Insightful Portfolio Adjustments in Q2 2024 Spotlight Major Financial Player
Matthews China Fund (Trades, Portfolio), established in February 1998, focuses on investing primarily in Chinese companies with robust growth potential, as evidenced by their financial health and corporate governance, among other factors. The fund's strategy involves allocating at least 80% of its net assets in the stocks of companies located in China, aiming to capitalize on the region's dynamic economic landscape.
New Additions to the Portfolio
During the second quarter of 2024, Matthews China Fund (Trades, Portfolio) expanded its portfolio by adding 11 new stocks. Noteworthy among these was China Life Insurance Co Ltd (HKSE:02628, Financial), acquiring 4,654,000 shares valued at HK$6.57 billion, making up 1.59% of the portfolio. Following closely were Luxshare Precision Industry Co Ltd (SZSE:002475, Financial) and Foxconn Industrial Internet Co Ltd (SHSE:601138, Financial), which represented 1.09% and 1.01% of the portfolio, respectively.
Significant Increases in Existing Positions
The fund notably increased its stake in several key holdings. The standout was China Construction Bank Corp (HKSE:00939, Financial), where it added 13,126,000 shares, boosting its total holding to 26,949,000 shares. This move increased the bank's portfolio impact by 2.35% and represented a 94.96% rise in share count, with a total investment value of HK$19.92 billion. Another significant increase was in Will Semiconductor Co Ltd Shanghai (SHSE:603501, Financial), enhancing the share count by 33.53%.
Complete Exits from Certain Holdings
The fund also made decisive exits from nine holdings, including Wingtech Technology Co Ltd (SHSE:600745, Financial) and Shanghai International Airport Co Ltd (SHSE:600009, Financial), which previously impacted the portfolio by -1.72% and -1.17%, respectively.
Reductions in Portfolio Positions
Reductions were also prominent, with significant cuts in Focus Media Information Technology Co Ltd (SZSE:002027, Financial) and Luckin Coffee Inc (LKNCY, Financial), which saw reductions of 79.25% and 90.71% in shares, respectively. These adjustments significantly impacted the portfolio, reflecting the fund's strategic realignment.
Portfolio Overview and Sector Allocation
As of the second quarter of 2024, Matthews China Fund (Trades, Portfolio)'s portfolio comprised 61 stocks. Major holdings included Tencent Holdings Ltd (HKSE:00700, Financial), Alibaba Group Holding Ltd (HKSE:09988, Financial), and Meituan (HKSE:03690, Financial), with significant allocations in sectors like Consumer Cyclical and Financial Services.
This strategic portfolio adjustment by Matthews China Fund (Trades, Portfolio), particularly the increased stake in China Construction Bank Corp, highlights a focused investment approach towards companies poised for sustainable growth, aligning with the fund's long-term investment philosophy in the vibrant Chinese market.
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.
