Consumer staples companies, such as China Mengniu (HKSE:02319) and Hengan International Group (HKSE:01044), also did well as they benefited from lower input costs. While it may be difficult to predict how raw material costs will trend, we continue to believe in the longer-term theses that these two companies will continue to enjoy margin expansion on the back of offering higher margins and differentiated products.
From Matthews China Fund (Trades, Portfolio) Q1 2015 Commentary.
