TOP

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

-4.33%

NAV YTD Return

(as of 03/21/2023)

$23.00

NAV

(as of 03/21/2023)

+0.31

1 Day NAV Change

(as of 03/21/2023)

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 $33.12 million (03/21/2023)
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 03/21/2023)
NAV $23.00
NAV Change +0.31
Market Price $23.07
Market Price Change +0.31
Day's Trading Volume 7,421 Shares
Median BID/ASK Spread (30 Day) 0.30% (as of 03/21/2023)
Premium Discount +0.30%
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
  • data_graph_selected Created with Sketch.
  • bar_graph_selected Created with Sketch.
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 03/22/2023)
Ticker Name SEDOL Market Value Shares % Net Assets
9988 ALIBABA GROUP HOLDING, LTD. BK6YZP5 $2,428,373 236,700 7.3
PDD PDD HOLDINGS INC BYVW0F7 $1,964,173 24,885 5.9
3690 MEITUAN DIANPING CLASS B BGJW376 $1,673,142 100,910 5.1
700 TENCENT HOLDINGS, LTD. BMMV2K8 $1,558,922 35,600 4.7
6030 CITIC SECURITIES CO., LTD. H SHARES B6SPB49 $1,546,731 725,000 4.7
600036 CHINA MERCHANTS BANK CO., LTD. A SHARES BP3R273 $1,521,974 306,100 4.6
3908 CHINA INTERNATIONAL CAPITAL CORP., LTD. H SHARES BZ169C6 $1,515,470 765,200 4.6
9618 JD.COM INC - CL A BKPQZT6 $1,432,794 74,900 4.3
BEKE KE HOLDINGS INC-ADR BMBX7M2 $1,170,811 62,211 3.5
002027 FOCUS MEDIA INFORMATION TECHNOLOGY CO., LTD. A SHARES BD5CND5 $763,900 792,011 2.3
000858 WULIANGYE YIBIN CO., LTD. A SHARES BD5CPG2 $709,275 25,400 2.1
300750 CONTEMPORARY AMPEREX TECHNOLOGY CO., LTD. A SHARES BHQPSY7 $686,392 12,000 2.1
2318 PING AN INSURANCE GROUP CO. OF CHINA, LTD. H SHARES B01FLR7 $655,836 101,500 2.0
600845 SHANGHAI BAOSIGHT SOFTWAR BP3RCN9 $608,610 79,580 1.8
388 HONG KONG EXCHANGES & CLEARING, LTD. 6267359 $583,655 14,100 1.8
300124 SHENZHEN INOVANCE TECHNOLOGY CO., LTD. A SHARES BD5CMN8 $571,223 57,200 1.7
BILI BILIBILI, INC. ADR BFNLRN6 $555,377 23,980 1.7
27 GALAXY ENTERTAINMENT GROUP, LTD. 6465874 $530,883 82,000 1.6
002472 ZHEJIANG SHUANGHUAN DRIVE BP91M35 $514,961 142,262 1.6
2688 ENN ENERGY HOLDINGS, LTD. 6333937 $510,441 38,000 1.5
HTHT HUAZHU GROUP, LTD. ADR BFMFKK7 $510,244 10,501 1.5
1585 YADEA GROUP HOLDINGS LTD BZ04KX9 $476,102 196,000 1.4
6098 COUNTRY GARDEN SERVICES H BDQZP48 $469,077 284,000 1.4
600009 SHANGHAI INTERNATIONAL AIRPORT CO., LTD. A SHARES BP3R4P5 $467,523 57,352 1.4
884 CIFI HOLDINGS GROUP CO., LTD. B8Z00N3 $458,082 4,668,000 1.4
300274 SUNGROW POWER SUPPLY CO L BD5CGB4 $457,366 31,000 1.4
601888 CHINA INTERNATIONAL TRAVEL SERVICE CORP., LTD. A SHARES BP3R466 $445,126 16,300 1.3
002747 ESTUN AUTOMATION CO., LTD. A SHARES BFCCQJ9 $439,927 115,200 1.3
300496 THUNDER SOFTWARE TECHNOLO BD5CG03 $435,815 29,200 1.3
1999 MAN WAH HOLDINGS LTD B58YWF7 $418,495 461,200 1.3
603659 SHANGHAI PUTAILAI NEW ENERGY TECHNOLOGY CO., LTD. A SHARES BF2DZJ5 $402,973 57,437 1.2
300316 ZHEJIANG JINGSHENG MECHAN BD5M1Y2 $389,560 42,903 1.2
300059 EAST MONEY INFORMATION CO BD5CPC8 $380,481 129,800 1.1
839 CHINA EDUCATION GROUP HOLDINGS, LTD. BF13433 $371,371 367,000 1.1
688111 BEIJING KINGSOFT OFFICE S BNR4NQ2 $367,671 7,460 1.1
688777 ZHEJIANG SUPCON TECHNOLOG BQ3RXP5 $351,812 24,376 1.1
300760 SHENZHEN MINDRAY BIO-MEDICAL ELECTRONICS CO., LTD. A SHARES BHQK864 $346,133 7,800 1.0
600745 WINGTECH TECHNOLOGY CO LT BK4PZC7 $333,835 43,200 1.0
881 ZHONGSHENG GROUP HOLDINGS, LTD. B633D97 $322,005 72,500 1.0
300450 WUXI LEAD INTELLIGENT EQU BD6QWJ5 $321,283 56,381 1.0
600809 SHANXI XINGHUACUN FEN WIN BP3R820 $296,706 7,500 0.9
002371 NAURA TECHNOLOGY GROUP CO., LTD. A SHARES BD5LYF1 $293,780 7,387 0.9
601012 LONGI GREEN ENERGY TECHNO BRTL411 $289,385 50,500 0.9
268 KINGDEE INTERNATIONAL SOFTWARE GROUP CO., LTD. 6327587 $264,985 143,000 0.8
1233 TIMES CHINA HOLDINGS, LTD. BH3FTS1 $237,980 2,052,000 0.7
2269 WUXI BIOLOGICS CAYMAN, INC. BL6B9P1 $225,500 36,000 0.7
603737 SKSHU PAINT CO., LTD. A SHARES BYV1VL7 $204,592 11,900 0.6
300832 SHENZHEN NEW INDUSTRIES B BMXTX20 $188,484 22,200 0.6
300347 HANGZHOU TIGERMED CONSULTING CO., LTD. A SHARES BD5CCK5 $168,643 10,800 0.5
000333 MIDEA GROUP CO., LTD. A SHARES BD5CPP1 $142,276 18,800 0.4
600309 WANHUA CHEMICAL GROUP CO., LTD. A SHARES BP3R3S1 $32,748 2,300 0.1
CASH CASH AND OTHERS $1,100,180 3.3
TOTAL 47.0

Portfolio Breakdown (%)

(as of 12/31/2022)
  • Sector Allocation
  • Market Cap Exposure
  • China Exposure
Sector Fund Benchmark Difference
Consumer Discretionary 34.7 30.3 4.4
Financials 15.9 15.7 0.2
Information Technology 10.4 5.7 4.7
Industrials 9.3 5.6 3.7
Communication Services 8.7 18.6 -9.9
Real Estate 7.8 3.5 4.3
Health Care 5.7 6.2 -0.5
Consumer Staples 3.4 5.8 -2.4
Materials 2.4 3.5 -1.1
Utilities 0.0 2.6 -2.6
Energy 0.0 2.5 -2.5
Cash and Other Assets, Less Liabilities 1.7 0.0 1.7

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.

Portfolio Characteristics

(as of 12/31/2022)
Fund Benchmark
Number of Positions 63 714
Weighted Average Market Cap $75.9 billion $117.5 billion
Active Share 74.3 n.a.
P/E using FY1 estimates 14.8x 10.1x
P/E using FY2 estimates 12.8x 9.9x
Price/Cash Flow 10.8 5.8
Price/Book 1.9 1.4
Return On Equity 11.9 11.9
EPS Growth (3 Yr) -6.0% 4.1%

Sources: Factset Research Systems, Inc.

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.