In the quarter, we added Focus Media Information Technology (SZSE:002027), a dominant outdoor, video and poster board advertising company. Compared to most other industries in China, the outdoor advertising space remains relatively concentrated, which presents a long-term opportunity for Focus Media to raise prices. Despite its dominance, shares of Focus Media were trading in the low teens when we bought a position. This was largely due to its aggressive network expansion, which caused low utilization rates across its system. We believe the bulk of this expansion is now over and the company's earnings profile will recover over the rest of the year.
From Matthews China Fund (Trades, Portfolio)'s first-quarter 2019 shareholder letter.
