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Matthews China Active ETF
MCH

Snapshot
  • High-conviction equity portfolio seeks companies benefiting from China’s domestic consumption
  • All-cap fundamental GARP approach driven by on-the-ground, proprietary research
  • Combines long-term core holdings with more opportunistic ideas to provide consistency through cycles

07/13/2022

Inception Date

-4.09%

NAV YTD Return

(as of 02/29/2024)

$18.29

NAV

(as of 02/29/2024)

+0.08

1 Day NAV Change

(as of 02/29/2024)

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.

These and other risks associated with investing in the Fund can be found in the prospectus.

Fund Facts
Inception Date 07/13/2022
Fund Assets $21.06 million (03/01/2024)
Currency USD
Ticker MCH
Cusip 577-125-834
Primary Exchange NYSE Arca
Benchmark MSCI China Index MSCI China All Shares Index
Geographic Focus China - China includes its administrative and other districts, such as Hong Kong
Fees & Expenses
Gross Expense Ratio 0.79%

NAV & Market Price

(as of 02/29/2024)
NAV $18.29
NAV Change +0.08
Market Price $18.25
Market Price Change +0.10
Day's Trading Volume 2,600 Shares
Median BID/ASK Spread (30 Day) 0.33% (as of 02/29/2024)
Premium Discount -0.22%
Number of days at Premium/Discount
2024 2023
Q1
Premium 26 160
Discount 15 78

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
  • Calendar Year
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As of 01/31/2024
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
-10.86% -10.26% -10.86% -36.29% n.a. n.a. n.a. -21.15%
Market Price
-10.24% -9.47% -10.24% -36.60% n.a. n.a. n.a. -20.89%
MSCI China Index
-10.61% -10.56% -10.61% -28.86% n.a. n.a. n.a. -17.99%
MSCI China All Shares Index
-9.94% -9.95% -9.94% -28.11% n.a. n.a. n.a. -18.85%
As of 12/31/2023
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
-2.13% -5.23% -19.35% -19.35% n.a. n.a. n.a. -15.89%
Market Price
-2.20% -5.68% -19.92% -19.92% n.a. n.a. n.a. -16.00%
MSCI China Index
-2.40% -4.21% -11.04% -11.04% n.a. n.a. n.a. -12.49%
MSCI China All Shares Index
-1.97% -3.81% -11.35% -11.35% n.a. n.a. n.a. -13.90%
For the years ended December 31st
Name 2023
Matthews China Active ETF - MCH
NAV
-19.35%
Market Price
-19.92%
MSCI China Index
-11.04%
MSCI China All Shares Index
-11.35%

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 03/04/2024)
Ticker Name SEDOL Market Value Shares % Net Assets
700 TENCENT HOLDINGS, LTD. BMMV2K8 $1,863,743 52,600 8.9
9988 ALIBABA GROUP HOLDING, LTD. BK6YZP5 $1,699,119 182,100 8.1
3690 MEITUAN DIANPING CLASS B BGJW376 $1,178,930 104,410 5.6
PDD PDD HOLDINGS INC BYVW0F7 $791,925 6,243 3.8
9618 JD.COM INC-CLASS A BKPQZT6 $701,476 60,650 3.3
2318 PING AN INSURANCE GROUP CO. OF CHINA, LTD. H SHARES B01FLR7 $669,568 148,500 3.2
857 PETROCHINA CO., LTD. H SHARES 6226576 $649,319 832,000 3.1
BEKE KE HOLDINGS INC-ADR BMBX7M2 $638,210 48,058 3.0
000858 WULIANGYE YIBIN CO., LTD. A SHARES BD5CPG2 $632,819 32,000 3.0
3908 CHINA INTERNATIONAL CAPITAL CORP., LTD. H SHARES BZ169C6 $617,703 483,600 2.9
600036 CHINA MERCHANTS BANK CO., LTD. A SHARES BP3R273 $485,497 109,600 2.3
3968 CHINA MERCHANTS BANK CO., LTD. H SHARES B1DYPZ5 $482,638 124,500 2.3
939 CHINA CONSTRUCTION BANK CORP. H SHARES B0LMTQ3 $471,233 756,000 2.2
6030 CITIC SECURITIES CO., LTD. H SHARES B6SPB49 $450,586 239,000 2.1
27 GALAXY ENTERTAINMENT GROUP, LTD. 6465874 $396,986 74,000 1.9
300760 SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO., LTD. A SHARES BHQK864 $378,287 9,400 1.8
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO., LTD. A SHARES BHQPSY7 $371,986 16,300 1.8
002027 FOCUS MEDIA INFORMATION TECHNOLOGY CO., LTD. A SHARES BD5CND5 $363,186 415,011 1.7
600745 WINGTECH TECHNOLOGY CO LT BK4PZC7 $340,508 60,000 1.6
000333 MIDEA GROUP CO., LTD. A SHARES BD5CPP1 $327,250 36,600 1.6
DIDIY DIDI GLOBAL INC BMBR6F0 $323,232 87,360 1.5
1999 MAN WAH HOLDINGS LTD B58YWF7 $315,136 480,000 1.5
168 TSINGTAO BREWERY CO., LTD. H SHARES 6905808 $300,243 46,000 1.4
1024 KUAISHOU TECHNOLOGY BLC90T0 $287,439 50,400 1.4
300274 SUNGROW POWER SUPPLY CO L BD5CGB4 $281,763 23,200 1.3
LKNCY LUCKIN COFFEE INC - ADR BK57TY2 $279,130 12,875 1.3
600809 SHANXI XINGHUACUN FEN WIN BP3R820 $266,240 8,100 1.3
TCOM CTRIP.COM INTERNATIONAL, LTD. ADR BK1K3N2 $252,843 5,630 1.2
600009 SHANGHAI INTERNATIONAL AIRPORT CO., LTD. A SHARES BP3R4P5 $248,285 51,252 1.2
2328 PICC PROPERTY & CASUALTY CO., LTD. H SHARES 6706250 $247,848 180,000 1.2
388 HONG KONG EXCHANGES & CLEARING, LTD. 6267359 $245,242 8,000 1.2
688777 SUPCON TECHNOLOGY CO LTD- BQ3RXP5 $244,705 36,470 1.2
YUMC YUM CHINA HOLDINGS, INC. BYW4289 $233,219 5,430 1.1
002311 GUANGDONG HAID GROUP CO., LTD. A SHARES BD5CJ60 $228,910 38,600 1.1
1099 SINOPHARM GROUP CO., LTD. H SHARES B3ZVDV0 $225,163 78,000 1.1
2688 ENN ENERGY HOLDINGS, LTD. 6333937 $223,988 27,400 1.1
2020 ANTA SPORTS PRODUCTS, LTD. B1YVKN8 $221,768 22,800 1.1
603345 ANJOY FOODS GROUP CO LTD- BMXWM11 $218,943 17,700 1.0
TME TENCENT MUSIC ENTERTAINMENT GROUP ADR BFZYWR2 $211,561 20,362 1.0
839 CHINA EDUCATION GROUP HOLDINGS, LTD. BF13433 $208,157 346,000 1.0
6618 JD HEALTH INTERNATIONAL I BMW8R04 $205,735 54,600 1.0
9888 BAIDU INC-CLASS A B0J2D41 $197,772 15,300 0.9
2269 WUXI BIOLOGICS CAYMAN, INC. BL6B9P1 $193,307 80,500 0.9
002371 NAURA TECHNOLOGY GROUP CO., LTD. A SHARES BD5LYF1 $185,855 4,587 0.9
960 LONGFOR GROUP HOLDINGS LT B56KLY9 $174,709 140,000 0.8
6098 COUNTRY GARDEN SERVICES H BDQZP48 $171,097 224,000 0.8
2618 JD LOGISTICS INC BNMBPD9 $163,025 164,900 0.8
601888 CHINA INTERNATIONAL TRAVEL SERVICE CORP., LTD. A SHARES BP3R466 $159,831 13,300 0.8
884 CIFI HOLDINGS GROUP CO., LTD. B8Z00N3 $159,092 3,718,000 0.8
300059 EAST MONEY INFORMATION CO BD5CPC8 $155,409 80,040 0.7
600845 SHANGHAI BAOSIGHT SOFTWAR BP3RCN9 $137,543 21,056 0.7
300316 ZHEJIANG JINGSHENG MECHAN BD5M1Y2 $110,104 21,503 0.5
300124 SHENZHEN INOVANCE TECHNOLOGY CO., LTD. A SHARES BD5CMN8 $104,492 11,800 0.5
300015 AIER EYE HOSPITAL GROUP C BD5CLQ4 $102,808 51,300 0.5
1233 TIMES CHINA HOLDINGS, LTD. BH3FTS1 $56,245 1,790,000 0.3
CASH CASH AND OTHERS $204,243 1.0
CURR CNY $93 0.0
TOTAL 44.8

Portfolio Breakdown (%)

(as of 12/31/2023)
  • Sector Allocation
  • Market Cap Exposure
  • China Exposure
Sector Fund Benchmark Difference
Consumer Discretionary 33.9 30.2 3.7
Financials 18.9 15.7 3.2
Communication Services 15.4 19.7 -4.3
Consumer Staples 6.7 5.4 1.3
Industrials 6.5 5.1 1.4
Real Estate 5.7 2.6 3.1
Information Technology 5.3 6.7 -1.4
Health Care 4.2 5.7 -1.5
Energy 1.8 3.2 -1.4
Utilities 0.9 2.4 -1.5
Materials 0.0 3.2 -3.2
Cash and Other Assets, Less Liabilities 0.6 0.0 0.6

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) 63.8 63.8 0.0
Large Cap ($10B-$25B) 24.3 18.2 6.1
Mid Cap ($3B-$10B) 7.3 15.6 -8.3
Small Cap (under $3B) 3.9 2.4 1.5
Cash and Other Assets, Less Liabilities 0.6 0.0 0.6
China Exposure Portfolio Weight
Hong Kong Listed Companies 56.0
Mainland China Listed Companies 27.0
ADR/GDR 15.2
Other 1.2
Cash and Other Assets, Less Liabilities 0.6

Mainland China listed companies includes A Share and B Shares. 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. B Shares are mainland Chinese companies listed on the Shanghai and Shenzhen stock exchanges, available to both Chinese and non-Chinese investors. ADRs are American Depositary Receipts and GDRs are Global Depositary Receipts. Hong Kong Listed Companies include SAR (Hong Kong) companies, China-affiliated corporations, and H Shares. SAR 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. H Shares are mainland Chinese companies listed on the Hong Kong exchange but incorporated in mainland China. Other represents Chinese companies listed in other countries or non-China companies with a majority of revenue coming from China such as Japan, Singapore, Taiwan and the United States or other non-China companies.

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.

Portfolio Characteristics

(as of 12/31/2023)
Fund Benchmark
Number of Positions 51 766
Weighted Average Market Cap $101.1 billion $112.9 billion
Active Share 61.4 n.a.
P/E using FY1 estimates 11.6x 9.7x
P/E using FY2 estimates 10.1x 8.7x
Price/Cash Flow 8.2 5.3
Price/Book 1.5 1.2
Return On Equity 12.7 12.0
EPS Growth (3 Yr) 15.6% 13.3%

Sources: Factset Research Systems, Inc.

Distributions

Ex Date Record Date Pay Date Reinvest Date Ordinary
Income
Short Term
Capital Gains
Long Term
Capital Gains
Total Distributions
Per Share
% of NAV
12/14/2023 12/15/2023 12/21/2023 12/14/2023 $0.30767 $0.00000 $0.00000 $0.30767 1.7%

 

There is no guarantee that the Fund will pay or continue to pay distributions. 

Past performance is no guarantee of future results. Investment return and principal value will fluctuate with changing market conditions so that shares, when redeemed, may be worth more or less than their original cost.

Portfolio Managers

Andrew  Mattock, CFA photo
Andrew Mattock, CFA

Lead Manager

Winnie  Chwang photo
Winnie Chwang

Co-Manager

Sherwood  Zhang, CFA photo
Sherwood Zhang, CFA

Co-Manager

 

Visit our Glossary of Terms page for definitions and additional information.

Index Definitions

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.