Matthews China Discovery Fund (MCHS)

Overview

The Matthews China Discovery Active ETF is an exchange-traded fund designed to provide investors with exposure to the Chinese market, with a particular focus on small companies. By investing primarily in common and preferred stocks of these companies, the fund aims to achieve its investment objective. It mandates a significant portion of its net assets, at least 65%, to be dedicated to investments in small companies. Furthermore, the fund commits to investing at least 80% of its net assets in companies situated in China, including when leveraging borrowings for investment purposes. This focus on the Chinese market seeks to tap into the growth potential of its domestic enterprises. Despite the concentrated geographical and sectoral exposure, the Matthews China Discovery Active ETF is classified as non-diversified, which may affect its risk profile.

Products and Services

• Investment in Small Companies

  The Matthews China Discovery Active ETF invests at least 65% of its net assets in the common and preferred stocks of small companies. This strategy is designed to leverage the growth potential of small-cap markets in China, offering investors the opportunity to participate in the dynamism and innovation often characteristic of smaller enterprises.

• Focus on Chinese Companies

  At least 80% of the fund’s net assets, which includes funds borrowed for investment purposes, are invested in the common and preferred stocks of companies located in China. This geographical focus allows investors to gain exposure to the Chinese market, aiming to benefit from the economic growth and market developments in the region.