     

 

 

 

Multiline Retail (0.5%)

     

Lifestyle International Holdings Ltd.

     402,000         716,612   
     

 

 

 

Pharmaceuticals (0.8%)

     

Sino Biopharmaceutical Ltd.

     1,084,000         1,097,612   
     

 

 

 

Real Estate Investment Trusts (REITs) (0.8%)

     

Champion REIT

     795,000         378,393   

Yuexiu Real Estate Investment Trust

     1,114,000         635,122   
     

 

 

 
        1,013,515   
     

 

 

 

Real Estate Management & Development (5.7%)

     

CK Hutchison Holdings Ltd.

     136,000         2,785,731   

Great Eagle Holdings Ltd.

     167,000         588,070   

Hang Lung Properties Ltd.

     131,000         368,364   

Hongkong Land Holdings Ltd.

     207,000         1,562,850   

Kerry Properties Ltd.

     177,000         615,293   

New World Development Co., Ltd.

     526,207         610,191   

Sun Hung Kai Properties Ltd.

     30,000         462,810   

Wheelock & Co., Ltd.

     120,000         613,726   
     

 

 

 
        7,607,035   
     

 

 

 

Specialty Retail (0.7%)

     

Chow Tai Fook Jewellery Group Ltd.

     843,400         907,297   
     

 

 

 

Textiles, Apparel & Luxury Goods (0.9%)

     

Pacific Textiles Holdings Ltd.

     405,000         561,060   

Samsonite International S.A.

     196,800         684,122   
     

 

 

 
        1,245,182   
     

 

 

 

Water Utilities (0.9%)

     

Beijing Enterprises Water Group Ltd. (a)

     1,832,000         1,247,697   
     

 

 

 

Wireless Telecommunication Services (1.2%)

     

China Mobile Ltd.

     121,500         1,586,013   
     

 

 

 

TOTAL HONG KONG

        38,257,026   
     

 

 

 

TAIWAN (19.7%)

     

Banks (1.0%)

     

E.Sun Financial Holding Co., Ltd.

     2,205,044         1,349,524   
     

 

 

 

Chemicals (0.4%)

     

China Steel Chemical Corp.

     123,000         583,749   
     

 

 

 

Diversified Financial Services (2.8%)

     

Chailease Holding Co., Ltd.

     480,000         1,196,548   

Fubon Financial Holding Co., Ltd.

     1,429,989         2,568,405   
     

 

 

 


JPMorgan China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2015 (Unaudited) (continued)

 

DESCRIPTION

   HOLDINGS
(IN SHARES)
     VALUE
(IN US$)
 

COMMON STOCK — continued

  

        3,764,953   
     

 

 

 

Electronic Equipment, Instruments & Components (2.6%)

     

Delta Electronics, Inc.

     279,000         1,761,026   

Largan Precision Co., Ltd.

     20,000         1,722,595   
     

 

 

 
        3,483,621   
     

 

 

 

Food & Staples Retailing (0.8%)

     

President Chain Store Corp.

     146,000         1,098,849   
     

 

 

 

Internet Software & Services (0.6%)

     

PChome Online, Inc.

     66,917         870,413   
     

 

 

 

Leisure Products (0.4%)

     

Johnson Health Tech Co., Ltd.

     180,288         501,280   
     

 

 

 

Real Estate Management & Development (0.4%)

     

Ruentex Development Co., Ltd.

     349,992         536,900   
     

 

 

 

Semiconductors & Semiconductor Equipment (9.1%)

     

Advanced Semiconductor Engineering, Inc.

     1,252,802         1,691,623   

Chipbond Technology Corp.

     411,000         868,236   

MediaTek, Inc.

     79,000         1,069,240   

Powertech Technology, Inc.

     262,000         451,320   

Taiwan Semiconductor Manufacturing Co., Ltd.

     1,737,057         8,077,398   
     

 

 

 
        12,157,817   
     

 

 

 

Technology Hardware, Storage & Peripherals (1.6%)

     

Asustek Computer, Inc.

     90,000         906,040   

Catcher Technology Co., Ltd.

     113,000         1,184,532   
     

 

 

 
        2,090,572   
     

 

 

 

TOTAL TAIWAN

        26,437,678   
     

 

 

 
TOTAL INVESTMENTS
(111.6% of Net Assets)
(Cost $117,524,439)
        149,813,549   
     

 

 

 
Liabilities in excess of other assets
(-11.6% of Net Assets)
        (15,515,293
     

 

 

 

NET ASSETS (100.0%)

      $ 134,298,256   
     

 

 

 

 

 

NOTES TO SCHEDULE OF PORTFOLIO INVESTMENTS:

ADR — American Depositary Receipt

 

(a) Non-income producing security.
(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. Unless otherwise indicated, this security has been determined to be liquid under procedures established by the Board of Directors and may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(i) Security has been deemed illiquid pursuant to procedures approved by the Board of Directors and may be difficult to sell.
A China A shares.
B China B shares.

As of March 31, 2015, aggregate cost for Federal income tax purposes was $117,524,439. The aggregate unrealized gain for all securities is as follows:

 

Excess of value over cost

   $ 35,289,342  

Excess of cost over value

     (3,000,232 )
  

 

 

 

Net unrealized gain

   $ 32,289,110  
  

 

 

 


JPMorgan China Region Fund, Inc.

INVESTMENT PORTFOLIO

AT MARCH 31, 2015 (Unaudited) (continued)

A.        Valuation – The valuation of the investments is in accordance with U.S. generally accepted accounting principles (“GAAP”) and the Fund’s valuation policies set forth by and under the supervision and responsibility of the Board of Trustees (the “Board”), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at such unadjusted quoted prices and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.

JPMorgan Funds Management, Inc. (the “Administrator”) has established the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to assist the Board with the oversight and monitoring of the valuation of the Fund’s investments. The Administrator implements the valuation policies of the Fund’s investments, as directed by the Board. The AVC oversees and carries out the policies for the valuation of investments held in the Fund. This includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight, including but not limited to consideration of macro or security specific events, market events and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and at least on a quarterly basis with the AVC and the Board.

A market-based approach is primarily used to value the Fund’s investments. Investments for which market quotations are not readily available are fair valued by approved pricing vendors or third party broker-dealers (collectively referred to as “Pricing Services”) or may be internally fair valued using methods set forth by the valuation policies approved by the Board. This may include 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 be used in which the anticipated future cash flows of the investment are discounted to calculate the fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. It is possible that the estimated values may differ significantly from the values that would have been used, had a ready market for the investments existed, and such differences could be material.

Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the net asset values (“NAV”) of the Fund are calculated on a valuation date.

Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer related events after the report date and prior to issuance of the report are not reflected herein.

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

 

 

Level 1 – Unadjusted inputs using quoted prices in active markets for identical investments.

 

Level 2 – Other significant observable inputs including, but are not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs.

 

Level 3 – Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s assumptions in determining the fair value of investments).

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

The following table represents each valuation input as presented on the Schedule of Portfolio Investments (“SOI”):

 

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

Total Investments in Securities(a)

   $ 149,813,549       $       $       $ 149,813,549  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) All portfolio holdings designated as Level 1 are disclosed individually on the SOI. Please refer to the SOI for industry specifics of portfolio holdings.

There were no transfers between Levels 1 and 2 during the period ended March 31, 2015.


ITEM 2. CONTROLS AND PROCEDURES.

 

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

 

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

ITEM 3. EXHIBITS.

 

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


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

JPMorgan China Region Fund, Inc.

/s/ Simon Crinage

Simon Crinage

Director, President and Principal Executive

Officer of the JPMorgan China Region Fund, Inc

May 29, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

/s/ Simon Crinage

Simon Crinage

Director, President and Principal Executive

Officer of the JPMorgan China Region Fund, Inc

May 29, 2015

 

/s/ Neil Martin

Neil S. Martin

Treasurer and Chief Operating

Officer of the JPMorgan China Region Fund, Inc.

May 29, 2015