tgcfseptember2009formnq.htm
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: 811-05617

Taiwan Greater China Fund
 (Exact name of registrant as specified in charter)

C/O Nanking Road Capital Management, LLC
111 Gillett Street
Hartford, CT 06105
(Address of principal executive offices) (Zip code)

Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3604
(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 343-9567

Date of fiscal year end: December 31
Date of reporting period: September 30, 2009

 
 
ITEM 1.                      SCHEDULE OF INVESTMENTS
 
TAIWAN GREATER CHINA FUND
Schedule of Investments (Unaudited) / September 30, 2009
 
           
Shares
      
% of
    
U.S. Dollar
  
 
Net Assets
    
Value
  
Cement — 2.95%
        
  757,683  
Asia Cement Corp. 
     1.04     $ 848,021  
  1,386,373  
Taiwan Cement Corp. 
     1.91       1,555,979  
                    2,404,000  
Communications Equipment — 0.35%
          
  164,491  
Gemtek Technology 
     0.35       284,337  
                       
Computer Peripherals/ODM — 3.18%
            
  183,628  
Chicony Electronics Co., Ltd. 
     0.51       415,040  
  103,843  
HTC Corp. 
     1.40       1,139,642  
  787,350  
Lite-on Technology Corp. 
     1.27       1,031,768  
                    2,586,450  
Computer Systems & Hardware — 23.87%
            
  479,397  
Acer Inc. 
     1.50       1,222,153  
  86,409  
Advantech Co., Ltd. 
     0.20       161,186  
  2,041,228  
Asustek Computer Inc. 
     4.31       3,503,056  
  438,675  
Compal Electronics Inc. 
     0.63       510,753  
  2,455,860  
Hon Hai Precision Industry Co., Ltd. 
     12.12       9,849,400  
  443,566  
Inventec Co., Ltd. 
     0.32       256,500  
  1,133,046  
Quanta Computer Inc. 
     2.92       2,377,759  
  818,300  
Wistron Corp. 
     1.87       1,521,354  
                    19,402,161  
Electrical & Machinery — 0.56%
            
  385,000  
Teco Electric & Machinery Co., Ltd. 
     0.21       167,573  
  834,837 *
Walsin Lihwa Corp. 
     0.35       286,801  
                    454,374  
Electronic Components — 9.01%
            
  227,343  
Catcher Technology Co., Ltd. 
     0.74       603,609  
  285,000  
Coretronic Corp. 
     0.43       353,536  
  757,991  
Delta Electronics Inc. 
     2.65       2,156,262  
  142,979  
Everlight Electronics Co. 
     0.57       466,743  
  297,034  
Foxconn Technology Co., Ltd. 
     1.04       842,204  
  29,629  
Motech Industry Co., Ltd. 
     0.10       80,878  
  43,860  
Nan Ya Printed Circuit Board Corp. 
     0.19       152,041  
  97,658 *
Prime View International Co., Ltd. 
     0.19       153,326  
  146,405  
Shin Zu Shing Co., Ltd. 
     1.00       817,028  
  89,100  
Simplo Technology Co., Ltd. 
     0.62       505,542  
  261,450  
TXC Corp. 
     0.43       345,863  
  209,378  
Unimicron Technology Corp. 
     0.31       254,521  
  325,000  
WPG Holdings Co. Ltd. 
     0.57       459,739  
  10,000  
Young Fast Optoelectronics Co. Ltd. 
     0.17       138,349  
                    7,329,641  
Electronics/Other — 2.36%
            
  200,000  
Lumax International Corp., Ltd. 
     0.51       413,493  
  705,776  
Synnex Technology International Corp. 
     1.85       1,503,052  
                    1,916,545  
Financial Services — 3.60%
            
  1,278,000 *
Cathay Financial Holding Co., Ltd. 
     2.61       2,121,722  
  711,000 *
Fubon Financial Holding Co., Ltd. 
     0.99       802,403  
                    2,924,125  
Flat-Panel Displays — 6.26%
            
  3,533,292  
AU Optronics Corp. 
     4.22       3,432,780  
  1,921,847 *
Chi Mei Optoelectronics Corp. 
     1.24       1,009,769  
  2,980,951  
Chunghwa Picture Tubes, Ltd. 
     0.42       342,904  
  241,002  
Innolux Display Corp. 
     0.38       306,451  
                    5,091,904  
Food — 3.93%
            
  167,375  
Great Wall Enterprises Co. 
     0.22       178,745  
  460,000  
Tingyi (Cayman Islands) Holdings Corp. 
     1.17       950,834  
  1,462,266  
Uni-President Enterprise Corp. 
     2.12       1,722,987  
  580,000  
Want Want China Holdings, Ltd. 
     0.42       341,253  
                    3,193,819  
Glass, Paper & Pulp — 0.50%
            
  514,365  
Taiwan Glass Ind. Corp. 
     0.50       407,782  
                       
Hotels — 0.12%
            
  7,700  
Formosa International Hotels Corp. 
     0.12       96,833  
                       
Plastics — 11.07%
            
  1,187,897  
Formosa Chemicals & Fiber Corp. 
     2.81       2,282,358  
  1,655,271  
Formosa Plastics Corp. 
     4.14       3,370,752  
  2,047,968  
Nan Ya Plastics Corp. 
     4.12       3,349,079  
                    9,002,189  
Retailing — 0.55%
            
  97,850  
Far Eastern Department Stores Co., Ltd. 
     0.12       97,044  
  141,445  
President Chain Store Corp. 
     0.43       346,522  
                    443,566  
Rubber — 1.17%
            
  450,754  
Cheng Shin Rubber Ind. Co., Ltd. 
     1.17       952,939  
                       
Semiconductors — 20.43%
            
  2,232,762  
Advanced Semiconductor Engineering Inc. 
     2.26       1,836,050  
  31,191  
Global Unichip Corp. 
     0.18       147,397  
  402,346  
MediaTek Inc. 
     8.25       6,704,724  
  111,851  
Powertech Technology Inc. 
     0.41       335,918  
  13,650  
RichTek Technology Corp. 
     0.14       117,552  
  637,193  
Siliconware Precision Industries Co., Ltd. 
     1.11       899,380  
  2,870,284  
Taiwan Semiconductor Manufacturing Co., Ltd. 
     7.08       5,755,738  
  1,659,397 *
United Microelectronics Corp. 
     1.00       812,545  
                    16,609,304  
Steel — 4.25%
            
  3,591,696  
China Steel Corp. 
     4.11       3,338,775  
  106,004  
Tung Ho Steel Enterprise Corp. 
     0.14       112,381  
                    3,451,156  
Textiles — 1.34%
            
  930,334  
Far Eastern Textile, Ltd. 
     1.34       1,090,427  
                       
Transportation — 0.72%
            
  167,000  
U-Ming Marine Transport Corp. 
     0.35       280,886  
  771,261  
Yang Ming Marine Transport Corp. 
     0.37       303,325  
                    584,211  
Other — 2.13%
            
  177,660  
Giant Manufacturing Co., Ltd. 
     0.59       479,983  
  17,340  
Largan Precision Co., Ltd. 
     0.28       227,498  
  397,900  
Merida Industry Co., Ltd. 
     0.82       665,538  
  550,696  
Pou Chen Corp. 
     0.44       356,116  
                    1,729,135  
 
                
TOTAL COMMON STOCK (COST $72,112,064)
             79,954,898  
                 
SHORT TERM SECURITIES — 0.14%
               
                       
Time Deposit — 0.14%
            
Citibank - London, 0.03%, Due 10/01/09
     0.14       110,650  
 
                
TOTAL SHORT-TERM SECURITIES (COST $110,650)
             110,650  
                 
TOTAL INESTMENTS IN SECURITIES AT FAIR VALUE
                
           (COST $72,222,714)
     98.49       80,065,548  
                 
OTHER ASSETS (LESS LAIBILTIES)
     1.51       1,226,433  
                 
NET ASSETS
     100      $ 81,291,981  
                       
   
At September 30, 2009, the cost of investments, excluding short-term investments, for U.S. federal income tax purposes was approximately equal to the cost of such investments for financial reporting purposes. At September 30, 2009, the unrealized appreciation of $7,842,834 for financial reporting purposes consisted of $16,427,044 of gross unrealized appreciation and $8,584,210 of gross unrealized depreciation.
  
                       
                       
* Non-income producing: These stocks did not pay a cash dividend during the past year.
  

 

 
Notes to Schedule of Investments

—Fair Value Measurements and Disclosures — Effective January 1, 2008, the Trust adopted ASC 820, the Financial Accounting Standards Board (“FASB”), Fair Value Measurements and Disclosure requirements (formerly, FAS 157). ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (“GAAP”), and expands disclosures about fair value measurement.  The changes to current practices resulting from the application of the ASC 820 relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurement. The ASC820 emphasizes that fair value is a market based measurement, not an entity specific measurement; as such, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.  As a basis for considering market participant assumptions in fair value measurements, the ASC 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from sources independent of the Trust (observable inputs) and (2) the Trust’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs).  The three levels defined by the ASC 820 hierarchy are as follows:

Level I – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level II – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.  Level II assets include the following: quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level III – Unobservable pricing input at the measurement date for the asset or liability.  Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

In some instances, the inputs used to measure fair value might fall in different levels of the fair value hierarchy.  The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

The following table summarizes the valuation of the Trust’s securities using the fair value hierarchy:

At September 30, 2009
  
Total
Level I
Level II
Level III
   Investments, at value
          
     Common Stocks
  
$79,954,898
$79,954,898
 -
 -
     Time Deposits
  
110,650
110,650
-
-
   Total
  
$80,065,548
$80,065,548
 -
 -

 
-Subsequent Events- Management of the Trust has performed an evaluation of subsequent events through November 20, 2009, which is the date the financial statements were issued.  This is a new subsequent events disclosure requirement under ASC 855.
 
***********************
The 2009 Annual Meeting of the Trust’s shareholders was held on September 10, 2009.


ITEM 2. CONTROLS AND PROCEDURES.
 
(a) The registrant’s principal executive officer and principal financial officer 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 “Act”) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of this report based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rule 13a-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 Act (17 CFR 270.30a-3(d)) 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.
 
Certifications pursuant to Rule 30a-2(a) under the Act are filed as Exhibits Ex.99.302 to this Form N-Q.


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.
 
 
Taiwan Greater China Fund
 
 

 
By:  Steven R. Champion
Name: Steven R. Champion
Title: President and Chief Executive Officer (Principal Executive Officer)
Date: November 24, 2009
 


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

 
 
By:  Steven R. Champion
Name: Steven R. Champion
Title: President and Chief Executive Officer (Principal Executive Officer)
Date: November 24, 2009
 

 
 
By:  Regina Foley
Name: Regina Foley
Title: Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
Date: November 24, 2009