Introducing Matthews China Small Companies Fund
May 31, 2011
Matthews is pleased to announce the launch of its newest offering, the Matthews China Small Companies Fund (MCSMX
The Matthews China Small Companies Fund seeks long-term capital appreciation by investing in the stocks of companies in China, Hong Kong and Taiwan with market capitalizations generally under US$3 billion. The Fund represents Matthews’ third dedicated China strategy.
In our view, the world’s most populous country is an asset class in itself and affords the opportunity to pursue a variety of strategies. We are excited to be able to offer a new strategy with which investors can access China’s rapidly expanding universe of small companies. The number of publicly listed small Chinese companies (excluding A shares, which are generally not available to foreign investors) has nearly doubled in the past five years and now exceeds 1,000.
While large state-owned enterprises have long dominated China’s investment universe, we are seeing small companies benefiting from the country’s shift to a market economy. In our experience, investing in the initial stages of a company’s growth can be very rewarding. Small companies often provide opportunities for higher growth at lower valuations. For more information about the new Matthews China Small Companies Fund, please visit matthewsasia.com
If you have any questions regarding your investment in the Matthews Asia Funds, please contact us
. Thank you for your interest in the Matthews Asia Funds. We appreciate the opportunity to serve you.
Richard Gao Robert Horrocks, PhD
Lead Portfolio Manager Chief Investment Officer
Investing in small companies is more risky and volatile than investing in large companies. Investing in international markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation.