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David Goodloe
David Goodloe
Articles (769) 

Matthews China Fund Invests in Financial Services Companies in Third Quarter

China Life Insurance, AIA Group top Fund's list of acquisitions

Approximately one-third of the companies in the Matthews China Fund (Trades, Portfolio)’s portfolio are in financial services, and that preference was clear in the Fund’s new buys in the third quarter.

The Fund bought 20 new stakes, the most noteworthy being an investment in 7,941,000 shares of China Life Insurance Co. Ltd. (HKSE:02628) for an average price of HK$28.4 (about $3.33 in U.S. currency) per share. The purchase had a 3.87% impact on the Fund’s portfolio.

China Life Insurance, a Beijing-based financial services company, has a market cap of $792.82 billion and an enterprise value of $791.13 billion. It has a P/E of 19.3, a forward P/E of 19.8, a P/B of 2.5 and a P/S of 1.5. GuruFocus has given China Life Insurance a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Value Partners (Trades, Portfolio) is China Life Insurance’s leading shareholder among the gurus.

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China Life Insurance sold for HK$28.05 (roughly $3.29 in American dollars) per share on Oct. 30.

The Fund acquired a 4,103,800-share stake in AIA Group Ltd. (HKSE:01299), a Hong Kong-based insurance and financial services company, for an average price of HK$46.26 (approximately $5.42 in American money) per share. The transaction had a 2.98% impact on the Fund’s portfolio.

AIA Group has a market cap of $549.34 billion and an enterprise value of $559.02 billion. It has a P/E of 20.3, a forward P/E of 15.5, a P/B of 2.2 and a P/S of 2.8. GuruFocus has given AIA Group a Financial Strength rating of 6/10 and a Profitability and Growth rating of 7/10.

Matthews Pacific Tiger Fund is AIA Group’s leading shareholder among the gurus.

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On Oct. 30, AIA Group sold for HK$45.6 (about $5.35 in U.S. currency) per share.

The Fund acquired a 6,896,000-share stake in China Overseas Land & Investment Ltd. (HKSE:00688) for an average price of HK$24.04 (roughly $2.82 in American dollars) per share. The deal had a 2.93% impact on the Fund’s portfolio.

China Overseas Land & Investment, a Hong Kong-based real estate development company, has a market cap of $248.49 billion and an enterprise value of $274.57 billion. It has a P/E of 7.4, a forward P/E of 7.1, a P/B of 1.3 and a P/S of 1.7. GuruFocus has given China Overseas Land & Investment a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10.

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China Overseas Land & Investment sold for HK$25.2 (approximately $2.95 in U.S. money) per share on Oct. 30.

The Fund invested in a 7,758,000-share stake in ANTA Sports Products Ltd. (HKSE:02020), a Chinese sportswear company, for an average price of HK$19.07 (about $2.24 in American currency) per share. The acquisition had a 2.82% impact on the Fund’s portfolio.

ANTA Sports Products has a market cap of $54.34 billion and an enterprise value of $49.44 billion. It has a P/E of 25.5, a forward P/E of 16.5, a P/B of 5.4 and a P/S of 4.9. GuruFocus has given ANTA Sports Products a Financial Strength rating of 8/10 and a Profitability and Growth rating of 7/10.

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ANTA Sports Products sold for HK$21.75 (roughly $2.55 in U.S. dollars) per share on Oct. 30.

The Fund purchased a 723,300-share stake in JD.com Inc. (NASDAQ:JD), a Beijing-based online retailing company, for an average price of $28.92 per share. The deal had a 2.64% impact in the Fund’s portfolio.

JD.com has a market cap of $37.78 billion and an enterprise value of $34.15 billion. It has a P/B of 6.4 and a P/S of 2.1. GuruFocus has given JD.com a Financial Strength rating of 5/10 and a Profitability and Growth rating of 2/10.

Chase Coleman (Trades, Portfolio) is JD.com’s leading shareholder among the gurus. Steve Mandel (Trades, Portfolio), Julian Robertson (Trades, Portfolio), Chris Davis (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Howard Marks (Trades, Portfolio), Jim Simons (Trades, Portfolio), John Burbank (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Stanley Druckenmiller (Trades, Portfolio), Steve Cohen, Pioneer Investments (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) have shares of JD.com in their portfolios.

JD.com sold for $27.62 per share on Sunday.

The Fund acquired a 23,969,500-share stake in China Galaxy Securities Co. Ltd. (HKSE:06881), a Chinese brokerage and investment bank, for an average price of HK$6.52 (approximately 76 cents in American money) per share. The deal had a 2.37% impact on the Fund’s portfolio.

China Galaxy Securities has a market cap of $64.47 billion and an enterprise value of $98.57 billion. It has a P/E of 10.8, a P/B of 1.0 and a P/S of 3.6. GuruFocus has given China Galaxy Securities a Financial Strength rating of 6/10 and a Profitability and Growth rating of 5/10.

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China Galaxy Securities sold for HK$6.76 (about 79 cents in U.S. currency) per share on Oct. 30.

The Fund bought an 8,874,000-share stake in Boer Power Holdings Ltd. (HKSE:01685), a Chinese electrical distribution equipment company, for an average price of HK$14.13 (roughly $1.66 in American dollars) per share. The purchase had a 2.1% impact on the Fund’s portfolio.

Boer Power Holdings has a market cap of $9.81 billion and an enterprise value of $8.38 billion. It has a P/E of 16.6, a P/B of 3.4 and a P/S of 3.7. GuruFocus has given Boer Power Holdings a Financial Strength rating of 8/10 and a Profitability and Growth rating of 8/10.

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On Oct. 30 Boer Power Holdings sold for HK$12.68 (approximately $1.49 in U.S. money) per share.

The Fund acquired a 24,695,000-share stake in Chongqing Rural Commercial Bank Co. Ltd. (HKSE:03618), a Chinese commercial bank, for an average price of HK$5.15 (about 60 cents in American currency) per share. The deal had a 1.96% impact on the Fund’s portfolio.

Chongqing Rural Commercial Bank has a market cap of $45.48 billion and an enterprise value of $55.75 billion. It has a P/E of 5.3, a P/B of 0.8 and a P/S of 1.8. GuruFocus has given Chongqing Rural Commercial Bank a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10.

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On Oct. 30, Chongqing Rural Commercial Bank sold for HK$4.89 (roughly 57 cents in U.S. dollars) per share.

The Fund purchased 807,500 shares of Vipshop Holdings Ltd. (VIPS), a Chinese online discount retailer, for an average price of $19.2 per share. The purchase had a 1.9% impact on the Fund’s portfolio.

Vipshop Holdings has a market cap of $11.9 billion and an enterprise value of $11.37 billion. It has a P/E of 81.6, a forward P/E of 26.1, a P/B of 21.4 and a P/S of 3.3. GuruFocus has given Vipshop Holdings a Financial Strength rating of 8/10 and a Profitability and Growth rating of 4/10.

Chase Coleman (Trades, Portfolio) is Vipshop’s leading shareholder among the gurus. John Burbank (Trades, Portfolio), George Soros (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio), Louis Moore Bacon (Trades, Portfolio), Chris Davis (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Pioneer Investments (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) have shares of Vipshop in their portfolios.

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Vipshop sold for $20.52 per share on Sunday.

To view the portfolios of more gurus, visit the List of Gurus page. Not a premium member of GuruFocus? Try it free for 7 days.

About the author:

David Goodloe
I'm a journalist by training. I grew up in Arkansas and earned my B.A. at the University of Arkansas. I earned my master's degree at the University of North Texas. My background includes stints at newspapers in Arkansas and Texas and teaching news writing and news editing to students at the University of Oklahoma and Richland College here in Dallas. I'm a writer/editor at GuruFocus.

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