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Asia-Focused US Investment Firm Expands China Fund Range

Vanessa Doctor Asia Correspondent 1 February 2013

Asia-Focused US Investment Firm Expands China Fund Range

Matthews Asia, the US-based investment specialist that is focused on Asia, has expanded its lineup with the launch of a new China fund.

The Matthews China Dividend Fund is part of the firm's Luxembourg-domiciled UCITS fund range and opens opportunities for investors to dabble in Chinese dividend-paying companies. The fund is designed to seek out well-positioned firms to grow future dividends while offering yields.

The number of dividend-paying companies in the Asia-Pacific region grew over the past year, particulary in China. In 2011, there were over 840 Chinese firms offering dividends against around 240 in 1998. The total dividend payout also went up from around $8 billion in 1998 to at least $72 billion in 2011.

"China's capital markets initially attracted investors for the growth potential, but the country's equity markets have evolved significantly over the past 10 years such that they have become among the largest and fastest-growing markets in Asia in terms of divident payments," said Yu Zhang, lead portfolio manager for Matthews Asia.

Matthews was established in Asia and is the largest Asia-only investment specialist in the US, recording $20.9 billion in assets under management as of 31 December 2012. To see a recent interview of this firm by this publication, click here.

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