Over the quarter, we exited our position in Haier Electronics (HKSE:01169), the distribution and logistics arm of Qingdao Haier, China’s leading white appliances manufacturer. While Haier has a leading distribution presence in large appliances in China, the main channel it distributes to is an offline channel that experienced meaningful cannibalization of sales from e-commerce and as well negative impact from the China’s weak property market. Haier is also restructuring its business but we believe it will be unlikely to see growth revived in the near term.
Matthews China Fund (Trades, Portfolio) first quarter 2016 commentary.
