UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06686
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JF China Region Fund, Inc.
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(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, 2005
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Date of reporting period: June 30, 2005
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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.
The Report to Shareholders is attached herewith.
(LOGO) JF CHINA REGION FUND, INC.
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SEMI-ANNUAL REPORT
JUNE 30, 2005
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JF CHINA REGION FUND, INC.
CONTENTS
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PAGE
Objectives 1
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Management 1
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Market Information 1
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Highlights 2
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Chairman's Statement 3
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Top Ten Holdings 4
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Investment Portfolio 6
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Statement of Assets and Liabilities 13
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Statement of Operations 14
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Statements of Changes in Net Assets 15
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Financial Highlights 16
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Notes to Financial Statements 17
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Results of the Annual Stockholders Meeting 22
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Other Information 22
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Dividend Reinvestment and Cash Purchase Plan 23
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Directors and Administration 24
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JF CHINA REGION FUND, INC.
OBJECTIVES
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JF 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 labor and land prices are
lower than in Hong Kong. Hong Kong is also the largest trading partner of the
PRC. Furthermore, many PRC companies and their Hong Kong-incorporated
subsidiaries have listed their securities on the Stock Exchange of Hong Kong.
The economies of the PRC, Hong Kong, Taiwan and Macau have become
increasingly linked over the past 10 years; especially since in 1997 and 1999,
respectively that Hong Kong and Macau 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
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JF International Management Inc. ("JFIM") 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 Asset Management ("JPMAM"), although in Asia it uses the sub-brand JF
Asset Management. Funds under management for the global asset management
business of JPMAM were US $782.6 billion as of June 30, 2005.
Ernest Liu and Howard Wang are the Fund's named investment managers. Mr. Lui
joined JPMAM in 2003 and is an investment manager and China Country Specialist
with the Pacific Regional Group. Mr. Wang is a regional investment manager and
head of the Greater China team which forms part of the Pacific Regional Group in
Hong Kong and joined JPMAM in 2005. Previously, he spent eight years with
Goldman Sachs, where in 2004, he was appointed Managing Director, Equities and
General Manager of the Taipei branch office.
MARKET INFORMATION
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THE FUND IS LISTED ON THE NEW YORK STOCK EXCHANGE (SYMBOL JFC). THE SHARE PRICE
IS PUBLISHED IN
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[ ] The Wall Street Journal (daily)
[ ] The Asian Wall Street Journal (daily)
THE NET ASSET VALUE IS PUBLISHED IN
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[ ] The Wall Street Journal under "Closed-End Funds" (every Monday)
[ ] The Asian Wall Street Journal under "Closed-End Funds" (every Monday)
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JF CHINA REGION FUND, INC.
HIGHLIGHTS
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FOR THE SIX MONTHS For the Year
ENDED Ended
JUNE 30, 2005 December 31, 2004
US$ US$
-----------------------------------------------------------------------------------------------------------------
Net Assets $67.4 million $64.5 million
Net Asset Value Per Share $14.69 $14.06
MARKET DATA
Share Price on the
New York Stock Exchange $12.93 $12.80
Discount to Net Asset Value (12.0%) (9.0%)
TOTAL RETURN FOR THE PERIOD ENDED JUNE 30, 2005
-----------------------------------------------------------------------------------------------------------------
Net Asset Value 4.5%
Share Price 1.0%
JFC Benchmark Index* 3.4%
MSCI Hong Kong Index (Total) 3.5%
BNP Prime Peregrine China Index 3.4%
Taiwan Weighted Index 1.9%
NET ASSET VALUE AND SHARE PRICE VS. BENCHMARK INDEX
EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC
[GRAPHIC OMITTED]
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
7/31/03 96.93 80.30 60.86
8/29/03 104.13 88.58 66.88
9/30/03 106.37 86.87 68.73
10/31/03 120.30 116.09 73.75
11/28/03 119.37 114.63 72.11
12/31/03 130.21 154.44 75.70
1/30/04 134.88 129.50 80.89
2/27/04 143.95 141.97 84.25
3/31/04 135.35 123.01 79.74
4/30/04 115.81 91.40 73.82
5/31/04 118.43 104.47 74.32
6/30/04 115.63 97.12 73.49
7/30/04 115.63 90.80 72.08
8/31/04 117.59 102.68 76.05
9/30/04 121.80 100.88 78.02
10/31/04 121.33 99.17 77.35
11/30/04 128.81 111.05 83.91
12/31/04 131.42 109.34 86.50
1/31/05 129.37 110.19 83.66
2/28/05 137.22 114.38 88.07
3/31/05 132.08 105.92 83.87
4/30/05 132.92 104.90 84.85
5/31/05 133.76 106.01 86.42
6/30/05 137.31 110.45 89.42
* 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, 5% HSBC;
Prior to March 1999, 60% Hong Kong All Ordinaries, 30% Credit Lyonnais
Securities Asia All China B Index, 10% Taiwan Weighted
Index;
Prior to January 1997, Peregrine Greater China Index
** Commencement of operations
Source JPMorgan Asset Management
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JF CHINA REGION FUND, INC.
CHAIRMAN'S STATEMENT
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Dear Fellow Stockholder,
The first half of 2005 has been a relatively strong period for our
investments in the China region markets. The Fund returns were positive, as the
net asset value gained 4.5% and the share price was up 1% during this six month
period. This compares with the Company's benchmark, the MSCI Golden Dragon Index
(Total), which had a return of 3.4%.
However, during the same period, the Fund's prevailing share price discount
to net asset value increased slightly from 9% as at December 31, 2004 to 12.0%
as at June 30, 2005. Your Directors will continue to monitor this situation and
will endeavour to take appropriate action to reduce the discount when it is
deemed necessary.
The Fund's named portfolio manager changed during this review period,
following Man Wing Chung's resignation from JPMorgan Asset Management Limited.
The day-to-day management of the Fund's portfolio continues to be handled by a
team of investment professionals based in Hong Kong, including Ernest Liu, who
has been working closely with Mr Chung since August 2003 and Howard Wang, who
has recently been appointed as head of the Greater China team after spending
eight years with Goldman Sachs. Mr Liu and Mr Wang act as the joint named
portfolio managers of the Fund.
Respectfully submitted,
/s/ The Rt. Hon. The Earl of Cromer
The Rt. Hon. The Earl of Cromer
Chairman
August 16, 2005
For more information refer to the website www.jpmorganfleming.com/jfchinaregion
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JF CHINA REGION FUND, INC.
TOP TEN HOLDINGS
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AT JUNE 30, 2005 (UNAUDITED)
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% of Net
Assets
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TAIWAN SEMICONDUCTOR MANUFACTURING 6.4
Taiwan Semiconductor Manufacturing Company Limited manufactures
and markets integrated circuits. The Company provides the following
services: wafer manufacturing, wafer probing, assembly and testing,
mask production, and design services. The Company's integrated
circuits are used in the computer, communication, consumer
electronics, automotive, and industrial equipment industries.
CHINA MOBILE (HONG KONG) 5.0
China Mobile (Hong Kong) Limited, through its subsidiaries,
provides cellular telecommunication services in the People's Republic
of China.
CHEUNG KONG (HOLDINGS) 4.1
Cheung Kong (Holdings) Limited, through its subsidiaries, develops
and invests in real estate. The Company also provides real estate
agency and management services, and invests in securities.
HUTCHINSON WHAMPOA 4.1
Hutchinson Whampoa Limited business operations through its
subsidiaries, include ports and related services, telecommunication
and e-commerce, property and hotels, retail and manufacturing, energy,
infrastructure, finance and investments.
MEDIATEK 3.9
MediaTek Inc. designs, manufactures, and markets compact disk read
only memory (CD-ROM) and digital versatile disc read only memory
(DVD-ROM) chip sets. The Company sells its products in Taiwan and
exports to other countries in Asia.
PETROCHINA 'H' 3.3
PetroChina Company Limited explores, develops, and produces crude
oil and natural gas. The Company also refines, transports, and
distributes crude oil and petroleum products; produces and sells
chemicals; and transmits, markets and sells natural gas.
CHINA RESOURCES ENTERPRISES 2.7
China Resources Enterprise Limited, through its subsidiaries,
develops and invests in property; distributes petroleum and chemicals;
and manufactures beer, food, and textiles products. The Company also
distributes food products and operates supermarkets.
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JF CHINA REGION FUND, INC.
TOP TEN HOLDINGS (CONTINUED)
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AT JUNE 30, 2005 (UNAUDITED)
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% of Net
Assets
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HYSAN DEVELOPMENT 2.5
Hysan Development Company Limited, through its subsidiaries,
invests in real estate. The Company's properties include commercial
rental and luxury residential buildings in Hong Kong.
HON HAI PRECISION INDUSTRY 2.3
Hon Hai Precision Industry Co., Limited (Foxconn) manufactures and
markets personal computer (PC) connectors and cable assemblies used in
desktop PCs and PC servers.
CATHAY FINANCIAL HOLDING - GDR 2.1
Cathay Financial Holding Company Limited is a holding company.
Through its subsidiaries, the Company provides traditional life,
health care, and accident insurances, as well as banking, security
underwriting, and brokerage services.
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TOTAL TOP TEN HOLDINGS 36.4
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JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO
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AT JUNE 30, 2005 (UNAUDITED)
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Market
Holdings Value
Description (in shares) (in US$)
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INVESTMENTS IN COMMON STOCKS (UNLESS OTHERWISE NOTED)
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CHINA (18.4%)
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COMMERCIAL SERVICES & SUPPLIES (0.1%)
* CCID Consulting 'H' 4,200,000 91,313
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DIVERSIFIED TELECOMMUNICATION SERVICES (2.0%)
China Telecom 'H' 3,764,000 1,355,821
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E-COMMERCE/SERVICES (1.8%)
Ctrip.com International - ADR 23,361 1,188,608
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ELECTRIC UTILITIES (1.0%)
Foshan Electrical and Lighting 'B' 168,100 183,599
Huaneng Power International 'H' 712,000 522,095
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705,694
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INSURANCE (0.8%)
* China Life Insurance 'H' 763,000 520,229
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MACHINERY (3.5%)
Hangzhou Steam Turbine 'B' 745,100 943,201
Shanghai Zhenhua Port Machinery 'B' 709,400 709,400
Weichai Power 'H' 227,000 671,658
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2,324,259
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METALS & MINING (1.8%)
Inner Mongolia Yitai Coal 'B' 742,500 726,908
Zijin Mining Group 'H' 2,264,000 498,043
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1,224,951
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OIL & GAS (5.2%)
China Petroleum and Chemical 'H' 922,000 361,764
PetroChina 'H' 3,002,000 2,220,614
Sinopec Zhenhai Refining and Chemical 'H' 978,000 924,742
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3,507,120
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JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
Market
Holdings Value
Description (in shares) (in US$)
--------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (2.2%)
Guangshen Railway 'H' 978,000 355,428
Shenzhen Expressway 'H' 538,000 202,443
Sinotrans 'H' 2,932,000 914,682
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1,472,553
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TOTAL CHINA 12,390,548
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HONG KONG (44.2%)
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AIRLINES (0.9%)
China National Aviation 2,436,000 607,958
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COMMERCIAL BANKS (2.5%)
BOC Hong Kong (Holdings) 529,000 1,000,386
* China State Construction International Holdings++ 83,222 13,490
Hang Seng Bank 47,300 645,002
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1,658,878
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COMPUTERS & PERIPHERALS (1.1%)
TPV Technology 1,068,000 741,924
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CONSTRUCTION & ENGINEERING (0.4%)
COSCO International Holdings 1,794,000 260,793
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CONTAINERS & PACKAGING (0.5%)
Hung Hing Printing Group 418,000 303,822
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DISTRIBUTORS (0.7%)
* Digital China Holdings 1,704,000 498,707
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DIVERSIFIED OPERATIONS (8.4%)
China Resources Enterprises 1,196,000 1,846,320
Citic Pacific 261,000 763,865
Hutchison Whampoa 302,000 2,729,278
Tianjin Development Holdings 814,000 303,681
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5,643,144
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JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
Market
Holdings Value
Description (in shares) (in US$)
--------------------------------------------------------------------------------
DIVERSIFIED TELECOMMUNICATION SERVICES (1.6%)
China Netcom Group Corporation (Hong Kong) 721,000 1,048,113
--------------------------------------------------------------------------------
ELECTRIC UTILITIES (1.0%)
Hong Kong Electric Holdings 150,000 685,037
--------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (1.4%)
Nam Tai Electronic & Electrical Products 1,868,000 618,798
Varitronix International 340,000 297,428
--------------------------------------------------------------------------------
916,226
--------------------------------------------------------------------------------
FOOD PRODUCTS (0.0%)
* Global Bio-chem Technology Group Warrants -
expire 05/31/2007 150,250 2,513
--------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (1.2%)
Playmates Holdings 576,000 111,891
Playmates Holdings Warrants - expire 05/23/2006++ 115,200 4,742
Skyworth Digital Holdings++ 3,892,456 681,016
--------------------------------------------------------------------------------
797,649
--------------------------------------------------------------------------------
MISCELLANEOUS (0.0%)
* Health Asia MediCentres Beijing++ 1,000,000 0
--------------------------------------------------------------------------------
MULTILINE RETAIL (1.0%)
Lifestyle International Holdings 424,000 698,185
--------------------------------------------------------------------------------
OIL & GAS (1.7%)
CNOOC 1,913,000 1,144,360
--------------------------------------------------------------------------------
REAL ESTATE (10.5%)
Cheung Kong (Holdings) 285,000 2,777,295
China Overseas Land & Investment 1,498,000 277,504
Hang Lung Properties 635,000 935,349
Henderson Land Development 72,000 344,564
Hysan Development Company 819,419 1,702,445
Swire Pacific 'A' 80,000 707,550
Wheelock and Company 218,000 353,364
--------------------------------------------------------------------------------
7,098,071
--------------------------------------------------------------------------------
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[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
Market
Holdings Value
Description (in shares) (in US$)
--------------------------------------------------------------------------------
TELECOMMUNICATIONS (0.6%)
Foxconn International Holdings 559,000 417,094
--------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (2.8%)
Dickson Concepts International 334,500 682,056
Giordano International 1,098,000 755,702
* Texhong Textile Group 3,366,000 480,653
--------------------------------------------------------------------------------
1,918,411
--------------------------------------------------------------------------------
TRANSPORTATION INFRASTRUCTURE (1.5%)
Cosco Pacific 322,000 625,500
GZI Transport 1,028,000 357,069
--------------------------------------------------------------------------------
982,569
--------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (6.4%)
China Mobile (Hong Kong) 901,000 3,355,583
China Unicom 1,156,000 974,078
--------------------------------------------------------------------------------
4,329,661
--------------------------------------------------------------------------------
TOTAL HONG KONG 29,753,115
--------------------------------------------------------------------------------
SINGAPORE (1.4%)
--------------------------------------------------------------------------------
CONTAINERS & PACKAGING (0.6%)
Full Apex Holdings 2,000,000 414,864
--------------------------------------------------------------------------------
REAL ESTATE (0.8%)
Hongkong Land Holdings 199,000 555,210
--------------------------------------------------------------------------------
TOTAL SINGAPORE 970,074
--------------------------------------------------------------------------------
TAIWAN (31.2%)
--------------------------------------------------------------------------------
AIRLINES (0.0%)
* EVA Airways 727 353
--------------------------------------------------------------------------------
COMMERCIAL BANKS (1.0%)
Yuanta Core Pacific Securities 900,000 666,129
--------------------------------------------------------------------------------
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[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
Market
Holdings Value
Description (in shares) (in US$)
--------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (2.1%)
Cathay Financial Holding - GDR 69,850 1,401,191
--------------------------------------------------------------------------------
ELECTRONIC EQUIPMENT & INSTRUMENTS (4.1%)
Asustek Computer 237,000 670,171
Au Optronics Corporation 198,000 331,300
Au Optronics Corporation - ADR 47,071 797,853
Career Technology (MFG.) 218,000 333,735
Optimax Technology 278,367 644,509
Premier Image Technology 650 738
--------------------------------------------------------------------------------
2,778,306
--------------------------------------------------------------------------------
HOUSEHOLD DURABLES (2.8%)
Hon Hai Precision Industry 300,000 1,560,943
Nien Made Enterprise 209,000 328,882
--------------------------------------------------------------------------------
1,889,825
--------------------------------------------------------------------------------
LEISURE EQUIPMENT & PRODUCTS (1.0%)
Largan Precision 99,000 651,326
--------------------------------------------------------------------------------
PAPER & FOREST PRODUCTS (0.2%)
Chung Hwa Pulp 500 178
Yuen Foong Yu Paper Manufacturing Company 406,000 162,449
--------------------------------------------------------------------------------
162,627
--------------------------------------------------------------------------------
REAL ESTATE (1.1%)
Hung Poo Real Estate Development 906,000 709,257
--------------------------------------------------------------------------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (16.1%)
* Advanced Semiconductor Engineering 894,000 670,171
MediaTek 305,000 2,648,147
Siliconware Precision Industries 1,396,000 1,377,654
Sunplus Technology 707,000 997,365
Taiwan Semiconductor Manufacturing 2,458,821 4,285,273
* United Microelectronics 320 233
Vanguard International Semiconductor 914,000 878,860
--------------------------------------------------------------------------------
10,857,703
--------------------------------------------------------------------------------
-- 10 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
Market
Holdings Value
Description (in shares) (in US$)
--------------------------------------------------------------------------------
SOFTWARE (0.5%)
Soft-World International 206,778 309,361
--------------------------------------------------------------------------------
TEXTILES, APPAREL & LUXURY GOODS (0.4%)
Far Eastern Department Stores 489,000 293,875
Pou Chen 898 735
--------------------------------------------------------------------------------
294,610
--------------------------------------------------------------------------------
WIRELESS TELECOMMUNICATION SERVICES (1.9%)
Far EasTone Telecommunications 900 1,153
Wistron NeWeb 513,000 1,257,532
--------------------------------------------------------------------------------
1,258,685
--------------------------------------------------------------------------------
TOTAL TAIWAN 20,979,373
--------------------------------------------------------------------------------
TOTAL INVESTMENTS IN COMMMON STOCK
(95.2% of Net Assets) (Cost $60,672,155) 64,093,110
================================================================================
SHORT TERM INVESTMENTS
--------------------------------------------------------------------------------
UNITED STATES (2.0%)
--------------------------------------------------------------------------------
Citibank Time Deposit, 3.1%, 07/05/05 1,355,377 1,355,377
--------------------------------------------------------------------------------
TOTAL UNITED STATES 1,355,377
--------------------------------------------------------------------------------
TOTAL SHORT TERM INVESTMENTS
(2.0% of Net Assets) (Cost $1,355,377) 1,355,377
================================================================================
TOTAL INVESTMENTS
(97.2% of Net Assets) (Cost $62,027,532) 65,448,487
================================================================================
Other assets in excess of liabilities (2.8% of Net Assets) 1,913,492
================================================================================
NET ASSETS (100.0%) 67,361,979
================================================================================
-- 11 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
INVESTMENT PORTFOLIO (CONTINUED)
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
Market
Value
Description (in US$)
--------------------------------------------------------------------------------
Aggregate cost for Federal income tax purposes is $62,177,332.
The aggregate unrealized gain for all securities is as follows:
Excess of market value over cost 5,315,732
Excess of cost over market value (2,044,577)
--------------------------------------------------------------------------------
Net unrealized gain 3,271,155
================================================================================
B - Chinese security traded on Shenzhen Stock Exchange or Shanghai
Stock Exchange.
H - Chinese security traded on Hong Kong Stock Exchange.
ADR - American Depository Receipts.
GDR - Global Depository Receipts.
*Non-income producing security .
++ At fair value as determined under the supervision of the Board of
Directors.
See accompanying notes to financial statements.
-- 12 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
AT JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
(in US$)
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
Investments at value (cost $62,027,532) 65,448,487
Cash (including foreign currencies with a cost of $2,232,669
and value of $2,216,848) 2,230,982
Dividends receivable 189,962
Interest receivable 192
Prepaid expenses 12,832
--------------------------------------------------------------------------------
TOTAL ASSETS 67,882,455
--------------------------------------------------------------------------------
LIABILITIES
--------------------------------------------------------------------------------
Due to Investment Advisor 220,198
Accrued expenses payable 300,278
--------------------------------------------------------------------------------
TOTAL LIABILITIES 520,476
--------------------------------------------------------------------------------
NET ASSETS 67,361,979
================================================================================
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 96,142,005
Undistributed net investment income 571,401
Accumulated realized loss on investments
and foreign currency transactions (32,801,772)
Accumulated net unrealized appreciation on investments,
and foreign currency holdings, and other assets
and liabilities denominated in foreign currencies 3,404,493
--------------------------------------------------------------------------------
NET ASSETS 67,361,979
================================================================================
NET ASSET VALUE PER SHARE ($67,361,979 / 4,585,160) 14.69
================================================================================
See accompanying notes to financial statements.
-- 13 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED JUNE 30, 2005 (UNAUDITED)
--------------------------------------------------------------------------------
(in US$)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INVESTMENT INCOME
--------------------------------------------------------------------------------
Dividends (net of foreign withholding tax of $48,855) 1,009,417
Interest 25,693
--------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,035,110
--------------------------------------------------------------------------------
EXPENSES
--------------------------------------------------------------------------------
Investment advisory fees 323,010
Directors' fees and expenses 88,156
Legal fees 69,791
Administration and accounting fees 68,679
Custodian fees 58,656
Insurance 43,723
Shareholder service fees 27,482
Audit fees 20,167
Shareholder report and expenses 14,558
NYSE listing fee 12,373
Other expenses 4,059
--------------------------------------------------------------------------------
TOTAL EXPENSES 730,654
--------------------------------------------------------------------------------
NET INVESTMENT INCOME 304,456
================================================================================
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS, FOREIGN
CURRENCY HOLDINGS AND OTHER ASSETS AND LIABILITIES DENOMINATED
IN FOREIGN CURRENCIES
--------------------------------------------------------------------------------
NET REALIZED GAIN/(LOSS)
Investments 5,123,441
Foreign currency transactions (23,266)
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION)
Investments and foreign currency holdings and
other assets and liabilities denominated
in foreign currencies (2,530,623)
--------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS,
FOREIGN CURRENCY HOLDINGS AND OTHER ASSETS
AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES 2,569,552
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 2,874,008
================================================================================
See accompanying notes to financial statements.
-- 14 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------------------------------
For the
Six Months Ended
June 30, 2005 Year Ended
(in US$) December 31, 2004
(unaudited) (in US$)
------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income 304,456 192,218
Net realized gain on investment transactions 5,123,441 13,640,006
Net realized gain (loss) on foreign currency transactions (23,266) 83,708
Net change in unrealized appreciation (depreciation)
on investments, foreign currency holdings and other
assets and liabilities denominated in foreign currencies (2,530,623) (13,310,596)
------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,874,008 605,336
======================================================================================================
TOTAL INCREASE IN NET ASSETS 2,874,008 605,336
Net Assets:
Beginning of period 64,487,971 63,882,635
------------------------------------------------------------------------------------------------------
End of period 67,361,979 64,487,971
======================================================================================================
See accompanying notes to financial statements.
-- 15 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
For the
Six Months
Ended For the For the For the For the For the
June 30, Year Ended Year Ended Year Ended Year Ended Year Ended
2005 December 31, December 31, December 31, December 31, December 31,
(in US$) 2004 2003 2002 2001 2000
(unaudited) (in US$) (in US$) (in US$) (in US$) (in US$)
------------------------------------------------------------------------------------------------------------------------------------
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
------------------------------------------------------------------------------------------------------------------------------------
Net asset value,beginning of period 14.06 13.93 7.47 8.14 9.34 11.78
====================================================================================================================================
Net investment income (loss) 0.07 0.04 (0.02) (0.04) (0.11) (0.06)
Net realized and
unrealized gain (loss)
on investment and
foreign currency-
related transactions 0.56 0.09 6.48 (0.66) (1.31) (2.73)
------------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations 0.63 0.13 6.46 (0.70) (1.42) (2.79)
====================================================================================================================================
Dilutive Effect of Capital
shares repurchased 0 0 0* 0.03 0.22 0.35
====================================================================================================================================
NET ASSET VALUE, END OF PERIOD 14.69 14.06 13.93 7.47 8.14 9.34
====================================================================================================================================
Market value, end of period 12.93 12.80 18.08 6.50 6.57 7.06
====================================================================================================================================
TOTAL INVESTMENT RETURN
Per share market value 1.02% (29.2%) 178.2% (1.1%) (6.9%) (16.3%)
Per share net asset value 4.48% 0.9% 86.5% (8.2%) (12.8%) (20.7%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period 67,361,979 64,487,971 63,882,635 34,248,715 38,169,881 56,150,319
Ratios of total expenses
to average net assets 2.26%++ 2.22% 2.54% 2.62% 3.51%+ 2.02%
Ratios of net investment
income (loss) to
average net assets 0.94%++ 0.31% (0.19%) (0.44%) (1.25%) (0.36%)
Portfolio turnover rate 75.43% 168.6% 162.5% 245.0% 212.1% 94.8%
Number of shares
outstanding at end of
period (in thousands) 4,585 4,585 4,585 4,587 4,689 6,012
* Less than $0.01 per share.
+ The ratio of total expenses to average net assets for the year ended December 31, 2001 is higher than that of previous years as a
result of expenses that were incurred in relation to a tender offer and share repurchases that decreased the size of the Fund.
++ Annualized.
See accompanying notes to financial statements.
-- 16 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
JUNE 30, 2005
--------------------------------------------------------------------------------
1. ORGANIZATION AND CAPITAL
JF 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 conformity with accounting
principles generally accepted in the United States of America ("GAAP")
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of increases and decreases in net assets from operations
during the reported period. 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. 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) 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,
-- 17 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
realized and unrealized foreign currency gains (losses) are included
in the reported net realized and unrealized gains (losses) on
investments.
Unrealized currency gains (losses) resulting 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.
iii) DISTRIBUTION OF INCOME AND GAINS
The Fund intends to distribute to stockholders, 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.
vi) OTHER
Security transactions are accounted for on trade date. 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.
3. INVESTMENT TRANSACTIONS
The investment objective, policies, program, and risk factors of the Fund
are described fully in the Fund's Prospectus.
During the six months ended June 30, 2005, the Fund made purchases of
$46,608,142 and sales of $47,559,990 of investment securities other than
short-term investments. There were no purchases or sales of U.S.
government securities.
4. RELATED PARTY, OTHER SERVICE PROVIDER TRANSACTIONS AND DIRECTORS
i) 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. 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.
ii) During the six months ended June 30, 2005, the Fund paid $14,331 in
brokerage commissions to J.P. Morgan Chase Group companies and
affiliated brokers/dealers.
-- 18 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
iii) Other Service Providers
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.
iv) DIRECTORS
The Fund pays each of its directors who is not a director, officer
or employee of the Investment Manager, Administrator or any
affiliate thereof an annual fee of $16,000 and the Chairman $19,000
plus $1,400 attendence fee for each Board and committee meeting
attended. In addition, The Fund reimburses all directors for travel
and out-of-pocket expenses incurred in connection with Board of
Directors meetings.
5. CAPITAL SHARE TRANSACTIONS
On September 9, 2004 the Fund's Board renewed an authority for the Fund to
purchase shares of its common stock from Fund stockholders, as described
below. When shares trade at a discount to net asset value, 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. 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. The Fund's Board of Directors extended the share repurchase
program through September 9, 2005.
The Fund is authorized to repurchase up to 458,516 shares (10% of
its issued and outstanding shares) in the open market through
September 9, 2005. Repurchases can be made only when the Fund's
shares are trading at less than net asset value and at such times
and amounts as it is believed to be in the best interest of the
Fund's stockholders.
During the year ended December 31, 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%.
During the year ended December 31, 2004, and the six months ended
June 30, 2005, the Fund did not repurchase any shares under the
share repurchase program.
-- 19 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
6. RISKS AND UNCERTAINTIES
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
In the normal course of business, the Fund may enter into contracts
that provide general indemnifications. The maximum exposure under
these arrangements is dependent on future claims that may be made
against the Fund and, therefore, cannot be estimated; however, based
on experience, the risk of any loss from such claims is considered
remote.
7. TAX STATUS
i) 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
under subchapter M of the Internal Revenue Code and distribute
substantially all of its taxable income.
At December 31, 2004, the components of net assets (excluding
paid-in capital) on a tax basis were as follows:
Tax basis Ordinary Income .............................. $ 266,945
------------
Tax basis capital loss carryforward .................... $(37,807,758)
Plus/Less:cumulative timing differences --
wash sales ........................................... (94,189)
------------
Accumulated capital loss ............................................. (37,901,947)
------------
Book unrealized foreign exchange gain ................................ 824
------------
Book unrealized appreciation on foreign currencies ................... 14,262
------------
Tax unrealized appreciation ............................ $ 5,825,841
Plus/Less:cumulative timing differences --
wash sales ........................................... 94,189
------------
Unrealized appreciation .............................................. 5,920,030
------------
Net assets (excluding paid-in capital) ............................... $(31,699,886)
============
-- 20 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
--------------------------------------------------------------------------------
The difference 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 wash sales.
Net Asset Value ..................................... $ 64,487,971
Paid-in Capital ..................................... (96,187,857)
------------
Net assets (excluding paid-in capital) .............. $(31,699,886)
============
As of December 31, 2004, the Fund had capital loss carryforwards for
federal income tax purposes of $37,807,758, of which $18,740,960
expires in 2005, $11,676,567 expires in 2006, $3,780,058 expires in
2008 and $3,610,173 expires in 2009. 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, 2004,
the Fund reclassified $83,708 from accumulated net realized loss on
investments to accumulated net investment income as a result of
permanent book and tax differences relating to realized foreign
currency gains. Net assets were not affected by the
reclassifications.
-- 21 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
RESULTS OF THE ANNUAL STOCKHOLDERS MEETING (UNAUDITED)
-------------------------------------------------------------------------------
The Fund held its annual stockholders meeting on May 12, 2005. At this meeting,
stockholders elected the following nominee to the Fund's Board of Directors.
I) ELECTION OF DIRECTORS
NOMINEE VOTES FOR VOTES WITHHELD NON-VOTING SHARES TOTAL VOTING SHAREs
------- ------------ ---------------- ----------------- -------------------
Julian M.I. Reid 3,652,950 46,198 886,012 4,585,160
OTHER INFORMATION
--------------------------------------------------------------------------------
Simon J. Crinage and A. Douglas Eu have both resigned as Directors of the Fund
effective May 12, 2005. Simon J. Crinage continues to serve as President of the
Fund and A. Douglas Eu continues to serve as Treasurer. Hilary Lowe has replaced
Philip Jones as Secretary of the Fund.
INFORMATION ABOUT PORTFOLIO HOLDINGS
The Fund files its complete schedule of portfolio holdings with the U.S.
Securities and Exchange Commission (the "Commission") for the first and third
quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available on
the Commission's website at http://www.sec.gov and may be reviewed and copied at
the Commission's Public Reference Room in Washington, DC. Information on the
operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330.
PROXY VOTING POLICIES AND PROCEDURES AND PROXY VOTING RECORD
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available without charge,
upon request, by calling 202-942-8088, and on the Commission's website at
http://www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge, upon request, by calling 202-942-8088, and on the Commission's
website at http://www.sec.gov.
-- 22 --
[GRAPHIC OMITTED]
JF 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 THE PLAN AGENT:
EquiServe Trust Company N.A.
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.
-- 23 --
[GRAPHIC OMITTED]
JF CHINA REGION FUND, INC.
DIRECTORS AND ADMINISTRATION
--------------------------------------------------------------------------------
OFFICERS AND DIRECTORS THE RT. HON. THE EARL OF CROMER - DIRECTOR AND
CHAIRMAN OF THE BOARD
Alexander R. Hamilton - Director
Julian M. I. Reid - Director
Hilary Lowe - Secretary
Simon J. Crinage - President
A. Douglas Eu - Treasurer
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 REGISTERED PRICEWATERHOUSECOOPERS LLP
PUBLIC ACCOUNTING FIRM Two Commerce Square
2001 Market Street
Philadelphia, Pennsylvania 19103
U.S.A.
LEGAL COUNSEL CLEARY GOTTLIEB STEEN & HAMILTON LLP
NEW YORK:
1 Liberty Plaza
New York, New York 10006
U.S.A.
HONG KONG:
Bank of China Tower
1 Garden Road
Hong Kong
REGISTRAR, TRANSFER AGENT, AND EQUISERVE TRUST COMPANY N.A.
DIVIDEND PAYING AGENT P. 0. Box 43010
Providence, RI 02940-3010
U.S.A.
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.
WWW.JPMORGANFLEMING.COM/JFCHINAREGION
-- 24 --
THIS REPORT, INCLUDING THE FINANCIAL STATEMENTS HEREIN, IS SENT TO THE
STOCKHOLDERS 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.
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. SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not yet applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the registrant's board of directors, where those
changes were implemented after the registrant last provided disclosure in
response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR
240.14a-101), or this Item.
ITEM 11. 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 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 Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section
302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) JF China Region Fund, Inc.
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By (Signature and Title)* /s/ Simon Crinage
-------------------------------------------------------
Simon Crinage, President
(principal executive officer)
Date August 22, 2005
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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/ Simon Crinage
-------------------------------------------------------
Simon Crinage, President
(principal executive officer)
Date August 22, 2005
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By (Signature and Title)* /s/ Douglas Eu
-------------------------------------------------------
Douglas Eu, Treasurer
(principal financial officer)
Date August 22, 2005
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* Print the name and title of each signing officer under his or her signature.