China ETF Holdings Charts

Matthews China Discovery Active ETF MCHS

A stroll through the holdings of MCHS 0.00%↑

The fund has an average market cap of less than $4 billion, not far off from the iShares Small-Cap China’s ECNS 0.00%↑ $2 billion.

ECNS is among its main competitor funds and has outperformed MCHS since the latter’s inception.

The top holding is a mixed bag. Valuation-wise it’s a bit expensive, but market cap of US$7 billion for a cloud music provider in China seems not unreasonable. Spotify in the U.S. has a $145 billion market cap. The bear case: it’s basically a very small competitor to Tencent Music, which has far greater functionality given its integration into the company’s wider offerings. Can’t complain about the performance as a pick by the fund though: it’s up about 200 percent since being added in January 2024. A win for MCHS, but not a good stock to be adding for investors seeking Chinese buys.

Real estate:

Made in China hasn’t been kind to the more commodified end on the manufacturing industry. The number two holding in the fund is down nearly half since the 2021 market peak.

Tongcheng Travel. The price-to-earnings isn’t much cheaper than Cloud Music.

Another travel company, but instead of services it’s branded hotels.

Domino’s franchise in China:

Biotech runner:

Oil services:

Want to bet on China’s semiconductor market? Here’s one of the companies involved.

A logistics company, software program for trucking. Trades at 120x current earnings.

That’s the first ten of fifty-seven holdings…