N-CSR

Matthews Asia Active ETFs | Annual Report

December 31, 2023 | matthewsasia.com

Matthews Emerging Markets Equity Active ETF (MEM)

Matthews Emerging Markets ex China Active ETF (MEMX)

Matthews Emerging Markets Sustainable Future Active ETF (EMSF)

Matthews Asia Innovators Active ETF (MINV)

Matthews Pacific Tiger Active ETF (ASIA)

Matthews China Active ETF (MCH)

Matthews India Active ETF (INDE)

Matthews Japan Active ETF (JPAN)

Matthews Korea Active ETF (MKOR)

Matthews Asia Dividend Active ETF (ADVE)

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Listed on the NYSE Arca

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Matthews Asia Active Exchange-Traded Funds (ETFs) are actively managed and do not seek to replicate a specific index. ETFs are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange. Brokerage commissions will reduce returns. There can be no guarantee that an active market for ETFs will develop or be maintained, or that the ETF’s listing will continue or remain unchanged.

ETF market price returns since inception are calculated using NAV for the period until market price becomes available (generally a few days after inception).

Investments are not FDIC-insured, nor are they deposits of, or guaranteed by, a bank or any other entity, so they may lose value.

This report has been prepared for Matthews International Funds (d/b/a Matthews Asia Funds) shareholders. It is not authorized for distribution to prospective investors unless accompanied or preceded by a current Matthews Asia Funds prospectus, which contains more complete information about the Funds’ investment objectives, risks and expenses. Additional copies of the prospectus or summary prospectus may be obtained at matthewsasia.com. Please read the prospectus carefully before you invest or send money.

The views and opinions in this report were current as of December 31, 2023. They are not guarantees of performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and the managers reserve the right to change their views about individual stocks, sectors and the markets at any time. As a result, the views expressed should not be relied upon as a forecast of a Fund’s future investment intent. Current and future portfolio holdings are subject to risk.

Statements of fact are from sources considered reliable, but neither the Funds nor the Investment Advisor makes any representation or guarantee as to their completeness or accuracy.


2		MATTHEWS ASIA FUNDS

Contents



Message to Shareholders from the President of Matthews Asia Funds			4

Message to Shareholders from the Investment Advisor			5

Fund Characteristics and Schedules of Investments:

Matthews Emerging Markets Equity Active ETF			7

Matthews Emerging Markets ex China Active ETF			11

Matthews Emerging Markets Sustainable Future Active ETF			15

Matthews Asia Innovators Active ETF			18

Matthews Pacific Tiger Active ETF			21

Matthews China Active ETF			23

Matthews India Active ETF			27

Matthews Japan Active ETF			30

Matthews Korea Active ETF			33

Matthews Asia Dividend Active ETF			37

Index Definitions			39

Disclosures			40

Disclosure of Fund Expenses			40

Statements of Assets and Liabilities			42

Statements of Operations			45

Statements of Changes in Net Assets			48

Financial Highlights			52

Notes to Financial Statements			62

1. Organization			62

2. Significant Accounting Policies			62

3. Capital Shares Transactions			65

4. Investment Management Fees			67

5. Investments			68

6. Income Tax Information			68

7. Other Matters			69

8. Subsequent Events			70

9. Report of Independent Registered Public Accounting Firm			71

10. Tax Information			72

11. Approval of Investment Management Agreement			74

12. Statement Regarding Liquidity Risk Management Program			86

13. Trustees and Officers of the Funds			87

Investment Risk: Exchange-Traded Fund shares are not deposits or obligations of, or guaranteed by, any depositary institution. Shares are not insured by the FDIC, Federal Reserve Board or any government agency and are subject to investment risks, including possible loss of principal amount invested. Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Fixed income investments are subject to additional risks, including, but not limited to, interest rate, credit and inflation risks. In addition, single-country and sector funds may be subject to a higher degree of market risk than diversified funds because of a concentration in a specific industry, sector or geographic location. Investing in small and mid-size companies is more risky than investing in large companies as they may be more volatile and less liquid than larger companies. Please see the Funds’ Prospectus and Statement of Additional Information for more risk disclosure.


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Message to Shareholders from the President of Your Funds

Dear Fellow Shareholder,

Thank you for your continued trust in Matthews as your active partner in a World of Emerging Opportunities.

I believe that Emerging Markets, Asia and China can offer investors important opportunity sets for returns and diversification. The Year of the Dragon may present unique prospects for investors willing to look beyond immediate-term volatility and headlines and focus on specific companies and the long-term growth potential of dynamic economies.

Emerging Markets

2023 was a volatile year for equity and fixed income markets around the world but Emerging Market economies remained resilient, with their central banks largely ahead of inflation and managing rates effectively. We saw renewed interest in India (digitalization and financialization, along with a Moon landing) and South Korea (technology and cultural leadership), as well as broader Emerging Market mandates. While China’s markets remained challenging as it emerged from COVID lockdowns—disappointing expectations for a sharp rebound and geopolitical ‘balloons’—quarterly financials of leading Chinese companies have begun to show encouraging results in both revenue and earnings. Meanwhile, small and mid caps outside of China performed well as investors looked into opportunities in companies that are less affected by regulatory and external concerns and are tied more directly to local economies. Asia’s developed markets, such as Japan, are also generating interest once again, driven by resilient earnings growth amid a tepid global macro economy.

As we look ahead, Emerging Markets and Asia—including India, Brazil, Mexico, Japan, Vietnam and the Gulf—remain attractive with increased opportunities for stock picking supported by risk awareness. Many of the markets we invest in offer compelling valuation and diversification potential. With deep investment experience in these markets and strong fundamental research capabilities, the importance of Matthews as an experienced and trusted guide remains paramount.

Matthews’ Active ETFs and the Power of Choice

Based on our history of providing investors with unique access to Emerging Markets, Asia and China, we further enhanced our leadership in Active ETFs during the year. Building upon the first of their kind suite of active ETFs focused on these regions, Matthews added nine Active ETFs through January 2024. This suite of 12 active, research-based ETF vehicles incorporate experienced insights, sustainability considerations, and our deep research to offer a range of investment opportunity in a new way.

These sophisticated investments incorporate deep understanding of markets and companies to build differentiated portfolios, providing investors with the ‘power of choice’ for investing—and fine-tuning exposures—in these dynamic markets.

Evolution…and Looking Forward

2023 was a year of dynamic changes, focused on the future. At the Funds’ Board of Trustees level, we bid farewell to Toshi Shibano as he retired as a Trustee. He has been replaced by industry veteran Neal Andrews who brings 35 years of experience in financial services, adding to the diverse perspectives and experience of your Board of Trustees, led by Board Chair Gale Caruso. Additionally, Sean Taylor succeeded Robert Horrocks, PhD, as Matthews’ Chief Investment Officer as of January 1, 2024, bringing a depth of intellectual knowledge and team management across Emerging Markets. We thank Toshi and Robert for their support—and Robert will continue as a portfolio manager on the Matthews Asian Growth and Income and the Matthews Asia Dividend Funds.

Looking forward, we will continue to maintain a thoughtful and opportunistic approach to identifying the most attractive long-term investment prospects and we remain steadfast in our research-based investment strategy.

We take seriously the stewardship of your assets and thank you for being a valued shareholder during what has been a tumultuous and challenging year. We look forward to the opportunities to come in the Lunar Year of the Dragon!

Cooper Abbott, CFA

President of the Matthews Asia Funds

Chief Executive Officer, Matthews International Capital Management, LLC


4		MATTHEWS ASIA FUNDS

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Message to Shareholders from the Investment Advisor

Dear Valued Shareholder,

At the start of 2023, much attention was devoted to China. Emerging later than most from COVID lockdowns, China was anticipated by investors to deliver a post-pandemic economic recovery similar to that of other markets. And yet they were to be disappointed. The magnitude of the miscalculation was not immediately evident. However, as the year continued, one disappointment followed the next and the stocks of major companies in China ground down, impacting markets and the relative performance of your portfolios to different degrees.

Many explanations have been given for China’s weak recovery: an interventionist regulatory environment; continued geopolitical risks; underlying lack of confidence among consumers and businesses; and perhaps even fears of a global recession. What seems undeniable is that the problems China encountered were largely domestic in nature and therefore its real problems were domestic as well. A remarkable feature of China’s economic recovery has been consumers ‘trading down’ to cheaper goods while interest rates fell, inflation subsided and unemployment, particularly youth unemployment, rose to a level where it seems the authorities were no longer comfortable publishing the figures.

Less Scrooge, more Ebeneezer

You can talk about geopolitical risks and other external headwinds but I think China’s woes have, to a significant extent, been self-inflicted. After seeing the rise in inflation in other countries after their COVID-related stimulus measures, China’s government declined to boost its own economy. It also continued moves to curb speculation in its housing market. Both decisions negatively impacted the economy significantly, in my view. The subsequent removal of many of the restrictions and rhetoric seeking to limit housing market activity is good news and may well have laid the ground for more effective stimulus measures. We shall see.

Other countries that your portfolios can invest in were less overly restrictive in their policy-making in 2023, in my opinion, preferring to be more Ebeneezer and less Scrooge. This meant that some saw inflation rates rise—India, Brazil, Mexico among them—in the immediate post-COVID period and thus spent much of the last year with elevated interest rates. And yet their domestic demand was strong and many emerging markets economies performed surprisingly well given that backdrop. The transient nature of inflation—another way of saying that a good portion was created by temporary supply-chain issues—meant that stimulus could also be withdrawn without great damage to their economies. The overall resilience of emerging markets in this rate-rise cycle, I believe, was a mixture of good policy choices made in the past and some good fortune in that the nature of the inflation problem made it inherently easier to treat.

While returns were hard to come by in 2023, there were some standout performances and India was one of them. Prime Minister Modi’s reforms are starting to bear fruit, and hopes of global supply chain realignments bringing more manufacturing export business to India are also cause for optimism even if results on the ground remain debatable. By the end of 2023, some of the blush looked to have come off the rose as falling nominal growth rates started to approach the level of interest rates on India’s government debt and this brought fiscal pressures back into focus. Still, the growth runway for India remains robust and compelling in our view.

Turning to another key market, Brazil has done almost as much to add to volatility as it has to returns over the past five years. However, it is not without its attractions. Valuations are reasonable and the central bank has been ahead of the curve in terms of tightening in the recent inflationary environment. It is likely to benefit, therefore, from falling inflation and, if the promise of recession-less disinflation bears out, the cyclicality of many of its business will not be the headwind that many fear.


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Japan has also done well though it did finish 2023 on comparatively high valuations. For close to 20 years, I have thought that Japan has needed inflation and I expect that global disinflationary conditions may slow its progress somewhat relative to other markets. Nevertheless, it remains home to world-class companies that will do well amid a weak yen.

Markets with opportunities

In terms of industry trends, semiconductors were a strong source of market excitement. In this segment, Asia has some top quality companies and they continued to perform well. As belief grows over some of the productivity-enhancing aspects of artificial intelligence (AI), chip companies can expect continued strong demand, I believe. AI, for now, can do routine work where compromises can be made on quality and originality and I can see how this could be a boon for developed markets where low-skilled tasks are costly. In the medium term, at least, this is less likely to be an opportunity in low-wage economies. Therefore, I see AI impacting our markets and our portfolios most positively in the areas of hardware and components rather than from the practical adoption of the technology.

It was also a strong year for smaller companies. Smaller-scale businesses tend to do well in reflationary environments and that has been the case in this cycle. At Matthews, we have always had a tilt toward smaller companies because of the greater entrepreneurship they embody relative to their less commercial (or sometimes commercial but over-regulated) large-cap competitors. I would expect this to be a tilt that continues in the future.

At the same time as small caps rallied, value companies also picked up. Value-stock rallies are often correlated with a rebound in cyclical names in the financial and raw materials industries. Perhaps nowhere was this effect more noticeable than in Japan where its large trading companies had stellar performances. In a relative sense, this detracted from performance in some cases as your portfolios are typically weighted more toward secular growth.

In 2024, concerns over China’s weak recovery and the struggles of its many former mega-cap leaders will undoubtedly remain. The year, however, also holds the possibility of being one of many changes. Hong Kong, for example, has been hit hard—by the weak demand in China and by the fact that due to its fixed exchange rate, its interest rates must rise in the face of such economic weakness, precisely the opposite of what economic common sense dictates. As the U.S. enters a downward rate cycle, it could be positioned for a reversal in fortune.

And beyond China we also have solid grounds for optimism. India’s outlook appears sound, key markets in Latin America are in good shape, and emerging markets, particularly in Asia, will likely become ever more embedded in secular trends like AI. Navigating these opportunities will demand flexibility and a continued focus on companies adept at plotting their own course for growth. In all cases, we shall place emphasis on finding good businesses for the long term.

Finally, as of January 1st, I am stepping down from my CIO responsibilities. What a privilege it has been to work with my colleagues on your behalf. But I felt it was time for a change. We have all—myself, Cooper, and many other colleagues on the investment team and in other departments—worked together to find Sean Taylor to take over the role. He has all the experience needed to run and grow a successful Emerging Markets and Asian team and will strive to achieve good performance in your portfolios. I remain at Matthews to continue to do my bit as a Portfolio Manager in that effort.

Robert Horrocks, PhD

Chief Investment Officer

Matthews International Capital Management, LLC


6		MATTHEWS ASIA FUNDS

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PORTFOLIO MANAGERS

Alex Zarechnak
Lead Manager

Sean Taylor		Andrew Mattock, CFA
Co-Manager		Co-Manager

Peeyush Mittal, CFA		Jeremy Sutch, CFA
Co-Manager		Co-Manager

FUND FACTS

Ticker		MEM
CUSIP		577125818
Inception Date		07/13/22
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$28.24
Market Price (as of 12/31/23)		$28.27
# of Positions		55
Net Assets		$55.9 million
Portfolio Turnover		54.86%
Weight Average Market Cap		$116.2 billion
Benchmark
MSCI Emerging Markets Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

Under normal circumstances, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe.

Matthews Emerging Markets Equity Active ETF (unaudited)

FUND INSIGHTS

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The top three contributors to absolute performance during the year included Prologis Property Mexico, a Mexican real estate company, Taiwan Semiconductor Manufacturing , a Taiwanese information technology company, and Samsung Electronics, a South Korean information technology company.

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The largest detractors to performance during the year included JD.com, a Chinese consumer discretionary company, First Quantum Minerals, a Zambian materials company, and AIA Group, a Hong Kong financials company.

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The top three contributors to relative performance, on a country basis, were Mexico, due to an overweight allocation, China/Hong Kong, because of an underweight allocation, and Vietnam, due to an off-benchmark allocation.

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The top three detractors to relative performance, on a country basis, were India and South Korea due to stock selection, and Taiwan due to an underweight position.

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The top three contributors to relative performance, on a sector basis, were real estate, consumer staples and financials due to stock selection.

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The top three detractors to relative performance, on a sector basis, were consumer discretionary, energy and health care due to stock selection.



PERFORMANCE AS OF DECEMBER 31, 2023
					Average Annual Total Returns
	3 Months		1 Year		Since Inception		Inception date
Emerging Markets Equity Active ETF (NAV)¹		7.26%		7.51%		9.05%		07/13/22
Emerging Markets Equity Active ETF (market price)		7.54%		6.93%		9.12%
MSCI Emerging Markets Index²		7.93%		10.27%		6.83%

Performance assumes reinvestment of all dividends and/or distributions before taxes. All performance quoted represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate with market conditions so that when sold, shares may be worth more or less than their original cost. For the Fund’s most recent month-end performance visit matthewsasia.com.

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION

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Plotted Monthly. The performance data and graph do not reflect the deduction of taxes that a shareholder would pay on dividends, capital gain distributions or redemption of Fund shares. Values are in US$.

The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 39 for index definition.


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TOP TEN HOLDINGS³
Name	Sector	Country	% Net Assets
Samsung Electronics Co., Ltd., Pfd.	Information Technology	South Korea		6.0%
Taiwan Semiconductor Manufacturing Co., Ltd.	Information Technology	Taiwan		5.4%
Prologis Property Mexico SA de CV REIT	Real Estate	Mexico		4.2%
Tencent Holdings, Ltd.	Communication Services	China		3.9%
HDFC Bank, Ltd. ADR	Financials	India		3.5%
Banco BTG Pactual SA	Financials	Brazil		2.7%
FPT Corp.	Information Technology	Vietnam		2.6%
ICICI Bank, Ltd. ADR	Financials	India		2.4%
Infosys, Ltd. ADR	Information Technology	India		2.4%
Woodside Energy Group, Ltd.	Energy	Australia		2.4%
% OF ASSETS IN TOP 10				35.6%

Holdings may combine more than one security from same issuer and related depositary receipts.



COUNTRY ALLOCATION (%)^4,5
India			16.6
China/Hong Kong			15.5
Brazil			11.0
Mexico			9.2
South Korea			7.4
Taiwan			6.7
United States			5.5
Vietnam			4.7
France			3.6
Philippines			2.6
Australia			2.4
Indonesia			2.2
United Kingdom			2.0
United Arab Emirates			2.0
Poland			2.0
Kazakhstan			1.5
Switzerland			1.4
Saudi Arabia			1.0
Cash and Other Assets, Less Liabilities			2.7



SECTOR ALLOCATION (%)⁵
Financials			24.2
Information Technology			22.0
Consumer Discretionary			14.8
Materials			10.2
Energy			5.8
Real Estate			5.3
Consumer Staples			4.4
Industrials			4.2
Communication Services			3.9
Health Care			2.4
Cash and Other Assets, Less Liabilities			2.7



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			58.1
Large Cap ($10B-$25B)			12.2
Mid Cap ($3B-10B)			20.6
Small Cap (under $3B)			6.4
Cash and Other Assets, Less Liabilities			2.7

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.


8		Matthews Emerging Markets Equity Active ETF

Matthews Emerging Markets Equity Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 91.3%


	Shares		Value

INDIA: 16.6%
HDFC Bank, Ltd. ADR		29,004		$1,946,458

ICICI Bank, Ltd. ADR		57,408		1,368,607

Infosys, Ltd. ADR		73,964		1,359,458

UltraTech Cement, Ltd.		8,002		1,009,994

Indian Hotels Co., Ltd.		166,548		877,335

PI Industries, Ltd.		17,987		759,976

Restaurant Brands Asia, Ltd.^a		555,025		745,692

Varun Beverages, Ltd.		41,433		615,866

Kotak Mahindra Bank, Ltd.		25,326		580,728

Total India				9,264,114



CHINA/HONG KONG: 15.5%
Tencent Holdings, Ltd.		58,600		2,203,349

AIA Group, Ltd.		126,200		1,099,809

H World Group, Ltd. ADR		27,976		935,517

JD.com, Inc. Class A		63,450		914,142

Midea Group Co., Ltd. A Shares		115,800		891,988

Yum China Holdings, Inc.		17,958		761,958

BYD Co., Ltd. A Shares		26,400		734,095

Innovent Biologics, Inc.^a,b,c		83,500		457,143

Shenzhen Mindray Bio-Medical Electronics Co., Ltd. A Shares		9,600		391,787

PDD Holdings, Inc. ADR^a		1,854		271,259

Midea Group Co., Ltd. A Shares		2,600		19,947

Total China/Hong Kong				8,680,994



BRAZIL: 11.0%
Banco BTG Pactual SA		191,500		1,482,690

Armac Locacao Logistica E Servicos SA		246,300		864,504

Vale SA ADR		53,989		856,266

Vinci Partners Investments, Ltd. Class A		74,862		819,739

WEG SA		83,700		635,986

PRIO SA		65,600		621,887

Hapvida Participacoes e Investimentos SA^a,b,c		567,700		520,064

NU Holdings, Ltd. Class A^a		39,159		326,195

Total Brazil				6,127,331



MEXICO: 9.2%
Prologis Property Mexico SA de CV REIT		494,800		2,359,391

GCC SAB de CV		91,700		1,083,429

Grupo Financiero Banorte SAB de CV Class O		91,500		922,645

Becle SAB de CV		386,200		758,740

Total Mexico				5,124,205



TAIWAN: 6.7%
Taiwan Semiconductor Manufacturing Co., Ltd.		157,000		3,033,545

Taiwan Semiconductor Manufacturing Co., Ltd. ADR		7,031		731,224

Total Taiwan				3,764,769



UNITED STATES: 5.5%
Globant SA^a		5,232		1,245,111

Applied Materials, Inc.		7,072		1,146,159

Freeport-McMoRan, Inc.		15,534		661,283

Total United States				3,052,553


	Shares		Value

VIETNAM: 4.7%
FPT Corp.		362,505		$1,435,856

Military Commercial Joint Stock Bank		933,105		717,270

HDBank		589,818		493,500

Total Vietnam				2,646,626



FRANCE: 3.6%
TotalEnergies SE ADR		19,603		1,320,850

LVMH Moet Hennessy Louis Vuitton SE		851		689,626

Total France				2,010,476



PHILIPPINES: 2.6%
Ayala Corp.		66,720		820,520

Wilcon Depot, Inc.		1,711,200		645,853

Total Philippines				1,466,373



AUSTRALIA: 2.4%
Woodside Energy Group, Ltd.		62,602		1,326,774

Total Australia				1,326,774



INDONESIA: 2.2%
PT Bank Rakyat Indonesia Persero Tbk		3,302,200		1,227,843

Total Indonesia				1,227,843



UNITED KINGDOM: 2.0%
Prudential PLC		100,727		1,139,226

Total United Kingdom				1,139,226



UNITED ARAB EMIRATES: 2.0%
Emaar Properties PJSC		273,456		589,687

Fertiglobe PLC		660,263		533,927

Total United Arab Emirates				1,123,614



POLAND: 2.0%
Dino Polska SA^a,b,c		9,462		1,108,562

Total Poland				1,108,562



KAZAKHSTAN: 1.5%
Kaspi.KZ JSC GDR^c		9,011		829,012

Total Kazakhstan				829,012



SOUTH KOREA: 1.4%
LG Chem, Ltd.		2,059		797,765

Total South Korea				797,765



SWITZERLAND: 1.4%
Cie Financiere Richemont SA Class A		5,633		774,692

Total Switzerland				774,692



SAUDI ARABIA: 1.0%
Bupa Arabia for Cooperative Insurance Co.		9,841		559,494

Total Saudi Arabia				559,494



TOTAL COMMON EQUITIES				51,024,423

(Cost $48,557,535)


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Matthews Emerging Markets Equity Active ETF

December 31, 2023

Schedule of Investments (continued)

PREFERRED EQUITIES: 6.0%


	Shares		Value

SOUTH KOREA: 6.0%
Samsung Electronics Co., Ltd., Pfd.		69,481		$3,361,027

Total South Korea				3,361,027



TOTAL PREFERRED EQUITIES				3,361,027

(Cost $2,808,273)


SHORT-TERM INVESTMENTS: 2.0%

MONEY MARKET FUNDS: 2.0%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^d		1,107,780		1,107,780

(Cost $1,107,780)


TOTAL INVESTMENTS: 99.3%				55,493,230
(Cost $52,473,588)


CASH AND OTHER ASSETS, LESS LIABILITIES: 0.7%				413,783


NET ASSETS: 100.0%				$55,907,013

a	Non-income producing security.

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. The security may be resold in transactions exempt from registration normally to qualified institutional buyers. The security has been determined to be liquid in accordance with procedures adopted by the Funds’ Board of Trustees. At December 31, 2023, the aggregate value is $2,085,769, which is 3.73% of net assets.

c	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

d	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

GDR	Global Depositary Receipt

JSC	Joint Stock Co.

Pfd.

Preferred

PJSC	Public Joint Stock Co.

REIT	Real Estate Investment Trust

See accompanying notes to financial statements.


10		Matthews Emerging Markets Equity Active ETF

LOGO


PORTFOLIO MANAGERS

Alex Zarechnak
Lead Manager

Sean Taylor		Peeyush Mittal, CFA
Co-Manager		Co-Manager

Jeremy Sutch, CFA
Co-Manager

FUND FACTS

Ticker		MEMX
CUSIP		577125792
Inception Date		01/10/23
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$27.60
Market Price (as of 12/31/23)		$27.74
# of Positions		47
Net Assets		$8.8 million
Portfolio Turnover		28.64%
Weight Average Market Cap		$114.4 billion
Benchmark
MSCI Emerging Markets ex China Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

Under normal circumstances, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in emerging market countries excluding China. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe.

Matthews Emerging Markets ex China Active ETF

(unaudited)

FUND INSIGHTS

•

The Matthews Emerging Markets ex China Active ETF launched on January 10, 2023.

•

The top three contributors to absolute performance during the period included Taiwan Semiconductor Manufacturing, a Taiwanese information technology company, Prologis Property Mexico, a Mexican real estate company, and Banco BTG Pactual, a Brazilian financials company.

•

The largest detractors to performance during the year included First Quantum Minerals, a Zambian Materials company, Prudential, a United Kingdom financials company, and Wilcon Depot, a Philippines consumer discretionary company.

•

The top three contributors to relative performance, on a country basis, were Vietnam, because of an off-benchmark allocation, Mexico, due to an overweight position, and South Africa, due to a zero allocation.

•

The top three detractors to relative performance, on a country basis were India due to stock selection, and the United Kingdom and Singapore, due to off-benchmark allocations.

•

The top three contributors to relative performance, on a sector basis, were real estate and financials due to stock selection and communication services because of an underweight allocation.

•

The top three detractors to relative performance, on a sector basis, were energy, consumer discretionary and industrials due to stock selection.



PERFORMANCE AS OF DECEMBER 31, 2023
			Actual Return, Not Annualized
	3 Months		Since Inception		Inception date
Emerging Markets ex China Active ETF (NAV)¹		9.88%		11.68%		01/10/23
Emerging Markets ex China Active ETF (market price)		10.25%		12.23%
MSCI Emerging Markets ex China Index²		13.12%		15.73%

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION

LOGO

It is not possible to invest directly in an index. Source: Index data from Morgan Stanley Capital International; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 39 for index definition.


				matthewsasia.com \| 833.228.5605			11



TOP TEN HOLDINGS³
Name	Sector	Country	% Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	Information Technology	Taiwan		9.6%
Samsung Electronics Co., Ltd., Pfd.	Information Technology	South Korea		6.5%
Prologis Property Mexico SA de CV REIT	Real Estate	Mexico		4.3%
HDFC Bank, Ltd. ADR	Financials	India		3.9%
Infosys, Ltd. ADR	Information Technology	India		3.0%
Banco BTG Pactual SA	Financials	Brazil		3.0%
Woodside Energy Group, Ltd.	Energy	Australia		2.7%
TotalEnergies SE ADR	Energy	France		2.7%
FPT Corp.	Information Technology	Vietnam		2.6%
ICICI Bank, Ltd. ADR	Financials	India		2.6%
% OF ASSETS IN TOP 10				40.8%

Holdings may combine more than one security from same issuer and related depositary receipts.



COUNTRY ALLOCATION (%)^4,5
India			19.8
Brazil			12.9
Mexico			9.8
South Korea			9.6
Taiwan			9.6
United States			5.9
Vietnam			4.4
France			4.0
Philippines			3.2
Australia			2.7
United Arab Emirates			2.6
Indonesia			2.3
Poland			2.3
United Kingdom			2.3
Kazakhstan			1.6
Switzerland			1.5
Chile			1.2
Saudi Arabia			1.2
Turkey			1.0
Cash and Other Assets, Less Liabilities			2.2



SECTOR ALLOCATION (%)⁵
Information Technology			26.4
Financials			24.5
Materials			12.7
Consumer Discretionary			9.3
Consumer Staples			6.8
Energy			6.5
Real Estate			5.7
Industrials			4.6
Health Care			1.1
Cash and Other Assets, Less Liabilities			2.2



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			55.4
Large Cap ($10B-$25B)			13.2
Mid Cap ($3B-10B)			22.1
Small Cap (under $3B)			7.1
Cash and Other Assets, Less Liabilities			2.2

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.


12		Matthews Emerging Markets ex China Active ETF

Matthews Emerging Markets ex China Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 91.3%


	Shares		Value

INDIA: 19.8%
HDFC Bank, Ltd. ADR		5,139		$344,878

Infosys, Ltd. ADR		14,611		268,550

ICICI Bank, Ltd. ADR		9,551		227,696

UltraTech Cement, Ltd.		1,504		189,831

Indian Hotels Co., Ltd.		29,957		157,806

Restaurant Brands Asia, Ltd.^a		100,225		134,655

PI Industries, Ltd.		3,124		131,994

Kotak Mahindra Bank, Ltd.		4,882		111,945

Varun Beverages, Ltd.		6,594		98,014

Hindustan Unilever, Ltd.		2,709		86,724

Total India				1,752,093



BRAZIL: 12.9%
Banco BTG Pactual SA		34,300		265,568

Vale SA ADR		10,272		162,914

Vinci Partners Investments, Ltd. Class A		13,537		148,230

Armac Locacao Logistica E Servicos SA		41,200		144,611

WEG SA		15,400		117,015

PRIO SA		10,800		102,384

Hapvida Participacoes e Investimentos SA^a,b,c		106,800		97,838

NU Holdings, Ltd. Class A^a		11,718		97,611

Total Brazil				1,136,171



MEXICO: 9.8%
Prologis Property Mexico SA de CV REIT		79,000		376,701

GCC SAB de CV		16,200		191,402

Grupo Financiero Banorte SAB de CV Class O		16,200		163,354

Becle SAB de CV		66,700		131,041

Total Mexico				862,498



TAIWAN: 9.6%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		8,122		844,688

Total Taiwan				844,688



UNITED STATES: 5.9%
Globant SA^a		945		224,891

Applied Materials, Inc.		1,212		196,429

Freeport-McMoRan, Inc.		2,416		102,849

Total United States				524,169



VIETNAM: 4.4%
FPT Corp.		57,620		228,229

Military Commercial Joint Stock Bank		121,080		93,073

HDBank		76,600		64,091

Total Vietnam				385,393



FRANCE: 4.0%
TotalEnergies SE ADR		3,504		236,099

LVMH Moet Hennessy Louis Vuitton SE		145		117,504

Total France				353,603



PHILIPPINES: 3.2%
Ayala Corp.		11,980		147,330


	Shares		Value

Wilcon Depot, Inc.		355,600		$134,213

Total Philippines				281,543



SOUTH KOREA: 3.1%
Kia Corp.		1,885		146,362

LG Chem, Ltd.		339		131,347

Total South Korea				277,709



AUSTRALIA: 2.7%
Woodside Energy Group, Ltd.		11,244		238,303

Total Australia				238,303



UNITED ARAB EMIRATES: 2.6%
Emaar Properties PJSC		60,090		129,579

Fertiglobe PLC		125,041		101,116

Total United Arab Emirates				230,695



INDONESIA: 2.3%
PT Bank Rakyat Indonesia Persero Tbk		546,200		203,091

Total Indonesia				203,091



POLAND: 2.3%
Dino Polska SA^a,b,c		1,701		199,288

Total Poland				199,288



UNITED KINGDOM: 2.2%
Prudential PLC		17,594		198,989

Total United Kingdom				198,989



KAZAKHSTAN: 1.6%
Kaspi.KZ JSC GDR^c		1,525		140,300

Total Kazakhstan				140,300



SWITZERLAND: 1.5%
Cie Financiere Richemont SA Class A		978		134,502

Total Switzerland				134,502



CHILE: 1.2%
Antofagasta PLC		5,130		109,835

Total Chile				109,835



SAUDI ARABIA: 1.2%
Bupa Arabia for Cooperative Insurance Co.		1,806		102,677

Total Saudi Arabia				102,677



TURKEY: 1.0%
BIM Birlesik Magazalar AS		8,579		87,361

Total Turkey				87,361



TOTAL COMMON EQUITIES				8,062,908

(Cost $7,299,198)


				matthewsasia.com \| 833.228.5605			13

Matthews Emerging Markets ex China Active ETF

December 31, 2023

Schedule of Investments (continued)

PREFERRED EQUITIES: 6.5%


	Shares		Value

SOUTH KOREA: 6.5%
Samsung Electronics Co., Ltd., Pfd.		11,842		$572,837

Total South Korea				572,837



TOTAL PREFERRED EQUITIES				572,837

(Cost $515,185)


SHORT-TERM INVESTMENTS: 2.0%

MONEY MARKET FUNDS: 2.0%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^d		177,061		177,061

(Cost $177,061)


TOTAL INVESTMENTS: 99.8%				8,812,806
(Cost $7,991,444)


CASH AND OTHER ASSETS, LESS LIABILITIES: 0.2%				18,483


NET ASSETS: 100.0%				$8,831,289

a	Non-income producing security.

c	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

d	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

GDR	Global Depositary Receipt

JSC	Joint Stock Co.

Pfd.

Preferred

PJSC	Public Joint Stock Co.

REIT	Real Estate Investment Trust

See accompanying notes to financial statements.


14		Matthews Emerging Markets ex China Active ETF

LOGO


PORTFOLIO MANAGERS

Vivek Tanneeru
Lead Manager

Inbok Song
Co-Manager

FUND FACTS

Ticker		EMSF
CUSIP		577130628
Inception Date		09/21/23
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$25.74
Market Price (as of 12/31/23)		$25.79
# of Positions		56
Net Assets		$14.2 million
Portfolio Turnover		0.37%
Weight Average Market Cap		$19.0 billion
Benchmark
MSCI Emerging Markets Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

Under normal circumstances, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies of any market capitalization located in emerging market countries that satisfy one or more of the Fund’s environmental, social and governance (“ESG”) standards. Emerging market countries generally include every country in the world except the United States, Australia, Canada, Hong Kong, Israel, Japan, New Zealand, Singapore and most of the countries in Western Europe.

3	Holdings may combine more than one security from same issuer and related depositary receipts.

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Matthews Emerging Markets Sustainable Future Active ETF (unaudited)



PERFORMANCE AS OF DECEMBER 31, 2023
			Actual Return, Not Annualized
	3 months		Since Inception		Inception date
Emerging Markets Sustainable Future Active ETF (NAV)¹		2.17%		2.98%		09/21/23
Emerging Markets Sustainable Future Active ETF (market price)		2.20%		3.18%
MSCI Emerging Markets Index²		7.93%		7.61%



TOP TEN HOLDINGS³
Name	Sector	Country	% Net Assets
Shriram Finance, Ltd.	Financials	India		6.8%
Bandhan Bank, Ltd.	Financials	India		6.4%
JD Health International, Inc.	Consumer Staples	China		5.4%
Full Truck Alliance Co., Ltd. ADR	Industrials	China		5.1%
Meituan Class B	Consumer Discretionary	China		4.4%
Legend Biotech Corp. ADR	Health Care	China		4.0%
Samsung SDI Co., Ltd.	Information Technology	South Korea		3.8%
Hong Kong Exchanges & Clearing, Ltd.	Financials	Hong Kong		3.7%
YDUQS Participacoes SA	Consumer Discretionary	Brazil		3.7%
Micron Technology, Inc.	Information Technology	United States		3.6%
% OF ASSETS IN TOP 10				47.0%



COUNTRY ALLOCATION (%)^4,5
China/Hong Kong			41.1
India			20.2
Taiwan			9.5
South Korea			7.9
Brazil			7.7
United States			3.6
Poland			3.2
Saudi Arabia			2.6
Romania			1.3
Jordan			1.1
Chile			0.7
Estonia			0.7
Vietnam			0.1
Bangladesh			0.1
Cash and Other Assets, Less Liabilities			0.1



SECTOR ALLOCATION (%)⁵
Financials			24.9
Information Technology			22.7
Industrials			16.2
Consumer Discretionary			11.7
Health Care			9.0
Consumer Staples			7.1
Communication Services			4.7
Real Estate			2.1
Utilities			1.5
Cash and Other Assets, Less Liabilities			0.1



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			22.3
Large Cap ($10B-$25B)			15.7
Mid Cap ($3B-10B)			40.6
Small Cap (under $3B)			21.4
Cash and Other Assets, Less Liabilities			0.1


				matthewsasia.com \| 833.228.5605			15

Matthews Emerging Markets Sustainable Future Active ETF

December 31, 2023

Schedule of Investments^a

COMMON EQUITIES: 99.5%


	Shares		Value

CHINA/HONG KONG: 41.1%
JD Health International, Inc.^b,c,d		153,950		$770,879

Full Truck Alliance Co., Ltd. ADR^c		102,617		719,345

Meituan Class B^b,c,d		59,400		623,017

Legend Biotech Corp. ADR^c		9,493		571,194

Hong Kong Exchanges & Clearing, Ltd.		15,400		528,549

Airtac International Group		11,000		362,001

Lam Research Corp.		407		318,787

Zhihu, Inc. ADR^c		322,873		302,338

Medlive Technology Co., Ltd.^b,d		236,500		256,836

Contemporary Amperex Technology Co., Ltd. A Shares		9,900		226,986

Silergy Corp.		11,000		179,209

Flat Glass Group Co., Ltd. H Shares		102,000		172,165

Ginlong Technologies Co., Ltd. A Shares		16,500		161,974

Innovent Biologics, Inc.^b,c,d		22,000		120,445

Hangzhou Tigermed Consulting Co., Ltd. A Shares		11,000		84,918

Wuxi Biologics Cayman, Inc.^b,c,d		22,000		83,396

OPT Machine Vision Tech Co., Ltd. A Shares		4,499		70,765

Centre Testing International Group Co., Ltd. A Shares		35,200		70,477

Zhejiang HangKe Technology, Inc. Co. A Shares		21,329		70,332

China Conch Venture Holdings, Ltd.		82,500		68,463

Morimatsu International Holdings Co., Ltd.^c,d		66,000		46,488

WuXi XDC Cayman, Inc.^c		520		2,131

Total China/Hong Kong				5,810,695



INDIA: 20.2%
Shriram Finance, Ltd.		38,729		955,639

Bandhan Bank, Ltd.^b,d		312,794		907,404

Indus Towers, Ltd.^c		152,524		364,842

Phoenix Mills, Ltd.		10,494		283,071

Mahindra & Mahindra, Ltd.		10,901		226,551

UNO Minda, Ltd.		10,230		84,537

Marico, Ltd.		5,411		35,666

Total India				2,857,710



TAIWAN: 9.5%
Andes Technology Corp.		22,000		344,080

Elite Material Co., Ltd.		22,000		273,831

M31 Technology Corp.		6,000		207,230

Poya International Co., Ltd.		11,000		197,846

Sporton International, Inc.		22,000		172,757

Formosa Sumco Technology Corp.		22,000		120,787

AP Memory Technology Corp.		2,000		30,563

Total Taiwan				1,347,094



BRAZIL: 7.7%
YDUQS Participacoes SA		114,400		528,007

B3 SA - Brasil Bolsa Balcao		152,900		457,982

NU Holdings, Ltd. Class A^c		12,760		106,291

Total Brazil				1,092,280



SOUTH KOREA: 7.5%
Samsung SDI Co., Ltd.		1,462		535,805

Eugene Technology Co., Ltd.		7,370		233,478


	Shares		Value

Solus Advanced Materials Co., Ltd.		7,304		$150,288

Ecopro BM Co., Ltd.		594		132,830

LG Energy Solution, Ltd.^c		22		7,303

Total South Korea				1,059,704



UNITED STATES: 3.6%
Micron Technology, Inc.		6,015		513,320

Total United States				513,320



POLAND: 3.2%
InPost SA^c		17,963		248,333

Jeronimo Martins SGPS SA		8,074		205,493

Total Poland				453,826



SAUDI ARABIA: 2.6%
Saudi Tadawul Group Holding Co.		7,623		373,222

Total Saudi Arabia				373,222



ROMANIA: 1.3%
Banca Transilvania SA		34,716		187,008

Total Romania				187,008



JORDAN: 1.1%
Hikma Pharmaceuticals PLC		6,721		153,280

Total Jordan				153,280



CHILE: 0.8%
Aguas Andinas SA Class A		324,797		105,850

Total Chile				105,850



ESTONIA: 0.7%
Enefit Green AS		25,443		99,944

Total Estonia				99,944



VIETNAM: 0.1%
Nam Long Investment Corp.		12,600		19,034

Total Vietnam				19,034



BANGLADESH: 0.1%
BRAC Bank PLC		17,844		5,447

GrameenPhone, Ltd.		1,302		3,103

Total Bangladesh				8,550



TOTAL COMMON EQUITIES				14,081,517

(Cost $13,460,189)


PREFERRED EQUITIES: 0.4%

SOUTH KOREA: 0.4%
Samsung SDI Co., Ltd., Pfd.		341		65,134

Total South Korea				65,134



TOTAL PREFERRED EQUITIES				65,134

(Cost $61,975)


16		Matthews Emerging Markets Sustainable Future Active ETF

Matthews Emerging Markets Sustainable Future Active ETF

December 31, 2023

Schedule of Investments^a (continued)

SHORT-TERM INVESTMENTS: 0.2%


	Shares		Value

MONEY MARKET FUNDS: 0.2%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^e		26,961		$26,961

(Cost $26,961)


TOTAL INVESTMENTS: 100.1%				14,173,612
(Cost $13,549,125)


LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS: (0.1%)				(19,013	)


NET ASSETS: 100.0%				$14,154,599

a	Certain securities were fair valued under the valuation policies approved by the Board of Trustees (Note 2-A).

c	Non-income producing security.

d	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

e	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

Pfd.

Preferred

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			17

LOGO


PORTFOLIO MANAGERS

Michael J. Oh, CFA
Lead Manager

Inbok Song
Co-Manager

FUND FACTS

Ticker		MINV
CUSIP		577125826
Inception Date		07/13/22
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$23.56
Market Price (as of 12/31/23)		$23.41
# of Positions		49
Net Assets		$84.8 million
Portfolio Turnover		277.86%
Weight Average Market Cap		$188.3 billion
Benchmark
MSCI AC Asia ex Japan Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

Under normal circumstances, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia ex Japan that Matthews believes are innovators in their products, services, processes, business models, management, use of technology, or approach to creating, expanding or servicing their markets. Asia ex Japan consists of all countries and markets in Asia excluding Japan, including developed, emerging, and frontier countries and markets in the Asia region.

Matthews Asia Innovators Active ETF (unaudited)

FUND INSIGHTS

•

The top three contributors to absolute performance during the year included PDD Holdings, a Chinese consumer discretionary company, Alchip Technologies, a Taiwanese information technology company, and Samsung Electronics, a South Korean information technology company.

•

The largest detractors to performance during the year included Meituan, a Chinese consumer discretionary company, Wuxi Biologics, a Chinese health care company, and Kuaishou Technology, a Chinese communication services company.

•

The top three contributors to relative performance, on a country basis, were United States due to an off-benchmark allocation, Thailand due to underweight allocation and Malaysia due to zero allocation.

•

The top three detractors to relative performance, on a country basis, were China/Hong Kong, India and South Korea due to stock selection.

•

The top three contributors to relative performance, on a sector basis, were real estate due to stock selection, information technology due to overweight allocation and stock selection and utilities due to zero allocation.

•

The top three detractors to relative performance, on a sector basis, were communication services and health care due to stock selection and consumer discretionary due to overweight allocation.



PERFORMANCE AS OF DECEMBER 31, 2023
					Average Annual Total Returns
	3 Months		YTD		Since Inception		Inception date
Asia Innovators Active ETF (NAV)¹		6.00%		-1.83%		-3.30%		07/13/22
Asia Innovators Active ETF (market price)		5.89%		-2.66%		-3.72%
MSCI AC Asia ex Japan Index²		6.48%		6.34%		3.25%

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION

LOGO


18		Matthews Asia Innovators Active ETF



TOP TEN HOLDINGS³
Name	Sector	Country	% Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd.	Information Technology	Taiwan		9.0%
Samsung Electronics Co., Ltd.	Information Technology	South Korea		7.5%
PDD Holdings, Inc. ADR	Consumer Discretionary	China		7.1%
NVIDIA Corp.	Information Technology	United States		3.5%
PT Bank Rakyat Indonesia Persero Tbk	Financials	Indonesia		3.5%
ICICI Bank, Ltd.	Financials	India		3.4%
Axis Bank, Ltd.	Financials	India		3.4%
SK Hynix, Inc.	Information Technology	South Korea		3.2%
Reliance Industries, Ltd.	Energy	India		3.1%
Zomato, Ltd.	Consumer Discretionary	India		2.9%
% OF ASSETS IN TOP 10				46.7%

Holdings may combine more than one security from same issuer and related depositary receipts.



COUNTRY ALLOCATION (%)^4,5
China/Hong Kong			32.5
India			25.2
Taiwan			14.9
South Korea			13.9
United States			5.0
Indonesia			3.5
Hong Kong			2.1
Netherlands			1.9
Brazil			1.1
Cash and Other Assets, Less Liabilities			2.1



SECTOR ALLOCATION (%)⁵
Information Technology			32.9
Consumer Discretionary			25.3
Financials			18.3
Industrials			7.1
Communication Services			5.8
Energy			3.1
Health Care			3.0
Consumer Staples			1.2
Real Estate			1.0
Cash and Other Assets, Less Liabilities			2.1



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			72.0
Large Cap ($10B-$25B)			14.1
Mid Cap ($3B-10B)			11.6
Small Cap (under $3B)			0.2
Cash and Other Assets, Less Liabilities			2.1

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.


				matthewsasia.com \| 833.228.5605			19

Matthews Asia Innovators Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 97.9%


	Shares		Value

CHINA/HONG KONG: 32.5%

PDD Holdings, Inc. ADR^a		41,360		$6,051,382

Alibaba Group Holding, Ltd.		246,900		2,390,410

AIA Group, Ltd.		208,600		1,817,909

Tencent Holdings, Ltd.		41,400		1,556,632

Trip.com Group, Ltd. ADR^a		35,977		1,295,532

WuXi AppTec Co., Ltd. A Shares		126,500		1,292,607

Shenzhen Mindray Bio-Medical Electronics Co., Ltd. A Shares		31,500		1,285,552

Meituan Class B^a,b,c		120,900		1,268,060

Full Truck Alliance Co., Ltd. ADR^a		177,854		1,246,757

Contemporary Amperex Technology Co., Ltd. A Shares		49,000		1,123,464

Shenzhen Inovance Technology Co., Ltd. A Shares		115,500		1,024,165

Kanzhun, Ltd. ADR		60,394		1,003,144

BYD Co., Ltd. H Shares		36,000		988,455

Zhejiang Shuanghuan Driveline Co., Ltd. A Shares		240,600		879,197

KE Holdings, Inc. ADR		53,970		874,854

MINISO Group Holding, Ltd. ADR		41,795		852,618

DiDi Global, Inc.^a		206,083		814,028

New Oriental Education & Technology Group, Inc. ADR^a		9,597		703,268

Tencent Music Entertainment Group ADR^a		72,799		655,919

NAURA Technology Group Co., Ltd. A Shares		12,600		434,787

Total China/Hong Kong				27,558,740



INDIA: 25.2%

ICICI Bank, Ltd.		244,205		2,924,693

Axis Bank, Ltd.		216,860		2,872,660

Reliance Industries, Ltd.		84,358		2,620,495

Zomato, Ltd.^a		1,657,568		2,464,030

HDFC Bank, Ltd.		114,352		2,348,844

Mahindra & Mahindra, Ltd.		84,426		1,754,594

Godrej Consumer Products, Ltd.		76,845		1,044,624

Indian Hotels Co., Ltd.		194,228		1,023,146

ABB India, Ltd.		17,667		992,511

Titan Co., Ltd.		19,463		859,657

Bajaj Finance, Ltd.		9,407		828,374

Cummins India, Ltd.		34,274		808,910

HDFC Life Insurance Co., Ltd.^b,c		103,338		803,097

Total India				21,345,635



TAIWAN: 14.9%

Taiwan Semiconductor Manufacturing Co., Ltd.		396,000		7,651,488

Alchip Technologies, Ltd.		17,000		1,814,079

Accton Technology Corp.		54,000		920,220

Unimicron Technology Corp.		146,000		837,262

Wiwynn Corp.		14,000		832,505

Lotes Co., Ltd.		12,000		418,371

M31 Technology Corp.		5,000		172,692

Total Taiwan				12,646,617



SOUTH KOREA: 13.9%

Samsung Electronics Co., Ltd.		104,392		6,362,895

SK Hynix, Inc.		24,575		2,700,025


	Shares		Value

NAVER Corp.		10,022		$1,743,092

Kia Corp.		12,447		966,457

Total South Korea				11,772,469



UNITED STATES: 5.0%

NVIDIA Corp.		5,986		2,964,387

Applied Materials, Inc.		7,724		1,251,828

Total United States				4,216,215



INDONESIA: 3.5%

PT Bank Rakyat Indonesia Persero Tbk		7,968,200		2,962,781

Total Indonesia				2,962,781



NETHERLANDS: 1.8%

ASML Holding NV		2,091		1,582,720

Total Netherlands				1,582,720



BRAZIL: 1.1%

NU Holdings, Ltd. Class A^a		111,730		930,711

Total Brazil				930,711



TOTAL COMMON EQUITIES				83,015,888

(Cost $70,816,737)


SHORT-TERM INVESTMENTS: 0.7%

MONEY MARKET FUNDS: 0.7%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^d		579,144		579,144

(Cost $579,144)


TOTAL INVESTMENTS: 98.6%				83,595,032
(Cost $71,395,881)


CASH AND OTHER ASSETS, LESS LIABILITIES: 1.4%				1,214,371



NET ASSETS: 100.0%				$84,809,403

a	Non-income producing security.

c	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

d	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

See accompanying notes to financial statements.


20		Matthews Asia Innovators Active ETF

LOGO


PORTFOLIO MANAGERS

Sean Taylor		Inbok Song
Lead Manager		Lead Manager

Winnie Chwang		Andrew Mattock, CFA
Co-Manager		Co-Manager

Peeyush Mittal, CFA		Jeremy Sutch, CFA
Co-Manager		Co-Manager



FUND FACTS

Ticker		ASIA
CUSIP		577130578
Inception Date		09/21/23
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$25.33
Market Price (as of 12/31/23)		$25.44
# of Positions		52
Net Assets		$79.8 million
Portfolio Turnover		12.07%
Weight Average Market Cap		$139.4 billion
Benchmark
MSCI AC Asia ex Japan Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

Under normal circumstances, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in the common and preferred stocks of companies located in Asia ex Japan, which consists of all countries and markets in Asia excluding Japan, but including all other developed, emerging and frontier countries and markets in the Asian region.

3	Holdings may combine more than one security from same issuer and related depositary receipts.

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Matthews Pacific Tiger Active ETF (unaudited)



PERFORMANCE AS OF DECEMBER 31, 2023
			Actual Return, Not Annualized
	3 months		Since Inception		Inception date
Pacific Tiger Active ETF (NAV)¹		1.85%		1.44%		09/21/23
Pacific Tiger Active ETF (market price)		2.21%		1.88%
MSCI AC Asia ex Japan Index²		6.48%		6.39%



TOP TEN HOLDINGS³
Name	Country	Sector	% Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	Taiwan	Information Technology		8.8%
Samsung Electronics Co., Ltd.	South Korea	Information Technology		8.8%
Tencent Holding, Ltd.	China	Communication Services		4.5%
Central Pattana Public Co., Ltd.	Thailand	Real Estate		3.7%
ICICI Bank, Ltd. ADR	India	Financials		3.1%
Titan Co., Ltd.	India	Consumer Discretionary		3.1%
HDFC Bank, Ltd. ADR	India	Financials		3.0%
Alibaba Group Holding, Ltd. ADR	China	Consumer Discretionary		2.9%
PT Bank Central Asia Tbk	Indonesia	Financials		2.8%
CITIC Securities Co., Ltd. H Shares	China	Financials		2.5%
% OF ASSETS IN TOP 10				43.0%



COUNTRY ALLOCATION (%)^4,5
China/Hong Kong			36.8
India			19.8
Taiwan			19.0
South Korea			13.3
Thailand			3.7
Indonesia			2.8
Philippines			2.0
Singapore			1.5
Vietnam			0.9
Cash and Other Assets, Less Liabilities			0.2



SECTOR ALLOCATION (%)⁵
Information Technology			28.3
Financials			19.4
Consumer Discretionary			12.1
Real Estate			9.5
Communication Services			9.2
Consumer Staples			8.1
Industrials			6.4
Materials			3.3
Utilities			1.9
Health Care			1.7
Cash and Other Assets, Less Liabilities			0.2



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			62.6
Large Cap ($10B-$25B)			19.5
Mid Cap ($3B-10B)			17.6
Small Cap (under $3B)			0.0
Cash and Other Assets, Less Liabilities			0.2


				matthewsasia.com \| 833.228.5605			21

Matthews Pacific Tiger Active ETF

December 31, 2023

Schedule of Investments^a

COMMON EQUITIES: 99.8%


	Shares		Value

CHINA/HONG KONG: 36.8%

Tencent Holdings, Ltd.		94,500		$3,553,182

Alibaba Group Holding, Ltd. ADR		30,343		2,351,886

CITIC Securities Co., Ltd. H Shares		976,500		1,993,380

AIA Group, Ltd.		226,800		1,976,518

KE Holdings, Inc. ADR		109,116		1,768,770

Shenzhen Inovance Technology Co., Ltd. A Shares		195,300		1,731,770

Hong Kong Exchanges & Clearing, Ltd.		50,400		1,729,796

Kweichow Moutai Co., Ltd. A Shares		6,300		1,527,090

Yum China Holdings, Inc.		35,073		1,488,147

Shenzhen Mindray Bio-Medical Electronics Co., Ltd. A Shares		33,300		1,359,012

China Resources Mixc Lifestyle Services, Ltd.^b,c		365,400		1,303,237

China Resources Beer Holdings Co., Ltd.		288,000		1,261,387

China Tourism Group Duty Free Corp., Ltd. A Shares		81,900		962,589

Will Semiconductor Co., Ltd. Shanghai A Shares		63,000		944,124

Contemporary Amperex Technology Co., Ltd. A Shares		37,800		866,673

Tencent Music Entertainment Group ADR^d		91,556		824,920

Kuaishou Technology^b,c,d		119,700		811,689

Shandong Sinocera Functional Material Co., Ltd. A Shares		239,400		777,312

StarPower Semiconductor, Ltd. A Shares		25,200		640,564

Meituan Class B^b,c,d		55,400		581,063

Kanzhun, Ltd. ADR		32,940		547,133

ENN Energy Holdings, Ltd.		50,400		371,132

WuXi XDC Cayman, Inc.^d		120		492

Total China/Hong Kong				29,371,866



INDIA: 19.8%

ICICI Bank, Ltd. ADR		103,572		2,469,157

Titan Co., Ltd.		55,503		2,451,500

HDFC Bank, Ltd. ADR		35,112		2,356,366

Pidilite Industries, Ltd.		56,196		1,833,564

Tata Consultancy Services, Ltd.		39,128		1,783,697

Ashok Leyland, Ltd.		616,455		1,344,939

Tata Power Co., Ltd.		285,516		1,139,645

Dabur India, Ltd.		146,186		978,863

Tata Consumer Products, Ltd.		63,664		831,474

Mahindra & Mahindra, Ltd.		30,601		635,969

Total India				15,825,174



TAIWAN: 19.0%

Taiwan Semiconductor Manufacturing Co., Ltd. ADR		67,479		7,017,816

Chailease Holding Co., Ltd.		252,000		1,584,725

MediaTek, Inc.		43,000		1,422,101

E Ink Holdings, Inc.		181,000		1,161,825

Eclat Textile Co., Ltd.		63,000		1,153,647

Accton Technology Corp.		63,000		1,073,590

Uni-President Enterprises Corp.		361,000		876,313

Delta Electronics, Inc.		63,000		643,538

ASE Technology Holding Co., Ltd.		58,000		255,128

Total Taiwan				15,188,683



SOUTH KOREA: 13.3%

Samsung Electronics Co., Ltd.		115,026		7,011,057

NAVER Corp.		9,111		1,584,645


	Shares		Value

Samsung Engineering Co., Ltd.^d		52,101		$1,173,173

Orion Corp.		9,180		827,547

Total South Korea				10,596,422



THAILAND: 3.7%

Central Pattana Public Co., Ltd.		1,436,400		2,921,888

Total Thailand				2,921,888



INDONESIA: 2.8%

PT Bank Central Asia Tbk		3,604,200		2,200,395

Total Indonesia				2,200,395



PHILIPPINES: 2.0%

SM Prime Holdings, Inc.		2,624,100		1,559,059

Total Philippines				1,559,059



SINGAPORE: 1.5%

DBS Group Holdings, Ltd.		47,700		1,208,140

Total Singapore				1,208,140



VIETNAM: 0.9%

FPT Corp.		151,900		601,664
Vietnam Dairy Products JSC		53,100		147,950

Total Vietnam				749,614



TOTAL COMMON EQUITIES				79,621,241

(Cost $76,623,537)


SHORT-TERM INVESTMENTS: 4.7%

MONEY MARKET FUNDS: 4.7%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^e		3,771,939		3,771,939

(Cost $3,771,939)


TOTAL INVESTMENTS: 104.5%				83,393,180
(Cost $80,395,476)


LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS: (4.5%)				(3,604,029	)



NET ASSETS: 100.0%				$79,789,151

a	Certain securities were fair valued under the valuation policies approved by the Board of Trustees (Note 2-A).

c	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

d	Non-income producing security.

e	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

JSC	Joint Stock Co.

See accompanying notes to financial statements.


22		Matthews Pacific Tiger Active ETF

LOGO


PORTFOLIO MANAGERS

Andrew Mattock, CFA
Lead Manager

Winnie Chwang		Sherwood Zhang, CFA
Co-Manager		Co-Manager

FUND FACTS

Ticker		MCH
CUSIP		577125834
Inception Date		07/13/22
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$19.07
Market Price (as of 12/31/23)		$19.04
# of Positions		51
Net Assets		$21.7 million
Portfolio Turnover		58.98%
Weight Average Market Cap		$101 billion
Benchmark
MSCI China Index
MSCI China All Shares Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

Matthews China Active ETF (unaudited)

FUND INSIGHTS

•

The top three contributors to absolute performance during the year included PDD Holdings, a consumer discretionary company, Beijing Kingsoft Office Software, an information technology company, and Tencent Music Entertainment Group, a communication services company.

•

The largest detractors to performance during the year included Meituan and JD.com, a consumer discretionary company and CIFI Holdings (Group), a real estate company.

•

The top three contributors to relative performance, on a sector basis, were materials due to an underweight allocation, and information technology and consumer staples due to stock selection.

•

The top three detractors to relative performance, on a sector basis, were real estate and consumer discretionary due to stock selection and communication services due to an underweight allocation.



PERFORMANCE AS OF DECEMBER 31, 2023
					Average Annual Total Returns
	3 Months		1 Year		Since Inception		Inception date
China Active ETF (NAV)¹		-5.23%		-19.35%		-15.89%		07/13/22
China Active ETF (market price)		-5.68%		-19.92%		-16.00%
MSCI China Index²		-4.21%		-11.04%		-12.49%
MSCI China All Shares Index²		-3.81%		-11.35%		-13.90%

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION

LOGO


				matthewsasia.com \| 833.228.5605			23



TOP TEN HOLDINGS³
	Sector
Tencent Holdings, Ltd.	Communication Services	8.9%
Alibaba Group Holding, Ltd.	Consumer Discretionary	7.8%
PDD Holdings, Inc. ADR	Consumer Discretionary	7.2%
JD.com, Inc. Class A	Consumer Discretionary	4.6%
CITIC Securities Co., Ltd. H Shares	Financials	4.4%
China Merchants Bank Co., Ltd. A Shares	Financials	4.2%
KE Holdings, Inc. ADR	Real Estate	4.0%
Meituan Class B	Consumer Discretionary	3.7%
China International Capital Corp., Ltd. H Shares	Financials	3.3%
China Construction Bank Corp. H Shares	Financials	2.1%
% OF ASSETS IN TOP 10		50.1%

Holdings may combine more than one security from same issuer and related depositary receipts.



COUNTRY ALLOCATION (%)^4,5
China/Hong Kong			99.4
Cash and Other Assets, Less Liabilities			0.6



SECTOR ALLOCATION (%)⁴
Consumer Discretionary			33.9
Financials			18.9
Communication Services			15.4
Consumer Staples			6.7
Industrials			6.5
Real Estate			5.7
Information Technology			5.3
Health Care			4.2
Energy			1.8
Utilities			0.9
Cash and Other Assets, Less Liabilities			0.6



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			63.8
Large Cap ($10B-$25B)			24.3
Mid Cap ($3B-10B)			7.3
Small Cap (under $3B)			3.9
Cash and Other Assets, Less Liabilities			0.6

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.


24		Matthews China Active ETF

Matthews China Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 99.4%


	Shares		Value

CONSUMER DISCRETIONARY: 34.0%
Broadline Retail: 19.7%

Alibaba Group Holding, Ltd.		175,400		$1,698,169

PDD Holdings, Inc. ADR^a		10,728		1,569,614

JD.com, Inc. Class A		70,050		1,009,230

				4,277,013


Hotels, Restaurants & Leisure: 8.9%

Meituan Class B^a,b,c		77,010		807,719

Galaxy Entertainment Group, Ltd.		74,000		414,610

Yum China Holdings, Inc.		6,253		265,315

Trip.com Group, Ltd. ADR^a		6,871		247,425

Luckin Coffee, Inc. ADR^a		7,418		202,363

				1,937,432


Household Durables: 3.1%

Midea Group Co., Ltd. A Shares		47,400		363,658

Man Wah Holdings, Ltd.		436,000		298,724

				662,382


Diversified Consumer Services: 0.8%
China Education Group Holdings, Ltd.^c		292,000		183,235


Automobiles: 0.8%
Yadea Group Holdings, Ltd.^b,c		92,000		161,648


Specialty Retail: 0.7%
China Tourism Group Duty Free Corp., Ltd. A Shares		13,300		156,318

Total Consumer Discretionary				7,378,028



FINANCIALS: 18.9%
Capital Markets: 9.3%

CITIC Securities Co., Ltd. H Shares		463,500		946,167

China International Capital Corp., Ltd. H Shares^b,c		483,600		709,742

Hong Kong Exchanges & Clearing, Ltd.		6,300		216,225

East Money Information Co., Ltd. A Shares		80,040		157,818

				2,029,952

Banks: 6.3%

China Merchants Bank Co., Ltd. A Shares		233,500		912,278

China Construction Bank Corp. H Shares		756,000		450,199

				1,362,477

Insurance: 3.3%

Ping An Insurance Group Co. of China, Ltd. H Shares		87,000		393,857

PICC Property & Casualty Co., Ltd. H Shares		266,000		316,125

				709,982

Total Financials				4,102,411



COMMUNICATION SERVICES: 15.4%
Interactive Media & Services: 11.5%

Tencent Holdings, Ltd.		51,400		1,932,630

Kuaishou Technology^a,b,c		50,400		341,764

Baidu, Inc. Class A^a		15,300		227,485

				2,501,879


Entertainment: 2.0%

Tencent Music Entertainment Group ADR^a		47,295		426,128


	Shares		Value
Media: 1.9%

Focus Media Information Technology Co., Ltd. A Shares		478,911		$425,065

Total Communication Services				3,353,072



CONSUMER STAPLES: 6.7%
Beverages: 4.3%

Wuliangye Yibin Co., Ltd. A Shares		18,700		368,480

Tsingtao Brewery Co., Ltd. H Shares		46,000		308,687

Shanxi Xinghuacun Fen Wine Factory Co., Ltd. A Shares		8,100		262,466

				939,633


Consumer Staples Distribution & Retail: 1.3%

JD Health International, Inc.^a,b,c		54,600		273,400


Food Products: 1.1%

Guangdong Haid Group Co., Ltd. A Shares		38,600		243,452

Total Consumer Staples				1,456,485



INDUSTRIALS: 6.5%
Electrical Equipment: 3.3%

Contemporary Amperex Technology Co., Ltd. A Shares		16,300		373,724

Sungrow Power Supply Co., Ltd. A Shares		29,100		357,957

				731,681


Machinery: 2.1%

Shenzhen Inovance Technology Co., Ltd. A Shares		30,600		271,337

Estun Automation Co., Ltd. A Shares		68,600		179,096

				450,433


Transportation Infrastructure: 1.1%

Shanghai International Airport Co., Ltd. A Shares^a		51,252		235,941

Total Industrials				1,418,055



REAL ESTATE: 5.7%
Real Estate Management & Development: 5.7%

KE Holdings, Inc. ADR		53,212		862,567

Country Garden Services Holdings Co., Ltd.		224,000		193,634

CIFI Holdings Group Co., Ltd.^a		3,718,000		121,417

Times China Holdings, Ltd.^a		1,790,000		59,601

Total Real Estate				1,237,219



INFORMATION TECHNOLOGY: 5.3%
Electronic Equipment, Instruments & Components: 2.4%

Wingtech Technology Co., Ltd. A Shares^a		46,800		278,081

SUPCON Technology Co., Ltd. A Shares		36,470		232,272

				510,353


Semiconductors & Semiconductor Equipment: 1.5%

NAURA Technology Group Co., Ltd. A Shares		5,887		203,142

Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. A Shares		21,503		133,145

				336,287


				matthewsasia.com \| 833.228.5605			25

Matthews China Active ETF

December 31, 2023

Schedule of Investments (continued)

COMMON EQUITIES (continued)


	Shares		Value
Software: 1.4%

Shanghai Baosight Software Co., Ltd. A Shares		44,256		$303,302

Total Information Technology				1,149,942



HEALTH CARE: 4.2%
Health Care Equipment & Supplies: 1.9%

Shenzhen Mindray Bio-Medical Electronics Co., Ltd. A Shares		10,000		408,112


Life Sciences Tools & Services: 1.4%

Wuxi Biologics Cayman, Inc.^a,b,c		80,500		305,153

WuXi XDC Cayman, Inc.^a		153		627

				305,780


Health Care Providers & Services: 0.9%

Sinopharm Group Co., Ltd. H Shares		78,000		204,276

Total Health Care				918,168



ENERGY: 1.8%
Oil, Gas & Consumable Fuels: 1.8%

PetroChina Co., Ltd. H Shares		602,000		397,810

Total Energy				397,810



UTILITIES: 0.9%
Gas Utilities: 0.9%

ENN Energy Holdings, Ltd.		27,400		201,766

Total Utilities				201,766



TOTAL COMMON EQUITIES				21,612,956

(Cost $28,176,536)


SHORT-TERM INVESTMENTS: 0.5%

MONEY MARKET FUNDS: 0.5%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^d		106,564		106,564

(Cost $106,564)


TOTAL INVESTMENTS: 99.9%				21,719,520
(Cost $28,283,100)


CASH AND OTHER ASSETS, LESS LIABILITIES: 0.1%				17,680


NET ASSETS: 100.0%				$21,737,200

a	Non-income producing security.

c	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

d	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

See accompanying notes to financial statements.


26		Matthews China Active ETF

LOGO


PORTFOLIO MANAGERS

Peeyush Mittal, CFA
Lead Manager

Swagato Ghosh
Co-Manager

FUND FACTS

Ticker		INDE
CUSIP		577130610
Inception Date		09/21/23
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$27.00
Market Price (as of 12/31/23)		$27.03
# of Positions		60
Net Assets		$5.9 million
Portfolio Turnover		14.97%
Weight Average Market Cap		$44.1 billion
Benchmark
S&P Bombay Stock Exchange 100 Index MSCI India Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

4	Holdings may combine more than one security from same issuer and related depositary receipts.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Matthews India Active ETF (unaudited)



PERFORMANCE AS OF DECEMBER 31, 2023
			Actual Return, Not Annualized
	3 months		Since Inception		Inception date
India Active ETF (NAV)¹		8.48%		8.00%		09/21/23
India Active ETF (market price)		9.34%		8.12%
S&P Bombay Stock Exchange 100 Index²		11.38%		10.89%
MSCI India Index³		11.98%		11.59%

It is not possible to invest directly in an index. Source: Index data from S&P BSE 100 Index and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 39 for index definition.



TOP TEN HOLDINGS⁴
Name	Sector	% Net Assets
HDFC Bank, Ltd.	Financials		6.1%
ICICI Bank, Ltd.	Financials		5.2%
Reliance Industries, Ltd.	Energy		4.7%
Shriram Finance, Ltd.	Financials		4.5%
Neuland Laboratories, Ltd.	Health Care		4.2%
Infosys, Ltd.	Information Technology		4.0%
IndusInd Bank, Ltd.	Financials		3.3%
Axis Bank, Ltd.	Financials		3.2%
Tata Consultancy Services, Ltd.	Information Technology		3.2%
Titan Co., Ltd.	Consumer Discretionary		2.3%
% OF ASSETS IN TOP 10			40.7%



COUNTRY ALLOCATION (%)⁵
India			100.7
Liabilities in Excess of Cash and Other Assets			-0.7



SECTOR ALLOCATION (%)⁵
Financials			33.4
Information Technology			15.4
Consumer Discretionary			12.0
Industrials			11.2
Health Care			10.6
Consumer Staples			9.1
Energy			4.7
Materials			4.1
Communication Services			0.2
Liabilities in Excess of Cash and Other Assets			-0.7



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			41.5
Large Cap ($10B-$25B)			15.4
Mid Cap ($3B-10B)			24.3
Small Cap (under $3B)			19.6
Liabilities in Excess of Cash and Other Assets			-0.7


				matthewsasia.com \| 833.228.5605			27

Matthews India Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 100.7%


	Shares		Value

FINANCIALS: 33.4%
Banks: 22.5%
HDFC Bank, Ltd.		17,527		$360,013

ICICI Bank, Ltd.		25,868		309,805

IndusInd Bank, Ltd.		10,054		193,187

Axis Bank, Ltd.		14,562		192,897

Kotak Mahindra Bank, Ltd.		5,197		119,168

Federal Bank, Ltd.		62,610		117,487

Bandhan Bank, Ltd.^a,b		15,343		44,510

				1,337,067


Consumer Finance: 9.4%
Shriram Finance, Ltd.		10,818		266,934

Bajaj Finance, Ltd.		1,333		117,383

Cholamandalam Investment and Finance Co., Ltd.		6,407		96,998

Mahindra & Mahindra Financial Services, Ltd.		22,033		73,264

				554,579


Insurance: 1.5%
PB Fintech, Ltd.^c		6,546		62,511

HDFC Life Insurance Co., Ltd.^a,b		3,465		26,928

				89,439

Total Financials				1,981,085



INFORMATION TECHNOLOGY: 15.4%
IT Services: 12.5%
Infosys, Ltd.		12,722		235,884

Tata Consultancy Services, Ltd.		4,198		191,371

LTIMindtree, Ltd.^a,b		1,176		88,962

Persistent Systems, Ltd.		999		88,711

Coforge, Ltd.		977		73,667

HCL Technologies, Ltd.		3,655		64,395

				742,990


Software: 1.9%
Newgen Software Technologies, Ltd.		6,037		113,338


Electronic Equipment, Instruments & Components: 1.0%

Kaynes Technology India, Ltd.^c		987		30,964

Syrma SGS Technology, Ltd.		3,692		29,771

				60,735

Total Information Technology				917,063



CONSUMER DISCRETIONARY: 12.0%
Automobiles: 5.0%
Bajaj Auto, Ltd.		1,364		111,417

TVS Motor Co., Ltd.		4,499		109,526

Maruti Suzuki India, Ltd.		599		74,160

				295,103


Automobile Components: 2.5%

Sona Blw Precision Forgings, Ltd.^a,b		8,536		66,112

Divgi Torqtransfer Systems, Ltd.		3,229		38,057

Alicon Castalloy, Ltd.		2,809		29,324

Dynamatic Technologies, Ltd.		239		14,684

				148,177


	Shares		Value
Textiles, Apparel & Luxury Goods: 2.3%
Titan Co., Ltd.		3,145		$138,911

Hotels, Restaurants & Leisure: 1.5%
Restaurant Brands Asia, Ltd.^c		44,264		59,470

Lemon Tree Hotels, Ltd.^a,b,c		20,668		29,767

				89,237


Specialty Retail: 0.7%
Shankara Building Products, Ltd.		4,921		42,206

Total Consumer Discretionary				713,634



INDUSTRIALS: 11.2%
Machinery: 4.7%
Cummins India, Ltd.		5,020		118,479

Thermax, Ltd.		2,664		98,651

Ashok Leyland, Ltd.		28,114		61,337

				278,467


Electrical Equipment: 2.1%
Bharat Heavy Electricals, Ltd.		53,628		124,735


Construction & Engineering: 1.7%
Sterling and Wilson Renewable Energy, Ltd.^b,c		10,921		56,742

Voltas, Ltd.		3,807		44,759

				101,501


Transportation Infrastructure: 1.5%
Gujarat Pipavav Port, Ltd.		48,037		88,352


Professional Services: 1.2%
Latent View Analytics, Ltd.^c		13,340		72,949

Total Industrials				666,004



HEALTH CARE: 10.6%
Pharmaceuticals: 5.5%
Neuland Laboratories, Ltd.		3,960		251,809

Sun Pharmaceutical Industries, Ltd.		4,968		75,191

				327,000


Life Sciences Tools & Services: 2.0%
Syngene International, Ltd.^a,b		7,080		59,681

Divi’s Laboratories, Ltd.		1,210		56,766

				116,447


Health Care Equipment & Supplies: 1.9%
Poly Medicure, Ltd.		6,333		113,389


Health Care Providers & Services: 1.2%
Metropolis Healthcare, Ltd.^a,b		3,506		70,705

Total Health Care				627,541



CONSUMER STAPLES: 9.1%
Food Products: 4.8%
Britannia Industries, Ltd.		1,992		127,794

Nestle India, Ltd.		396		126,491

Tata Consumer Products, Ltd.		2,434		31,789

				286,074


Personal Care Products: 4.3%
Hindustan Unilever, Ltd.		3,794		121,458

Godrej Consumer Products, Ltd.		5,236		71,178


28		Matthews India Active ETF

Matthews India Active ETF

December 31, 2023

Schedule of Investments (continued)

COMMON EQUITIES (continued)


	Shares		Value

Honasa Consumer, Ltd.^c		9,100		$48,204

Bajaj Consumer Care, Ltd.		5,848		15,433

				256,273

Total Consumer Staples				542,347



ENERGY: 4.7%
Oil, Gas & Consumable Fuels: 4.7%
Reliance Industries, Ltd.		8,921		277,122

Total Energy				277,122



MATERIALS: 4.1%
Chemicals: 2.2%
PI Industries, Ltd.		1,584		66,926

Asian Paints, Ltd.		1,506		61,577

				128,503


Metals & Mining: 1.2%
APL Apollo Tubes, Ltd.		3,944		72,838


Construction Materials: 0.7%
Ramco Cements, Ltd.		3,467		42,512

Total Materials				243,853



COMMUNICATION SERVICES: 0.2%
Diversified Telecommunication Services: 0.2%
HFCL, Ltd.		14,286		14,447

Total Communication Services				14,447



TOTAL INVESTMENTS: 100.7%				5,983,096
(Cost $5,499,236)


LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS: (0.7%)				(43,183	)


NET ASSETS: 100.0%				$5,939,913

b	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

c	Non-income producing security.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			29

LOGO


PORTFOLIO MANAGERS

Shuntaro Takeuchi		Donghoon Han
Lead Manager		Lead Manager

FUND FACTS

Ticker		JPAN
CUSIP		577130594
Inception Date		09/21/23
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$26.31
Market Price (as of 12/31/23)		$26.29
# of Positions		42
Net Assets		$1.1 million
Portfolio Turnover		45.53%
Weight Average Market Cap		$51.0 billion
Benchmark
MSCI Japan Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

4	Holdings may combine more than one security from same issuer and related depositary receipts.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Matthews Japan Active ETF (unaudited)



PERFORMANCE AS OF DECEMBER 31, 2023
			Actual Return, Not Annualized
	3 months		Since Inception		Inception date
Japan Active ETF (NAV)¹		8.48%		5.79%		09/21/23
Japan Active ETF (market price)		8.31%		5.71%
MSCI Japan index²		8.22%		5.01%



TOP TEN HOLDINGS³
	Sector
Shin-Etsu Chemical Co., Ltd.	Materials	5.6%
Sony Group Corp.	Consumer Discretionary	4.5%
Keyence Corp.	Information Technology	4.2%
Tokio Marine Holdings, Inc.	Financials	4.0%
Renesas Electronics Corp.	Information Technology	3.4%
Hitachi, Ltd.	Industrials	3.4%
Tokyo Electron, Ltd.	Information Technology	3.4%
Ajinomoto Co., Inc.	Consumer Staples	2.9%
FUJIFILM Holdings Corp.	Information Technology	2.9%
NEC Corp.	Information Technology	2.8%
% OF ASSETS IN TOP 10		37.2%



COUNTRY ALLOCATION (%)^4,5
Japan			93.9
Cash and Other Assets, Less Liabilities			6.1



SECTOR ALLOCATION (%)⁵
Information Technology			21.1
Consumer Discretionary			20.3
Industrials			19.1
Financials			10.6
Materials			6.1
Health Care			5.1
Consumer Staples			4.9
Communication Services			4.1
Real Estate			2.6
Cash and Other Assets, Less Liabilities			6.1



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			50.5
Large Cap ($10B-$25B)			26.2
Mid Cap ($3B-10B)			14.4
Small Cap (under $3B)			2.7
Cash and Other Assets, Less Liabilities			6.1


30		Matthews Japan Active ETF

Matthews Japan Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 93.9%


	Shares		Value

INFORMATION TECHNOLOGY: 21.1%
Semiconductors & Semiconductor Equipment: 9.2%
Renesas Electronics Corp.^a		2,000		$36,161

Tokyo Electron, Ltd.		200		35,828

Disco Corp.		100		24,812

				96,801


IT Services: 4.4%
NEC Corp.		500		29,614

OBIC Co., Ltd.		100		17,233

				46,847


Electronic Equipment, Instruments & Components: 4.2%
Keyence Corp.		100		44,063


Technology Hardware, Storage & Peripherals: 2.9%
FUJIFILM Holdings Corp.		500		30,050


Software: 0.4%
Appier Group, Inc.^a		300		3,937

Total Information Technology				221,698



CONSUMER DISCRETIONARY: 20.3%
Household Durables: 4.5%
Sony Group Corp.		500		47,560


Automobiles: 4.4%
Suzuki Motor Corp.		600		25,676

Toyota Motor Corp.		1,100		20,212

				45,888


Broadline Retail: 4.3%
Pan Pacific International Holdings Corp.		1,000		23,862

Isetan Mitsukoshi Holdings, Ltd.		2,000		21,762

				45,624


Specialty Retail: 4.3%
Fast Retailing Co., Ltd.		100		24,819

ZOZO, Inc.		900		20,269

				45,088

Hotels, Restaurants & Leisure: 1.6%
Kyoritsu Maintenance Co., Ltd.		400		16,995


Textiles, Apparel & Luxury Goods: 1.2%
Asics Corp.		400		12,535

Total Consumer Discretionary				213,690



INDUSTRIALS: 19.1%
Trading Companies & Distributors: 5.4%

Mitsubishi Corp.		1,500		23,977

ITOCHU Corp.		500		20,453

Toyota Tsusho Corp.		200		11,786

				56,216


Industrial Conglomerates: 5.0%
Hitachi, Ltd.		500		36,069

Hikari Tsushin, Inc.		100		16,584

				52,653


	Shares		Value
Professional Services: 2.8%
Recruit Holdings Co., Ltd.		700		$29,608


Electrical Equipment: 2.7%
Mitsubishi Electric Corp.		2,000		28,358


Construction & Engineering: 1.9%
Kajima Corp.		1,200		20,058


Commercial Services & Supplies: 1.3%
TOPPAN Holdings, Inc.		500		13,956

Total Industrials				200,849



FINANCIALS: 10.6%
Insurance: 4.0%
Tokio Marine Holdings, Inc.		1,700		42,554


Financial Services: 2.5%
ORIX Corp.		1,400		26,376


Banks: 2.5%
Mitsubishi UFJ Financial Group, Inc.		3,000		25,780


Consumer Finance: 1.6%
Credit Saison Co., Ltd.		900		16,595

Total Financials				111,305



MATERIALS: 6.1%
Chemicals: 6.1%
Shin-Etsu Chemical Co., Ltd.		1,400		58,759

Mitsui Chemicals, Inc.		200		5,933

Total Materials				64,692



HEALTH CARE: 5.1%
Pharmaceuticals: 2.9%
Daiichi Sankyo Co., Ltd.		500		13,733

Astellas Pharma, Inc.		800		9,567

Sawai Group Holdings Co., Ltd.		200		7,390

				30,690


Health Care Equipment & Supplies: 2.2%
Terumo Corp.		700		22,949

Total Health Care				53,639



CONSUMER STAPLES: 4.9%
Food Products: 4.9%
Ajinomoto Co., Inc.		800		30,870

Nissin Foods Holdings Co., Ltd.		600		20,943

Total Consumer Staples				51,813



COMMUNICATION SERVICES: 4.1%
Wireless Telecommunication Services: 1.8%
KDDI Corp.		600		19,092


Entertainment: 1.5%
Capcom Co., Ltd.		500		16,158


Diversified Telecommunication Services: 0.8%
Internet Initiative Japan, Inc.		400		8,183

Total Communication Services				43,433


				matthewsasia.com \| 833.228.5605			31

Matthews Japan Active ETF

December 31, 2023

Schedule of Investments (continued)

COMMON EQUITIES (continued)


	Shares		Value

REAL ESTATE: 2.6%
Real Estate Management & Development: 2.6%
Mitsui Fudosan Co., Ltd.		1,100		$26,981

Total Real Estate				26,981



TOTAL COMMON EQUITIES				988,100

(Cost $911,198)


SHORT-TERM INVESTMENTS: 6.1%

MONEY MARKET FUNDS: 6.1%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^b		64,395		64,395

(Cost $64,395)


TOTAL INVESTMENTS: 100.0%				1,052,495
(Cost $975,593)


CASH AND OTHER ASSETS, LESS LIABILITIES: 0.0%				26



NET ASSETS: 100.0%				$1,052,521

a	Non-income producing security.

b	Rate shown is the current yield as of December 31, 2023.

See accompanying notes to financial statements.


32		Matthews Japan Active ETF

LOGO


PORTFOLIO MANAGERS

Michael J. Oh		Elli Lee
Lead Manager		Lead Manager

Sojung Park
Co-Manager

FUND FACTS

Ticker		MKOR
CUSIP		577125784
Inception Date		10/29/10
Gross Expense Ratio		0.88%*
NAV (as of 12/31/23)		$26.31
Market Price (as of 12/31/23)		$25.90
# of Positions		35
Net Assets		$67.2 million
Portfolio Turnover		31.75%
Weight Average Market Cap		$93.2 billion
Benchmark
Korea Composite Stock Price Index MSCI Korea Index

OBJECTIVE

Long-term capital appreciation.

STRATEGY

*	The ongoing gross expense ratio for the Fund is expected to be 0.79% (see Note 4).

Matthews Korea Active ETF (unaudited)

FUND INSIGHTS

•

The top three contributors to absolute performance during the year included information technology companies SK Hynix, Samsung Electronics and HPSP.

•

The largest detractors to performance during the year included BGF Retail, a consumer staples company, Samsung SDI, an information technology company, and Pan Ocean, an industrials company.

•

The top three contributors to relative performance, on a sector basis, were communication services and consumer discretionary due to stock selection and utilities due to zero allocation.

•

The top three detractors to relative performance, on a sector basis were consumer staples due to an overweight allocation, industrials and energy due to stock selection.



PERFORMANCE AS OF DECEMBER 31, 2023
					Average Annual Total Returns
	3 months		1 Year		5 Years		10 Years		Since Inception		Inception date
Korea Active ETF (NAV)¹		10.92%		15.41%		4.71%		4.27%		5.84%		10/29/10
Korea Active ETF (market price)		10.03%		13.62%		4.38%		4.11%		5.72%
Korea Composite Stock Price Index²		13.57%		17.24%		4.31%		2.61%		3.37%
MSCI Korea Index³		15.42%		23.59%		5.84%		3.62%		4.44%

GROWTH OF A HYPOTHETICAL $10,000 INVESTMENT SINCE INCEPTION

LOGO

Korea Composite Stock Price Index performance data may be readjusted periodically by the Korea Exchange due to certain factors, including the declaration of dividends. It is not possible to invest directly in an index. Source: Index data from Korea Composite Stock Price Index and Bloomberg; total return calculations performed by BNY Mellon Investment Servicing (US) Inc. Please see page 39 for index definition.


				matthewsasia.com \| 833.228.5605			33



TOP TEN HOLDINGS⁴
Name	Sector	% Net Assets
Samsung Electronics Co., Ltd., Pfd.	Information Technology		13.1%
SK Hynix, Inc.	Information Technology		6.3%
Samsung Electronics Co., Ltd.	Information Technology		5.0%
Samsung SDI Co., Ltd.	Information Technology		3.9%
NAVER Corp.	Communication Services		3.6%
BGF Retail Co., Ltd.	Consumer Staples		3.5%
S-Oil Corp.	Energy		3.3%
KT&G Corp.	Consumer Staples		3.1%
Hyundai Mobis Co., Ltd.	Consumer Discretionary⁵		2.9%
Samsung Fire & Marine Insurance Co., Ltd.	Financials		2.9%
% OF ASSETS IN TOP 10			47.6%

Holdings may combine more than one security from same issuer and related depositary receipts.



COUNTRY ALLOCATION (%)⁵
South Korea			93.6
Cash and Other Assets, Less Liabilities			6.4



SECTOR ALLOCATION (%)⁵
Information Technology			38.0
Consumer Discretionary			10.8
Consumer Staples			9.4
Communication Services			8.6
Financials			7.3
Health Care			6.2
Industrials			5.6
Materials			4.4
Energy			3.3
Cash and Other Assets, Less Liabilities			6.4



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			43.9
Large Cap ($10B-$25B)			9.4
Mid Cap ($3B-10B)			20.5
Small Cap (under $3B)			19.9
Cash and Other Assets, Less Liabilities			6.4

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.


34		Matthews Korea Active ETF

Matthews Korea Active ETF

December 31, 2023

Schedule of Investments

COMMON EQUITIES: 80.5%


	Shares		Value

INFORMATION TECHNOLOGY: 24.9%
Semiconductors & Semiconductor Equipment: 12.6%
SK Hynix, Inc.		38,406		$4,219,620

KoMiCo., Ltd.		28,645		1,434,586

Eugene Technology Co., Ltd.		44,956		1,424,183

LEENO Industrial, Inc.		5,605		881,289

HPSP Co., Ltd.		14,089		479,698

				8,439,376


Electronic Equipment, Instruments & Components: 7.3%
Samsung SDI Co., Ltd.		7,213		2,643,479

Park Systems Corp.		11,177		1,505,714

Samsung Electro-Mechanics Co., Ltd.		6,275		746,432

				4,895,625

Technology Hardware, Storage & Peripherals: 5.0%
Samsung Electronics Co., Ltd.		55,089		3,357,781

Total Information Technology				16,692,782



CONSUMER DISCRETIONARY: 10.8%
Automobiles: 5.5%
Kia Corp.		24,670		1,915,521

Hyundai Motor Co.		11,179		1,766,385

				3,681,906


Automobile Components: 3.4%
Hyundai Mobis Co., Ltd.		10,674		1,964,235

HL Mando Co., Ltd.		11,319		345,836

				2,310,071


Broadline Retail: 1.9%
Coupang, Inc.^a		79,798		1,291,930

Total Consumer Discretionary				7,283,907



CONSUMER STAPLES: 9.4%
Consumer Staples Distribution & Retail: 3.5%
BGF Retail Co., Ltd.		22,789		2,323,314


Tobacco: 3.1%
KT&G Corp.		31,283		2,110,795


Food Products: 2.8%
Orion Corp.		21,030		1,895,786

Total Consumer Staples				6,329,895



COMMUNICATION SERVICES: 8.6%
Interactive Media & Services: 4.9%
NAVER Corp.		13,819		2,403,491

Kakao Corp.		21,539		908,120

				3,311,611

Wireless Telecommunication Services: 2.0%
SK Telecom Co., Ltd.		33,655		1,309,197


Diversified Telecommunication Services: 1.7%
KINX, Inc.		14,964		1,158,406

Total Communication Services				5,779,214



FINANCIALS: 7.3%
Insurance: 2.9%
Samsung Fire & Marine Insurance Co., Ltd.		9,566		1,953,458


	Shares		Value
Capital Markets: 2.2%
Macquarie Korea Infrastructure Fund		153,319		$1,480,929


Banks: 2.2%
KB Financial Group, Inc.		35,095		1,474,213

Total Financials				4,908,600



HEALTH CARE: 6.2%
Life Sciences Tools & Services: 2.8%
Samsung Biologics Co., Ltd.^a,b,c		3,183		1,878,314


Pharmaceuticals: 1.9%
Yuhan Corp.		24,458		1,306,554


Health Care Equipment & Supplies: 1.5%
InBody Co., Ltd.		50,579		995,557

Total Health Care				4,180,425



INDUSTRIALS: 5.6%
Construction & Engineering: 2.4%
Samsung Engineering Co., Ltd.^a		72,760		1,638,357


Machinery: 2.1%
Hyundai Mipo Dockyard Co., Ltd.		21,043		1,387,181


Marine Transportation: 1.1%
Pan Ocean Co., Ltd.		256,269		743,198

Total Industrials				3,768,736



MATERIALS: 4.4%
Chemicals: 2.7%
LG Chem, Ltd.		2,969		1,150,346

PI Advanced Materials Co., Ltd.		28,566		676,499

				1,826,845


Metals & Mining: 1.7%
Korea Zinc Co., Ltd.		2,848		1,101,253

Total Materials				2,928,098



ENERGY: 3.3%
Oil, Gas & Consumable Fuels: 3.3%
S-Oil Corp.		40,697		2,199,325

Total Energy				2,199,325



TOTAL COMMON EQUITIES				54,070,982

(Cost $48,809,246)



PREFERRED EQUITIES: 13.1%

INFORMATION TECHNOLOGY: 13.1%
Technology Hardware, Storage & Peripherals: 13.1%
Samsung Electronics Co., Ltd., Pfd.		182,506		8,828,421

Total Information Technology				8,828,421



TOTAL PREFERRED EQUITIES				8,828,421

(Cost $5,655,001)


				matthewsasia.com \| 833.228.5605			35

Matthews Korea Active ETF

December 31, 2023

Schedule of Investments (continued)

SHORT-TERM INVESTMENTS: 5.2%


	Shares		Value

MONEY MARKET FUNDS: 5.2%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^d		3,455,324		$3,455,324

(Cost $3,455,324)


TOTAL INVESTMENTS: 98.8%				66,354,727
(Cost $57,919,571)


CASH AND OTHER ASSETS, LESS LIABILITIES: 1.2%				815,890


NET ASSETS: 100.0%				$67,170,617

a	Non-income producing security.

c	The securities may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933.

d	Rate shown is the current yield as of December 31, 2023.

Pfd.

Preferred

See accompanying notes to financial statements.


36		Matthews Korea Active ETF

LOGO


PORTFOLIO MANAGERS

Robert Horrocks, PhD		Kenneth Lowe, CFA
Lead Manager		Lead Manager

Siddarth Bhargava		Winnie Chwang
Co-Manager		Co-Manager

Elli Lee
Co-Manager

FUND FACTS

Ticker		ADVE
CUSIP		577130586
Inception Date		09/21/23
Gross Expense Ratio		0.79%
NAV (as of 12/31/23)		$31.63
Market Price (as of 12/31/23)		$31.69
# of Positions		53
Net Assets		$1.6 million
Portfolio Turnover		5.82%
Weight Average Market Cap		$79.3 billion
Benchmark
MSCI AC Asia Pacific Index

OBJECTIVE

Total return with an emphasis on providing current income.

STRATEGY

Under normal circumstances, the Fund seeks to achieve its investment objective by investing at least 80% of its net assets, which include borrowings for investment purposes, in dividend-paying equity securities of companies located in Asia. Asia consists of all countries and markets in Asia, and includes developed, emerging and frontier countries and markets in the Asian region. The Fund may also invest in convertible debt and equity securities of companies located in Asia.

3	Holdings may combine more than one security from same issuer and related depositary receipts.

4	Not all countries where the Fund may invest are included in the benchmark index.

5	Source: FactSet Research Systems. Percentage values in data are rounded to the nearest tenth of one percent, so the values may not sum to 100% due to rounding. Country allocations and percentage values may be derived from different data sources and may not be consistent with other Fund literature.

Matthews Asia Dividend Active ETF (unaudited)



PERFORMANCE AS OF DECEMBER 31, 2023
			Actual Return, Not Annualized
	3 months		Since Inception		Inception date
Asia Dividend Active ETF (NAV)¹		6.76%		5.83%		09/21/23
Asia Dividend Active ETF (market price)		6.96%		6.03%
MSCI AC Asia Pacific Index²		8.00%		6.91%



TOP TEN HOLDINGS³
Name	Sector	Country	% Net Assets
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	Information Technology	Taiwan		4.6%
Keyence Corp.	Information Technology	Japan		2.8%
HDFC Bank, Ltd. ADR	Financials	India		2.7%
ITOCHU Corp.	Industrials	Japan		2.6%
PT Bank Rakyat Indonesia Persero Tbk	Financials	Indonesia		2.4%
Samsung Electronics Co., Ltd.	Information Technology	South Korea		2.4%
ORIX Corp.	Financials	Japan		2.3%
Tokio Marine Holdings, Inc.	Financials	Japan		2.2%
AIA Group, Ltd.	Financials	Hong Kong		2.2%
Suzuki Motor Corp.	Consumer Discretionary	Japan		2.2%
% OF ASSETS IN TOP 10				26.4%



COUNTRY ALLOCATION (%)^4,5
Japan			31.2
China/Hong Kong			25.1
Australia			9.8
Taiwan			8.5
India			8.2
South Korea			6.2
Singapore			3.4
Indonesia			2.4
Thailand			1.6
Vietnam			1.4
Cash and Other Assets, Less Liabilities			2.1



SECTOR ALLOCATION (%)⁵
Financials			19.3
Information Technology			18.3
Consumer Discretionary			13.5
Communication Services			10.3
Consumer Staples			10.3
Industrials			9.2
Real Estate			4.8
Materials			3.6
Health Care			3.4
Utilities			3.3
Energy			1.9
Cash and Other Assets, Less Liabilities			2.1



MARKET CAP EXPOSURE (%)⁵
Mega Cap (over $25B)			50.9
Large Cap ($10B-$25B)			20.0
Mid Cap ($3B-10B)			17.2
Small Cap (under $3B)			9.9
Cash and Other Assets, Less Liabilities			2.1


				matthewsasia.com \| 833.228.5605			37

Matthews Asia Dividend Active ETF

December 31, 2023

Schedule of Investments^a

COMMON EQUITIES: 97.9%


	Shares		Value

JAPAN: 31.2%
Keyence Corp.		100		$44,063

ITOCHU Corp.		1,000		40,907

ORIX Corp.		1,900		35,795

Tokio Marine Holdings, Inc.		1,400		35,045

Suzuki Motor Corp.		800		34,235

Shin-Etsu Chemical Co., Ltd.		800		33,576

Nissin Foods Holdings Co., Ltd.		900		31,415

Ajinomoto Co., Inc.		700		27,011

Capcom Co., Ltd.		800		25,853

KDDI Corp.		800		25,456

GLP J-Reit		25		24,915

Disco Corp.		100		24,812

Bandai Namco Holdings, Inc.		1,200		24,059

Kakaku.com, Inc.		1,900		23,531

Nomura Research Institute, Ltd.		800		23,271

Toray Industries, Inc.		4,400		22,880

Hikari Tsushin, Inc.		100		16,584

Total Japan				493,408



CHINA/HONG KONG: 25.1%
AIA Group, Ltd.		4,000		34,859

Tencent Holdings, Ltd.		900		33,840

Inner Mongolia Yili Industrial Group Co., Ltd. A Shares		8,700		32,683

Midea Group Co., Ltd. A Shares		4,000		30,811

NARI Technology Co., Ltd. A Shares		9,100		28,525

Link REIT		4,900		27,517

NetEase, Inc.		1,500		27,009

Wuliangye Yibin Co., Ltd. A Shares		1,300		25,616

Yum China Holdings, Inc.		595		25,246

JD.com, Inc. Class A		1,700		24,492

Minth Group, Ltd.		12,000		24,250

Techtronic Industries Co., Ltd.		2,000		23,833

Guangdong Investment, Ltd.		32,000		23,277

Yuexiu Transport Infrastructure, Ltd.		40,000		21,771

Milkyway Chemical Supply Chain Service Co., Ltd. A Shares		1,800		13,451

Total China/Hong Kong				397,180



AUSTRALIA: 9.9%
Ampol, Ltd.		1,216		29,995

CSL, Ltd.		153		29,926

Breville Group, Ltd.		1,370		25,455

Lottery Corp., Ltd.		7,598		25,093

AUB Group, Ltd.		1,273		24,104

Treasury Wine Estates, Ltd.		2,852		20,979

Total Australia				155,552



TAIWAN: 8.5%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		700		72,800

Chailease Holding Co., Ltd.		5,000		31,443

Delta Electronics, Inc.		3,000		30,645

Total Taiwan				134,888


	Shares		Value

INDIA: 8.2%
HDFC Bank, Ltd. ADR		633		$42,481
Tata Consultancy Services, Ltd.		721		32,868

Power Grid Corp. of India, Ltd.		10,360		29,531

Hindustan Unilever, Ltd.		786		25,162

Total India				130,042



SOUTH KOREA: 6.2%
Samsung Electronics Co., Ltd.		628		38,278

Macquarie Korea Infrastructure Fund		3,446		33,285

SK Telecom Co., Ltd. ADR		1,259		26,943

Total South Korea				98,506



SINGAPORE: 3.4%
United Overseas Bank, Ltd.		1,400		30,195

Capitaland India Trust		26,900		23,247

Total Singapore				53,442



INDONESIA: 2.4%
PT Bank Rakyat Indonesia Persero Tbk		103,300		38,410

Total Indonesia				38,410



THAILAND: 1.6%
Bangkok Dusit Medical Services Public Co., Ltd. F Shares		30,500		24,595

Total Thailand				24,595



VIETNAM: 1.4%
FPT Corp.		5,600		22,181

Total Vietnam				22,181



TOTAL COMMON EQUITIES				1,548,204

(Cost $1,464,701)


SHORT-TERM INVESTMENTS: 1.9%

MONEY MARKET FUNDS: 1.9%
JPMorgan U.S. Government Money Market Fund, Capital Shares, 5.25%^b		30,049		30,049

(Cost $30,049)


TOTAL INVESTMENTS: 99.8%				1,578,253
(Cost $1,494,750)


CASH AND OTHER ASSETS, LESS LIABILITIES: 0.2%				3,438



NET ASSETS: 100.0%				$1,581,691

a	Certain securities were fair valued under the valuation policies approved by the Board of Trustees (Note 2-A).

b	Rate shown is the current yield as of December 31, 2023.

ADR	American Depositary Receipt

REIT	Real Estate Investment Trust

See accompanying notes to financial statements.


38		Matthews Asia Dividend Active ETF

Index Definitions

The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index of the stock markets of Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and United Arab Emirates.

The MSCI Emerging Markets ex China Index is a free float-adjusted market capitalization-weighted index that captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China: Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

The MSCI All Country Asia ex Japan Index is a free float– adjusted market capitalization-weighted index of the stock markets of China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand.

The MSCI All Country Asia Pacific Index is a free float–adjusted market capitalization–weighted index of the stock markets of Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan and Thailand.

The MSCI China Index is a free float–adjusted market capitalization-weighted index of Chinese equities that includes H shares listed on the Hong Kong exchange, B shares listed on

the Shanghai and Shenzhen ex-exchanges, and Hong Kong-listed securities known as Red Chips (issued by entities owned by national or local governments in China) and P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs).

The MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red Chips (issued by entities owned by national or local governments in China), P Chips (issued by companies controlled by individuals in China and deriving substantial revenues in China), and foreign listings (e.g., ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China.

The S&P Bombay Stock Exchange 100 (S&P BSE 100) Index is a free float–adjusted market capitalization–weighted index of 100 stocks listed on the Bombay Stock Exchange.

The MSCI India Index is a free float-adjusted market capitalization-weighted index of Indian equities listed in India.

The MSCI Japan Index is a free float–adjusted market capitalization–weighted index of Japanese equities listed in Japan.

The Korea Composite Stock Price Index (KOSPI) is a market capitalization-weighted index of all common stocks listed on the Korea Stock Exchange.

The MSCI Korea Index is a free float-adjusted market capitalization-weighted index of Korean equities listed in Korea.


				matthewsasia.com \| 833.228.5605			39

Disclosures

Fund Holdings: The Fund holdings shown in this report are as of December 31, 2023. Holdings are subject to change at any time, so holdings shown in this report may not reflect current Fund holdings. The Funds file complete schedules of portfolio holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-PORT. The Funds’ Form N-PORTs are available on the SEC’s website at www.sec.gov. Complete schedules of investments are also available without charge, upon request, from the Funds by calling us at 833.228.5605.

Proxy Voting Record: The Funds’ Statement of Additional Information containing a description of the policies and procedures that the Funds have used to vote proxies relating to portfolio securities, along with each Fund’s proxy voting record relating

to portfolio securities held during the most recent 12-month period ended June 30, is available upon request, at no charge, at the Funds’ website at matthewsasia.com or by calling 833.228.5605, or on the SEC’s website at www.sec.gov.

Shareholder Reports and Prospectuses: To reduce the Funds’ expenses, we try to identify related shareholders in a household and send only one copy of the Funds’ prospectus and financial reports to that address. This process, called “householding,” will continue indefinitely unless you instruct us otherwise. At any time you may view the Funds’ current prospectus, summary prospectus and financial reports on our website. If you prefer to receive individual copies of the Funds’ prospectus or financial reports, please call us at 833.228.5605.

Disclosure of Fund Expenses (unaudited)

We believe it is important for you to understand the impact of fees regarding your investment. All ETFs have operating expenses. As a shareholder of an ETF, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund. A fund’s operating expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing fees (in dollars) of investing in your fund and to compare these costs with those of other ETFs. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.

This table illustrates your fund’s costs in two ways:

Actual Fund Return: This section helps you to estimate the actual operating expenses, after any applicable fee waivers, that you paid over the period. The “Ending Account Value” shown is derived from the fund’s actual return for the past six month period, the “Expense Ratio” column shows the period’s annualized expense ratio, and the “Operating Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund at the beginning of the period. You may use the information here, together with your account value, to estimate the expenses that you paid over the period. To do so, simply divide your account value by $1,000 (for example, an

$8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund in the first line under the heading entitled “Operating Expenses Paid During Period.”

Hypothetical 5% Return: This section is intended to help you compare your fund’s costs with those of other ETFs. It assumes that the fund had an annual return of 5% before operating expenses, but that the expense ratio is unchanged. In this case, because the return used is not the fund’s actual return, the results do not apply to your investment. This example is useful in making comparisons to other ETFs because the Securities and Exchange Commission requires all registered funds to calculate expenses based on an assumed 5% annual return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

Please note that the operating expenses shown in the table are meant to highlight and help you compare your ongoing costs only and do not reflect any transactional costs. You may pay brokerage commissions on your purchases and sales of fund shares, which are not reflected in the table.

Matthews Asia Funds does not charge any sales loads, exchange fees, or 12b-1 fees, but these may be present in other funds to which you compare this data. Therefore, the hypothetical portions of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.


40		MATTHEWS ASIA FUNDS

December 31, 2023

Disclosure of Fund Expenses (unaudited) (continued)



	Beginning Account Value 7/1/23		Ending Account Value 12/31/23		Expense Ratio		Operating Expenses Paid During Period 7/1/23– 12/31/23¹

Matthews Emerging Markets Equity Active ETF
Actual Fund Return		$1,000.00		$1,022.20		0.79%		$4.03
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews Emerging Markets ex China Active ETF
Actual Fund Return		$1,000.00		$1,053.20		0.79%		$4.09
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews Emerging Markets Sustainable Future Active ETF²
Actual Fund Return		$1,000.00		$1,029.80		0.79%		$2.22
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews Pacific Tiger Active ETF²
Actual Fund Return		$1,000.00		$1,014.40		0.79%		$2.20
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews Asia Innovators Active ETF
Actual Fund Return		$1,000.00		$1,010.50		0.79%		$4.00
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews China Active ETF
Actual Fund Return		$1,000.00		$934.80		0.79%		$3.85
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews India Active ETF²
Actual Fund Return		$1,000.00		$1,080.00		0.79%		$2.27
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews Japan Active ETF²
Actual Fund Return		$1,000.00		$1,057.90		0.79%		$2.25
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02
Matthews Korea Active ETF
Actual Fund Return		$1,000.00		$1,057.50		0.84%		$4.36
Hypothetical 5% Returns		$1,000.00		$1,020.97		0.84%		$4.28
Matthews Asia Dividend Active ETF²
Actual Fund Return		$1,000.00		$1,058.30		0.79%		$2.25
Hypothetical 5% Returns		$1,000.00		$1,021.22		0.79%		$4.02

1	Operating expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 184 days, then divided by 365.

The Fund commenced operations on September 21, 2023. Operating expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 101 days, then divided by 365. The hypothetical expense example is based on the half-year period beginning July 1, 2023, as required by the SEC.


				matthewsasia.com \| 833.228.5605			41

Statements of Assets and Liabilities

December 31, 2023


	Matthews Emerging Markets Equity Active ETF		Matthews Emerging Markets ex China Active ETF		Matthews Emerging Markets Sustainable Future Active ETF		Matthews Pacific Tiger Active ETF

ASSETS:

Investments at value (A) (Note 2-A):

Unaffiliated issuers		$55,493,230		$8,812,806		$14,173,612		$83,393,180

Cash		399,606		19,969		39		19,118

Segregated foreign currency at value		159,335		—		5,238		53

Foreign currency at value (B)		20,612		11		3		936,687

Dividends and interest receivable		95,727		18,429		5,398		89,948

Receivable for securities sold		—		—		—		946,556

Receivable for capital shares sold		1,508		—		—		11,186

Other receivable		30,027		1,033		—		—
TOTAL ASSETS		56,200,045		8,852,248		14,184,290		85,396,728

LIABILITIES:

Payable for securities purchased		186,681		—		—		5,448,769

Deferred foreign capital gains tax liability (Note 2-C)		70,495		14,334		22,457		118,545

Due to Advisor (Note 4)		35,856		5,780		7,234		39,796

Accrued other expenses payable		—		845		—		467
TOTAL LIABILITIES		293,032		20,959		29,691		5,607,577

NET ASSETS		$55,907,013		$8,831,289		$14,154,599		$79,789,151

SHARES OUTSTANDING:

(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value)		1,980,000		320,000		550,000		3,150,000

Net asset value, offering price and redemption price		28.24		27.60		25.74		25.33

NET ASSETS CONSISTS OF:

Capital paid-in		$54,698,406		$8,191,671		$13,578,322		$77,678,654

Total distributable earnings/(accumulated loss)		1,208,607		639,618		576,277		2,110,497
NET ASSETS		$55,907,013		$8,831,289		$14,154,599		$79,789,151

(A) Investments at cost:

Unaffiliated Issuers		$52,473,588		$7,991,444		$13,549,125		$80,395,476

(B) Foreign Currency at Cost		$20,611		$11		$3		$936,688

See accompanying notes to financial statements.


42		MATTHEWS ASIA FUNDS

Statements of Assets and Liabilities (continued)

December 31, 2023


	Matthews Asia Innovators Active ETF			Matthews China Active ETF			Matthews India Active ETF

ASSETS:

Investments at value (A) (Note 2-A):

Unaffiliated issuers		$83,595,032			$21,719,520			$5,983,096

Cash		68,525			24			—

Segregated foreign currency at value		2,341			94			—

Foreign currency at value (B)		1,245			—			61,462

Dividends and interest receivable		105,047			31,536			126

Receivable for securities sold		6,221,332			—			—

Other receivable		2,728			421			—
TOTAL ASSETS		89,996,250			21,751,595			6,044,684

LIABILITIES:

Cash overdraft		—			—			11,816

Payable for securities purchased		4,801,837			4			—

Deferred foreign capital gains tax liability (Note 2-C)		322,955			—			89,031

Due to Advisor (Note 4)		56,009			14,391			3,924

Accrued other expenses payable		6,046			—			—
TOTAL LIABILITIES		5,186,847			14,395			104,771

NET ASSETS		$84,809,403			$21,737,200			$5,939,913

SHARES OUTSTANDING:

(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value)		3,600,000			1,140,000			220,000

Net asset value, offering price and redemption price		23.56			19.07			27.00

NET ASSETS CONSISTS OF:

Capital paid-in		$94,719,839			$30,738,744			$5,563,942

Total distributable earnings/(accumulated loss)		(9,910,436	)		(9,001,544	)		375,971
NET ASSETS		$84,809,403			$21,737,200			$5,939,913

(A) Investments at cost:

Unaffiliated Issuers		$71,395,881			$28,283,100			$5,499,236

(B) Foreign Currency at Cost		$1,245			$—			$61,462

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			43

Statements of Assets and Liabilities (continued)

December 31, 2023


	Matthews Japan Active ETF		Matthews Korea Active ETF			Matthews Asia Dividend Active ETF

ASSETS:

Investments at value (A) (Note 2-A):

Unaffiliated issuers		$1,052,495		$66,354,727			$1,578,253

Cash		—		41,361			2,167

Segregated foreign currency at value		—		—			2,344

Foreign currency at value (B)		—		—			816

Dividends and interest receivable		401		808,713			1,458

Receivable for securities sold		—		517,537			—

Receivable for capital shares sold		—		4,064			—

Other receivable		313		8,099			163
TOTAL ASSETS		1,053,209		67,734,501			1,585,201

LIABILITIES:

Payable for securities purchased		—		479,369			1,049

Deferred foreign capital gains tax liability (Note 2-C)		—		—			1,432

Due to Advisor (Note 4)		688		43,154			1,029

Other liabilities		—		41,361			—
TOTAL LIABILITIES		688		563,884			3,510

NET ASSETS		$1,052,521		$67,170,617			$1,581,691

SHARES OUTSTANDING:

(shares of beneficial interest issued and outstanding, respectively, unlimited number of shares authorized with a $0.001 par value)		40,000		2,553,223	¹		50,000

Net asset value, offering price and redemption price		26.31		26.31			31.63

NET ASSETS CONSISTS OF:

Capital paid-in		$1,000,000		$57,782,663			$1,500,000

Total distributable earnings/(accumulated loss)		52,521		9,387,954			81,691
NET ASSETS		$1,052,521		$67,170,617			$1,581,691

(A) Investments at cost:

Unaffiliated Issuers		$975,593		$57,919,571			$1,494,750

(B) Foreign Currency at Cost		$—		$—			$816

See accompanying notes to financial statements.


44		MATTHEWS ASIA FUNDS

Statements of Operations

Period Ended December 31, 2023


	Matthews Emerging Markets Equity Active ETF			Matthews Emerging Markets ex China Active ETF¹			Matthews Emerging Markets Sustainable Future Active ETF²			Matthews Pacific Tiger Active ETF²

INVESTMENT INCOME:

Dividends—Unaffiliated Issuers		$1,125,766			$146,415			$13,779			$119,615

Interest		26,630			5,037			1,531			40,832

Foreign withholding tax		(95,855	)		(14,270	)		(2,165	)		(17,203	)
TOTAL INVESTMENT INCOME		1,056,541			137,182			13,145			143,244

EXPENSES:

Investment advisory fees (Note 4)		343,630			41,746			12,124			71,197

Other expenses		108			—			—			—
TOTAL EXPENSES		343,738			41,746			12,124			71,197

NET INVESTMENT INCOME (LOSS)		712,803			95,436			1,021			72,047

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES:

Net realized gain (loss) on investments—Unaffiliated Issuers		(1,663,985	)		(156,823	)		(1,183	)		(775,477	)

Net realized gain (loss) on in-kind redemptions—Unaffiliated Issuers		316,892			—			—			—

Net realized gain (loss) on foreign currency related transactions		(1,155,971	)		(5,929	)		(22,526	)		(5,805	)

Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers		2,995,674			821,362			624,487			2,997,704

Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation		(70,322	)		(14,334	)		(22,457	)		(118,544	)

Net change in unrealized appreciation/depreciation on foreign currency related translations		2,588			140			48			(869	)
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes		424,876			644,416			578,369			2,097,009

NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS		$1,137,679			$739,852			$579,390			$2,169,056

1	The Fund commenced operations on January 10, 2023.

2	The Fund commenced operations on September 21, 2023.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			45

Statements of Operations (continued)

Period Ended December 31, 2023


	Matthews Asia Innovators Active ETF			Matthews China Active ETF			Matthews India Active ETF¹

INVESTMENT INCOME:

Dividends—Unaffiliated Issuers		$1,499,531			$580,422			$4,188

Interest		95,048			25,302			460

Foreign withholding tax		(179,932	)		(42,630	)		(998	)
TOTAL INVESTMENT INCOME		1,414,647			563,094			3,650

EXPENSES:

Investment advisory fees (Note 4)		950,400			229,548			6,902

NET INVESTMENT INCOME (LOSS)		464,247			333,546			(3,252	)

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES:

Net realized gain (loss) on investments—Unaffiliated Issuers		(19,889,407	)		(2,385,266	)		(6,588	)

Net realized gain (loss) on in-kind redemptions—Unaffiliated Issuers		2,501,220			(195,202	)		—

Net realized gain (loss) on foreign currency related transactions		(278,659	)		(8,258	)		(9,018	)

Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers		9,905,585			(7,009,584	)		483,860

Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation		(326,321	)		—			(89,031	)

Net change in unrealized appreciation/depreciation on foreign currency related translations		(1,996	)		(570	)		—
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes		(8,089,578	)		(9,598,880	)		379,223

NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS		($7,625,331	)		($9,265,334	)		$375,971

1	The Fund commenced operations on September 21, 2023.

See accompanying notes to financial statements.


46		MATTHEWS ASIA FUNDS

Statements of Operations (continued)

Period Ended December 31, 2023


	Matthews Japan Active ETF¹			Matthews Korea Active ETF²			Matthews Asia Dividend Active ETF¹

INVESTMENT INCOME:

Dividends—Unaffiliated Issuers		$7,819			$1,475,836			$9,333

Interest		872			79,071			1,046

Foreign withholding tax		(902	)		(228,323	)		(1,110	)
TOTAL INVESTMENT INCOME		7,789			1,326,584			9,269

EXPENSES:

Investment advisory fees (Note 4)		2,153			502,279			3,272

Administration and accounting fees (Note 4)		—			3,124			—

Administration and shareholder servicing fees (Note 4)		—			66,964			—

Accounting out-of-pocket fees		—			16,254			—

Custodian fees		—			24,399			—

Printing fees		—			17,240			—

Intermediary service fees (Note 4)		—			34,044			—

Professional fees		—			24,364			—

Registration fees		—			36,123			—

Transfer agent fees		—			17,667			—

Trustee fees		—			7,280			—

Other expenses		—			30,147			—
TOTAL EXPENSES		2,153			779,885			3,272

NET INVESTMENT INCOME (LOSS)		5,636			546,699			5,997

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY RELATED TRANSACTIONS, AND FOREIGN CAPITAL GAINS TAXES:

Net realized gain (loss) on investments—Unaffiliated Issuers		(24,334	)		5,109,934			353

Net realized gain (loss) on in-kind redemptions—Unaffiliated Issuers		—			21,103			—

Net realized gain (loss) on foreign currency related transactions		(317	)		(8,632	)		(993	)

Net change in unrealized appreciation/depreciation on investments—Unaffiliated Issuers		76,902			4,454,389			83,503

Net change in deferred foreign capital gains taxes on unrealized appreciation/depreciation		—			—			(1,433	)

Net change in unrealized appreciation/depreciation on foreign currency related translations		12			(2,020	)		82
Net realized and unrealized gain (loss) on investments, foreign currency related transactions, and foreign capital gains taxes		52,263			9,574,774			81,512

NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS		$57,899			$10,121,473			$87,509

1	The Fund commenced operations on September 21, 2023.

The Matthews Korea Active ETF acquired all assets and liabilities of the Matthews Korea Fund (the “Predecessor Fund”) in a reorganization that occurred on July 14, 2023. The performance and financial history of the Predecessor Fund’s Institutional Class have been adopted by the Matthews Korea Active ETF. As a result, the information prior to July 14, 2023 reflects that of the Predecessor Fund. The Predecessor Fund ceased operations as of the date of the reorganization. (See Note 1).

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			47

Statements of Changes in Net Assets


MATTHEWS EMERGING MARKETS EQUITY ACTIVE ETF	Year Ended December 31, 2023			For the Period Ended December 31, 2022¹

OPERATIONS:

Net investment income (loss)		$712,803			$31,792

Net realized gain (loss) on investments, in-kind redemptions and foreign currency related transactions		(2,503,064	)		(47,523	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations		2,998,262			23,964

Net change on foreign capital gains taxes on unrealized appreciation/depreciation		(70,322	)		(173	)
Net increase (decrease) in net assets resulting from operations		1,137,679			8,060

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions		(5,917	)		(28,090	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)		48,471,365			6,323,916
Total increase (decrease) in net assets		49,603,127			6,303,886
NET ASSETS:

Beginning of period		6,303,886			—
End of period		$55,907,013			$6,303,886

1 The Fund commenced operations on July 13, 2022.

MATTHEWS EMERGING MARKETS EX CHINA ACTIVE ETF				For the Period Ended December 31, 2023¹

OPERATIONS:

Net investment income (loss)					$95,436

Net realized gain (loss) on investments and foreign currency related transactions					(162,752	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations					821,502

Net change on foreign capital gains taxes on unrealized appreciation/depreciation					(14,334	)
Net increase (decrease) in net assets resulting from operations					739,852

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions					(100,234	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)					8,191,671
Total increase (decrease) in net assets					8,831,289
NET ASSETS:

Beginning of period					—
End of period					$8,831,289

1 The Fund commenced operations on January 10, 2023.

MATTHEWS EMERGING MARKETS SUSTAINABLE FUTURE ACTIVE ETF				For the Period Ended December 31, 2023¹

OPERATIONS:

Net investment income (loss)					$1,021

Net realized gain (loss) on investments and foreign currency related transactions					(23,709	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations					624,535

Net change on foreign capital gains taxes on unrealized appreciation/depreciation					(22,457	)
Net increase (decrease) in net assets resulting from operations					579,390

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions					(3,113	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)					13,578,322
Total increase (decrease) in net assets					14,154,599
NET ASSETS:

Beginning of period					—
End of period					$14,154,599

1	The Fund commenced operations on September 21, 2023.

See accompanying notes to financial statements.


48		MATTHEWS ASIA FUNDS

Statements of Changes in Net Assets (continued)


MATTHEWS PACIFIC TIGER ACTIVE ETF				For the Period Ended December 31, 2023¹

OPERATIONS:

Net investment income (loss)					$72,047

Net realized gain (loss) on investments and foreign currency related transactions					(781,282	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations					2,996,835

Net change on foreign capital gains taxes on unrealized appreciation/depreciation					(118,544	)
Net increase (decrease) in net assets resulting from operations					2,169,056

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions					(58,559	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)					77,678,654
Total increase (decrease) in net assets					79,789,151
NET ASSETS:

Beginning of period					—
End of period					$79,789,151

1 The Fund commenced operations on September 21, 2023.

MATTHEWS ASIA INNOVATORS ACTIVE ETF	Year Ended December 31, 2023			For the Period Ended December 31, 2022¹

OPERATIONS:

Net investment income (loss)		$464,247			($34,351	)

Net realized gain (loss) on investments and foreign currency related transactions		(17,666,846	)		(1,392,598	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations		9,903,589			2,293,574

Net change on foreign capital gains taxes on unrealized appreciation/depreciation		(326,321	)		—
Net increase (decrease) in net assets resulting from operations		(7,625,331	)		866,625

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions		(841,608	)		—
CAPITAL SHARE TRANSACTIONS (net) (Note 3)		(12,162,685	)		104,572,402
Total increase (decrease) in net assets		(20,629,624	)		105,439,027
NET ASSETS:

Beginning of period		105,439,027			—
End of period		$84,809,403			$105,439,027

1 The Fund commenced operations on July 13, 2022.

MATTHEWS CHINA ACTIVE ETF	Year Ended December 31, 2023			For the Period Ended December 31, 2022¹

OPERATIONS:

Net investment income (loss)		$333,546			($4,643	)

Net realized gain (loss) on investments and foreign currency related transactions		(2,588,726	)		(47,731	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations		(7,010,154	)		446,556
Net increase (decrease) in net assets resulting from operations		(9,265,334	)		394,182

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions		(350,744	)		—
CAPITAL SHARE TRANSACTIONS (net) (Note 3)		21,254,398			9,704,698
Total increase (decrease) in net assets		11,638,320			10,098,880
NET ASSETS:

Beginning of period		10,098,880			—
End of period		$21,737,200			$10,098,880

1	The Fund commenced operations on July 13, 2022.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			49

Statements of Changes in Net Assets (continued)


MATTHEWS INDIA ACTIVE ETF				For the Period Ended December 31, 2023¹

OPERATIONS:

Net investment income (loss)					($3,252	)

Net realized gain (loss) on investments and foreign currency related transactions					(15,606	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations					483,860

Net change on foreign capital gains taxes on unrealized appreciation/depreciation					(89,031	)
Net increase (decrease) in net assets resulting from operations					375,971
CAPITAL SHARE TRANSACTIONS (net) (Note 3)					5,563,942
Total increase (decrease) in net assets					5,939,913
NET ASSETS:

Beginning of period					—
End of period					$5,939,913

1 The Fund commenced operations on September 21, 2023.

MATTHEWS JAPAN ACTIVE ETF				For the Period Ended December 31, 2023¹

OPERATIONS:

Net investment income (loss)					$5,636

Net realized gain (loss) on investments and foreign currency related transactions					(24,651	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations					76,914
Net increase (decrease) in net assets resulting from operations					57,899

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions					(5,378	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)					1,000,000
Total increase (decrease) in net assets					1,052,521
NET ASSETS:

Beginning of period					—
End of period					$1,052,521

1 The Fund commenced operations on September 21, 2023.

MATTHEWS KOREA ACTIVE ETF¹	Year Ended December 31, 2023			Year Ended December 31, 2022

OPERATIONS:

Net investment income (loss)		$546,699			$1,080,067

Net realized gain (loss) on investments and foreign currency related transactions		5,122,405			(3,280,646	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations		4,452,369			(31,168,278	)
Net increase (decrease) in net assets resulting from operations		10,121,473			(33,368,857	)

DISTRIBUTIONS TO SHAREHOLDERS:

Investor Class		—			(7,639,996	)

Institutional Class/Fund		(1,077,132	)		(968,596	)
Net decrease in net assets resulting from distributions		(1,077,132	)		(8,608,592	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)		(21,896,480	)		(10,938,083	)
Total increase (decrease) in net assets		(12,852,139	)		(52,915,532	)
NET ASSETS:

Beginning of period		80,022,756			132,938,288
End of period		$67,170,617			$80,022,756

See accompanying notes to financial statements.


50		MATTHEWS ASIA FUNDS

Statements of Changes in Net Assets (continued)


MATTHEWS ASIA DIVIDEND ACTIVE ETF	For the Period Ended December 31, 2023¹

OPERATIONS:

Net investment income (loss)		$5,997

Net realized gain (loss) on investments and foreign currency related transactions		(640	)

Net change in unrealized appreciation/depreciation on investments and foreign currency related translations		83,585

Net change on foreign capital gains taxes on unrealized appreciation/depreciation		(1,433	)
Net increase (decrease) in net assets resulting from operations		87,509

DISTRIBUTIONS TO SHAREHOLDERS:

Net decrease in net assets resulting from distributions		(5,818	)
CAPITAL SHARE TRANSACTIONS (net) (Note 3)		1,500,000
Total increase (decrease) in net assets		1,581,691
NET ASSETS:

Beginning of period		—
End of period		$1,581,691

1	The Fund commenced operations on September 21, 2023.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			51

Financial Highlights

Matthews Emerging Markets Equity Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout each period presented.


	Year Ended Dec. 31, 2023			Period Ended Dec. 31, 2022¹
Net Asset Value, beginning of Period		$26.27			$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.44			0.23
Net realized gain (loss) and unrealized appreciation/depreciation on investments, foreign currency related transactions and foreign capital gains taxes		1.53			1.18
Total from investment operations		1.97			1.41
LESS DISTRIBUTIONS FROM:
Net investment income		—	³		(0.14	)
Net Asset Value, end of Period		$28.24			$26.27
TOTAL RETURN		7.51%			5.63%	⁴

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$55,907			$6,304
Ratio of expenses to average net assets (Note 4)		0.79%			0.79%	⁵
Ratio of net investment income (loss) to average net assets		1.64%			1.93%	⁵
Portfolio turnover		54.86%			15.47%	⁴

1	The Fund commenced operations on July 13, 2022.

2	Calculated using the average daily shares method.

3	Less than $0.01 per share.

4	Not annualized.

5	Annualized.

See accompanying notes to financial statements.


52		MATTHEWS ASIA FUNDS

Financial Highlights (continued)

Matthews Emerging Markets ex China Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Period Ended Dec. 31, 2023¹
Net Asset Value, beginning of Period		$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.45
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		2.46
Total from investment operations		2.91
LESS DISTRIBUTIONS FROM:
Net investment income		(0.31	)
Net Asset Value, end of Period		$27.60
TOTAL RETURN		11.68%	³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$8,831
Ratio of expenses to average net assets (Note 4)		0.79%	⁴
Ratio of net investment income (loss) to average net assets		1.81%	⁴
Portfolio turnover		28.64%	³

1	The Fund commenced operations on January 10, 2023.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			53

Financial Highlights (continued)

Matthews Emerging Markets Sustainable Future Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Period Ended Dec. 31, 2023¹
Net Asset Value, beginning of Period		$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		—	³
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		0.75
Total from investment operations		0.75
LESS DISTRIBUTIONS FROM:
Net investment income		(0.01	)
Net Asset Value, end of Period		$25.74
TOTAL RETURN		2.98%	⁴

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$14,155
Ratio of expenses to average net assets (Note 4)		0.79%	⁵
Ratio of net investment income (loss) to average net assets		0.07%	⁵
Portfolio turnover		0.37%	⁴

1	The Fund commenced operations on September 21, 2023.

2	Calculated using the average daily shares method.

3	Less than $0.01 per share.

4	Not annualized.

5	Annualized.

See accompanying notes to financial statements.


54		MATTHEWS ASIA FUNDS

Financial Highlights (continued)

Matthews Pacific Tiger Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Period Ended Dec. 31, 2023¹
Net Asset Value, beginning of Period		$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.05
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		0.31
Total from investment operations		0.36
LESS DISTRIBUTIONS FROM:
Net investment income		(0.03	)
Net Asset Value, end of Period		$25.33
TOTAL RETURN		1.44%	³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$79,789
Ratio of expenses to average net assets (Note 4)		0.79%	⁴
Ratio of net investment income (loss) to average net assets		0.80%	⁴
Portfolio turnover		12.07%	³

1	The Fund commenced operations on September 21, 2023.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			55

Financial Highlights (continued)

Matthews Asia Innovators Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Year Ended Dec. 31, 2023			Period Ended Dec. 31, 2022¹
Net Asset Value, beginning of Period		$24.24			$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.09			(0.04	)
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		(0.54	)		(0.72	)
Total from investment operations		(0.45	)		(0.76	)
LESS DISTRIBUTIONS FROM:
Net investment income		(0.23	)		—
Net Asset Value, end of Period		$23.56			$24.24
TOTAL RETURN		(1.83%	)		(3.04%	)³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$84,809			$105,439
Ratio of expenses to average net assets (Note 4)		0.79%			0.79%	⁴
Ratio of net investment income (loss) to average net assets		0.39%			(0.33%	)⁴
Portfolio turnover		277.86%			72.56%	³

1	The Fund commenced operations on July 13, 2022.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


56		MATTHEWS ASIA FUNDS

Financial Highlights (continued)

Matthews China Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout each period presented.


	Year Ended Dec. 31, 2023			Period Ended Dec. 31, 2022¹
Net Asset Value, beginning of Period		$24.04			$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.25			(0.03	)
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		(4.91	)		(0.93	)
Total from investment operations		(4.66	)		(0.96	)
LESS DISTRIBUTIONS FROM:
Net investment income		(0.31	)		—
Net Asset Value, end of Period		$19.07			$24.04
TOTAL RETURN		(19.35%	)		(3.84%	)³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$21,737			$10,099
Ratio of expenses to average net assets (Note 4)		0.79%			0.79%	⁴
Ratio of net investment income (loss) to average net assets		1.15%			(0.24%	)⁴
Portfolio turnover		58.98%			12.48%	³

1	The Fund commenced operations on July 13, 2022.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			57

Financial Highlights (continued)

Matthews India Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Period Ended Dec. 31, 2023¹
Net Asset Value, beginning of Period		$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		(0.03	)
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		2.03
Total from investment operations		2.00
Net Asset Value, end of Period		$27.00
TOTAL RETURN		8.00%	³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$5,940
Ratio of expenses to average net assets (Note 4)		0.79%	⁴
Ratio of net investment income (loss) to average net assets		(0.37%	)⁴
Portfolio turnover		14.97%	³

1	The Fund commenced operations on September 21, 2023.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


58		MATTHEWS ASIA FUNDS

Financial Highlights (continued)

Matthews Japan Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Period Ended Dec. 31, 2023¹
Net Asset Value, beginning of Period		$25.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.14
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		1.30
Total from investment operations		1.44
LESS DISTRIBUTIONS FROM:
Net investment income		(0.13	)
Net Asset Value, end of Period		$26.31
TOTAL RETURN		5.79%	³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$1,053
Ratio of expenses to average net assets (Note 4)		0.79%	⁴
Ratio of net investment income (loss) to average net assets		2.07%	⁴
Portfolio turnover		45.53%	³

1	The Fund commenced operations on September 21, 2023.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


				matthewsasia.com \| 833.228.5605			59

Financial Highlights (continued)

Matthews Korea Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Year Ended Dec. 31, 2023^1,2			Year Ended Dec. 31, 2022²			Year Ended Dec. 31, 2021²			Year Ended Dec. 31, 2020²			Year Ended Dec. 31, 2019²
Net Asset Value, beginning of Year		$23.18			$34.53			$37.05			$26.54			$27.68
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)³		0.55			0.36			0.36			0.06			0.06
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		3.00			(9.07	)		(0.42	)		10.75			1.02
Total from investment operations		3.55			(8.71	)		(0.06	)		10.81			1.08
LESS DISTRIBUTIONS FROM:
Net investment income		(0.42	)		—			(0.66	)		(0.30	)		—
Net realized gains on investments		—			(2.64	)		(1.80	)		—			(2.22	)
Total distributions		(0.42	)		(2.64	)		(2.46	)		(0.30	)		(2.22	)
Net Asset Value, end of Year		$26.31			$23.18			$34.53			$37.05			$26.54
TOTAL RETURN		15.41%			(25.39%	)		(0.16%	)		40.76%			4.01%

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Year (in 000’s)		$67,171			$9,166			$14,998			$12,192			$23,426
Ratio of expenses to average net assets (Note 4)		0.88%			1.08%			0.98%			1.05%			1.05%
Ratio of net investment income (loss) to average net assets		2.26%			1.20%			0.93%			0.28%			0.29%
Portfolio turnover		31.75%			56.94%			40.18%			39.62%			36.63%

The Matthews Korea Active ETF acquired all assets and liabilities of the Matthews Korea Fund (the “Predecessor Fund”) in a reorganization that occurred on July 14, 2023. The performance and financial history of the Predecessor Fund’s Institutional Class have been adopted by the Matthews Korea Active ETF. As a result, the information prior to July 14, 2023 reflects that of the Predecessor Fund’s Institutional Class. The Predecessor Fund ceased operations as of the date of the reorganization. (See Note 1).

2	On June 23, 2023, the Predecessor Fund effected a reverse share split with a ratio of 1 : 0.166538 (old to new). All per share data has been adjusted to reflect the reverse share split.

3	Calculated using the average daily shares method.

See accompanying notes to financial statements.


60		MATTHEWS ASIA FUNDS

Financial Highlights (continued)

Matthews Asia Dividend Active ETF

The table below sets forth financial data for a share of beneficial interest outstanding throughout the period presented.


	Period Ended Dec. 31, 2023¹
Net Asset Value, beginning of Period		$30.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)²		0.12
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency related transactions		1.63
Total from investment operations		1.75
LESS DISTRIBUTIONS FROM:
Net investment income		(0.12	)
Net Asset Value, end of Period		$31.63
TOTAL RETURN		5.83%	³

RATIOS/SUPPLEMENTAL DATA
Net assets, end of Period (in 000’s)		$1,582
Ratio of expenses to average net assets (Note 4)		0.79%	⁴
Ratio of net investment income (loss) to average net assets		1.45%	⁴
Portfolio turnover		5.82%	³

1	The Fund commenced operations on September 21, 2023.

2	Calculated using the average daily shares method.

3	Not annualized.

4	Annualized.

See accompanying notes to financial statements.


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Notes to Financial Statements

1.	ORGANIZATION

Matthews International Funds (d/b/a Matthews Asia Funds) (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of December 31, 2023, the Trust issued twenty-three separate series of shares. This shareholder report pertains to ten of those series (each a “Fund”, and collectively, the “Funds”): Matthews Emerging Markets Equity Active ETF, Mathews Emerging Markets ex China Active ETF, Matthews Emerging Markets Sustainable Future Active ETF, Matthews Pacific Tiger Active ETF, Matthews Asia Innovators Active ETF, Matthews China Active ETF, Matthews India Active ETF, Matthews Japan Active ETF, Matthews Korea Active ETF and Matthews Asia Dividend Active ETF. All of the Funds are considered diversified with the exception of Matthews Emerging Markets Sustainable Future Active ETF and Matthews India Active ETF, which are considered non-diversified. The other thirteen separate series of the Trust are mutual funds and are covered in a separate shareholder report.

The Funds issue and redeem shares at their net asset value per share (NAV) only in large blocks of shares (Creation Units). These transactions are usually in exchange for a basket of securities and/or an amount of cash. As a practical matter, only institutional investors who have entered into an authorized participant agreement may purchase or redeem Creation Units. Except when aggregated in Creation Units, shares of the Funds are not redeemable securities.

Individual shares of the Funds trade on national securities exchanges and elsewhere during the trading day and can only be bought and sold at market prices throughout the trading day through a broker-dealer. Because fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount). A chart showing the frequency at which each fund’s daily closing market price was at a discount or premium to each fund’s NAV can be found at www.matthewsasia.com.

Pursuant to an Agreement and Plan of Reorganization and Liquidation approved by the Board of Trustees of the Trust, the Matthews Korea Fund (the “Acquired Fund”) was reorganized into the Matthews Korea Active ETF (the “Acquiring Fund”) (the “Reorganization”) on July 14, 2023 (the “Closing Date”).

Following the Reorganization, the Acquired Fund’s Institutional Class performance and financial history were adopted by the Acquiring Fund. In connection with the Reorganization, each shareholder of the Acquired Fund received Acquiring Fund shares equal in value to the number of Acquired Fund shares owned on the Closing Date, including a cash payment in lieu of fractional Acquiring Fund shares. The Acquiring Fund has the same investment advisor, investment objective and fundamental investment policies, and a substantially similar investment strategy, as the Acquired Fund. Effective as of the Closing Date, the Acquired Fund ceased operations.

Costs incurred by the Acquiring Fund and the Acquired Fund associated with the Reorganization (including legal costs) were borne by the Advisor which paid them directly, or waived fees or reimbursed expenses to offset those costs. The management fee of the Acquiring Fund is slightly higher than the advisory fee of the Acquired Fund. The Acquiring Fund, however, employs a unitary fee structure pursuant to which Matthews bears all operating expenses of the Fund subject to limited exceptions, which is expected to result in a lower net expense ratio than each share class of the Acquired Fund. The Reorganization did not materially change the Acquired Fund’s portfolio holdings. There are no material differences in the accounting policies of the Acquired Fund and the Acquiring Fund.

The Acquiring Fund did not purchase or sell securities following the Reorganization for purposes of realigning its investment portfolio. Accordingly, the Reorganization did not affect the Acquiring Fund’s portfolio turnover ratio for the period ended December 31, 2023.

2.	SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Funds in preparation of their financial statements. Each Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The accounting policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

SECURITY VALUATION: Pursuant to Rule 2a-5 under the 1940 Act, the Funds’ Board of Trustees (the “Board”) has designated authority to a Valuation Designee, Matthews International Capital Management, LLC (“Matthews”), the Funds’ investment advisor, to make fair valuation determinations under adopted procedures subject to Board oversight. Matthews has formed a Valuation Committee (the “Valuation Committee”) to administer the pricing and valuation of portfolio securities and other assets and liabilities and to ensure that prices determined by Matthews or provided by third parties reasonably reflect fair value. The Valuation Designee may utilize independent pricing services, quotations from securities and financial instrument dealers and other market sources to determine fair value. The value of the Trust’s securities is based on market quotations for those securities, or on their fair value determined by the valuation policies approved by the Board. Market quotations and valuation information are provided by commercial pricing services or securities dealers that are independent of the Funds and Matthews in accordance with procedures established by the Valuation Designee. Foreign exchange-traded securities are valued as of the close of trading on the primary exchange on which they trade. Securities that trade in over-the-counter markets, including most debt securities (bonds), may be valued by other third-party vendors or by using indicative bid quotations from dealers or market makers, or other available market information. Market values for securities are determined based on quotations, market data or other information from the principal (or most advantageous) market on which the security is traded. Market quotations for equity securities used by the Funds include last reported sale prices, or, if such prices are not reported or available, bid and ask prices. The Funds may also utilize independent pricing services to assist them in determining a current market value for each security based on sources believed to be reliable.

When fair value pricing is employed, the prices of securities used by a Fund to calculate its Net Asset Value (“NAV”) may differ from any quoted or published prices for the same securities for that day. Events affecting the value of foreign investments may occur between the time at which they are determined and when the Funds calculate their NAV, which is normally the close of trading on the NYSE. If such events render market quotations unreliable, and the impact of such events can be reasonably determined, the investments will be valued at their fair value in accordance with pricing policies. The fair value of a security held by the Funds may be determined using the services of third-party pricing services to assist in this process.

The books and records of the Funds are maintained in U.S. dollars. Transactions, portfolio securities, and assets and liabilities denominated in a foreign currency are translated and recorded in U.S. dollars at the prevailing exchange rates. The Fund does not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments on the Statement of Operations. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Funds isolate that portion of gains and losses on investments in fixed income securities that is due to changes in foreign exchange rate from that which is due to changes in market prices of securities.

Foreign securities held by the Funds may be traded on days and at times when the NYSE is closed. Accordingly, the value of the Funds may be significantly affected on days when shareholders have no access to the Funds.


62		MATTHEWS ASIA FUNDS

Notes to Financial Statements (continued)

FAIR VALUE MEASUREMENTS: The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:

Level 1: Unadjusted quoted prices in active markets for identical securities (foreign securities that are valued based on market quotations).

Level 2: Other significant observable inputs. Certain foreign securities may be fair valued by Matthews using information such as quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and foreign exchange. Additionally, external pricing services are used when the Funds determine that events affecting the value of foreign securities which occur between the time at which they are determined and the close of trading on the NYSE render market quotations unreliable.

Level 3: Significant unobservable inputs. Level 3 securities are valued based on significant unobservable inputs as determined under procedures approved by the Board. Characterization of such securities as Level 3 securities are not necessarily an indication of their liquidity or the risk associated with investing in these securities. A significant change in the unobservable inputs could result in a significantly lower or higher value in such Level 3 securities and could impact overall Fund performance.

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

On December 31, 2023, securities held by the Matthews Emerging Markets Equity Active ETF, Mathews Emerging Markets ex China Active ETF, Matthews Asia Innovators Active ETF, Matthews China Active ETF, Matthews India Active ETF, Matthews Japan Active ETF and Matthews Korea Active ETF were classified as Level 1, based on the inputs used to determine their fair values.

On December 31, 2023, the following Funds had level 1 and level 2 fair valued securities:


	Matthews Emerging Markets Sustainable Future Active ETF		Matthews Pacific Tiger Active ETF		Matthews Asia Dividend Active ETF
Assets:

Investments:
Level 1: Quoted Prices
Common Equities:
Australia		$—		$—		$155,552
Brazil		1,092,280		—		—
Chile		105,850		—		—
China/Hong Kong		5,810,695		29,371,866		397,180
Estonia		99,944		—		—
France		—		—		—
India		2,857,710		15,825,174		130,042
Indonesia		—		2,200,395		38,410
Japan		—		—		493,408
Jordan		153,280		—		—
Philippines		—		1,559,059		—
Poland		453,826		—		—
Romania		187,008		—		—
Saudi Arabia		373,222		—		—
Singapore		—		1,208,140		53,442
South Korea		1,059,704		10,596,422		98,506
Switzerland		—		—		—
Taiwan		1,347,094		15,188,683		134,888
United States		513,320		—		—
Vietnam		19,034		749,614		22,181
Preferred Equities:
South Korea		65,134		—		—
Short-Term Investments		26,961		3,771,939		30,049
Total		14,165,062		80,471,292		1,553,658
Level 2: Other Significant Observable Inputs
Common Equities:
Bangladesh		8,550		—		—
Thailand		—		2,921,888		24,595
Total Market Value of Investments		$14,173,612		$83,393,180		$1,578,253

RISKS ASSOCIATED WITH NON-U.S. COMPANIES: Investments by the Funds in the securities of non-U.S. companies may involve investment risks not typically associated with investments in U.S. issuers. These risks include possible political, economic, social and religious instability; inadequate investor protection; changes in laws or regulations of Emerging Market or Asia Pacific countries where the Funds may invest; international relations with other nations; natural disasters; corruption; and military activity. Foreign securities may trade in securities markets that are substantially smaller, less developed, less liquid and more volatile than the major securities markets in the United States. Foreign securities may be subject to greater fluctuations in price than securities of domestic corporations or the U.S. government. Foreign investing may also include the risk of expropriation or confiscatory taxation, limitation on the removal of funds or other assets, currency crises and exchange controls, the imposition of foreign withholding tax on the interest income payable on such instruments, the possible seizure or nationalization of foreign deposits or assets, or the adoption of other foreign government restrictions that might adversely affect the foreign securities held by the Funds. Additionally, Emerging Market and Asia Pacific countries may utilize formal or informal currency exchange controls or “capital controls” that may limit the ability to repatriate investments or income or adversely affect the value of portfolio investments. The economies of many Emerging Market and Asia Pacific countries differ from the economies of more developed countries in many respects, such as their rate of growth, inflation, capital reinvestment, resource self-sufficiency and dependence on other economies, financial system stability, the national balance of payments position and sensitivity to changes in global trade.


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Notes to Financial Statements (continued)

Certain Emerging Market and Asia Pacific countries are highly dependent upon and may be affected by developments in the economies of other countries. Non-U.S. companies are subject to different accounting, auditing, and financial reporting standards, practices, and requirements than U.S. companies. There is generally less government regulation of stock exchanges, brokers, and listed companies abroad than in the United States, which may result in less transparency with respect to a company’s operations, and make obtaining information about them more difficult (or such information may be unavailable).

Among other risks of investing in foreign markets, particularly those of emerging and frontier markets in which the Funds invest, are the variable quality and reliability of financial information and related audits of companies. In some cases, financial information and related audits can be unreliable and not subject to verification. Auditing firms in some of these markets are not subject to independent inspection or oversight of audit quality. For example, China does not allow the Public Company Accounting Oversight Board to inspect the work that auditors perform in China for Chinese companies that sell stock into U.S. markets. This can result in investment decisions being made based on flawed or misleading information.

Foreign stock markets, particularly those of emerging and frontier markets in which the Funds invest, may not be as developed or efficient as those in more developed markets such as the United States, and the absence of negotiated brokerage commissions in certain countries may result in higher brokerage fees. The time between the trade and settlement dates of securities transactions on foreign exchanges ranges from one day to four weeks or longer and may result in higher custody charges. Custodial arrangements may be less well developed than in the United States. Foreign securities are generally denominated and pay distributions in foreign currencies, exposing the Funds to changes in foreign currency exchange rates. Investing in any Emerging Market or Asia Pacific country will also entail risks specific and unique to that country, and these risks can be significant and change rapidly.

Changes in interest rates in each of the countries in which the Funds may invest, as well as interest rates in more-developed countries, may cause a decline in the market value of an investment. Generally, fixed income securities will decrease in value when interest rates rise and can be expected to rise in value when interest rates decline. As interest rates decline, debt issuers may repay or refinance their loans or obligations earlier than anticipated.

The Funds may invest in certain operating companies in China through legal structures known as variable interest entities (“VIEs”). In China, ownership of companies in certain sectors by foreign individuals and entities (including U.S. persons and entities such as the Fund) is prohibited. In order to facilitate foreign investment in these businesses, many Chinese companies have created VIEs. In such an arrangement, a China-based operating company typically establishes an offshore shell company in another jurisdiction, such as the Cayman Islands. That shell company enters into service and other contracts with the China-based operating company, then issues shares on a foreign exchange, such as the New York Stock Exchange. Foreign investors hold stock in the shell company rather than directly in the China-based operating company. This arrangement allows U.S. investors to obtain economic exposure to the China-based company through contractual means rather than through formal equity ownership.

VIEs are a longstanding industry practice and well known to officials and regulators in China; however, VIEs are not formally recognized under Chinese law. Recently, the government of China provided new guidance to and placed restrictions on China-based companies raising capital offshore, including through VIE structures. Investors face uncertainty about future actions by the government of China that could significantly affect an operating company’s financial performance and the enforceability of the shell company’s contractual arrangements. It is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the VIE structure, or whether any new laws, rules or regulations relating to VIE structures will be adopted or, if adopted, what impact they would have on the interests of foreign shareholders. Under extreme circumstances, China might prohibit the existence of VIEs, or sever their ability to transmit economic and governance rights to foreign individuals and entities; if so, the market value of the Funds’ associated portfolio holdings would likely suffer significant, detrimental, and possibly permanent effects, which could result in substantial investment losses.

In February 2022, Russian forces entered Ukraine and commenced an armed conflict. Economic sanctions have since been imposed on Russia and certain of its citizens, including the exclusion of Russia from the SWIFT global payments network. As a result, Russian-related stocks and debt have since suffered significant declines in value. The ongoing conflict, together with growing turmoil from fluctuations in commodity prices and foreign exchange rates, has the potential to impact adversely global economies and has driven a sharp increase in volatility across markets. The duration of the Russian-Ukraine conflict and its effect on financial markets cannot be determined with certainty. The Funds’ performance could be negatively impacted if the value of a portfolio holding were harmed by these and such other events. Management is actively monitoring these events. As of December 31, 2023, the Funds did not hold any Russian securities.

D.	DISTRIBUTIONS TO SHAREHOLDERS:

The Funds generally distribute their net investment income once annually in December. Any net realized gain from the sale of portfolio securities and net realized gains from foreign currency transactions are distributed at least once each year unless they are used to offset losses carried forward from prior years. The Funds will declare and pay income and capital gain distributions in cash. Distributions in cash may be reinvested automatically in additional whole shares of the Funds only if the broker through whom you purchased your shares makes such option available. Your broker is responsible for distributing the income and capital gain distributions to you. Distributions are treated the same for tax purposes whether received in cash or reinvested. If you buy shares when a Fund has realized but not yet distributed ordinary income or capital gains, you will be “buying a dividend” by paying the full price of the shares and then receiving a portion of the price back in the form of a taxable dividend.

The tax character of distributions paid for the periods ended December 31, 2023 and December 31, 2022 were as follows:


PERIOD ENDED DECEMBER 31, 2023	Ordinary Income
Matthews Emerging Markets Equity Active ETF		$5,917
Matthews Emerging Markets ex China Active ETF		100,234
Matthews Emerging Markets Sustainable Future Active ETF		3,113
Matthews Pacific Tiger Active ETF		58,559
Matthews Asia Innovators Active ETF		841,608
Matthews China Active ETF		350,744
Matthews Japan Active ETF		5,378
Matthews Korea Active ETF		1,077,132
Matthews Asia Dividend Active ETF		5,818

PERIOD ENDED DECEMBER 31, 2022	Ordinary Income
Matthews Emerging Markets Equity Active ETF		$28,090


64		MATTHEWS ASIA FUNDS

Notes to Financial Statements (continued)

INVESTMENT TRANSACTIONS AND INCOME: Securities transactions are accounted for on the date the securities are purchased or sold or on the following business day. Financial statements reflect security transactions on trade date. Gains or losses on the sale of securities are determined on the identified cost basis. Interest income is recorded on the accrual basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. Dividend income is generally recorded on the ex-dividend date net of any foreign taxes withheld at the source. Dividend income for certain issuers headquartered in countries which the Funds invest may not be recorded until approved by the shareholders (which may occur after the ex-dividend date) if, in the judgment of management, such dividends are not reasonably determined as of the ex-dividend date.

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which they invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that may be payable if the securities were disposed of on the valuation date.

CASH, CASH OVERDRAFTS, AND FOREIGN CURRENCY: When any of the Funds’ cash balances are overdrawn, a Fund is charged an overdraft fee by the custodian of 3% above the effective federal funds rate on outstanding balances. QFI accounts (i.e., the accounts through which the QFI quota is accessed) are required by the local market to maintain a cash reserve. The cash reserve is based upon a fixed ratio of the QFI’s approved investment quota, which is defined as the amount remitted into its special Renminbi (RMB) cash account. These amounts, if any, are included in “Segregated foreign currency at value” on the Statements of Assets and Liabilities. The fixed ratio is set at 0.08 percent for the Shanghai and 0.06 percent for the Shenzhen market.

G.	USE OF ESTIMATES: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

H.	RECENT ACCOUNTING GUIDANCE

The FASB issued Accounting Standards Update (ASU), ASU 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting in March 2020 and ASU 2021-01 in January 2021 which provided further amendments and clarifications to Topic 848. These ASUs provide optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR), and other interbank-offered based reference rates, through December 31, 2022. In December 2022, FASB issued ASU 2022-06 which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. Management intends to rely upon the relief provided under Topic 848, which is not expected to have a material impact on the Funds’ financial statements.

In June 2022, the FASB issued Accounting Standards Update (ASU), ASU 2022-03, Fair Value Measurement (Topic 820)—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments under this ASU are effective for fiscal years beginning after December 15, 2023; however, the Funds opted to early adopt, as permitted, effective December 1, 2022. Adoption of the guidance did not have a material impact on the Funds’ financial statements.

3.	CAPITAL SHARE TRANSACTIONS

Capital shares are issued and redeemed by the Fund only in aggregations of a specified number of shares or multiples thereof (Creation Units) at NAV, in return for securities, other instruments, and/or cash (the Basket). Except when aggregated in Creation Units, shares of the Fund are not redeemable. Transactions in capital shares for the Fund are disclosed in detail in the Statement of Changes in Net Assets. Purchasers and redeemers of Creation Units are charged a transaction fee to cover the estimated cost to the Fund of processing the purchase or redemption, including costs charged to it by the NSCC (National Securities Clearing Corporation) or DTC (Depository Trust Company), and the estimated transaction costs, e.g., brokerage commissions, bid ask spread, and market impact trading costs, incurred in converting the Basket to or from the desired portfolio composition. The transaction fee is determined daily and will be limited to amounts approved by the Board and determined by the Adviser to be appropriate to defray the expenses that the Fund incurs in connection with the purchase or redemption. The purpose of transaction fees is to protect the Fund’s existing shareholders from the dilutive costs associated with the purchase and redemption of Creation Units. The amount of transaction fees will differ depending on the estimated trading costs for portfolio positions and Basket processing costs and other considerations. Transaction fees may include fixed amounts per creation or redemption transactions, amounts varying with the number of Creation Units purchased or redeemed, and varying amounts based on the time an order is placed. The Fund may impose higher transaction fees when cash is substituted for Basket instruments. Higher transaction fees may apply to purchases and redemptions through the DTC than through the NSCC.


	Year Ended December 31, 2023						For the Period Ended December 31, 2022¹
	Shares			Amount			Shares		Amount
MATTHEWS EMERGING MARKETS EQUITY ACTIVE ETF

Shares sold		2,700,000			$73,704,102			240,000		$6,323,916

Shares redeemed		(960,000	)		(25,232,737	)		—		—
Net increase		1,740,000			$48,471,365			240,000		$6,323,916

1	The Fund commenced operations on July 13, 2022.


	For the Period Ended December 31, 2023¹
	Shares		Amount
MATTHEWS EMERGING MARKETS EX CHINA ACTIVE ETF

Shares sold		320,000		$8,191,671

Shares redeemed		—		—
Net increase		320,000		$8,191,671

1	The Fund commenced operations on January 10, 2023.


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Notes to Financial Statements (continued)


	For the Period Ended December 31, 2023¹
	Shares		Amount
MATTHEWS EMERGING MARKETS SUSTAINABLE FUTURE ACTIVE ETF

Shares sold		550,000		$13,578,322

Shares redeemed		—		—
Net increase		550,000		$13,578,322

1	The Fund commenced operations on September 21, 2023.


	For the Period Ended December 31, 2023¹
	Shares		Amount
MATTHEWS PACIFIC TIGER ACTIVE ETF

Shares sold		3,150,000		$77,678,654

Shares redeemed		—		—
Net increase		3,150,000		$77,678,654

1	The Fund commenced operations on September 21, 2023.


	Year Ended December 31, 2023						For the Period Ended December 31, 2022¹
	Shares			Amount			Shares		Amount
MATTHEWS ASIA INNOVATORS ACTIVE ETF

Shares sold		1,400,000			$36,516,439			4,350,000		$104,572,402

Shares redeemed		(2,150,000	)		(48,679,124	)		—		—
Net increase (decrease)		(750,000	)		($12,162,685	)		4,350,000		$104,572,402

1	The Fund commenced operations on July 13, 2022.


	Year Ended December 31, 2023						For the Period Ended December 31, 2022¹
	Shares			Amount			Shares		Amount
MATTHEWS CHINA ACTIVE ETF

Shares sold		1,160,000			$30,207,259			420,000		$9,704,698

Shares redeemed		(440,000	)		(8,952,861	)		—		—
Net increase		720,000			$21,254,398			420,000		$9,704,698

1	The Fund commenced operations on July 13, 2022.


	For the Period Ended December 31, 2023¹
	Shares		Amount
MATTHEWS INDIA ACTIVE ETF

Shares sold		220,000		$5,563,942

Shares redeemed		—		—
Net increase		220,000		$5,563,942

1	The Fund commenced operations on September 21, 2023.


	For the Period Ended December 31, 2023¹
	Shares		Amount
MATTHEWS JAPAN ACTIVE ETF

Shares sold		40,000		$1,000,000

Shares redeemed		—		—
Net increase		40,000		$1,000,000

1	The Fund commenced operations on September 21, 2023.


66		MATTHEWS ASIA FUNDS

Notes to Financial Statements (continued)


	Year Ended December 31, 2023¹						Year Ended December 31, 2022
	Shares			Amount			Shares			Amount
MATTHEWS KOREA ACTIVE ETF (FORMERLY INSTITUTIONAL CLASS)²

Shares sold		2,718,906			$70,480,765			81,837			$2,268,597

Reinvestment of distributions		42,186			1,051,693			40,393			953,194

Shares redeemed		(603,244	)		(15,058,183	)		(161,336	)		(4,304,395	)
Net increase (decrease)		2,157,848			$56,474,275			(39,106	)		($1,082,604	)
Investor class

Shares sold		318,248			$1,279,757			1,794,314			$7,344,868

Shares issued through reinvestment of distributions		—			—			1,920,486			7,451,487

Shares redeemed		(18,877,339	)		(79,650,512	)		(5,847,971	)		(24,651,834	)
Net (decrease)		(18,559,091	)		($78,370,755	)		(2,133,171	)		($9,855,479	)

The Matthews Korea Active ETF acquired all assets and liabilities of the Matthews Korea Fund (the “Predecessor Fund”) in a reorganization that occurred on July 14, 2023. The performance and financial history of the Predecessor Fund’s Institutional Class have been adopted by the Matthews Korea Active ETF. As a result, the information prior to July 14, 2023 reflects that of the Predecessor Fund’s Institutional Class. The Predecessor Fund ceased operations as of the date of the reorganization. (See Note 1).

2	On June 23, 2023, the Predecessor Fund’s Institutional Class effected a reverse share split with a ratio of 1 : 0.166538 (old to new). Share amounts transacted prior to June 23, 2023 have been adjusted to reflect the reverse share split.


	For the Period Ended December 31, 2023¹
	Shares		Amount
MATTHEWS ASIA DIVIDEND ACTIVE ETF

Shares sold		50,000		$1,500,000

Shares redeemed		—		—
Net increase		50,000		$1,500,000

1	The Fund commenced operations on September 21, 2023.

4.	INVESTMENT MANAGEMENT FEES

Pursuant to the Investment Management Agreement, as amended, between Matthews and the Trust, Matthews will pay substantially all the expenses of each Fund excluding management fees, interest expenses, taxes, brokerage fees, securities lending fees, payments under a Fund’s 12b-1 plan (if any), acquired fund fees, litigation expenses and any extraordinary expenses.

For the Matthews Korea Active ETF, Matthews has contractually agreed to a fee waiver agreement dated April 28, 2023 (the “Fee Waiver Agreement”), under which Matthews has agreed to waive a portion of the management fee with respect to the Matthews Korea Active ETF if and to the extent that the total annual operating expense ratio of the lowest cost share class of any “Family-Priced Fund” is less than the applicable management fee rate of the Matthews Korea Active ETF. The Family-Priced Funds are the series of the Trust that are operated as mutual funds, other than the Matthews Emerging Markets Small Companies Fund and the Matthews China Small Companies Fund. The Fee Waiver Agreement will remain in effect until terminated by the Board and a majority of the Independent Trustees. Based on the currently applicable expense ratios for the Family-Priced Funds, it is not expected that a waiver under the Fee Waiver Agreement will occur in the foreseeable future.

The investment management fee, accrued daily and paid monthly by the Funds based on the average daily net assets of each Fund, are as follows:


Matthews Emerging Markets Equity Active ETF			0.79%
Matthews Emerging Markets ex China Active ETF			0.79%
Matthews Emerging Markets Sustainable Future Active ETF			0.79%
Matthews Pacific Tiger Active ETF			0.79%
Matthews Asia Innovators Active ETF			0.79%
Matthews China Active ETF			0.79%
Matthews India Active ETF			0.79%
Matthews Japan Active ETF			0.79%
Matthews Korea Active ETF*			0.79%
Matthews Asia Dividend Active ETF			0.79%

Prior to July 14, 2023, Matthews, a registered investment advisor under the 1940 Act, provided the Matthews Korea Active ETF (formerly the Matthews Korea Fund) (the “Korea Fund”) with investment management services pursuant to an Investment Advisory Agreement dated February 1, 2016, as amended (the “Advisory Agreement”), under which the Korea Fund paid Matthews (i) for management and advisory services; and (ii) for certain administrative services, an annual fee as a percentage of average daily net assets. Under the Advisory Agreement, the family-priced Matthews Asia Funds mutual funds (the “Mutual Funds”), including the Korea Fund, paid Matthews 0.75% of their aggregate average daily net assets up to $2 billion, 0.6834% of their aggregate average daily net assets over $2 billion up to $5 billion, 0.65% of their aggregate average daily net assets over $5 billion up to $25 billion, 0.64% of their aggregate average daily net assets over $25 billion up to $30 billion, 0.63% of their aggregate average daily net assets over $30 billion up to $35 billion, 0.62% of their aggregate average daily net assets over $35 billion up to $40 billion, 0.61% of their aggregate average daily net assets over $40 billion up to $45 billion, and 0.60% of their aggregate average daily net assets over $45 billion. The Korea Fund paid Matthews a monthly fee at the annual rate using the applicable management fee calculated based on the actual number of days of that month and based on the its average daily net asset value for the month.

Prior to July 14, 2023, pursuant to an Administration and Shareholder Services Agreement dated August 13, 2004, as amended (the “Services Agreement”), the Mutual Funds, including the Korea Fund, paid an annual administration and shareholder servicing fee to Matthews, as a percentage of the average daily net assets of each fund in aggregate, computed and prorated on a daily basis. Under the Services Agreement, the Mutual Funds in the aggregate paid Matthews 0.25% of their aggregate average daily net assets up to $2 billion, 0.1834% of their aggregate average daily net assets over $2 billion up to $5 billion, 0.15% of their aggregate average daily net assets over $5 billion up to $7.5 billion, 0.125% of their aggregate average daily net assets over $7.5 billion up to $15 billion, 0.11% of their aggregate average daily net assets over $15 billion up to $22.5 billion, 0.10% of their aggregate average daily net assets over $22.5 billion up to $25 billion, 0.09% of their aggregate average daily net assets over $25 billion up to $30 billion, 0.08% of their aggregate average daily net assets over $30 billion up to $35 billion, 0.07% of their aggregate average daily net assets over $35 billion up to $40 billion, 0.06% of their aggregate average daily net assets over $40 billion up to $45 billion, and 0.05% of their aggregate average daily net assets over $45 billion.


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Notes to Financial Statements (continued)

As of December 31, 2023, Matthews and its affiliates held significant shares in the Funds as follows:


	Shares held by Matthews and its Affiliates		Percentage of Outstanding Shares
Matthews Japan Active ETF		22,356		56%
Matthews Asia Dividend Active ETF		8,820		18%

5.	INVESTMENTS

For the period ended December 31, 2023, the cost of investments purchased and proceeds from sale of investments (excluding in-kind transactions and short-term investments) were as follows:


	Purchases		Proceeds from Sales
Matthews Emerging Markets Equity Active ETF		$46,800,240		$22,894,986
Matthews Emerging Markets ex China Active ETF		5,424,899		1,583,574
Matthews Emerging Markets Sustainable Future Active ETF		10,097,066		24,409
Matthews Pacific Tiger Active ETF		57,231,055		4,301,500
Matthews Asia Innovators Active ETF		320,844,443		324,845,238
Matthews China Active ETF		41,862,006		16,338,428
Matthews India Active ETF		6,014,104		507,487
Matthews Japan Active ETF		1,363,257		427,725
Matthews Korea Active ETF		21,172,694		45,850,637
Matthews Asia Dividend Active ETF		1,549,091		84,686

For the period ended December 31, 2023, the cost of in-kind purchases and proceeds from in-kind sales were as follows:


	Purchases		Proceeds from Sales
Matthews Emerging Markets Equity Active ETF		$37,912,445		$15,203,686
Matthews Emerging Markets ex China Active ETF		4,129,232		—
Matthews Emerging Markets Sustainable Future Active ETF		3,450,690		—
Matthews Pacific Tiger Active ETF		24,469,455		—
Matthews Asia Innovators Active ETF		13,930,518		21,778,633
Matthews China Active ETF		2,203,227		6,422,647
Matthews Korea Active ETF		129,165		91,186

6.	INCOME TAX INFORMATION

It is the policy of the Funds to comply with all requirements of the Internal Revenue Code of 1986, as amended (“the Code”), applicable to regulated investment companies and to distribute substantially all of their taxable income to their shareholders. The Funds have met the requirements of the Code applicable to regulated investment companies for the year ended December 31, 2023. Therefore, no federal income tax provision is required.

Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years (current and prior three tax years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds’ federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

As of December 31, 2023, the components of accumulated earnings/deficit on tax basis were as follows:


	Undistributed Ordinary Income		Capital Loss Carryforwards			Late Year Losses*			Unrealized Appreciation/ (Depreciation)**			Total Accumulated Earnings/ (Deficit)
Matthews Emerging Markets Equity Active ETF		$—		$(821,113	)		$(459,414	)		$2,489,134			$1,208,607
Matthews Emerging Markets ex China Active ETF		24,984		(52,444	)		(95,491	)		762,569			639,618
Matthews Emerging Markets Sustainable Futures Active ETF		26,214		—			—			550,063			576,277
Matthews Pacific Tiger Active ETF		179,396		—			(362,038	)		2,293,139			2,110,497
Matthews Asia Innovators Active ETF		173,283		(15,663,027	)		(4,065,416	)		9,644,724			(9,910,436	)
Matthews China Active ETF		—		(2,191,158	)		(296	)		(6,810,090	)		(9,001,544	)
Matthews India Active ETF		11,252		—			—			364,719			375,971
Matthews Japan Active ETF		5,508		(17,075	)		(6,785	)		70,873			52,521
Matthews Korea Active ETF		2,471,623		—			—			6,916,331			9,387,954
Matthews Asia Dividend Active ETF		7,109		—			—			74,582			81,691

*	The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next fiscal year.

**	The differences between book-basis and tax-basis unrealized appreciation/depreciation is attributable primarily to the tax deferral of losses on wash sales and passive foreign investment company (PFIC) mark to market adjustments.


68		MATTHEWS ASIA FUNDS

Notes to Financial Statements (continued)

As of December 31, 2023, the Funds have capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


	Amount With No Expiration
	Short-term Losses		Long-term Losses		Total
Matthews Emerging Markets Equity Active ETF		$807,971		$13,142		$821,113
Matthews Emerging Markets ex China Active ETF		52,444		—		52,444
Matthews Asia Innovators Active ETF		15,537,340		125,687		15,663,027
Matthews China Active ETF		2,071,547		119,611		2,191,158
Matthews Japan Active ETF		17,075		—		17,075

The following Funds utilized capital loss carryforwards in the current year:


	Utilized Capital Loss Carryforwards
Matthews Korea Active ETF		$4,223,076

Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years, which generally expire after eight years from when they are incurred. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

U.S. GAAP requires that certain components of net assets be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV. The permanent differences are primarily attributable to investments in non-deductible expenses, NOL (net operating loss) adjustments, distributions in excess of current earnings and profits and in-kind redemptions. For the year ended December 31, 2023, permanent differences in book and tax accounting have been reclassified as follows:


	Increase/(Decrease) Capital paid-in			Increase/(Decrease) Total Distributable Earnings/(Accumulated Loss)
Matthews Emerging Markets Equity Active ETF		$(96,875	)		$96,875
Matthews Asia Innovators Active ETF		2,365,781			(2,365,781	)
Matthews China Active ETF		(215,188	)		215,188
Matthews Korea Active ETF		21,103			(21,103	)

As of December 31, 2023, the tax cost of investments and the related net unrealized appreciation and depreciation were as follows:


	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)
Matthews Emerging Markets Equity Active ETF		$52,936,185		$6,087,592		$(3,530,547	)		$2,557,045
Matthews Emerging Markets ex China Active ETF		8,036,043		1,030,507		(253,744	)		776,763
Matthews Emerging Markets Sustainable Futures Active ETF		13,601,140		833,976		(261,504	)		572,472
Matthews Pacific Tiger Active ETF		80,980,628		3,986,451		(1,573,899	)		2,412,552
Matthews Asia Innovators Active ETF		73,621,999		12,323,660		(2,350,627	)		9,973,033
Matthews China Active ETF		28,529,592		878,648		(7,688,720	)		(6,810,072	)
Matthews India Active ETF		5,529,346		486,908		(33,158	)		453,750
Matthews Japan Active ETF		981,634		82,093		(11,232	)		70,861
Matthews Korea Active ETF		59,442,514		11,116,137		(4,203,924	)		6,912,213
Matthews Asia Dividend Active ETF		1,502,320		107,096		(31,163	)		75,933

7.	OTHER MATTERS

Mergers and Reorganizations—Pursuant to an Agreement and Plan of Reorganization (a “Reorganization Agreement”) between the Matthews Korea Fund (the “Acquired Fund”), and the Matthews Korea Active ETF (the “Acquiring Fund”), that occurred on July 14, 2023, all of the assets and liabilities of the Institutional Class of the Acquired Fund were transferred to the Acquiring Fund in exchange for shares of the Acquiring Fund having an aggregate NAV equal to the NAV of such Acquired Fund as of the time of valuation specified in the applicable Reorganization Agreement, which were then distributed to shareholders of record of such Acquired Fund in a tax-free exchange (the “Reorganization”) as follows:

Acquired Fund/Acquiring Fund

Exchanged Shares
of Acquiring Fund
Issued

Value of Exchanged
Shares

Acquired Fund’s
Shares Outstanding
as of July 14,
2023

Matthews Korea Fund, Institutional Class/Matthews Korea Active ETF

2,493,212

$65,862,730

2,493,212


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Notes to Financial Statements (continued)

The Acquiring Fund has been organized solely in connection with the Reorganization to acquire all of the assets and liabilities of the Acquired Fund and continue the business of the Acquired Fund. Therefore, after the Reorganization, the Acquired Fund will remain the “accounting survivor.” This means that the Acquiring Fund will continue to show the historical investment performance and returns of the Acquired Fund (even after conversion of the Acquired Fund).

The following chart shows Acquiring Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the acquisition) and the Acquired Fund’s unrealized depreciation:


Acquired Fund/Acquiring Fund	Acquiring Fund’s Aggregate Net Assets before acquisition		Acquired Fund’s Aggregate Net Assets before acquisition		Acquiring Fund’s Aggregate Net Assets immediately after acquisition		Acquired Fund’s Unrealized Appreciation (Depreciation)¹		Acquired Fund’s Capital Loss Carryforward²
Matthews Korea Fund, Institutional Class/Matthews Korea Active ETF		—		$65,862,730		$65,862,730		$9,969,616		$4,223,076

1	The Acquiring Fund has elected to carry forward the assets of the Acquired Fund at the Acquired Fund’s historical cost basis for purposes of measuring unrealized depreciation and future realized gain or loss of those acquired assets.

2	Represents Capital Loss Carryforward of Acquired Fund as of December 31, 2022.

8.	SUBSEQUENT EVENTS

On January 10, 2024, the Matthews Emerging Markets Discovery Active ETF and the Matthews China Discovery Active ETF, each a new series of the Trust, were launched.


70		MATTHEWS ASIA FUNDS

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Matthews International Funds and Shareholders of each of the ten funds listed in the table below:

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds indicated in the table below (ten of the funds constituting Matthews International Funds, hereafter collectively referred to as the “Funds”) as of December 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2023, the results of each of their operations and changes in each of their net assets for each of the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.


Fund	Statement of Operations	Statement of Changes in Net Assets
Matthews China Active ETF Matthews Asia Innovators Active ETF Matthews Emerging Markets Equity Active ETF	For the year ended December 31, 2023	For the year ended December 31, 2023 and for the period July 13, 2022 (commencement of operations) to December 31, 2022
Matthews Korea Active ETF	For the year ended December 31, 2023	For each of the two years in the period ended December 31, 2023
Matthews Emerging Markets ex China Active ETF	For the period January 10, 2023 (commencement of operations) to December 31, 2023	For the period January 10, 2023 (commencement of operations) to December 31, 2023
Matthews Emerging Markets Sustainable Future Active ETF Matthews Asia Dividend Active ETF Matthews India Active ETF Matthews Pacific Tiger Active ETF Matthews Japan Active ETF	For the period September 21, 2023 (commencement of operations) to December 31, 2023	For the period September 21, 2023 (commencement of operations) to December 31, 2023

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, CA

February 23, 2024

We have served as the auditor of one or more investment companies in Matthews International Funds since 2007.


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Tax Information (unaudited)

For shareholders who do not have a December 31, 2023 tax year-end, this notice is for informational purposes. For the period January 1, 2023 to December 31, 2023, the Funds report the following items with regard to distributions paid during the period. All reports are based on financial information available as of the date of this annual report and, accordingly, are subject to change. For each item, it is the intention of each Fund to report the maximum amount permitted under the Internal Revenue Code and the regulations thereunder.

1. Qualified Dividend Income

The Funds report a portion of the ordinary income distributed during the the period ended December 31, 2023 as Qualified Dividend Income (“QDI”) as defined in the Internal Revenue code as follows:


	QDI Portion
Matthews Emerging Markets Equity Active ETF		100.00%
Matthews Emerging Markets ex China Active ETF		54.09%
Matthews Emerging Markets Sustainable Future Active ETF		98.24%
Matthews Pacific Tiger Active ETF		32.65%
Matthews Asia Innovators Active ETF		44.40%
Matthews China Active ETF		100.00%
Matthews Japan Active ETF		47.95%
Matthews Korea Active ETF		100.00%
Matthews Asia Dividend Active ETF		51.46%

2. Dividends Received Deduction

The Funds report a Dividend Received Deduction pursuant to Section 854 of the Internal Revenue Code for the period ended December 31, 2023 as follows:


Matthews Emerging Markets ex China Active ETF			1.24%
Matthews Emerging Markets Sustainable Future Active ETF			3.41%
Matthews Asia Innovators Active ETF			2.12%

3. Foreign Taxes Paid

The Funds have elected to pass through to their shareholders the foreign taxes paid for year ended December 31, 2023 as follows:


	Foreign Source Income		Foreign Taxes Paid/(Credit)
Matthews Emerging Markets Equity Active ETF		$1,127,786		$—
Matthews Emerging Markets ex China Active ETF		145,778		14,269
Matthews Emerging Markets Sustainable Futures Active ETF		12,584		2,165
Matthews Pacific Tiger Active ETF		116,451		17,203
Matthews Asia Innovators Active ETF		1,845,951		179,932
Matthews China Active ETF		604,029		42,630
Matthews India Active ETF		4,188		—
Matthews Japan Active ETF		7,819		902
Matthews Korea Active ETF		1,063,668		228,323
Matthews Asia Dividend Active ETF		9,266		1,110

4. Qualified Interest Income

The Funds report a portion of the net income dividends distributed during the period ended December 31, 2023, as Qualified Interest Income (QII), as defined in the Internal Revenue Code as follows:


	QII Portion
Matthews Emerging Markets Equity Active ETF		0.27%
Matthews Emerging Markets ex China Active ETF		3.08%
Matthews Emerging Markets Sustainable Future Active ETF		8.60%
Matthews Pacific Tiger Active ETF		19.65%
Matthews Asia Innovators Active ETF		5.72%
Matthews China Active ETF		4.12%
Matthews Japan Active ETF		6.25%
Matthews Korea Active ETF		1.62%
Matthews Asia Dividend Active ETF		6.82%


72		MATTHEWS ASIA FUNDS

Tax Information (unaudited) (continued)

5. Qualified Short-Term Capital Gain Dividends

The Funds report a portion of the short term capital gain dividends distributed during the year ended December 31, 2023, as Qualified Short-Term Gain, as defined in the Internal Revenue Code as follows:


	Short-Term Gains
Matthews Asia Dividend Active ETF		100.00%


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Approval of Investment Management Agreement (unaudited)

Matthews Emerging Markets ex China Active ETF

The Matthews Emerging Markets ex China Active ETF (the “Fund”), which is a new series of the Trust, has retained Matthews International Capital Management, LLC (“Matthews”) to manage its assets pursuant to the Management Agreement, which has been approved by the Board of Trustees of the Trust, including the Independent Trustees.

At a meeting held on November 15-16, 2022, the Board, including the Independent Trustees of the Trust, approved the Management Agreement, with respect to the Fund, for an initial term of two years. Following the initial term upon the commencement of operations of the Fund, the Management Agreement continues in effect from year-to-year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Fund, or by the Board of Trustees, and, in either event, by a majority of the Independent Trustees of the Trust casting votes in person at a meeting called for that purpose.

The Independent Trustees reviewed and discussed the information provided by Matthews at that and prior meetings. The Independent Trustees were assisted in their deliberations by their independent legal counsel. Below is a summary of the factors considered by the Board in approving the Management Agreement with respect to the Fund.

1.	The nature, extent and quality of the services to be provided by Matthews under the Management Agreement.

The Trustees considered the services provided to the other series of the Trust pursuant to the Management Agreement and, with respect to those series operated as mutual funds, pursuant to the Investment Advisory Agreement between the Trust, on behalf of each such series, and Matthews. The Trustees further considered the experience and qualifications of the personnel at Matthews who would be responsible for providing services to the Fund and would be responsible for the daily management of the Fund’s portfolio. The Trustees noted Matthews’ on-going commitment to governance, compliance, risk and valuation practices. The Trustees viewed Matthews as well positioned to provide high quality services to the Fund under various market conditions, as demonstrated by the past volatile and challenging securities markets that have caused either contracting revenues or rapidly expanding assets at different times. The Trustees concluded that Matthews has the quality of personnel and other investment resources essential to performing its duties under the Management Agreement, and that the nature, overall quality and extent of such management services are expected to be satisfactory and reliable.

2.	The investment performance of Matthews.

The Trustees are familiar with the short-term and long-term performance of other series of the Trust on both an absolute basis and in comparison to peer funds and benchmark indices. The Trustees noted that the Fund is a new Fund without any prior performance, but that Matthews intends to follow a similar framework and investment process as for the

Matthews Emerging Markets Equity Active ETF and Matthews Emerging Markets Equity Fund. The Board considered the investment performance of those series, while also taking into account relevant distinctions and differences with respect to the investment strategies of the Fund. The Trustees also emphasized longer-term performance goals, which they believe are more important than short isolated periods for purposes of evaluating Matthews’s success in meeting Fund and shareholder objectives. The Trustees concluded that Matthews has the potential to generate acceptable long-term performance for the Fund.

3.	The extent to which Matthews will realize economies of scale as the Fund grows larger and whether Fund investors will benefit from any economies of scale.

Because the Fund is new, it is not expected to recognize economies of scale for some time. The Trustees expect to monitor the Fund’s growth and evaluate economies of scale at future renewals of the Management Agreement in effect at that time. They expect that the Fund will benefit from existing economies of scale through relatively low fee rates established at inception, as well as through additional investment in the Trust’s business and the provision of improved or additional infrastructure and services to the Fund and its shareholders. As a result, the Trustees were satisfied about the extent to which economies of scale would be shared with the Fund and its shareholders.

4.	The costs of the services to be provided by Matthews and others.

The Trustees considered the management fees and expenses of the Fund in comparison to the advisory fees and other fees and expenses of other existing series of the Trust, noting that, as compared to the other series of the Trust that are operated as mutual funds, the Fund has a unitary management fee structure which will cover most of the ordinary operating expenses of the Fund. The Trustees noted that because Matthews would be assuming many of the operating expenses of the Fund, the total expense ratio for the Fund is lower, and in some cases substantially lower, than the total expense ratios of the series of the Trust that are operated as mutual funds. The Trustees further noted that the total expense ratio of the Fund is the same as the total expense ratio of each other series of the Trust that is operated as an exchange-traded fund. The Trustees also considered the fees and expenses of the competitive universe of actively-managed exchange-traded funds, noting that there were a limited number of such funds in the competitive universe for the Fund. The Trustees considered that the total expense ratio to be paid by investors in the Fund, which is most representative of an investor’s net experience, would be reasonable.

5.	The profits to be realized by Matthews and its affiliates from the relationships with the Fund.

The Trustees recognized that, as a new fund with a unitary fee structure, it is unlikely that the Fund will generate profits for Matthews initially and may not do so until the Fund has experienced some significant growth. The Trustees also


74		MATTHEWS ASIA FUNDS

Approval of Investment Management Agreement (unaudited) (continued)

considered that the additional benefits expected to be derived by Matthews from its relationship with the Fund are limited, and largely consist of research benefits received in exchange for “soft dollars.”

No single factor was determinative of the Board’s decision to approve the Management Agreement, but rather the Trustees based their determination on the total mix of information available to them. After considering the factors described above, the Board concluded that the terms of the management arrangements would be fair and reasonable to the Fund in light of the services that Matthews is expected to provide, and that the Fund’s shareholders are expected to receive reasonable value in return for the management fees paid. For these reasons, the approval of the Management Agreement would be in the best interests of the Fund and its shareholders.

The Management Agreement may be terminated by the Trustees on behalf of the Fund or by Matthews upon 60 days’ prior written notice without penalty. The Management Agreement will also terminate automatically in the event of its assignment, as defined in the 1940 Act.


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Approval of Investment Management Agreement (unaudited)

Matthews Korea Active ETF

The Fund named above, which is a series of the Trust, has retained Matthews International Capital Management, LLC (“Matthews”) to manage its assets pursuant to an Investment Management Agreement dated as of June 30, 2022, as amended (the “Management Agreement”), which has been approved by the Board of Trustees of the Trust, including all of the Trustees who are not “interested persons” (“Independent Trustees”), within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”). Following an initial two-year term with respect to the Fund, the Management Agreement continues in effect from year-to-year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Funds, or by the Board of Trustees, and, in either event, by a majority of the Independent Trustees of the Trust casting votes in person at a meeting called for that purpose (the “Annual 15(c) Process”).

At a meeting held on February 22-23, 2023 (the “Meeting”), the Board, including all of the Independent Trustees, approved the Management Agreement for an initial two-year term from April 28, 2023 through April 27, 2025 with respect to the Fund.

The Board recognized at the Meeting that the approval of the Management Agreement in connection with the organization of the Fund was related to the proposed reorganization of the Matthews Korea Fund into the Fund, which was also considered and approved at the Meeting.

At the Meeting and at a prior meeting of the Independent Trustees on January 12, 2023, the Board received and considered information (both written and oral) provided to assist it in the review of the Management Agreement and made assessments with respect to the Fund. The Independent Trustees were advised by independent legal counsel with respect to these matters. The Independent Trustees discussed the approval of the Management Agreement with representatives of Matthews and among themselves in private sessions on various occasions at which no representatives of Matthews were present.

In addition, the Board received presentations about the Trust and its other series throughout the year from management. That other information considered by the Board addressed many of the factors discussed below, including, but not limited to, information about the services provided by Matthews, its structure, organization, operations and personnel, the financial condition of Matthews and the profitability to Matthews from the Management Agreement, compliance procedures and resources, investment performance of other series and any similar strategies, expected expenses of the Fund, planned distribution and marketing of the Fund, relationships with Authorized Participants and market makers, and other information considered relevant.

In considering information relating to management fee levels, the Board took into account that the Fund would pay

Matthews a single unitary fee and that Matthews would be responsible for payment of all ordinary fund expenses out of the unitary fee. The Board considered that Matthews had aimed to provide an estimate of that portion of the unitary fee that might be considered to constitute payment for advisory services, but noted that such estimates were imprecise and not representative of the different market in which the Fund would operate. The Board noted that the current almost universal practice among exchange-traded funds was to charge a single unitary fee and therefore considered as highly relevant the unitary fees charged by other similarly managed exchange-traded funds. The Board also received, and considered to the extent it thought relevant, information provided by Matthews as to Fund management services and fees as compared to advisory services and fees charged by Matthews to its open-end mutual funds, institutional clients and pooled vehicles organized outside of the United States. The Trustees also considered information comparing the proposed fee and expense levels of the Fund to appropriate peer groups of funds, as well as performance data provided by Matthews with respect to unmanaged benchmarks and pooled vehicles or other accounts managed by Matthews with similar investment objectives and/or strategies to the Fund, as applicable.

Furthermore, throughout the course of the year, the Board received a wide variety of materials relating to the services provided by Matthews, and relating to the nature, extent, and quality of services that would be provided by Matthews to the Fund. The Board also considered that, under the Management Agreement and as part of the unitary management fee, Matthews would provide additional services to the Fund that are essential to the operation of the Fund.

In addition to the information furnished by Matthews, the Trustees were provided with advice from their independent legal counsel discussing their fiduciary duties related to their approval of the Management Agreement and discussed these matters with their counsel.

The Trustees’ determinations at the Meeting were made on the basis of each Trustee’s business judgment after consideration of all the information presented. In deciding to recommend the approval of the Management Agreement with respect to the Fund, the Independent Trustees did not identify any single factor or particular piece of information that, in isolation, was controlling. Each Independent Trustee may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Trustees.

1.	The nature, extent and quality of the services provided by Matthews under the Management Agreement.

The Trustees considered the overall financial strength and long-term stability of Matthews and its ability to provide a high level and high quality of services to the Fund. The Trustees considered that despite recent challenging conditions with respect to revenues and profitability of the organization, which have been caused by contracting revenues and assets under management, a difficult geopolitical environment and market volatility, Matthews has the


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resources to provide high quality services to the Fund. They considered Matthews’ services provided to the Trust and noted that past periods of volatile and challenging securities markets had not resulted in a diminution of services to the Trust and that Matthews has always demonstrated a commitment to employ the resources necessary to maintain the high level of quality and services to the Trust’s family of funds. The Trustees positively viewed Matthews’ emphasis on preserving and enhancing portfolio management team resources, and careful business planning and management.

The Trustees considered the experience and qualifications of the executive and portfolio management personnel at Matthews who are responsible for providing services to the Fund and who would be responsible for the daily management of the Fund’s portfolios. The Trustees noted that Matthews had experienced some turnover at the senior executive and professional staff levels in recent years. In this regard, the Trustees also reviewed with Matthews the efforts undertaken to replace staff where appropriate and to otherwise minimize its impact on the Trust, including enhancements to the portfolio management teams of certain funds. They also reviewed Matthews’ retention strategies and recent personnel developments relevant to the Trust. They discussed efforts by Matthews to provide appropriate support to the Trust, including, but not limited to, appropriate back-up support such as, but not limited to, enhancing the structure of the portfolio management team to better recognize Matthews’ bench of talent, and ensuring succession plans are put in place. Among the improved capabilities noted by the Independent Trustees over the past several years are enhanced risk analytical resources and related professionals, including ongoing enhancements to compliance, risk management, technology, business infrastructure, operations, marketing and client service, as well as enhancements to valuation practices.

The Trustees considered the technical capabilities of Matthews, including the design and implementation of its disaster recovery and business continuity infrastructure. The Trustees also considered the Chief Compliance Officer’s report regarding Matthews’ compliance resources, risk assessment and other compliance initiatives and programs. The Trustees concluded that Matthews has implemented a robust and diligent compliance process, and demonstrates a strong commitment to a culture of compliance. The Independent Trustees took into consideration Matthews’ description of its supervision of the activities of the Fund’s various service providers, as well as supporting the Independent Trustees’ responsibilities and requests and its responsiveness to questions and/or concerns raised by the Trustees throughout the year.

The Trustees noted the significant role played by Matthews, as valuation designee, with respect to the valuation of portfolio securities, including research and analysis related to fair valued securities and due diligence and oversight of pricing vendors.

The Trustees concluded that Matthews had the quality of personnel and other investment resources essential to

performing its duties under the Management Agreement, and that the nature, overall quality, cost and extent of such management services are satisfactory.

2.	The investment performance of the Fund.

The Trustees considered the performance of other series of Trust with similar strategies, namely the Korea Fund that would be reorganized into the Fund, on both an absolute basis and in comparison to appropriate peer funds, benchmark indices and to the extent they exist, Matthews’ similarly managed accounts, for various periods. The Trustees considered those investment results in light of the Fund’s objective, strategies and market conditions, noting periods during which there were challenging investment conditions in various Asian and emerging markets. The Board also considered that the Fund has investment objectives, goals and strategies that are nearly identical to the Korea Fund but very different from non-managed broad-based benchmarks, which rendered performance comparisons against such broad-based benchmarks of lesser utility. In this regard, the Board took into account that the Fund is not designed to perform like broad-based indices and therefore that most investors in the Fund likely are not seeking to achieve benchmark-like returns.

After review, the Trustees concluded that the Fund has the potential to achieve acceptable performance. The Trustees also reviewed Matthews’ trading policies and ability to obtain best overall execution for the Fund in the various markets in which the Fund trades securities. The Trustees noted Matthews’ consistent adherence to its long-standing investment approach, which emphasizes fundamental bottom-up driven investment selection in light of its view of regional economic conditions.

3.	The extent to which Matthews realizes economies of scale as the Fund grows larger and whether Fund investors benefit from any economies of scale.

The Trustees considered that, although the Fund would be newly launched, it would be the surviving entity in the reorganization with the Korea Fund, which will give it a larger asset base compared to a typical new fund. However, it would still have limited assets at commencement of operations and, therefore, is not expected to recognize economies of scale for some time. The Trustees noted that they expect to monitor the Fund’s growth and evaluate economies of scale at future renewals of the Management Agreement in effect at that time. The Trustees further noted that the Fund benefits from existing economies of scale through relatively low fee rates established at inception, as well as through additional investment in the Trust’s business and the provision of improved or additional infrastructure and services to the Fund and its shareholders. The Trustees discussed Matthews’ ongoing investment in its technology, systems, staffing and other aspects of its business that can benefit the Fund, noting that all these endeavors are a means by which Matthews is sharing economies of scale with the Fund and its shareholders through reinvestment in products and services that are designed to benefit the Fund and its shareholders. The Trustees considered the new personnel hired over recent years, as


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Approval of Investment Management Agreement (unaudited) (continued)

well as planned hiring, and the extent to which that hiring could be expected to benefit shareholders. As a result, the Trustees remain satisfied about the extent to which economies of scale are being and will continue to be shared with the Fund and its shareholders.

4.	The costs of the services provided by Matthews and others.

The Trustees considered the unitary fee, which is the total expense ratio of the Fund. The Board also considered that Matthews had aimed to provide an estimate of that portion of the unitary fee that might be considered to constitute payment for advisory services, but noted that such estimates were imprecise and not representative of the different market in which the Fund operates. The Board considered as highly relevant the unitary fees charged by other similarly managed exchange-traded funds in the Fund’s relevant peer group.

The Trustees also received, and considered to the extent they thought relevant, information relating to the estimated management fees and total expenses of the Fund in comparison to the advisory fees and other fees and expenses of other existing series of the Trust, noting that, as compared to the other series of the Trust that are operated as mutual funds, the Fund has a unitary management fee structure that covers most of the ordinary operating expenses of the Fund. The Board noted that Matthews has agreed to waive a portion of its management fee for the Fund in certain extraordinary circumstances to the extent necessary to ensure that the advisory fee payable by the Fund is not more than the advisory fee that would have been payable by the Korea Fund if the proposed reorganization did not occur;

The Trustees also compared the Fund’s unitary fee with the advisory or management fee charged by Matthews for its separate accounts and other investment products. The Trustees considered Matthews’ explanations as to the differences in services between these products and the Fund, including the differences in the frequency of net asset value calculations and other operational and compliance activities.

The Trustees’ overall assessment with respect to the Fund was that, taking into account the considerations noted below, the total expense ratio to be paid by investors in the Fund, which is most representative of an investor’s net experience, would be fair and reasonable.

The Trustees recognized that, because the Fund is expected to have relatively limited assets at commencement of operations and with a unitary fee structure, it is unlikely that the Fund will generate profits for Matthews initially and may not do so until the Fund has experienced some significant growth.

The Trustees also reviewed information provided regarding the structure and manner in which Matthews’ investment professionals were compensated and their respective views of the relationship of such compensation to the attraction and retention of quality personnel. The Trustees considered Matthews’ willingness to invest in technology, infrastructure and professional staff to reinforce and offer services and to accommodate changing regulatory requirements and industry practices.

The Trustees noted that Matthews has experienced reduced profitability this past year as overall assets under management have fallen due to continued risk off sentiment in the asset class but still appeared to be sufficiently profitable to operate as a viable investment management firm, able to honor its obligations as a sponsor of the Fund, including the funds that do not generate a profit for Matthews. The Trustees noted that, with fluctuations in asset levels in the Trust in recent years, heightened volatility in revenues and profitability could be expected from time to time in the future, but they also noted the increased cost control measures by Matthews with certain continued expenditures on personnel and other resources where appropriate.

Based on information received, the consensus of the Trustees was that Matthews’ expected overall profitability from the Management Agreement with respect to the Fund would not be excessive in the foreseeable future.

5.	Ancillary benefits.

The Trustees requested and received from Matthews information concerning other benefits received by Matthews as a result of its respective relationship with the Trust, including various service arrangements with Matthews. These potential benefits included, among other things, the use of soft dollars as well as potential benefits resulting from the structure of compensation arrangements between the Trust, the Adviser and financial intermediaries in the areas of shareholder servicing and sub-transfer agency services. The Board concluded that such benefits were consistent with those generally derived by investment advisers to mutual funds or were otherwise not unusual.

6.	Conclusions.

Based on their review, including their consideration of each of the factors referred to above, and assisted by the advice of independent counsel to the Independent Trustees, the Board, including the Independent Trustees, concluded that the Management Agreement would be fair and reasonable with respect to the Fund and its shareholders, and that the approval of the Management Agreement would be in the best interests of the Fund and its shareholders. The Board did not indicate that any single factor was determinative of its decision to approve the Management Agreement, but indicated that the Board based its determination on the total mix of information available to it.


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Approval of Investment Management Agreement (unaudited)

Matthews Emerging Markets Equity Active ETF

Matthews Asia Innovators Active ETF

Matthews China Active ETF

The Funds named above, which are series of the Trust, have retained Matthews International Capital Management, LLC (“Matthews”) to manage their assets pursuant to an Investment Management Agreement dated as of June 30, 2022, as amended (the “Management Agreement”), which has been approved by the Board of Trustees of the Trust, including all of the Trustees who are not “interested persons” (“Independent Trustees”), within the meaning of the Investment Company Act of 1940, as amended (the “1940 Act”). Following an initial two-year term with respect to each Fund, the Management Agreement continues in effect from year-to-year provided that the continuance is specifically approved at least annually by the vote of the holders of at least a majority of the outstanding shares of the Funds, or by the Board of Trustees, and, in either event, by a majority of the Independent Trustees of the Trust casting votes in person at a meeting called for that purpose (the “Annual 15(c) Process”).

At a meeting held on August 23-24, 2023 (the “Meeting”), the Board, including all of the Independent Trustees, approved the continuation of the Management Agreement for an additional one-year term ending June 29, 2025, with respect to each Fund.

At the Meeting and at a prior meeting of the Independent Trustees on August 18, 2023, the Board received and considered information (both written and oral) provided to assist it in the review of the Management Agreement and made assessments with respect to each Fund individually. The Independent Trustees were advised by independent legal counsel with respect to these matters. Prior to the August 18, 2023 meeting, a working group of Independent Trustees and independent legal counsel had met with representatives of Matthews on August 2, 2023 to review relevant information in connection with the Annual 15(c) Process. After the August 2, 2023 and August 18, 2023 meetings, the Independent Trustees asked Matthews to provide certain additional information and to respond to certain additional questions at the Meeting. The Independent Trustees then reviewed this supplemental information, which was provided prior to and at the Meeting. The Independent Trustees discussed the renewal of the Management Agreement with representatives of Matthews and among themselves in private sessions on various occasions at which no representatives of Matthews were present.

In addition, the Board received presentations about the Funds throughout the year from management. Among the information considered by the Board were responses to a detailed information request sent on behalf of the Independent Trustees by their independent legal counsel. Matthews furnished extensive information in response to this request with respect to many subjects relating to the Management Agreement and other related agreements and addressed many of the factors discussed below, including, but not limited to, information about the services provided by Matthews, its structure, organization, operations and

personnel, the financial condition of Matthews and the profitability to Matthews from the Management Agreement, compliance procedures and resources, investment performance of the Funds, expenses of the Funds, brokerage and portfolio transactions, distribution and marketing of the Funds, relationships with Authorized Participants and market makers, and other information considered relevant.

In considering information relating to management fee levels, the Board took into account that the Funds pay Matthews a single unitary fee and that Matthews is responsible for payment of all ordinary fund expenses out of the unitary fee. The Board considered that Matthews had aimed to provide an estimate of that portion of the unitary fee that might be considered to constitute payment for advisory services, but noted that such estimates were imprecise and not representative of the different market that the Funds operate in. The Board noted that the current almost universal practice among exchange-traded funds was to charge a single unitary fee and therefore considered as highly relevant the unitary fees charged by other similarly managed exchange-traded funds. The Board also received, and considered to the extent they thought relevant, information provided by Matthews as to Fund management services and fees as compared to advisory services and fees charged by Matthews to its open-end mutual funds, institutional clients and pooled vehicles organized outside of the United States. The Trustees also considered information provided by an independent data provider, Broadridge, comparing the investment performance and the fee and expense levels of each Fund to appropriate peer groups of funds, as well as performance data provided by Matthews with respect to unmanaged benchmarks and pooled vehicles or other accounts managed by Matthews with similar investment objectives and/or strategies to the Funds, as applicable.

The Independent Trustees also considered that they had engaged an independent data provider, Broadridge, to assist them in their Annual 15(c) Process. The Independent Trustees considered the work and analysis performed by the independent data provider in selecting appropriate peer groups for the Funds. Furthermore, throughout the course of the year, the Board received a wide variety of materials relating to the services provided by Matthews, including reports on each Fund’s investment results, portfolio composition, portfolio trading practices, and other information relating to the nature, extent, and quality of services provided by Matthews to the Funds. The Board also considered that, under the Management Agreement and as part of the unitary management fee, Matthews provides additional services to the Funds that are essential to the operation of the Funds.

In addition to the information furnished by Matthews, the Trustees were provided with a legal memorandum from their independent legal counsel discussing their fiduciary duties related to their approval of the continuation of the Management Agreement and discussed these matters with their counsel. The Board’s consideration of all this information, both at the Meeting and throughout the year, is part of a systematic process that it has used, and continues to use, with regard to the Annual 15(c) Process.


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Approval of Investment Management Agreement (unaudited) (continued)

The Trustees’ determinations at the Meeting were made on the basis of each Trustee’s business judgment after consideration of all the information presented. In deciding to recommend the renewal of the Management Agreement with respect to each Fund, the Independent Trustees did not identify any single factor or particular piece of information that, in isolation, was controlling. Each Independent Trustee may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Trustees.

1.	The nature, extent and quality of the services provided by Matthews under the Management Agreement.

The Trustees considered the overall financial strength and long-term stability of Matthews and its ability to continue to provide a high level and high quality of services to the Funds. The Trustees considered that despite recent challenging conditions with respect to revenues and profitability of the organization, which have been caused by contracting revenues and assets under management, a difficult geopolitical environment and market volatility, Matthews has continued to provide high quality services to the Funds. They considered Matthews’ services provided to the Trust and noted that past periods of volatile and challenging securities markets had not resulted in a diminution of services to the Trust and that Matthews has always demonstrated a commitment to employ the resources necessary to maintain the high level of quality and services to the Trust’s family of funds. The Trustees positively viewed Matthews’ emphasis on preserving and enhancing portfolio management team resources, and careful business planning and management.

The Trustees considered the experience and qualifications of the executive and portfolio management personnel at Matthews who are responsible for providing services to the Funds and who are responsible for the daily management of the Funds’ portfolios. The Trustees noted that Matthews had experienced some turnover at the senior executive and professional staff levels in recent years. In this regard, the Trustees reviewed with Matthews the efforts undertaken to replace staff where appropriate and to otherwise minimize its impact on the Funds, including enhancements to the portfolio management teams of certain Funds. They also reviewed Matthews’ retention strategies and recent personnel developments relevant to certain of the Funds. They discussed efforts by Matthews to provide appropriate support to the Funds, including, but not limited to, appropriate back-up support for each Fund such as, but not limited to, enhancing the structure of the portfolio management teams to better recognize Matthews’ bench of talent, and ensuring succession plans are put in place. Among the improved capabilities noted by the Independent Trustees over the past several years are enhanced risk analytical resources and related professionals, including ongoing enhancements to compliance, risk management, technology, business infrastructure, operations, marketing and client service, as well as enhancements to valuation practices.

The Trustees considered the technical capabilities of Matthews, including the design and implementation of its disaster recovery and business continuity infrastructure. The Trustees also considered the Chief Compliance Officer’s report regarding Matthews’ compliance resources, risk assessment and other compliance initiatives and programs. The Trustees concluded that Matthews has implemented a robust and diligent compliance process, and demonstrates a strong commitment to a culture of compliance. The Independent Trustees took into consideration Matthews’ description of its supervision of the activities of the Funds’ various service providers, as well as supporting the Independent Trustees’ responsibilities and requests and its responsiveness to questions and/or concerns raised by the Trustees throughout the year.

The Trustees concluded that Matthews had the quality of personnel and other investment resources essential to performing its duties under the Management Agreement, and that the nature, overall quality, cost and extent of such management services are satisfactory.

2.	The investment performance of the Funds.

The Trustees reviewed the performance of each Fund on both an absolute basis and in comparison to appropriate peer funds, benchmark indices and to the extent they exist, Matthews’ similarly managed accounts, for the period since the Funds’ inception through June 30, 2023. The Trustees considered investment results in light of each Fund’s objective, strategies and market conditions, noting periods during which there were challenging investment conditions in various Asian and emerging markets. The Independent Trustees reviewed information as to peer group selections presented by Broadridge. In doing so, the Trustees recognized and took into account that the specialized nature of the Funds made it sometimes difficult to fairly benchmark performance against peers and also took into account that certain funds had a very limited universe of peers. The Board also considered that the Funds had investment objectives, goals and strategies that were very different from non-managed broad-based benchmarks, which rendered performance comparisons against such broad-based benchmarks of lesser utility. In this regard, the Board took into account that the Funds are not designed to perform like broad-based indices and therefore that most investors in the Funds likely are not seeking to achieve benchmark-like returns.

The Trustees reviewed each Fund’s performance on a case-by-case basis and noted that the Funds had commenced operations in July 2022 and therefore had only limited performance history to review. The Board also took into account that each Fund’s track record was measured as of a specific ending date, and that track records can vary as of different measurement dates. Therefore, in reviewing a Fund that is


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Approval of Investment Management Agreement (unaudited) (continued)

currently underperforming, the Trustees also considered the market conditions experienced during the period under review, as well as the outlook for the Fund going forward in light of expected future market conditions.

The Trustees discussed with Matthews the fact that certain periods of underperformance may be transitory while other periods of underperformance may be caused by factors that warrant further consideration. To the extent of any concerns about performance with respect to a Fund, the Trustees noted that Matthews had provided an explanation for that performance and explained its reasons for maintaining a consistent investment philosophy going forward. A summary of each Fund’s performance track record is provided below.

For Matthews Asia Innovators Active ETF, the Trustees noted that the Fund’s performance ranked in the fifth quintile for the since-inception period. The Trustees also noted that the Fund underperformed the median of its peer group for same period. The Board considered Matthews’ discussion regarding the factors contributing to underperformance and efforts undertaken to improve performance and also noted the limited operating history of the Fund.

For Matthews China Active ETF, the Trustees noted that the Fund’s performance ranked in the second quintile for the since-inception period. The Trustees also noted that the Fund outperformed the median of its peer group for same period. The Board further noted the limited operating history of the Fund.

For Matthews Emerging Markets Equity Active ETF, the Trustees noted that the Fund’s performance ranked in the third quintile for the since-inception period. The Trustees also noted that the Fund outperformed the median of its peer group for same period. The Board further noted the limited operating history of the Fund.

After review, the Trustees concluded that each Fund’s overall performance was satisfactory or was being addressed as needed. The Trustees also reviewed Matthews’ trading policies and efforts to obtain best overall execution for the Funds in the various markets in which the Funds trade securities. The Trustees noted Matthews’ consistent adherence to its long-standing investment approach, which emphasizes fundamental bottom-up driven investment selection in light of its view of regional economic conditions.

3.	The extent to which Matthews realizes economies of scale as the Funds grow larger and whether Fund investors benefit from any economies of scale.

The Trustees considered that because the Funds are newly launched, they are not expected to recognize economies of scale for some time. The Trustees noted that they expect to monitor each Fund’s growth and evaluate economies of scale at future renewals of the Management Agreement in effect at that time. The Trustees further noted that each Fund benefits from existing economies of scale through relatively low fee rates established at inception, as well as through additional investment in the Trust’s business and the provision of improved or additional infrastructure and services to the

Funds and their shareholders. The Trustees discussed Matthews’ ongoing investment in its technology, systems, staffing and other aspects of its business that can benefit the Funds, noting that all these endeavors are a means by which Matthews is sharing economies of scale with the Funds and their shareholders through reinvestment in products and services that are designed to benefit the Funds and their shareholders. The Trustees considered the new personnel hired over recent years, as well as planned hiring, and the extent to which that hiring could be expected to benefit shareholders. As a result, the Trustees remain satisfied about the extent to which economies of scale are being and will continue to be shared with the Funds and their shareholders.

4.	The costs of the services provided by Matthews and others.

The Trustees considered the unitary fee, which was the total expense ratio of each Fund. The Board also considered that Matthews had aimed to provide an estimate of that portion of the unitary fee that might be considered to constitute payment for advisory services, but noted that such estimates were imprecise and not representative of the different market that the Funds operate in. The Board considered as highly relevant the unitary fees charged by other similarly managed exchange-traded funds in each Fund’s relevant peer group. The Trustees reviewed information developed by Broadridge as to appropriate peer groups for each Fund for these purposes.

The Trustees also received, and considered to the extent they thought relevant, information relating to the estimated management fees and total expenses of the Funds in comparison to the advisory fees and other fees and expenses of other existing series of the Trust, noting that, as compared to the other series of the Trust that are operated as mutual funds, the Funds have a unitary management fee structure that covers most of the ordinary operating expenses of the Funds.

The Trustees also compared the Funds unitary fee with the advisory or management fee charged by Matthews for its separate accounts and other investment products. The Trustees considered Matthews’ explanations as to the differences in services between these products and the Funds, including the differences in the frequency of net asset value calculations and other operational and compliance activities.

The Trustees’ overall assessment with respect to each Fund was that, taking into account the considerations noted below, the total expense ratio to be paid by investors in the Fund, which is most representative of an investor’s net experience, was fair and reasonable.

For the Matthews Asia Innovators Active ETF, the actual management fee was above the peer group median and the contractual management fee was slightly above the peer group median. The actual total expenses were above the peer group median.

For the Matthews China Active ETF, the actual management fee was above the peer group median and the contractual management fee was above the peer group median. The actual total expenses were above the peer group median.


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Approval of Investment Management Agreement (unaudited) (continued)

For the Matthews Emerging Markets Equity Active ETF, the actual management fee was above the peer group median and the contractual management fee was above the peer group median. The actual total expenses were slightly below the peer group median.

The Trustees reviewed information provided by Matthews regarding the costs of sponsoring and operating the Funds and information regarding the profitability to Matthews of the Management Agreement both on a fund-by-fund basis and overall for the family of Funds. In considering profitability, the Trustees discussed and considered the methodology employed by Matthews in calculating profit margins but also considered other elements relevant to discussions of profitability, such as the entrepreneurial risk undertaken by Matthews in sponsoring and maintaining the Funds. The Trustees recognized that, as new funds with a unitary fee structure, it is unlikely that a Fund will generate profits for Matthews initially and may not do so until the Fund has experienced some significant growth.

The Trustees noted that Matthews has experienced reduced profitability this past year as overall assets under management have fallen significantly due to continued risk off sentiment in the asset class but still appeared to be sufficiently profitable to operate as a viable investment management firm, able to honor its obligations as a sponsor of the Funds, including the Funds that did not generate a profit for Matthews, without earning excessive profits from any particular Fund or from the overall relationship with the Funds. The Trustees noted that, with fluctuations in asset levels in the Trust in recent years, heightened volatility in revenues and profitability could be expected from time to time in the future, but they also noted the increased cost control measures by Matthews with certain continued expenditures on

personnel and other resources where appropriate. The Board also considered information relating to the profitability of a limited number of publicly traded investment advisers, although the Board noted that this information was of limited utility because it was comprised of a limited universe of advisers, did not provide any information as to how profitability was determined and did not limit profitability analysis to the performance of advisory services to registered investment companies. The Board further noted that these advisers differed significantly from Matthews because they were not solely dedicated to investment in the Asian and emerging markets.

Based on information received, the Trustees noted that Matthews’ overall profitability from the Management Agreement appeared not to be excessive at the current time.

5.	Ancillary benefits.

The Trustees requested and received from Matthews information concerning other benefits received by Matthews as a result of its respective relationship with the Funds, including various service arrangements with Matthews. These potential benefits included, among other things, the use of soft dollars as well as potential benefits resulting from the structure of compensation arrangements between the Trust, the Adviser and financial intermediaries in the areas of shareholder servicing and sub-transfer agency services. The Board concluded that such benefits were consistent with those generally derived by investment advisers to mutual funds or were otherwise not unusual.

6.	Conclusions.

Based on their review, including their consideration of each of the factors referred to above, and assisted by the advice of independent counsel to the Independent Trustees, the Board, including the Independent Trustees, concluded that the Management Agreement was fair and reasonable with respect to each Fund and its shareholders, and that the renewal of the Management Agreement would be in the best interests of each Fund and its shareholders. The Board did not indicate that any single factor was determinative of its decision to approve the Management Agreement, but indicated that the Board based its determination on the total mix of information available to it.


82		MATTHEWS ASIA FUNDS

Approval of Investment Management Agreement (unaudited)

Matthews Emerging Markets Sustainable Future Active ETF

Matthews Pacific Tiger Active ETF

Matthews India Active ETF

Matthews Japan Active ETF

Matthews Asia Dividend Active ETF

At a meeting held on August 23-24, 2023 (the “Meeting”), the Board, including all of the Independent Trustees, approved the Management Agreement for an initial two-year term from September 20, 2023 through September 19, 2025 with respect to each Fund.

At the Meeting and at a prior meeting of the Independent Trustees on July 6, 2023, the Board received and considered information (both written and oral) provided to assist it in the review of the Management Agreement and made assessments with respect to each Fund individually. The Independent Trustees were advised by independent legal counsel with respect to these matters. The Independent Trustees discussed the approval of the Management Agreement with representatives of Matthews and among themselves in private sessions on various occasions at which no representatives of Matthews were present.

In addition, the Board received presentations about the Trust and its other series throughout the year from management. That other information considered by the Board addressed many of the factors discussed below, including, but not limited to, information about the services provided by Matthews, its structure, organization, operations and personnel, the financial condition of Matthews and the profitability to Matthews from the Management Agreement, compliance procedures and resources, investment performance of other series and any similar strategies, expected expenses of the Funds, planned distribution and marketing of the Funds, relationships with Authorized Participants and market makers, and other information considered relevant.

In considering information relating to management fee levels, the Board took into account that the Funds would pay Matthews a single unitary fee and that Matthews would be responsible for payment of all ordinary fund expenses out of

the unitary fee. The Board considered that Matthews had aimed to provide an estimate of that portion of the unitary fee that might be considered to constitute payment for advisory services, but noted that such estimates were imprecise and not representative of the different market in which the Funds would operate. The Board noted that the current almost universal practice among exchange-traded funds was to charge a single unitary fee and therefore considered as highly relevant the unitary fees charged by other similarly managed exchange-traded funds. The Board also received, and considered to the extent it thought relevant, information provided by Matthews as to Fund management services and fees as compared to advisory services and fees charged by Matthews to its open-end mutual funds, institutional clients and pooled vehicles organized outside of the United States. The Trustees also considered information comparing the proposed fee and expense levels of each Fund to appropriate peer groups of funds, as well as performance data provided by Matthews with respect to unmanaged benchmarks and pooled vehicles or other accounts managed by Matthews with similar investment objectives and/or strategies to the Funds, as applicable.

Furthermore, throughout the course of the year, the Board received a wide variety of materials relating to the services provided by Matthews, and relating to the nature, extent, and quality of services that would be provided by Matthews to the Funds. The Board also considered that, under the Management Agreement and as part of the unitary management fee, Matthews would provide additional services to the Funds that are essential to the operation of the Funds.

The Trustees’ determinations at the Meeting were made on the basis of each Trustee’s business judgment after consideration of all the information presented. In deciding to recommend the approval of the Management Agreement with respect to each Fund, the Independent Trustees did not identify any single factor or particular piece of information that, in isolation, was controlling. Each Independent Trustee may also have weighed factors differently. This summary describes the most important, but not all, of the factors considered by the Board and the Independent Trustees.

1.	The nature, extent and quality of the services provided by Matthews under the Management Agreement.

The Trustees considered the overall financial strength and long-term stability of Matthews and its ability to provide a high level and high quality of services to the Funds. The Trustees considered that despite recent challenging conditions with respect to revenues and profitability of the organization, which have been caused by contracting revenues and assets under management, a difficult geopolitical environment and market volatility, Matthews has the resources to provide high quality services to the Funds. They


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Approval of Investment Management Agreement (unaudited) (continued)

considered Matthews’ services provided to the Trust and noted that past periods of volatile and challenging securities markets had not resulted in a diminution of services to the Trust and that Matthews has always demonstrated a commitment to employ the resources necessary to maintain the high level of quality and services to the Trust’s family of funds. The Trustees positively viewed Matthews’ emphasis on preserving and enhancing portfolio management team resources, and careful business planning and management.

The Trustees considered the experience and qualifications of the executive and portfolio management personnel at Matthews who would be responsible for providing services to the Funds and who are responsible for the daily management of the Funds’ portfolios. The Trustees noted that Matthews had experienced some turnover at the senior executive and professional staff levels in recent years. In this regard, the Trustees reviewed with Matthews the efforts undertaken to replace staff where appropriate and to otherwise minimize its impact on the Trust, including enhancements to the portfolio management teams of certain funds. They also reviewed Matthews’ retention strategies and recent personnel developments relevant to the Trust. They discussed efforts by Matthews to provide appropriate support to the Trust, including, but not limited to, appropriate back-up support such as, but not limited to, enhancing the structure of the portfolio management team to fully recognize Matthews’ bench of talent, and ensuring succession plans are put in place. Among the improved capabilities noted by the Independent Trustees over the past several years are enhanced risk analytical resources and related professionals, including ongoing enhancements to compliance, risk management, technology, business infrastructure, operations, marketing and client service, as well as enhancements to valuation practices.

The Trustees considered the technical capabilities of Matthews, including the design and implementation of its disaster recovery and business continuity infrastructure. The Trustees also considered the Chief Compliance Officer’s report regarding Matthews’ compliance resources, risk assessment and other compliance initiatives and programs. The Trustees concluded that Matthews has implemented a robust and diligent compliance process, and demonstrates a strong commitment to a culture of compliance. The Independent Trustees took into consideration Matthews’ description of its supervision of the activities of the Funds’ various service providers, as well as supporting the Independent Trustees’ responsibilities and requests and its responsiveness to questions and/or concerns raised by the Trustees throughout the year.

The Trustees concluded that Matthews had the quality of personnel and other investment resources essential to performing its duties under the Management Agreement, and

that the nature, overall quality, cost and extent of such management services are satisfactory.

2.	The investment performance of the Funds.

The Trustees considered the performance of other series of Trust with similar strategies, on both an absolute basis and in comparison to appropriate peer funds, benchmark indices and to the extent they exist, Matthews’ similarly managed accounts, for various periods. The Trustees considered those investment results in light of each Fund’s objective, strategies and market conditions, noting periods during which there were challenging investment conditions in various Asian and emerging markets. The Board also considered that the Funds had investment objectives, goals and strategies that were very different from non-managed broad-based benchmarks, which rendered performance comparisons against such broad-based benchmarks of lesser utility. In this regard, the Board took into account that the Funds are not designed to perform like broad-based indices and therefore that most investors in the Funds likely are not seeking to achieve benchmark-like returns.

After review, the Trustees concluded that each Fund has the potential to achieve acceptable performance. The Trustees also reviewed Matthews’ trading policies and ability to obtain best overall execution for the Funds in the various markets in which the Funds trade securities. The Trustees noted Matthews’ consistent adherence to its long-standing investment approach, which emphasizes fundamental bottom-up driven investment selection in light of its view of regional economic conditions.

3.	The extent to which Matthews realizes economies of scale as the Funds grow larger and whether Fund investors benefit from any economies of scale.

The Trustees considered that because the Funds would be newly launched, they are not expected to recognize economies of scale for some time. The Trustees noted that they expect to monitor each Fund’s growth and evaluate economies of scale at future renewals of the Management Agreement in effect at that time. The Trustees further noted that each Fund benefits from existing economies of scale through relatively low fee rates established at inception, as well as through additional investment in the Trust’s business and the provision of improved or additional infrastructure and services to the Funds and their shareholders. The Trustees discussed Matthews’ ongoing investment in its technology, systems, staffing and other aspects of its business that can benefit the Funds, noting that all these endeavors are a means by which Matthews is sharing economies of scale with the Funds and their shareholders through reinvestment in products and services that are designed to benefit the Funds and their shareholders. The Trustees considered the new personnel hired over recent years, as well as planned hiring, and the extent to which that hiring could be expected to benefit shareholders. As a result, the Trustees remain satisfied about the extent to which economies of scale are being and will continue to be shared with the Funds and their shareholders.


84		MATTHEWS ASIA FUNDS

Approval of Investment Management Agreement (unaudited) (continued)

4.	The costs of the services provided by Matthews and others.

The Trustees considered the unitary fee, which is the total expense ratio of each Fund. The Board also considered that Matthews had aimed to provide an estimate of that portion of the unitary fee that might be considered to constitute payment for advisory services, but noted that such estimates were imprecise and not representative of the different market in which the Funds operate. The Board considered as highly relevant the unitary fees charged by other similarly managed exchange-traded funds in each Fund’s relevant peer group.

The Trustees also compared the Funds unitary fee with the advisory or management fee charged by Matthews’ for its separate accounts and other investment products. The Trustees considered Matthews’ explanations as to the differences in services between these products and the Funds, including the differences in the frequency of net asset value calculations and other operational and compliance activities.

The Trustees recognized that, as new funds with a unitary fee structure, it is unlikely that a Fund will generate profits for Matthews initially and may not do so until the Fund has experienced some significant growth.

The Trustees noted that Matthews has experienced reduced profitability this past year as overall assets under management have fallen due to continued risk off sentiment in the asset class but still appeared to be sufficiently profitable to operate as a viable investment management firm, able to honor its obligations as a sponsor of the Funds, including the funds that do not generate a profit for Matthews. The Trustees noted that, with fluctuations in asset levels in the Trust in recent years, heightened volatility in revenues and profitability could be expected from time to time in the future, but they also noted the increased cost control measures by Matthews with certain continued expenditures on personnel and other resources where appropriate.

Based on information received, the consensus of the Trustees was that Matthews’ expected overall profitability from the Management Agreement with respect to the Funds would not be excessive in the foreseeable future.

5.	Ancillary benefits.

6.	Conclusions.

Based on their review, including their consideration of each of the factors referred to above, and assisted by the advice of independent counsel to the Independent Trustees, the Board, including the Independent Trustees, concluded that the Management Agreement would be fair and reasonable with respect to each Fund and its shareholders, and that the approval of the Management Agreement would be in the best interests of each Fund and its shareholders. The Board did not indicate that any single factor was determinative of its decision to approve the Management Agreement, but indicated that the Board based its determination on the total mix of information available to it.


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Statement Regarding Liquidity Risk Management Program

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry. Each Fund has adopted and implemented a liquidity risk management program (the “Program”) in accordance with the Liquidity Rule. The Program seeks to assess and manage each Fund’s liquidity risk (i.e., the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund). The Program relies on a third-party vendor to assist with the liquidity classifications of the Funds’ portfolio holdings.

The Board of Trustees (the “Board”) of the Matthews International Funds (the “Funds”) met on November 15, 2023 (the “Meeting”) to review the Program, in accordance with the requirements of the Liquidity Rule. The Board has appointed the Liquidity Risk Management Committee (“LRMC”), a sub-committee of the Enterprise Risk Management Committee of Matthews International Capital Management, LLC, as Program Administrator.

At the Meeting, the LRMC provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including, if applicable, the operation of the Highly Liquid Investment Minimum (“HLIM”) and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2022, through October 31, 2023 (the “Program Reporting Period”).

The Report included a portfolio liquidity profile of each Fund as of October 31, 2023. The Report also discussed, among other things, the factors and assumptions considered in establishing a Fund’s HLIM and Reasonably Anticipated Trading Size; the results of stress tests designed to assess liquidity under hypothetical stressed scenarios; and the impact of local holidays in non-US jurisdictions. The Board approved revisions to the Funds’ RATS and HLIM at the Meeting

The Report concluded that based on the operation of the functions, as described in the Report, the Program is reasonably designed to assess and manage liquidity risk and was adequately and effectively implemented during the Program Reporting Period.


86		MATTHEWS ASIA FUNDS

Trustees and Officers of the Funds (unaudited)

The operations of each Fund are under the direction of the Board of Trustees. The Board of Trustees establishes each Fund’s policies and oversees and reviews the management of each Fund. The Board meets regularly to review the activities of the officers, who are responsible for the day-to-day operations of the Funds. The Statement of Additional Information, which includes additional information about Fund Trustees, is available without charge by calling 833.228.5605 or by visiting the Funds’ website, matthewsasia.com. The Trustees and executive officers of the Funds, their year of birth, business address, principal occupations during the past five years and other trusteeships/directorships are set forth below:


Name, Year of Birth, Address and Position(s) Held with Trust	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Trusteeships/Directorships (number of portfolios) Held by Trustee
INDEPENDENT TRUSTEES

GALE K. CARUSO Born 1957 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Chair of the Board of Trustees and Trustee	Trustee since 2015, Vice Chair (2021), and Chair of the Board since 2022	Formerly President and Chief Executive Officer (1999–2003), Zurich Kemper Life (life insurance and annuities); Chairman, President and Chief Executive Officer (1994–1999), Scudder Canada Investor Services, Ltd. (investment management); Managing Director (1986–1999), Scudder Kemper Investments, Inc. (investment management).	23	Trustee (since 2006), Pacific Select Funds (47 Portfolios); Member, Board of Governors (since 2022), Investment Company Institute; Member, Governing Council (since 2016), Independent Directors Council; Director (2005-2012), Make-A-Wish of Maine.

NEAL ANDREWS* Born 1966 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Trustee	Since 2024	Managing Director, BlackRock Inc. (2006–2020), Chief Financial Officer BlackRock Funds (2007–2020) and BlackRock iShares (2019); Senior Vice President and Line of Business Head, Accounting and Administration, PFPC Inc. (1992–2006); Senior Auditor, Price Waterhouse LLP (1987–1992).	23	Segall Bryant & Hamill Funds Trust (2023), (16 Portfolios)

CHRISTOPHER LEE Born 1967 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Trustee	Since 2015	Consultant and Associate Professor (since 2017), Hong Kong University of Science and Technology; Lecturer (part-time) (2013–2019), The Chinese University of Hong Kong; Private Investor and Partner (since 2012), FAA Investments (financial holding company); Managing Director, Asia Region, and Head of Global Markets Investment Products & db-X (2010–2012), Deutsche Bank AG (financial services); Managing Director, Equity Risk Management Products, and Head of Intermediary Business (2002–2010), UBS AG (financial services); Vice President, Global Markets & Investment Bank (2000–2002), Vice President, International Private Clients Group (1997–2000), Associate, Debt and Equity Markets Group (1995–1997), Merrill Lynch & Co., Inc. (brokerage and investment management).	23	Director (since 2017), Hong Kong Securities and Investment Institute; Director (2013–2018), Asian Master Funds (Australia) (1 Portfolio); Trustee (2013-2022), African Wildlife Foundation; Trustee (2010–2016), Oakland Museum of California.

RICHARD K. LYONS Born 1961 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Trustee	Since 2010	Chief Innovation and Entrepreneurship Officer (since 2020), UC Berkeley; Dean (2008–2018), Haas School of Business, UC Berkeley; Chief Learning Officer (2006–2008), Goldman Sachs (investment banking and investment management).	23	Trustee (since 2018), Syntax ETF Trust; Trustee (2001–2006), Barclays Global Investor Funds and Master Investment Portfolios (15 Portfolios); Trustee (2000–2006), iShares, Inc. (24 Portfolios) and iShares Trust (over 70 Portfolios); Trustee (1994–2006) and Chairman of the Board (2000–2006), Matthews Asia Funds (9 Portfolios).

1	Each Trustee serves for an indefinite term until his/her successor is elected and qualified or until his/her retirement, death, resignation or removal in accordance with the Trust’s policies. Officers serve at the pleasure of the Board of Trustees.

*	Effective January 1, 2024.


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Trustees and Officers of the Funds (unaudited) (continued)


Name, Year of Birth, Address and Position(s) Held with Trust	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Trusteeships/Directorships (number of portfolios) Held by Trustee
INDEPENDENT TRUSTEES

RHODA ROSSMAN Born 1958 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Trustee	Since 2006	Council Member (since 2019), California Catastrophe Response Council; Vice President, Corporate Investment Officer (2007–2010), Senior Vice President and Treasurer (2003–2007), The PMI Group, Inc. (mortgage insurer).	23

JONATHAN F. ZESCHIN Born 1953 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Trustee	Trustee since 2007 and Chair of the Board (2014–2021)	Partner (since 2009), Essential Investment Partners, LLC (investment advisory and wealth management).	23	Trustee (2019), Russell Investment Funds (9 portfolios) and Russell Investment Company (32 portfolios).

Name, Year of Birth, Address and Position(s) Held with Trust	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Trusteeships/Directorships (number of portfolios) Held by Trustee
INTERESTED TRUSTEES²

JAMES COOPER ABBOTT Born 1969 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Trustee and President	Trustee and President since 2022	Director and Chief Executive Officer (since 2022), Matthews (investment management); Chairman and Chief Executive Officer/President (2009–2022), Carillon Tower Advisers, Inc. and Affiliates (asset management); Chief Executive Officer/President (2009–2022), Eagle Asset Management, Inc. (asset management); President (2003–021), Carillon Family of Funds (mutual fund company); President (2008–2019) Eagle Boston Investment Management, Inc. (asset management); Managing Member (2010–2022) Alternative Strategy Partnerships (asset management).	23	Director (since 2023), Matthews Asia Funds SICAV (Luxembourg)(investments);

1	Each Trustee serves for an indefinite term until his/her successor is elected and qualified or until his/her retirement, death, resignation or removal in accordance with the Trust’s policies. Officers serve at the pleasure of the Board of Trustees.

2	A trustee is considered an “interested person” of the Trust as defined under the 1940 Act because of an ownership interest in the Advisor or an office held with the Trust or the Advisor.


88		MATTHEWS ASIA FUNDS

Trustees and Officers of the Funds (unaudited) (continued)


Name, Year of Birth, Address and Position(s) Held with Trust	Term of Office and Length of Time Served¹	Principal Occupation(s) During Past 5 Years	Other Trusteeships/ Directorships (number of portfolios) Held by Officer
OFFICERS WHO ARE NOT TRUSTEES

JOHN P. McGOWAN Born 1964 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Vice President and Secretary	Since 2005	Head of Fund Administration (since 2009), Chief Administrative Officer (2007–2008), Chief Operating Officer (2004–2007), Matthews (investment management); Vice President and Secretary (2013–2017), Matthews A Share Selections Fund, LLC (registered investment company); Director (since 2010), Matthews Asia Funds SICAV (Luxembourg) (investments); Director (2010–2020), Matthews Global Investors S.à r.l. (Luxembourg) (investment management); Director (2004–2023), Matthews Asian Selections Funds, PLC (Ireland) (investments).	None

SHAI A. MALKA Born 1973 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Treasurer	Since 2005	Vice President of Fund Accounting and Operations (since 2010), Senior Manager of Fund Accounting and Operations (2004–2009), Matthews (investment management); Treasurer (2013–2017), Matthews A Share Selections Fund, LLC (registered investment company).	None

LISA NICOSIA Born 1966 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Chief Compliance Officer and Anti-Money Laundering Officer	Since 2023	Chief Compliance Officer and Anti-Money Laundering Officer (since 2023), Matthews Asia Funds (registered investment company); Vice President (2014-2022), Goldman Sachs (investment management).	None

J. DAVID KAST Born 1966 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Vice President	Since 2018	Chief Compliance Officer and Anti-Money Laundering Officer (since 2018), Global Head of Risk and Compliance (since 2017), Matthews (investment management); Managing Director (2009–2017), Goldman Sachs (investment management).	None

DEEPA DAMRE SMITH Born 1975 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Vice President	Since 2022	General Counsel (since 2022), Matthews (investment management); Managing Director (2014–2022), Director (2009–2013), BlackRock (investment management); Principal (2004–2009), Barclays Global Investors (investment management).	None

SEAN TAYLOR Born 1967 Four Embarcadero Center Suite 550 San Francisco, CA 94111 Vice President	Since 2023	Portfolio Manager (since 2023), Matthews (investment management); Chief Investment Officer for APAC (2014–2023), Global Head of Emerging Markets (2014-2023), DWS Group (investment management); Head of Emerging Markets (2013-2023), Deutsche Asset and Wealth Management (investment management).	None

1	Each Trustee serves for an indefinite term until his/her successor is elected and qualified or until his/her retirement, death, resignation or removal in accordance with the Trust’s policies. Officers serve at the pleasure of the Board of Trustees.


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LOGO


Matthews Asia Funds

INVESTMENT ADVISOR Matthews International Capital Management, LLC Four Embarcadero Center, Suite 550 San Francisco, CA 94111 833.228.5605	ADMINISTRATOR, CUSTODIAN & TRANSFER AGENT BNY Mellon 240 Greenwich St. New York, NY 10007	LEGAL COUNSEL Paul Hastings LLP 101 California Street, 48th Floor San Francisco, CA 94111

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P.O. Box 9791 | Providence, RI 02940 | matthewsasia.com | 833.228.5605

Matthews Asia Funds are distributed in the United States by Foreside Funds Distributors LLC, Portland, Maine

Matthews Asia Funds are distributed in Latin America by Picton S. A.

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AR-ETF-1223