Matthews Asia Portfolio Manager Suggests China Is the Missing Piece for AI Investment Exposure

CNBC•Published: Sep 26, 2026 08:30 PM IST

Matthews Asia portfolio manager Andrew Mattock argues that investors seeking to increase their artificial intelligence exposure should specifically target the Chinese market. He contends that broad emerging market funds often fail to provide sufficient AI-related growth, leaving a significant gap in many standard investment portfolios.

Portfolio Strategy: Mattock emphasizes that investors need a deliberate approach to China rather than relying on plain vanilla MSCI products that lack concentrated AI exposure.
Market Composition: The Matthews China Fund, managed by Mattock, focuses at least 80% of its assets on Chinese companies, including major holdings like Tencent and Alibaba.
Risk Management: Industry experts like Brendan Ahern suggest utilizing options strategies, such as writing calls on ETFs like KWEB, to protect against the inherent volatility of the Chinese market.

The Context & Background

This recommendation comes as high-profile investors like David Tepper have recently expressed renewed interest in Chinese assets. However, the sector remains volatile, with some China-focused ETFs experiencing significant year-to-date declines despite the potential for long-term growth.

Why it matters:This strategy highlights the growing tension between seeking high-growth AI exposure and managing the geopolitical and market risks associated with China. For investors, it underscores the necessity of moving beyond broad index funds to find specific, targeted opportunities in the global AI supply chain.

Enjoyed this 2-minute breakdown?

Share it with your colleagues and friends!