Matthews International Capital Management Q2 2026 Portfolio Activity: Significant Buys & Sells

Matthews International Capital Management Llc ("MIICM") reported significant portfolio activity for the period ending June 30, 2026. The total portfolio value stood at $284 million.

Major Purchases in Emerging Growth Companies

This quarter saw substantial buying by MIICM across several sectors:

• Technology Sector: They significantly increased their position in Full Truck Alliance Co Ltd (YMM) by approximately 609,468 shares (link). Kingsoft Cloud Holdings Ltd (KC) also experienced a massive increase of over 257,000 shares (link) and Grab Holdings Limited (G4124C109) saw substantial growth in its holding.
• Financial Services Sector: Acquisitions continued with notable increases in ITAU UNIBANCO HLDG S A (ITUB), QFIN HOLDINGS INC (QFIN), and HDFC BANK LTD (HDB). These additions reflect confidence in the financial services landscape.
• Communication Services & Consumer Cyclical: Kan Zhun Limited (BZ) and ACM RESH INC (ACMR) were added to the portfolio, while Full Truck Alliance Co Ltd (YMM) also benefited from a large purchase. These additions suggest diversification into different growth areas.

Strategic Sales of Mature Tech Stocks

In contrast to the aggressive buying in emerging companies, MIICM sold shares during Q2:

• Technology Sector: The sale of BIDU (Booking Holdings Inc) was highlighted as a significant sell. This exit from a major tech stock might indicate a strategic rebalancing or profit-taking approach.

Ongoing Positions and Smaller Changes

The investor maintained substantial positions in several core holdings:

• Technology Sector: United Microelectronics Corp (UMC) remained a significant portion of the portfolio, albeit with an increase this quarter.
• Consumer Cyclical Sector: Yum China Hldgs Inc (YUMC) and ACM RESH INC (ACMR) were also held, showing continuity in these areas.

Additionally, the investor made smaller adjustments to other holdings. For instance, they sold shares of China Yuchai Intl Ltd (CYD), ATATOUR LIFESTYLE HLDGS LTD (ATAT), and ICICI Bank Limited (IBN). Conversely, they purchased positions in XP Inc.

Portfolio Structure Insights

The portfolio is diversified across 8 sectors as of June 30th. Technology remains the largest sector allocation at approximately 43.8% ($124 million), followed by Consumer Cyclical (13.88%), Unknown (11.3%), Financial Services (9.91%), Healthcare (9.33%), Basic Materials, Communication Services, and Energy.

Overall, MIICM's Q2 activity indicates a focus on capitalizing on growth opportunities in emerging tech firms while strategically exiting some established technology positions like BIDU.