A focus on Asia—and providing compelling investment solutions for our clients—is what we believe distinguishes us among investment managers. Our insights into investment opportunities and risks are backed by proprietary research, a collaborative culture and 30 years of experience.
26/02/2010
Inception Date
-8.36%
YTD Return (USD)
(as of 16/10/2026)
$19.94
NAV (USD)
(as of 16/10/2026)
+0.02
1 Day NAV Change
(as of 16/10/2026)
Seeks to achieve long term capital appreciation.
The Fund promotes environmental and social characteristics according to Article 8 of SFDR. Furthermore, the Fund uses both activity- and norm-based exclusions. Information relating to the environmental and social characteristics of this Fund is available in the prospectus.
The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in equities of companies located in China, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, China includes the People’s Republic of China, its administrative and other districts, such as Hong Kong, as well as Taiwan.
The value of an investment in the Fund can go down as well as up and possible loss of principal is a risk of investing. Investments in international, emerging and frontier market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation, which may adversely affect the value of the Fund's assets. Investing in Chinese securities involve risks. Heightened risks related to the regulatory environment and the potential actions by the Chinese government could negatively impact performance. The Fund invests in holdings denominated in foreign currency, and is exposed to the risk that the value of the foreign currency will increase or decrease. The Fund invests primarily in equity securities, which may result in increased volatility. In addition, because the Fund concentrates its investments in a single-country, its share price may be more volatile, and more affected by political, economic and other events in the country in which it invests than that of funds that are not as geographically concentrated.
These and other risks associated with investing in the Fund can be found in the prospectus.
| Inception Date | 26/02/2010 | |
| Fund Assets | $17.78 million (30/09/2026) | |
| Base Currency | USD | |
| ISIN: | LU0491817440 (USD) LU0594556135 (GBP) | |
| Bloomberg Symbol | MATACNI:LX (USD) MATACGI:LX (GBP) | |
| Benchmark | MSCI China All Shares Index | |
| Geographic Focus | China and Taiwan: China includes its administrative and other districts, such as Hong Kong. | |
| SFDR Classification | Article 8 | |
| Management Fee | 0.75% | |
| Total Expense Ratio | 1.00% ( USD ) 1.00% ( GBP ) | |
| Objective | Seeks to achieve long term capital appreciation. |
| Strategy | The Fund seeks to achieve its investment objective by investing, directly or indirectly, at least 65% of its total net assets, in equities of companies located in China, and may invest the remainder of its net assets in other permitted assets on a worldwide basis. For the purpose of this policy, China includes the People’s Republic of China, its administrative and other districts, such as Hong Kong, as well as Taiwan. |
| Risks |
The value of an investment in the Fund can go down as well as up and possible loss of principal is a risk of investing. Investments in international, emerging and frontier market securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation, which may adversely affect the value of the Fund's assets. Investing in Chinese securities involve risks. Heightened risks related to the regulatory environment and the potential actions by the Chinese government could negatively impact performance. The Fund invests in holdings denominated in foreign currency, and is exposed to the risk that the value of the foreign currency will increase or decrease. The Fund invests primarily in equity securities, which may result in increased volatility. In addition, because the Fund concentrates its investments in a single-country, its share price may be more volatile, and more affected by political, economic and other events in the country in which it invests than that of funds that are not as geographically concentrated.
The risks associated with investing in the Fund can be found in the prospectus |
Source: Brown Brothers Harriman (Luxembourg) S.C.A.
All returns over 1 year are annualized
Effective 10 November 2025, the primary benchmark changed from the MSCI China Index to the MSCI China All Shares Index.
Since inception performance for share classes with less than one year of history represents actual performance, not annualised. In addition, for share classes less than a year old, Year to Date Return is calculated since inception. Where no past performance is shown there was insufficient data available in that year to provide performance.
Performance details provided are based on a NAV-to-NAV basis with any dividends reinvested, and are net of management fees and other expenses. Performance data has been calculated in the respective currencies stated above, including ongoing charges and excluding subscription fee and redemption fee you might have to pay.
All performance quoted represents past performance and is not indicative of future performance. Investors may not get back the full amount invested. Investors investing in funds denominated in non-local currency should be aware of the risk of currency exchange fluctuations that may cause a loss of principal.
Additional performance, attribution, liquidity, value at risk (VaR), security classification and holdings information is available on request for certain time periods.
Sources: Factset Research Systems, Inc.
Fund Risk Metrics are reflective of Class I USD ACC shares.
Source: FactSet Research Systems
Top 10 holdings may combine more than one security from the same issuer and related depositary receipts.
Source: Brown Brothers Harriman (Luxembourg) S.C.A
Sector data based on MSCI’s revised Global Industry Classification Standards. For more details, visit www.msci.com.
Source: FactSet Research Systems unless otherwise noted.
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.
Board Diversity: Represents the weighted average ratio of female board members in investee companies.
Tobacco: Represents companies that generate more than 5% of revenue from tobacco manufacturing exposure to or production or that generate more than 50% of revenue from tobacco retail.
UN Global Compact Violators: Represents companies that have been assessed as failing to comply with the 10 United Nations Global Compact Principles by ISS-ESG Norms-Based Research. Different ESG research providers may come to different conclusions on the severity of the violation.
Controversial weapons include companies with involvement in the following: anti-personnel mines; biological and chemical weapons; cluster weapons; depleted uranium; nuclear weapons and white phosphorus. A company is excluded if it is directly involved in the production, selling and/or distribution of (parts of) controversial weapons and this involvement concerns the core weapon system, or components/services of the core weapon system that are tailor-made and essential for the lethal use of the weapon.
Source: Sustainalytics, Factset, MSCI, Matthews Asia.
| This Fund | Yes | No |
|---|---|---|
| Complies with Article 8 of SFDR | ||
| Investment process integrates ESG factors and sustainability risks based on proprietary and third-party research | ||
| Applies norms- and activity-based exclusions | ||
| Promotes environmental and social characteristics | ||
| Has a sustainable investment objective | ||
| Conducts engagement | ||
| Exercises Voting Rights |
Investors should not invest in the Fund solely based on the information in this material alone. Please refer to the Prospectus for further details of the Fund’s investment objective and risk factors.
For more information, please refer to our Responsible Investment and Stewardship Policy and our ESG-Related Investment Policy of Matthews Asia Funds.
Portfolio Manager
Andrew Mattock is a Portfolio Manager at Matthews. 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.
To find documents in additional languages, please visit the Fund Literature page in our Resources section.
Performance figures discussed in the Fund Manager Commentary above reflect that of the Institutional Accumulation Class Shares and has been calculated in USD. Performance details provided for the Fund are based on a NAV-to-NAV basis, with any dividends reinvested, and are net of management fees and other expenses. Past performance information is not indicative of future performance. Investors may not get back the full amount invested.
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. Matthews Asia and its affiliates do not accept any liability for losses either direct or consequential caused by the use of this information.
Information contained herein is sourced from Matthews Asia unless otherwise stated. The views and opinions in this commentary were as of the report date, subject to change and may not reflect the writer’s current views. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors, and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent. It should not be assumed that any investment will be profitable or will equal the performance of any securities or any sectors mentioned herein. The information does not constitute a recommendation to buy or sell any securities mentioned.
Investors should not invest in the Fund solely based on the information in this material alone. Please refer to the Prospectus for further details of the risk factors.
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 China A Onshore Index captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges. Index is for comparative purposes only and it is not possible to invest directly in an index.
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 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 MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.
Indexes are for comparative purposes only and it is not possible to invest directly in an index.
Commentary
Period ended 30 September 2026
Summary
Market Environment
Hong Kong and mainland Chinese equities delivered mixed results during the third quarter. Market sentiment weakened as the AI hardware trade reversed amid higher interest rates and continued geopolitical uncertainty. Areas that had produced strong gains earlier in the year, particularly parts of the technology sector, experienced increased profit-taking as investors focused more closely on earnings durability, valuations and domestic economic conditions.
Technology remained an important influence on returns, but market leadership broadened during the quarter, with investors placing greater emphasis on earnings quality, balance-sheet strength and company-specific execution across a wider range of sectors. Financials, Health Care and select Materials companies generally held up better than many higher-growth technology businesses that had led earlier in the year.
A constructive tone around trade and AI cooperation at the September meeting between the U.S. and Chinese presidents provided some support, although uncertainty over semiconductor export restrictions persisted.
China's economic backdrop remained mixed. Domestic policy support, including its first nationwide mortgage-interest subsidy for first-time homebuyers and other targeted measures, offered some encouragement but activity remained uneven across sectors and investor sentiment stayed cautious.
Ahead of third-quarter earnings, we believe many investors may be underestimating the earnings resilience of businesses with strong competitive positions, healthy balance sheets, and the ability to gain market share in a slower-growth environment.
Performance
For the quarter ended September 30, 2026, the Matthews China Fund returned -7.98% (Class I Acc USD), while its benchmark, the MSCI China All Shares Index, returned -2.73% over the period. At the sector level, Health Care, Materials and Communication Services contributed positively to relative performance, while Information Technology, Industrials and Financials detracted.
Health Care and Materials
Health Care was a leading source of relative performance, supported by GenScript Biotech and Wuxi AppTec. GenScript benefited from progress involving its biologics services business and continued development of its drug-discovery platform, while WuXi AppTec gained on a more constructive earnings outlook for its pharmaceutical and biotechnology services operations. Materials also contributed positively, reflecting favorable results from selected holdings and a more supportive backdrop for parts of the metals and mining complex.
Information Technology and Industrials
Information Technology was the largest detractor as the reversal in AI hardware shares prompted a broad rotation away from higher-multiple semiconductor and electronics companies. Fabless semiconductor company, GigaDevice Semiconductor was among the largest detractors as investors reassessed the sustainability of the memory-pricing cycle. Industrials also detracted, including Jiangsu Zhongtian Technology, a Chinese industrial and technology company best known for its fiber-optic cables, power transmission equipment, submarine cables, and renewable energy infrastructure, as shares declined amid greater caution toward cyclical growth and capital-spending expectations.
Other Contributors and Detractors
China Construction Bank, one of China's largest state-owned commercial banks, was among the leading contributors, supported by improving operating trends and a more stable outlook for net interest margins. Kingboard Holdings, manufacturer of copper-clad laminates used in printed circuit boards, was amongst the largest detractors, as weaker sentiment toward technology-related materials and cyclical demand weighed on the shares following earlier gains. Overall, the quarter reflected a shift in market leadership and valuation expectations rather than a uniform deterioration in company fundamentals.
Positioning
Portfolio changes were measured and remained consistent with the Fund's diversified, all-share approach to China. Exposure was reduced in areas where valuations had become less attractive following strong gains, and capital was reallocated toward companies offering a more compelling balance of earnings growth, business quality and valuation. The adjustments reflected bottom-up security selection rather than broad sector calls.
We increased exposure to Financials given attractive valuations, improving shareholder returns and more supportive earnings prospects across banks, insurers and securities companies.
Information Technology exposure declined as selected semiconductor, electronics and optical-communications holdings were reduced following strong earlier performance and less compelling valuations. Technology remains an important portfolio allocation, but the adjustments reflect greater valuation discipline after an extended period of strength in AI-related businesses.
Health Care exposure increased, reflecting greater conviction in biotechnology and pharmaceutical companies with improving research pipelines, commercial execution and global licensing prospects. Consumer Discretionary also increased, with additions focused on internet platforms, e-commerce businesses and consumer companies offering attractive valuations and improving competitive positions. Within the Consumer Discretionary sector, we initiated a position in BYD which specializes in new energy vehicles (NEVs), rechargeable batteries, electronics, and renewable energy.
Outlook
We remain constructive on the long-term opportunity in Chinese equities. The recent correction has improved valuations across several sectors, although near-term sentiment is likely to remain sensitive to geopolitical developments, policy uncertainty and uneven domestic demand. We expect market leadership to continue evolving as investors respond to company earnings, policy developments and changing economic conditions.
The macroeconomic backdrop remains mixed. Consumer confidence and property activity are recovering gradually and unevenly, while the late-September stimulus package was broadly seen as designed to keep economic growth on target rather than driving a broad demand revival in demand, leaving investors waiting for more forceful intervention to address underlying demand weakness. However, exports, industrial production and selected areas of manufacturing remained more resilient alongside improving purchasing managers’ indices (PMIs) at the end of September, offering a more constructive near-term encouragement.
We continue to find attractive opportunities across Financials, Health Care, Consumer Discretionary, Materials and Information Technology sectors. In our view, Financials and Health Care sectors are increasingly important sources of investment ideas, while select technology, consumer and industrial businesses continue to offer attractive long-term growth opportunities. The breadth of the opportunity set supports a diversified approach rather than reliance on a single sector or theme in our view.
The portfolio remains focused on companies with strong competitive positions, improving earnings prospects and valuations that offer support relative to long-term growth potential. By combining long-term quality-growth holdings with selected cyclical-growth opportunities, we believe the Fund is positioned to navigate changing market conditions while participating in the continued evolution of China's equity markets.
Rolling 12 Month Returns For the period ended 30/09/2026 - I (Acc)
Sources: Brown Brothers Harriman (Luxembourg) S.C.A, Matthews Asia, FactSet Research Systems, Bloomberg