formnq093008.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)

P.O. Box 118-763 Taipei
Taipei 10599, Taiwan
Republic of China

(Address of principal executive offices)           (Zip code)

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

Registrant’s telephone number, including area code: 1-800-343-9567

Date of fiscal year end: December 31
Date of reporting period: September 30, 2008


Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.



TAIWAN GREATER CHINA FUND
          
Schedule of Investments  (Unaudited) / September 30, 2008
                 
COMMON STOCK -- 98.17%
          
       
% of
U.S. Dollar
Cement -- 2.80%
  
Net Assets
 Value
 
1,194,615
shs.
Asia Cement Corp.
1.45
    
$
1,039,748
 
1,681,373
  
Taiwan Cement Corp.
1.35
      
974,732
               
2,014,480
Chemicals -- 0.13%
    
 
163,187
  
Eternal Chemical Co., Ltd.
0.13
      
95,111
Communications Equipment -- 0.32%
    
 
95,787
  
Gemtek Technology
0.19
      
136,815
 
68,488
  
Zinwell Corporation
0.13
      
93,778
               
230,593
Computer Peripherals/ODM -- 4.38%
    
 
344,000
*
Foxconn International Holdings, Ltd.
0.21
      
150,611
 
114,899
  
HTC Corp.
2.41
      
1,732,209
 
1,172,433
  
Lite-on Technology Corp.
1.38
      
993,109
 
401,978
  
Qisda Corp.
0.21
      
149,318
 
180,467
  
Teco Image Systems Co., Ltd.
0.17
      
122,011
               
3,147,258
Computer Systems & Hardware -- 21.09%
    
 
528,651
  
Acer Inc.
1.22
      
874,224
 
95,980
  
Advantech Co., Ltd.
0.25
      
181,992
 
1,981,154
  
Asustek Computer Inc.
5.32
      
3,824,301
 
638,494
  
Compal Electronics Inc.
0.63
      
456,485
 
2,146,531
  
Hon Hai Precision Industry Co., Ltd.
10.39
      
7,473,041
 
449,242
  
Inventec Co., Ltd.
0.30
      
215,052
 
1,154,828
  
Quanta Computer Inc.
1.95
      
1,403,577
 
613,075
  
Wistron Corp.
1.03
      
737,508
               
15,166,180
Electrical & Machinery -- 0.66%
    
 
490,000
  
Teco Electric & Machinery Co., Ltd.
0.23
      
166,783
 
1,150,837
  
Walsin Lihwa Corp.
0.43
      
305,144
               
471,927
Electronic Components -- 10.35%
    
 
252,433
  
Catcher Technology Co., Ltd.
1.09
      
784,672
 
1,065,129
  
Delta Electronics Inc.
3.78
      
2,714,928
 
96,256
  
Epistar Corp.
0.18
      
125,966
 
202,979
  
Everlight Electronics Co.
0.57
      
410,116
 
290,557
a
Foxconn Technology Co., Ltd.
1.27
      
916,726
 
89,445
  
Kinsus Interconnect Technology Corp.
0.17
      
121,779
 
26,695
  
Motech Industry Co., Ltd.
0.16
      
117,416
 
149,799
  
Shin Zu Shing Co., Ltd.
0.84
      
603,005
 
80,818
  
Transcend Information
0.18
      
126,865
 
235,722
  
Tripod Technology Corp.
0.61
      
441,102
 
277,000
  
TXC Corp.
0.48
      
347,859
 
561,378
  
Unimicron Technology Corp.
0.61
      
438,870
 
1,487,000
  
Yageo Corp.
0.41
      
295,824
               
7,445,128
Electronics/Other -- 1.74%
    
 
132,000
  
Lumax International Corp., Ltd.
0.23
      
164,125
 
714,615
  
Synnex Technology International Corp.
1.51
      
1,089,565
               
1,253,690
Flat-Panel Displays -- 10.13%
    
 
3,816,381
  
AU Optronics Corp.
5.86
      
4,211,359
 
2,481,847
  
Chi Mei Optoelectronics Corp.
2.20
      
1,585,364
 
3,973,951
  
Chunghwa Picture Tubes, Ltd.
0.85
      
611,463
 
680,983
  
Innolux Display Corp.
1.22
      
878,469
               
7,286,655
Food -- 4.34%
        
 
306,405
  
Great Wall Enterprises Co.
0.38
      
273,827
 
698,000
  
Tingyi (Cayman Islands) Holdings Corp.
1.12
      
808,043
 
1,912,638
  
Uni-President Enterprise Corp.
2.34
      
1,682,525
 
990,000
  
Want Want China Holdings, Ltd.
0.50
      
356,954
               
3,121,349
           
           
TAIWAN GREATER CHINA FUND
          
Schedule of Investments (Continued) (Unaudited) / September 30, 2008
Glass, Paper & Pulp -- 0.72%
    
 
650,384
  
Taiwan Glass Ind. Corp.
0.51
      
363,902
 
601,409
  
Yuen Foong Yu Paper Manufacturing Co., Ltd.
0.21
      
153,294
               
517,196
Plastics -- 9.95%
      
 
1,191,299
  
Formosa Chemicals & Fiber Corp.
2.82
      
2,029,287
 
1,134,983
  
Formosa Plastics Corp.
2.51
      
1,802,820
 
2,287,319
  
Nan Ya Plastics Corp.
4.62
      
3,323,920
               
7,156,027
Retailing -- 0.65%
      
 
103,950
  
Far Eastern Department Store Co., Ltd.
0.09
      
66,240
 
138,512
  
President Chain Store Corp.
0.56
      
400,848
               
467,088
Rubber -- 0.87%
      
 
531,777
  
Cheng Shin Rubber Ind. Co., Ltd.
0.87
      
622,353
Semiconductors -- 17.90%
    
 
2,740,762
a
Advanced Semiconductor Engineering Inc.
1.90
      
1,367,378
 
151,040
*
Inotera Memories Inc.
0.06
      
44,321
 
544,543
a
MediaTek Inc.
7.65
      
5,501,204
 
113,264
  
Novatek Microelectronics Corp.
0.23
      
165,123
 
407,341
*
Powerchip Semiconductor Corp.
0.09
      
61,157
 
118,525
  
Powertech Technology Inc.
0.35
      
254,215
 
1,011,000
*
ProMOS Technologies Inc.
0.14
      
102,135
 
67,345
  
Realtek Semiconductor Corp.
0.15
      
110,740
 
573,193
  
Siliconware Precision Industries Co., Ltd.
0.91
      
650,333
 
2,401,005
  
Taiwan Semiconductor Manufacturing Co., Ltd.
5.45
      
3,918,272
 
2,194,397
  
United Microelectronics Corp.
0.97
      
699,168
               
12,874,046
Steel -- 7.29%
        
 
5,276,621
  
China Steel Corp.
7.16
      
5,150,243
 
111,000
  
Tung Ho Steel Enterprise Corp.
0.13
      
90,917
               
5,241,160
Textiles -- 0.98%
      
 
1,016,093
  
Far Eastern Textile, Ltd.
0.98
      
701,179
Transportation -- 0.95%
    
 
206,000
*
China Airlines
0.06
      
43,607
 
248,000
  
U-Ming Marine Transport Corp.
0.48
      
346,902
 
859,261
  
Yang Ming Marine Transport Corp.
0.41
      
291,135
               
681,644
Other -- 2.92%
        
 
234,050
  
Giant Manufacturing Co., Ltd.
0.80
      
575,476
 
508,000
  
Merida Industry Co., Ltd.
1.12
      
808,492
 
1,057,473
  
Pou Chen Corp.
0.89
      
637,695
 
86,063
  
Yung Chi Paint & Varnish Manufacturing Co., Ltd.
0.11
      
80,256
               
2,101,919
TOTAL COMMON STOCK (COST $87,806,211)
        
70,594,983
                 
                 
TAIWAN GREATER CHINA FUND
          
Schedule of Investments (Continued) (Unaudited) / September 30, 2008
SHORT-TERM SECURITIES -- 1.53% †
          
Time Deposit -- 1.53%
          
Bank of America - London, 3.57%, Due 10/01/08 ‡
1.03
      
739,839
Citibank - London, 3.57%, Due 10/01/08
0.50
      
362,067
                 
TOTAL SHORT-TERM SECURITIES
        
1,101,906
 
(COST $1,101,906)
          
                 
TOTAL INVESTMENTS IN SECURITIES AT FAIR VALUE
          
 
(COST $88,908,117)
99.70
      
71,696,889
                 
OTHER ASSETS (LESS LIABILITIES)
0.30
      
219,338
                 
NET ASSETS
    
100.00
      
$71,916,227
                 
                 
At September 30, 2008, 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, 2008, the
unrealized depreciation of $17,211,228 for financial reporting purposes consisted of $4,771,500 of gross unrealized
appreciation and $21,982,728 of gross unrealized depreciation.
          
                 
                 
                 
(a)
All or a portion of the security is out on loan
          
*
Non-income producing: These stocks did not pay a cash dividend during the past year.
†
Inclusive of all short-term holdings, including collateral received from securities lending activities. Not including
 
such collateral, the percentage of portfolio holdings would be 0.50%.
        
‡
Represents investment of collateral received from securities lending trasactions.
    

 
 
 
 
*********************************

— Fair Value Measurements  — Effective January 1, 2008, the Trust adopted FAS 157 – Fair Value Measurements (“FAS 157” or “the Statement”).  FAS 157 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 Statement relate to the definition of fair value, the methods used to measure fair value, and expanded disclosures about fair value measurement. The Statement 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 Statement 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 FAS 157 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, 2008
  
Total
Level I
Level II
Level III
           
    Investments
  
$71,696,889
$71,696,889
-
-



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”)) are effective as of a date within 90 days of the filing date of this report based on their evaluation of such disclosure controls and procedures as required by Rule 30a-3(b) under the Act and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.
 
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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 for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17CFR 270.302-2(a)), are attached 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: /s/ Steven R. Champion
Name: Steven R. Champion
Title: Principal Executive Officer and President
 

 
Date:  November 24, 2008
 
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/ Steven R. Champion
Name: Steven R. Champion
Title: Principal Executive Officer and President
 

 
 
By: /s/ Cheryl Chang
Name: Cheryl Chang
Title: Principal Financial Officer and Treasurer
 
Date:  November 24, 2008