Matthews China Fund's Strategic Moves: A Closer Look at BYD Co Ltd
Matthews China Fund (Trades, Portfolio) recently submitted its N-PORT filing for the second quarter of 2025, revealing strategic investment adjustments. Established in February 1998, the fund aims to achieve its investment objectives by allocating at least 80% of its net assets in Chinese companies' common and preferred stocks. The fund focuses on companies with sustainable growth potential, evaluating factors such as balance sheet strength, cash flow stability, management quality, and corporate governance. This disciplined approach aligns with the fund's long-term value investment philosophy.
Summary of New Buy
Matthews China Fund (Trades, Portfolio) added a total of three stocks to its portfolio during the second quarter of 2025. The most significant addition was CMOC Group Ltd (HKSE:03993), with 4,581,000 shares, accounting for 1.24% of the portfolio and valued at HK$4.68 million. The second largest addition was Hisense Home Appliances Group Co Ltd (HKSE:00921), consisting of 1,186,000 shares, representing approximately 0.86% of the portfolio, with a total value of HK$3.24 million. The third addition was Cambricon Technologies Corp Ltd (SHSE:688256), with 28,038 shares, accounting for 0.63% of the portfolio and valued at 2.36 million.
Key Position Increases
Matthews China Fund (Trades, Portfolio) also increased its stakes in nine stocks. The most notable increase was in BYD Co Ltd (HKSE:01211), with an additional 303,000 shares, bringing the total to 543,000 shares. This adjustment represents a significant 126.25% increase in share count, impacting the portfolio by 1.26%, with a total value of HK$8.45 million. The second largest increase was in Suzhou TFC Optical Communications Co Ltd (SZSE:300394), with an additional 165,900 shares, bringing the total to 377,916. This adjustment represents a 78.25% increase in share count, with a total value of 4.24 million.
Summary of Sold Out
Matthews China Fund (Trades, Portfolio) completely exited 10 holdings in the second quarter of 2025. Notable exits include Anjoy Foods Group Co Ltd (SHSE:603345), with the sale of all 295,500 shares, resulting in a -0.84% impact on the portfolio. Another significant exit was Shenzhen Mindray Bio-Medical Electronics Co Ltd (SZSE:300760), with the liquidation of all 83,814 shares, causing a -0.7% impact on the portfolio.
Key Position Reduces
Matthews China Fund (Trades, Portfolio) reduced its position in 13 stocks. The most significant reduction was in Guangdong Haid Group Co Ltd (SZSE:002311), with a decrease of 338,300 shares, resulting in a -69.17% decrease in shares and a -0.6% impact on the portfolio. The stock traded at an average price of 56.49 during the quarter, returning 3.14% over the past three months and 20.49% year-to-date. Another notable reduction was in PetroChina Co Ltd (HKSE:00857), with a decrease of 2,634,000 shares, resulting in a -26.56% reduction in shares and a -0.55% impact on the portfolio. The stock traded at an average price of HK$6.32 during the quarter, returning 26.27% over the past three months and 30.81% year-to-date.
Portfolio Overview
As of the second quarter of 2025, Matthews China Fund (Trades, Portfolio)'s portfolio included 63 stocks. The top holdings were 10.31% in Tencent Holdings Ltd (HKSE:00700), 7.69% in Alibaba Group Holding Ltd (HKSE:09988), 4.51% in China Construction Bank Corp (HKSE:00939), 4.2% in JD.com Inc (HKSE:09618), and 3.79% in PDD Holdings Inc (NASDAQ:PDD).
The holdings are mainly concentrated in 10 of the 11 industries: Consumer Cyclical, Financial Services, Communication Services, Technology, Industrials, Real Estate, Consumer Defensive, Healthcare, Basic Materials, and Energy.
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.
This article first appeared on GuruFocus.
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