Insight into Matthews China Fund (Trades, Portfolio)'s Q4 2023 Investment Moves and Portfolio Changes
Matthews China Fund (Trades, Portfolio), with a focus on sustainable growth opportunities in China, has revealed its investment activities for the fourth quarter of 2023 through the latest N-PORT filing. The fund, which primarily invests in Chinese companies, aims to capitalize on the fundamental strengths of its portfolio selections. Since its inception in February 1998, Matthews China Fund (Trades, Portfolio) has been dedicated to identifying companies with robust financial health and promising growth prospects.
Summary of New Buys
Matthews China Fund (Trades, Portfolio) expanded its portfolio with the addition of 2 new stocks:
- Guangdong Haid Group Co Ltd (SZSE:002311, Financial) became a notable new entry with 825,300 shares, comprising 1.13% of the portfolio and valued at ¥52 million.
- WuXi XDC Cayman Inc (HKSE:02268, Financial) was also added with 4,073 shares, amounting to a total value of HK$16,690.
Key Position Increases
The fund also bolstered its stakes in 3 existing holdings:
- Yum China Holdings Inc (YUMC, Financial) saw an increase of 30,288 shares, bringing the total to 149,071 shares. This represents a 25.5% increase in share count and a 0.28% impact on the current portfolio, with a total value of $6,325,080.
- Wingtech Technology Co Ltd (SHSE:600745, Financial) had an additional 148,700 shares added, resulting in a total of 1,080,317 shares. This adjustment marks a 15.96% increase in share count, with a total value of ¥64 million.
Summary of Sold Out Positions
Matthews China Fund (Trades, Portfolio) exited its position in one company during the fourth quarter of 2023:
- The fund sold all 5,046,800 shares of China Merchants Securities Co Ltd (HKSE:06099, Financial), impacting the portfolio by -0.75%.
Key Position Reductions
Significant reductions were made in 36 stocks, with the most impactful being:
- PDD Holdings Inc (PDD, Financial) was reduced by 184,813 shares, leading to a -47.37% decrease in shares and a -3.09% impact on the portfolio. The stock's average trading price was $121.27 during the quarter, with a 22.52% return over the past 3 months and a -15.17% year-to-date performance.
- Contemporary Amperex Technology Co Ltd (SZSE:300750, Financial) saw a reduction of 273,800 shares, resulting in a -46.58% decrease in shares and a -1.3% impact on the portfolio. The stock traded at an average price of ¥174.84 during the quarter, with a -21.32% return over the past 3 months and a -10.57% year-to-date return.
Portfolio Overview
As of the fourth quarter of 2023, Matthews China Fund (Trades, Portfolio)'s portfolio consisted of 51 stocks. The top holdings were 8.76% in Tencent Holdings Ltd (HKSE:00700, Financial), 8.5% in Alibaba Group Holding Ltd (HKSE:09988, Financial), 6.55% in PDD Holdings Inc (PDD), 4.6% in JD.com Inc (HKSE:09618, Financial), and 4.19% in China Merchants Bank Co Ltd (SHSE:600036, Financial). The fund's investments are diversified across 10 of the 11 industries, including Consumer Cyclical, Financial Services, Communication Services, Industrials, Consumer Defensive, Healthcare, Real Estate, Technology, Energy, and Utilities.
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.
