TDF Templeton Dragon Fund

FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY

Date of reporting period: 3/31/10_

ITEM 1. SCHEDULE OF INVESTMENTS.

TEMPLETON DRAGON FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 2010 (UNAUDITED)

 COUNTRY SHARES/UNITS VALUE
 ------------- ------------ --------------
 COMMON STOCKS AND OTHER EQUITY INTERESTS 99.0%
 AIR FREIGHT & LOGISTICS 0.2%
 Sinotrans Ltd., H China 5,999,000 $ 1,661,184
 --------------
 AUTO COMPONENTS 1.5%
 Cheng Shin Rubber Industry Co. Ltd. Taiwan 7,512,108 15,998,063
 --------------
 AUTOMOBILES 4.4%
 Chongqing Changan Automobile Co. Ltd., B China 5,849,502 5,168,250
 Denway Motors Ltd. China 7,716,000 4,114,272
 Dongfeng Motor Corp., H China 17,906,000 29,058,261
 Great Wall Motor Co. Ltd., H China 2,332,538 4,896,850
 Jiangling Motors Corp. Ltd., B China 3,163,420 5,512,583
 --------------
 48,750,216
 --------------
 BEVERAGES 0.4%
 Yantai Changyu Pioneer Wine Co. Ltd., B China 538,490 4,480,337
 --------------
 CHEMICALS 0.1%
(a, b) Yingde Gases Group Co. Ltd., 144A Hong Kong 1,273,500 1,407,300
 --------------
 COMMERCIAL BANKS 9.0%
 Bank of China Ltd., H China 40,014,000 21,284,454
 (a) Bank of China Ltd., H, 144A China 9,420,000 5,010,735
 BOC Hong Kong (Holdings) Ltd. China 5,056,500 12,061,227
 China Construction Bank Corp., H China 43,922,797 35,922,305
(a, b) China Minsheng Banking Corp. Ltd., 144A China 3,862,500 3,964,855
 Industrial and Commercial Bank of China Ltd., H China 27,510,000 21,010,954
 --------------
 99,254,530
 --------------
 COMMERCIAL SERVICES & SUPPLIES 0.1%
 (b) Fook Woo Group Holdings Ltd. China 3,020,000 1,050,198
 --------------
 COMMUNICATIONS EQUIPMENT 0.6%
 D-Link Corp. Taiwan 1,908,360 1,971,937
 ZTE Corp., H China 819,758 4,967,590
 --------------
 6,939,527
 --------------
 COMPUTERS & PERIPHERALS 3.8%
 Advantech Co. Ltd. Taiwan 1,822,628 3,893,020
 Asustek Computer Inc. Taiwan 14,685,817 25,584,805
 HTC Corp. Taiwan 135,000 1,577,853
 Lite-On IT Corp. Taiwan 6,625,560 7,169,819
 Lite-On Technology Corp. Taiwan 629,835 836,341
 Simplo Technology Co. Ltd. Taiwan 380,000 2,166,811
 --------------
 41,228,649
 --------------
 CONSTRUCTION MATERIALS 0.2%
 Asia Cement China Holdings Corp. China 3,337,500 1,848,376
 --------------
 DISTRIBUTORS 3.2%
 China Resources Enterprise Ltd. Hong Kong 5,818,000 21,505,825
 Dah Chong Hong Holdings Ltd. Hong Kong 19,608,520 13,082,027
 --------------
 34,587,852
 --------------
 DIVERSIFIED TELECOMMUNICATION SERVICES 0.9%
 China Telecom Corp. Ltd., H China 9,538,000 4,729,536
 China Unicom (Hong Kong) Ltd. China 4,430,752 4,993,281
 --------------
 9,722,817
 --------------
 ELECTRIC UTILITIES 2.6%
 Cheung Kong Infrastructure Holdings Ltd. Hong Kong 7,492,000 28,851,570
 --------------

Quarterly Statement of Investments See Notes to Statements of Investments.

TEMPLETON DRAGON FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 2010 (UNAUDITED) (CONTINUED)

 ELECTRICAL EQUIPMENT 0.3%
 Dongfang Electric Co. Ltd., H China 570,000 $ 3,200,824
 --------------
 ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS 0.5%
 (b) China Security & Surveillance Technology Inc. United States 202,800 1,559,532
 Hon Hai Precision Industry Co. Ltd. Taiwan 970,000 4,201,780
 --------------
 5,761,312
 --------------
 FOOD & STAPLES RETAILING 17.4%
 Beijing Jingkelong Co. Ltd., H China 3,229,447 3,281,751
 Dairy Farm International Holdings Ltd. Hong Kong 28,363,378 187,198,295
 --------------
 190,480,046
 --------------
 FOOD PRODUCTS 2.8%
 China Foods Ltd. China 16,200,000 13,207,457
 China Yurun Food Group Ltd. China 1,084,000 3,308,858
 People's Food Holdings Ltd. China 3,574,000 1,520,144
(a, b) Shenguan Holdings Group Ltd., 144A China 7,362,000 7,092,476
 Uni-President China Holdings Ltd. Taiwan 2,340,000 1,425,534
 Uni-President Enterprises Corp. Taiwan 1,347,482 1,534,582
 (b) Xiwang Sugar Holdings Co. Ltd. Hong Kong 9,359,681 3,086,040
 --------------
 31,175,091
 --------------
 HOTELS, RESTAURANTS & LEISURE 0.2%
 NagaCorp Ltd. Cambodia 18,008,875 2,365,850
 --------------
 INDEPENDENT POWER PRODUCERS & ENERGY TRADERS 1.9%
 Datang International Power Generation Co. Ltd., H China 34,992,000 15,909,040
 Guangdong Electric Power Development Co. Ltd., B China 7,651,867 4,513,707
 Huaneng Power International Inc., H China 1,454,000 844,581
 --------------
 21,267,328
 --------------
 INDUSTRIAL CONGLOMERATES 2.7%
 Shanghai Industrial Holdings Ltd. China 6,539,000 29,982,085
 --------------
 INSURANCE 2.3%
 China Life Insurance Co. Ltd., H China 5,272,000 25,259,156
 --------------
 INTERNET SOFTWARE & SERVICES 0.6%
 (b) Sohu.com Inc. China 116,000 6,333,600
 --------------
 IT SERVICES 0.4%
 Travelsky Technology Ltd., H China 5,629,706 4,713,023
 --------------
 LEISURE EQUIPMENT & PRODUCTS 0.2%
 Yorkey Optical International Cayman Ltd. China 11,491,000 2,382,781
 --------------
 MACHINERY 1.0%
 Lonking Holdings Ltd. China 10,809,000 8,074,470
(a, b) Sany Heavy Equipment International Holdings Co. Ltd., 144A China 320,000 358,566
 Shanghai Prime Machinery Co. Ltd., H China 500,000 103,036
 Shin Zu Shing Co. Ltd. Taiwan 465,504 1,979,776
 --------------
 10,515,848
 --------------
 MARINE 0.5%
 China Shipping Development Co. Ltd., H China 1,764,000 2,880,835
 Sinotrans Shipping Ltd. Hong Kong 5,730,500 2,730,830
 --------------
 5,611,665
 --------------
 MEDIA 0.0%(C)
 (b) Next Media Ltd. Hong Kong 2,594,000 384,210
 --------------
 METALS & MINING 0.8%
 Angang Steel Co. Ltd., H China 3,844,000 7,040,175
 (b) China Zhongwang Holdings Ltd. China 857,600 751,094

TEMPLETON DRAGON FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 2010 (UNAUDITED) (CONTINUED)

(d) Fushan International Energy Group Ltd. Hong Kong 808,000 $ 613,994
 --------------
 8,405,263
 --------------
 OIL, GAS & CONSUMABLE FUELS 25.6%
 China Coal Energy Co., H China 3,237,000 5,061,298
 China Petroleum and Chemical Corp., H China 97,904,000 80,070,889
 China Shenhua Energy Co. Ltd., H China 7,424,000 31,936,323
 CNOOC Ltd. China 38,862,000 63,766,865
(b) Inner Mongolia Yitai Coal Co. Ltd., B China 163,900 1,529,023
 PetroChina Co. Ltd., H China 52,788,000 61,733,592
 Yanzhou Coal Mining Co. Ltd., H China 15,172,000 36,385,052
 --------------
 280,483,042
 --------------
 PHARMACEUTICALS 0.1%
 Tong Ren Tang Technologies Co. Ltd., H China 713,000 1,294,819
 --------------
 REAL ESTATE MANAGEMENT & DEVELOPMENT 3.8%
 Agile Property Holdings Ltd. China 1,442,000 1,968,664
 Cheung Kong (Holdings) Ltd. Hong Kong 933,000 12,016,615
 Hopewell Holdings Ltd. Hong Kong 7,088,000 20,996,748
 Soho China Ltd. China 12,384,000 7,065,862
 --------------
 42,047,889
 --------------
 SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 3.7%
 MediaTek Inc. Taiwan 540,567 9,383,395
 Taiwan Semiconductor Manufacturing Co. Ltd. Taiwan 16,377,136 31,730,137
 --------------
 41,113,532
 --------------
 SOFTWARE 0.7%
 Kingdee International Software Group Co. Ltd., fgn. Hong Kong 11,536,000 4,472,210
(b) Shanda Interactive Entertainment Ltd., ADR China 61,900 2,698,221
 --------------
 7,170,431
 --------------
 SPECIALTY RETAIL 0.1%
(b) I.T Ltd. Hong Kong 9,303,993 1,629,704
 --------------
 TEXTILES, APPAREL & LUXURY GOODS 0.4%
 Anta Sports Products Ltd. China 1,766,000 2,911,395
 Weiqiao Textile Co. Ltd., H China 1,545,500 1,222,188
 --------------
 4,133,583
 --------------
 TRANSPORTATION INFRASTRUCTURE 1.0%
 Cosco Pacific Ltd. China 6,792,906 10,306,267
 Rickmers Maritime (Trust Units) Singapore 2,469,000 476,539
 --------------
 10,782,806
 --------------
 WIRELESS TELECOMMUNICATION SERVICES 5.0%
 China Mobile Ltd. China 5,676,000 54,608,906
 --------------
 TOTAL COMMON STOCKS AND OTHER EQUITY INTERESTS (COST $498,137,646) 1,086,883,413
 --------------
 SHORT TERM INVESTMENTS (COST $8,904,594) 0.8%
 MONEY MARKET FUNDS 0.8%
(e) Institutional Fiduciary Trust Money Market Portfolio,
 0.00% United States 8,904,594 8,904,594
 --------------
 TOTAL INVESTMENTS (COST $507,042,240) 99.8% 1,095,788,007
 OTHER ASSETS, LESS LIABILITIES 0.2% 1,786,409
 --------------
 NET ASSETS 100.0% $1,097,574,416
 ==============

TEMPLETON DRAGON FUND, INC.
STATEMENT OF INVESTMENTS, MARCH 31, 2010 (UNAUDITED) (CONTINUED)

(a) Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. At March 31, 2010, the aggregate value of these securities was $17,833,932, representing 1.62% of net assets.

(b) Non-income producing.

(c) Rounds to less than 0.1% of net assets.

(d) A portion or all of the security purchased on a delayed delivery basis.

(e) The Institutional Fiduciary Trust Money Market Portfolio is managed by an affiliate of the Fund's investment manager. The rate shown is the annualized seven-day yield at period end. Templeton Dragon Fund
Notes to Statement of Investments (unaudited)

1. ORGANIZATION

Templeton Dragon Fund, Inc. (Fund) is registered under the Investment Company Act of 1940, as amended, as a closed-end investment company.

2. FINANCIAL INSTRUMENT VALUATION

The Fund values its investments in securities and other assets and liabilities carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.

Under procedures approved by the Fund's Board of Directors, the Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity and other securities listed on a securities exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded, or the NYSE, whichever is earlier. Over-the-counter securities and listed securities for which there is no reported sale are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities may be valued utilizing a market-based approached in which the fundamental characteristics or relationships to similar securities are used to determine the fair value of the security held.

The Fund has procedures to determine the fair value of investments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach, which may use prices of recent transactions, various market multiples, book values, and other relevant information for the investment, related assets or liabilities or other comparable assets or liabilities to determine the fair value of the investment. In developing this fair value, the Fund may also give consideration to an income-based approach valuation, which considers anticipated future cash flows of the investment and converts those amounts into a net present value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had a ready market existed.

Trading in securities on foreign exchanges and over-the-counter markets may be completed before the daily close of business on the NYSE. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the availability (including the reliability) of the value of a foreign security held by the Fund. As a result, variances may arise between the value of the Fund's portfolio securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these discrepancies, the investment manager monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depository Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.

Investments in open-end mutual funds are valued at the closing net asset value.

3. INCOME TAXES

At March 31, 2010, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:

Cost of investments $510,093,044
 ============
Unrealized appreciation $601,460,880
Unrealized depreciation (15,765,917)
 ------------
Net unrealized appreciation (depreciation) $585,694,963
 ============

4. FAIR VALUE MEASUREMENTS

The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund's own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund's investments and are summarized in the following fair value hierarchy:

- Level 1 - quoted prices in active markets for identical securities

- Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.)

- Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

For movements between the levels within the fair value hierarchy, the Fund has adopted a policy of recognizing the transfers as of the date of the underlying event which caused the movement.

At March 31, 2010, all of the Fund's investments in securities carried at fair value were in Level 1 inputs. For detailed industry descriptions, see the accompanying Statement of Investments.

5. SUBSEQUENT EVENTS

The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

ABBREVIATIONS

PORTFOLIO

ADR - American Depository Receipts

For information on the Fund's policy regarding other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

ITEM 2. CONTROLS AND PROCEDURES.

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

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

(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.

ITEM 3. EXHIBITS.

(a) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and Mark H. Otani, Chief Financial Officer and Chief Accounting Officer

SIGNATURES

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

TEMPLETON DRAGON FUND, INC.

By /s/ LAURA F. FERGERSON
----------------------------------
 Laura F. Fergerson
 Chief Executive Officer -
 Finance and Administration
 Date May 27, 2010

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

By /s/ LAURA F. FERGERSON
----------------------------------
 Laura F. Fergerson
 Chief Executive Officer -
 Finance and Administration
 Date May 27, 2010


By /s/MARK H. OTANI
 ---------------------------------
 Mark H. Otani
 Chief Financial Officer and
 Chief Accounting Officer
 Date May 27, 2010

Templeton Dragon (NYSE:TDF)
Historical Stock Chart
From Jun 2024 to Jul 2024

Templeton Dragon (NYSE:TDF)
Historical Stock Chart
From Jul 2023 to Jul 2024