Insight into Matthews China Fund (Trades, Portfolio)'s Latest Portfolio Adjustments and Market Strategy
Matthews China Fund (Trades, Portfolio), established in February 1998, focuses on investing primarily in Chinese companies that show potential for sustainable growth. The fund's strategy involves a deep analysis of various fundamental aspects such as financial health, management quality, and market position. In the third quarter of 2024, the fund made significant changes to its portfolio, reflecting its ongoing strategy to capitalize on market dynamics and company fundamentals.
New Additions to the Portfolio
During the third quarter of 2024, Matthews China Fund (Trades, Portfolio) expanded its portfolio by adding new stocks. Notably, the fund purchased 2,725,000 shares of China Overseas Property Holdings Ltd (HKSE:02669, Financial), which now represents 0.51% of the portfolio with a total value of HK$21.4 million.
Significant Increases in Existing Positions
The fund also increased its stakes in several companies, demonstrating confidence in their growth prospects. A major increase was seen in Nanjing COSMOS Chemical Co Ltd (SZSE:300856, Financial), where the fund boosted its holdings by 167.65%, adding 431,200 shares for a total of 688,400 shares. This adjustment had a 0.49% impact on the current portfolio, valued at ¥3.3 million. Another notable increase was in DiDi Global Inc (DIDIY, Financial), with an additional 129,551 shares bringing the total to 2,144,813 shares, valued at $10.08 million.
Complete Exits
In the same quarter, Matthews China Fund (Trades, Portfolio) decided to exit its position in Shanghai Baosight Software Co Ltd (SHSE:600845, Financial) by selling all its holdings, which had a negligible impact on the portfolio.
Reductions in Key Holdings
The fund reduced its position in several stocks, with the most significant reduction in Tencent Holdings Ltd (HKSE:00700, Financial). The fund sold 387,100 shares of Tencent, resulting in a 35.04% decrease in shares and a 4.44% impact on the portfolio. Despite this reduction, Tencent Holdings Ltd remains a top holding, comprising 9.53% of the total portfolio. The stock has seen a return of 16.97% over the past three months and 43.94% year-to-date.
Portfolio Overview and Sector Allocation
As of the third quarter of 2024, Matthews China Fund (Trades, Portfolio)'s portfolio included 61 stocks. The top holdings were primarily in Tencent Holdings Ltd, Alibaba Group Holding Ltd, Meituan, JD.com Inc, and PDD Holdings Inc. These investments are spread across various sectors, with significant concentrations in Consumer Cyclical, Financial Services, and Communication Services, among others.
The strategic adjustments made by Matthews China Fund (Trades, Portfolio) during the third quarter of 2024 highlight its active management approach and commitment to capitalizing on market opportunities and company fundamentals in the Chinese market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
