The major performance detractor for the Fund was the consumer discretionary sector. Premium hotel firm Shangri-La Asia (HKSE:00069) took a greater-than-expected hit from the tough macroeconomic environment as corporate travel budgets turned more conservative. Hotel occupancy and room rates also suffered as more international chains expanded into China's premium hotel segment, and we exited the holding during the quarter.
From Matthews China Fund (Trades, Portfolio)'s first-quarter 2019 shareholder letter.
