Matthews Asia Dividend Fund half yearly commentary for the period ended June 30, 2015. For the first half of 2015, the Matthews Asia Dividend Fund returned 12.65% (Investor Class), outperforming its benchmark, the MSCI All Country Asia Pacific Index, which returned 7.54%. For the quarter ending June 30, the Fund rose 3.69% (Investor Class) while its benchmark returned 0.71%. In June, the Fund distributed 18.23 cents per share (Investor Class), bringing its total year-to-date income distribution to 20.08 cents per share. Matthews Asia Dividend Fund - Market Environment: During the second quarter of the year, the rapid rally of China’s equity market took many investors by surprise. While China’s underlying economy has continued to grind gradually slower, China's equity market reacted positively to government policy support, including an easing of monetary policy and financial reform initiatives. On the other hand, a number of other Asian markets, most notably those in Southeast Asia, experienced rather subdued equity performance during the quarter. Share prices came under pressure against a backdrop of weak consumption demand, slowing corporate earnings growth and depreciating local currencies. Markets, such as Indonesia and India, saw some profit-taking, as investor excitement over economic reform prospects began to wane. Matthews Asia Dividend Fund - Performance Contributors and Detractors: During the second quarter, our portfolio holdings in Chinese stocks were among the largest contributors to Fund performance. The launch of the Shanghai-Hong Kong Stock Connect Program further opened China's mainland A-share market to foreign investors and at the same time allowed those from the mainland to invest in the offshore Hong Kong market. The new program boosted investor sentiment toward the respective markets. While the most recent pull back of the mainland A-share market, in early July triggered by forced liquidation of leveraged margin accounts, has spilled over into the Hong Kong market, and negatively impacted the share performance of H shares, we remain constructive on our H-share holdings, as we continue to... More