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MATTHEWS CHINA DIVIDEND FUND (Prospectus Summary) | MATTHEWS CHINA DIVIDEND FUND
Matthews China Dividend Fund
Investment Objective
Total return with an emphasis on providing current income.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy and hold
shares of this Fund.
SHAREHOLDER FEES (fees paid directly from your investment)
Shareholder Fees
MATTHEWS CHINA DIVIDEND FUND
Investor Class Shares
Redemption Fee (as a percentage of amount redeemed on shares held fewer than 90 days) 2.00%
ANNUAL OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Annual Fund Operating Expenses
MATTHEWS CHINA DIVIDEND FUND
Investor Class Shares
Management Fees 0.67%
Distribution (12b-1) Fees none
Administration and Shareholder Servicing Fees 0.16%
Other Expenses 1.28%
Fee Waiver and Expense Reimbursement [1] (0.45%)
Total Annual Operating Expenses 1.50%
[1] Matthews has contractually agreed to waive fees and reimburse expenses until August 31, 2013 to the extent needed to limit Total Annual Operating Expenses to 1.50%. The amount of the waiver is based on estimated Fund expenses. The fee waiver may be terminated at any time by the Funds on 60 days' written notice.
EXAMPLE OF FUND EXPENSES
This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
Expense Example (USD $)
Expense Example, With Redemption, 1 Year
Expense Example, With Redemption, 3 Years
Expense Example, With Redemption, 5 Years
Expense Example, With Redemption, 10 Years
MATTHEWS CHINA DIVIDEND FUND Investor Class Shares
153 542 985 2,216
PORTFOLIO TURNOVER
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example of fund expenses, affect the
Fund's performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 7% of the average value of its portfolio.
Principal Investment Strategy
Under normal market conditions, the Matthews China Dividend Fund seeks to
achieve its investment objective by investing at least 80% of its total net
assets, which include borrowings for investment purposes, in income-paying
equity securities of companies located in China and Taiwan. China also includes
its administrative and other districts, such as Hong Kong. The Fund may also
invest in convertible fixed-income securities. The location of a company can be
determined by where it is organized, where its revenues and profits are derived,
where its assets are located, or other factors. A company is considered to be
"located" in a country if it (i) is organized under the laws of that country;
(ii) derives at least 50% of its revenues or profits from goods produced or sold,
investments made, services performed, or has at least 50% of its assets located
within that country; (iii) has the primary trading markets for its securities in
that country; or (iv) is a governmental entity or an agency, instrumentality or a
political subdivision of that country.

The Fund seeks to provide a level of current income that is higher than the
yield generally available in Chinese equity markets over the long term. The Fund
intends to distribute its realized income, if any, regularly (typically
semi-annually in June and December). There is no guarantee that the Fund will be
able to distribute its realized income, if any, regularly. If the value of the
Fund's investments declines, the NAV of the Fund will decline and investors may
lose some or all of the value of their investments.

The Fund's objective is total return with an emphasis on providing current
income. Total return includes current income (dividends and distributions paid
to shareholders) and capital gains (share price appreciation). The Fund measures
total return over longer periods. Because of this objective, the Fund expects
that it will primarily invest in companies that exhibit attractive dividend
yields and the propensity (in Matthews' judgment) to pay increasing dividends.
Matthews believes that in addition to providing current income, growing dividend
payments by portfolio companies are an important component supporting capital
appreciation. Matthews expects that such companies typically will be of medium
or large size, but the Fund may invest in companies of any size. Matthews
measures a company's size with respect to fundamental criteria such as, but not
limited to, market capitalization, book value, revenues, profits, cash flow,
dividends paid and number of employees.
Principal Risks of Investment
Political, Social and Economic Risks: The value of the Fund's assets may be
adversely affected by political, economic, social and religious instability;
inadequate investor protection; changes in laws or regulations; international
relations with other nations; natural disasters; corruption and military
activity. The economies of China, Hong Kong and Taiwan may differ from the
economies of other countries, especially developed economies, in many respects,
such as rate of growth, inflation, capital reinvestment, resource
self-sufficiency, financial system stability, the national balance of payments
position and sensitivity to changes in global trade.

Currency Risks: When the Fund conducts securities transactions in a foreign
currency, there is the risk of the value of the foreign currency increasing or
decreasing against the value of the U.S. dollar. The value of an investment
denominated in a foreign currency will decline in dollar terms if that currency
weakens against the dollar. While the Fund is permitted to hedge currency risks,
Matthews does not anticipate doing so at this time. Additionally, China may
utilize formal or informal currency-exchange controls or "capital controls."
Capital controls may impose restrictions on the Fund's ability to repatriate
investments or income. Such controls may also affect the value of the Fund's
holdings.

Risks Associated with Emerging Markets: Many Asian countries are considered
emerging markets. Emerging markets are often less stable politically and
economically than developed markets such as the United States, and investing in
emerging markets involves different and greater risks. There may be less
publicly available information about companies in emerging markets. The stock
exchanges and brokerage industries of emerging markets do not have the level of
government oversight as do those in the United States. Securities markets of
such countries are substantially smaller, less liquid and more volatile than
securities markets in the United States.

Trading Markets and Depositary Receipts: Asian securities may trade in the form
of depositary receipts, including American, European and Global Depositary
Receipts. Although depositary receipts have risks similar to the securities that
they represent, they may also involve higher expenses and may trade at a
discount (or premium) to the underlying security. In addition, depositary
receipts may not pass through voting and other shareholder rights, and may be
less liquid than the underlying securities listed on an exchange.

Volatility. The smaller size and lower levels of liquidity, as well as other
factors, may result in changes in the prices of securities that are more
volatile than those of companies in more developed regions. This volatility can
cause the price of the Fund's shares (NAV) to go up or down dramatically.
Because of this volatility, it is recommended that you invest in the Fund only
for the long term (at least five years).

Convertible Securities: The Fund may invest in convertible preferred stocks, and
convertible bonds and debentures. The risks of convertible bonds and debentures
include repayment risk and interest rate risk. Many Asian convertible securities
are not rated by rating agencies like Moody's, S&P or Fitch, or, if they are
rated, they may be rated below investment grade ("junk bonds"), which may have a
greater risk of default. Investing in a convertible security denominated in a
currency different from that of the security into which it is convertible may
expose the Fund to currency risk as well as risks associated with the level and
volatility of the foreign exchange rate between the security's currency and the
underlying stock's currency. Convertible securities may trade less frequently
and in lower volumes, or have periods of less frequent trading. Lower trading
volume may also make it more difficult for the Funds to value such securities.

Dividend-Paying Equities: The Fund may invest in dividend-paying equity
securities. There can be no guarantee that companies that have historically paid
dividends will continue to pay them or pay them at the current rates in the
future. Dividend-paying equity securities, in particular those whose market
price is closely related to their yield, may exhibit greater sensitivity to
interest rate changes. The Fund's investment in such securities may also limit
its potential for appreciation during a broad market advance.

The prices of dividend-paying equity securities (and particularly of those
issued by Asian companies) can be highly volatile. Investors should not assume
that a Fund's investments in these securities will necessarily reduce the
volatility  of the Fund's NAV or provide "protection," compared to other types of
equity securities, when markets perform poorly.

Risks Associated with China, Hong Kong and Taiwan

China. The Chinese government exercises significant control over China's economy
through its industrial policies (e.g., allocation of resources and other
preferential treatment), monetary policy, management of currency exchange rates,
and management of the payment of foreign currency-denominated obligations.
Changes in these policies could adversely impact affected industries or
companies. China's economy, particularly its export-oriented industries, may be
adversely impacted by trade or political disputes with China's major trading
partners, including the U.S. In addition, as its consumer class emerges, China's
domestically oriented industries may be especially sensitive to changes in
government policy and investment cycles.

Hong Kong. If China were to exert its authority so as to alter the economic,
political or legal structures or the existing social policy of Hong Kong,
investor and business confidence in Hong Kong could be negatively affected,
which in turn could negatively affect markets and business performance and have
an adverse effect on the Funds' investments.

Taiwan. The continuing hostility between China and Taiwan may have an adverse
impact on the values of investments in either China or Taiwan, or make
investments in China and Taiwan impractical or impossible.
Past Performance
The bar chart below shows the Fund's performance for the first complete calendar
year of operations. Also shown are the best and worst quarters for this time
period. The table below shows the Fund's performance over certain periods of
time, along with performance of its benchmark index. The index performance does
not take into consideration fees, expenses or taxes. The information presented
below is past performance, before and after taxes, and is not a prediction of
future results. Both the bar chart and performance table assume reinvestment of
all dividends and distributions. For the Fund's most recent month-end
performance, please visit matthewsasia.com or call 800.789.2742.
The bar chart below shows the Fund's performance for the first complete calendar
year of operations.
ANNUAL RETURN FOR YEAR ENDED 12/31
Bar Chart
Best Quarter
Q3 2010
14.29%

Worst Quarter
Q2 2010
-1.06%
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2010
Average Annual Total Returns MATTHEWS CHINA DIVIDEND FUND
Average Annual Returns, Label
Average Annual Returns, 1 Year
Average Annual Returns, Since Inception
Average Annual Returns, Inception Date
Investor Class Shares
Matthews China Dividend Fund Return before taxes 22.53% 22.60% Nov. 30, 2009
Investor Class Shares After Taxes on Distributions
Matthews China Dividend Fund Return after taxes on distributions [1] 21.66% 21.80% Nov. 30, 2009
Investor Class Shares After Taxes on Distributions and Sales
Matthews China Dividend Fund Return after taxes on distributions and sale of Fund shares [1] 14.77% 18.79% Nov. 30, 2009
MSCI China Index
MSCI China Index 4.83% 4.89% Nov. 30, 2009
[1] After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.