Seeking Alpha

Chinese ETFs fly after reforms announced

  • "A demographic cherry" on top of the sundae that is China is how Yves Lamoureux describes Beijing's decision to ease up on the country's one-child policy. Lamoureux was already bullish on Chinese stocks, calling them the best contrarian asset play around. "if you look at world money managers, big portfolios, everyone is massively underweight China mostly ... This market is the second biggest in the world, but is trading like a third-world country, and should be valued 100% more.”
  • Chinese ETFs are sharply higher in wake of the one-child move and other reforms announced earlier. The popular FXI +5.3% and the newly-launched A-share tracker, ASHR +4.5%.
  • Chinese equity ETFs: FXI, GXC, PGJ, FXP, HAO, YINN, TAO, CHIQ, CHIX, PEK, YANG, MCHI, XPP, CQQQ, QQQC, YAO, CHXX, CHII, CHXF, ECNS, CHIE, YXI, CHIM, ASHR, KFYP, KWEB, FCA, TCHI, CHNA
Comments (2)
  • An influx of foreign capital into ETFs such as FXI which is heavily weighted toward financials may also help to absorb the cost of dealing with the potential credit crisis facing China as a result of all the bad loans that have been accumulating on and off Chinese bank balance sheets over the past five years (since 2008). In the meantime, a "self congratulatory" rally in the price of shares of mostly state controlled companies held by those closely tied to the CCP would not surprise me.
    15 Nov 2013, 01:14 PM Reply Like
  • Gee...why should a third world country trade like a 3rd world country? Will someone answer that for me?
    15 Nov 2013, 02:19 PM Reply Like
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