Matthews Asia 3Q16 Letter To Shareholders

Matthews Asia 3Q16 Letter To Shareholders by Robert Horrocks, PhD

Dear Valued Investors,

Fiscal policy seems to be on everyone’s mind these days. There may be various reasons for this: one, the U.S. presidential election is upon us, and there is nothing like an election for bringing to the surface grandiose plans for government spending; two, there is a widespread belief (one that I don’t entirely share) that monetary policy has reached its limit and can do no more; and three, there is continued disappointment with the rate of global economic growth. This has spurred, in part, higher commodity prices and a rally in some of the region’s more cyclical sectors.