Under normal circumstances, the Matthews China Active ETF seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in China. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.
Risks
Investments in Asian securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified fund, may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.
These and other risks associated with investing in the Fund can be found in the
prospectus.
China - China includes its administrative and other districts, such as Hong Kong
Fees & Expenses
Gross Expense Ratio
0.79%
Objective
Long-term capital appreciation
Strategy
Under normal circumstances, the Matthews China Active ETF seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in China. The Fund seeks to invest in companies capable of sustainable growth based on the fundamental characteristics of those companies, including balance sheet information; number of employees; size and stability of cash flow; management’s depth, adaptability and integrity; product lines; marketing strategies; corporate governance; and financial health.
Risks
Investments in Asian securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid and more volatile than securities markets in more developed markets. In addition, investments in a single-country fund, which is considered a non-diversified fund, may be subject to a higher degree of market risk than diversified funds because of concentration in a specific country.
The risks associated with investing in the Fund can be found in the prospectus
NAV & Market Price
(as of 03/30/2023)
NAV
$23.91
NAV Change
+0.29
Market Price
$24.25
Market Price Change
+0.52
Day's Trading Volume
7,839 Shares
Median BID/ASK Spread (30 Day)
0.30% (as of 03/30/2023)
Premium Discount
+1.42%
Number of days at
Q4 2022
2022
Premium
54
102
Discount
9
18
The NAV of an ETF represents the value of all the securities held by the ETF such as shares or bonds and cash minus any liabilities such as Total Expense Ratio (TER), and divided by the number of shares outstanding. An ETF’s market price is the price at which investors can buy or sell an ETF on an exchange. This price may deviate from the NAV of the ETF depending on demand for and supply for the ETF at a point in time.
The Premium/Discount chart shows the difference between the daily market price of the Fund’s shares and the Fund’s net asset value (“NAV”). The daily market price is calculated using the mid-point between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated (usually 4:00 pm Eastern time). The vertical axis of the chart shows the premium or discount of the Mid-Point price as a percentage of the NAV. The horizontal axis shows the number of trading days covered by the chart, and each bar in the chart demonstrates how many days the Fund traded within the given premium/discount range. The data presented in the chart and table above represent past performance and cannot be used to predict future results.
Performance
Monthly
Quarterly
As of 02/28/2023
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews China Active ETF - MCH
07/13/2022
NAV
-11.76%
4.31%
-0.42%
n.a.
n.a.
n.a.
n.a.
-4.24%
Market Price
-12.26%
2.25%
-0.54%
n.a.
n.a.
n.a.
n.a.
-3.84%
MSCI China Index
-10.38%
5.40%
0.18%
n.a.
n.a.
n.a.
n.a.
-7.43%
MSCI China All Shares Index
-7.82%
6.49%
2.37%
n.a.
n.a.
n.a.
n.a.
-7.32%
As of 12/31/2022
Average Annual Total Returns
Name
1MO
3MO
YTD
1YR
3YR
5YR
10YR
Since Inception
Inception Date
Matthews China Active ETF - MCH
07/13/2022
NAV
4.75%
17.84%
n.a.
n.a.
n.a.
n.a.
n.a.
-3.84%
Market Price
2.81%
17.56%
n.a.
n.a.
n.a.
n.a.
n.a.
-3.32%
MSCI China Index
5.21%
13.53%
n.a.
n.a.
n.a.
n.a.
n.a.
-7.60%
Source: BNY Mellon Investment Servicing (US) Inc. All performance is in US$.
Year to Date and Since Inception performance with less than one year of history represents actual performance, not annualized.
Assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance and is no guarantee of future results.Investment return and principal value will fluctuate with market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the return figures quoted. Returns would have been lower if certain of the Fund’s fees and expenses had not been waived.
Net asset value (“NAV”) returns are based on the dollar value of a single share of the ETF, calculated using the value of the underlying assets of the ETF minus its liabilities, divided by the number of shares outstanding. The NAV is typically calculated at 4:00 pm Eastern time on each business day the New York Stock Exchange is open for trading. Market returns are based on the trade price at which shares are bought and sold on the NYSE Arca, Inc. using the last share trade. Market performance does not represent the returns you would receive if you traded shares at other times. Total Return reflects the reinvestment of distributions on ex-date for NAV returns and payment date for Market Price returns. The market price of the ETF’s shares may differ significantly from their NAV during periods of market volatility.
Top 10 Holdings
(as of 04/03/2023)
Ticker
Name
SEDOL
Market Value
Shares
% Net Assets
9988
ALIBABA GROUP HOLDING, LTD.
BK6YZP5
$3,027,367
236,700
8.7
PDD
PDD HOLDINGS INC
BYVW0F7
$1,888,772
24,885
5.5
3690
MEITUAN DIANPING CLASS B
BGJW376
$1,844,672
100,910
5.3
9618
JD.COM INC - CL A
BKPQZT6
$1,779,171
81,200
5.1
700
TENCENT HOLDINGS, LTD.
BMMV2K8
$1,749,626
35,600
5.0
6030
CITIC SECURITIES CO., LTD. H SHARES
B6SPB49
$1,547,908
725,000
4.5
3908
CHINA INTERNATIONAL CAPITAL CORP., LTD. H SHARES
BZ169C6
$1,534,309
765,200
4.4
600036
CHINA MERCHANTS BANK CO., LTD. A SHARES
BP3R273
$1,527,536
306,100
4.4
BEKE
KE HOLDINGS INC-ADR
BMBX7M2
$1,172,055
62,211
3.4
002027
FOCUS MEDIA INFORMATION TECHNOLOGY CO., LTD. A SHARES
BD5CND5
$792,322
792,011
2.3
000858
WULIANGYE YIBIN CO., LTD. A SHARES
BD5CPG2
$728,642
25,400
2.1
300750
CONTEMPORARY AMPEREX TECHNOLOGY CO., LTD. A SHARES
BHQPSY7
$709,537
12,000
2.0
600845
SHANGHAI BAOSIGHT SOFTWAR
BP3RCN9
$674,436
79,580
1.9
2318
PING AN INSURANCE GROUP CO. OF CHINA, LTD. H SHARES
B01FLR7
$660,724
101,500
1.9
388
HONG KONG EXCHANGES & CLEARING, LTD.
6267359
$625,433
14,100
1.8
300124
SHENZHEN INOVANCE TECHNOLOGY CO., LTD. A SHARES
BD5CMN8
$585,552
57,200
1.7
BILI
BILIBILI, INC. ADR
BFNLRN6
$563,530
23,980
1.6
27
GALAXY ENTERTAINMENT GROUP, LTD.
6465874
$547,889
82,000
1.6
002472
ZHEJIANG SHUANGHUAN DRIVE
BP91M35
$547,106
142,262
1.6
6618
JD HEALTH INTERNATIONAL I
BMW8R04
$544,574
73,200
1.6
2688
ENN ENERGY HOLDINGS, LTD.
6333937
$520,870
38,000
1.5
688777
ZHEJIANG SUPCON TECHNOLOG
BQ3RXP5
$519,560
34,357
1.5
HTHT
HUAZHU GROUP, LTD. ADR
BFMFKK7
$514,339
10,501
1.5
688111
BEIJING KINGSOFT OFFICE S
BNR4NQ2
$513,823
7,460
1.5
1585
YADEA GROUP HOLDINGS LTD
BZ04KX9
$505,608
196,000
1.5
6098
COUNTRY GARDEN SERVICES H
BDQZP48
$491,305
284,000
1.4
300274
SUNGROW POWER SUPPLY CO L
BD5CGB4
$473,353
31,000
1.4
600009
SHANGHAI INTERNATIONAL AIRPORT CO., LTD. A SHARES
BP3R4P5
$465,427
57,352
1.3
1999
MAN WAH HOLDINGS LTD
B58YWF7
$453,315
550,000
1.3
601888
CHINA INTERNATIONAL TRAVEL SERVICE CORP., LTD. A SHARES
BP3R466
$434,933
16,300
1.3
603659
SHANGHAI PUTAILAI NEW ENERGY TECHNOLOGY CO., LTD. A SHARES
BF2DZJ5
$417,439
57,437
1.2
300316
ZHEJIANG JINGSHENG MECHAN
BD5M1Y2
$407,895
42,903
1.2
884
CIFI HOLDINGS GROUP CO., LTD.
B8Z00N3
$406,743
4,668,000
1.2
300059
EAST MONEY INFORMATION CO
BD5CPC8
$378,590
129,800
1.1
881
ZHONGSHENG GROUP HOLDINGS, LTD.
B633D97
$357,423
72,500
1.0
300760
SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO., LTD. A SHARES
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Equity market cap of issuer
Fund
Benchmark
Difference
Mega Cap (over $25B)
54.5
62.4
-7.9
Large Cap ($10B-$25B)
23.6
20.1
3.5
Mid Cap ($3B-$10B)
17.0
16.1
0.9
Small Cap (under $3B)
3.2
1.5
1.7
Cash and Other Assets, Less Liabilities
1.7
0.0
1.7
China Exposure
Portfolio Weight
A Shares
39.5
SAR (Hong Kong)
35.7
Overseas Listed Companies (OL)
12.8
H Shares
10.3
Cash and Other Assets, Less Liabilities
1.7
Definitions: SAR (Hong Kong) companies are companies that conduct business in Hong Kong and/or mainland China. China-affiliated corporations [CAC], also known as "Red Chips," are mainland China companies with partial state ownership listed in Hong Kong, and incorporated in Hong Kong. China A Shares are Mainland Chinese companies incorporated in China and listed on the Shanghai or Shenzhen exchanges, available mostly to local Chinese investors and qualified institutional investors. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. Overseas Listed [OL] companies are companies that conduct business in mainland China but listed in overseas markets such as Japan, Singapore, Taiwan and the United States.
Source: FactSet Research Systems.
Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Percentage values may be derived from different data sources and may not be consistent with other Fund literature.
Andrew Mattock is a Portfolio Manager at Matthews Asia and manages the firm’s China and China Small Companies Strategies and co-manages the firm’s Pacific Tiger and China Dividend Strategies. Prior to joining the firm in 2015, he was a Fund Manager at Henderson Global Investors for 15 years, first in London and then in Singapore, managing Asia Pacific equities. Andrew holds a Bachelor of Business majoring in Accounting from ACU. He began his career at PricewaterhouseCoopers and qualified as a Chartered Accountant.
Winnie Chwang is a Portfolio Manager at Matthews Asia and manages the firm’s China Small Companies and China Dividend Strategies and co-manages the China, Pacific Tiger and Asia Dividend Strategies. She joined the firm in 2004 and has built her investment career at the firm. Winnie earned an MBA from the Haas School of Business and received her B.A. in Economics with a minor in Business Administration from the University of California, Berkeley. She is fluent in Mandarin and conversational in Cantonese.
Sherwood Zhang is a Portfolio Manager at Matthews Asia and manages the firm’s China Dividend and China A-Shares Strategies and co-manages the China and Asia ex Japan Total Return Equity Strategies. Prior to joining Matthews Asia in 2011, Sherwood was an analyst at Passport Capital from 2007 to 2010, where he focused on such industries as property and basic materials in China as well as consumer-related sectors. Before earning his MBA in 2007, Sherwood served as a Senior Treasury Officer for Hang Seng Bank in Shanghai and Hong Kong, and worked as a Foreign Exchange Trader at Shanghai Pudong Development Bank in Shanghai. He received his MBA from the University of Maryland and his Bachelor of Economics in Finance from Shanghai University. Sherwood is fluent in Mandarin and speaks conversational Cantonese.
The MSCI All Country Asia ex Japan Index is a free float–adjusted market capitalization–weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Index is a free float-adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges, Hong Kong-listed securities known as Red chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China) and foreign listings (e.g. ADRs).
The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips (issued by entities owned by national or local governments in China), P chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong,Shanghai, Shenzhen and outside of China.
The MSCI Emerging Markets (EM) Asia Index is a free float-adjusted market capitalization weighted index of the stock markets of China, India, Indonesia, Malaysia, Pakistan, Philippines, South Korea, Taiwan and Thailand. The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization weighted small cap index of the stock markets of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungry, India, Indonesia, Kuwait, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, South Korea, Taiwan Thailand, Turkey and United Arab Emirates.
The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.
The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.
The Korea Composite Stock Price Index (KOSPI) is a market capitalization–weighted index of all common stocks listed on the Korea Stock Exchange.
The MSCI All Country Asia ex Japan Small Cap Index is a free float–adjusted market capitalization–weighted small cap index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.
The MSCI China Small Cap Index is a free float-adjusted market capitalization-weighted small cap index of the Chinese equity securities markets, including H shares listed on the Hong Kong exchange, B shares listed on the Shanghai and Shenzhen exchanges,Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).
The information contained herein has been derived from sources believed to be reliable and accurate at the time of compilation, but no representation or warranty (express or implied) is made as to the accuracy or completeness of any of this information. Neither the funds nor the Investment Advisor accept any liability for losses either direct or consequential caused by the use of this information.