SPDR S&P China ETF (GXC) - NYSEARCA
  • Apr. 10, 2014, 4:25 AM
    • China intends to connect the Hong Kong and Shanghai bourses and enable total cross-border trading of 23.5B yuan ($3.8B) a day.
    • Investors will be able to trade 10.5B yuan of Hong Kong-listed shares via Shanghai and 13B yuan of mainland stocks through Hong Kong.
    • The plan is part of China's attempts to liberalize its economy, with Premier Li Keqiang saying it will "further improve the opening and healthy development of capital markets in China and Hong Kong."
    • News of the plan helped Chinese and Hong Kong stocks rise despite weak trade figures.
    • The Shanghai Composite ended +1.4% and the Hang Seng gained 1.7%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, YANG, MCHI, XPP, YAO, YXI, CHXF, FCA, TCHI
    • ETFs: EWHS
    | Apr. 10, 2014, 4:25 AM | 5 Comments
  • Apr. 10, 2014, 2:04 AM
    • Chinese exports tumbled 6.6% on year in March, which represented an improvement from an 18.1% plunge in February, although consensus was for growth of 4%.
    • Imports slumped 11.3% after climbing 10.1% and missed expectations of +2.4%, with the decline partly due to falling commodity prices.
    • The trade balance swung to a surplus of $7.71B from a deficit of $22.98B and easily topped forecasts for a surplus of $900M.
    • Economist Hu Yifan says that "investors don't have to be worried" about the trade numbers, as the declines were partly due to artificially high export data a year earlier and the severe winter in the U.S.
    • Still, the figures follow other numbers which show that the economy is slowing, although Premier Li Keqiang ruled out more stimulus to add to measures that were announced recently. China "won’t adopt short-term and strong stimulus policies in response to temporary fluctuations in the economy," Li said. "Instead, we will focus more on healthy growth in the medium-to-long term and will make efforts to achieve sustainable and healthy development."
    • The Shanghai Composite +0.2% and the Hang Seng is +0.65%, aided by the dovish FOMC minutes yesterday.
    • ETFs: FXI, EWH, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, FXCH, CHXF, CHII, ECNS, CHIM, CHIE, EWHS, FCHI, KFYP, FCA, TCHI, CHLC, CHNA, FHK, KBA
    | Apr. 10, 2014, 2:04 AM | 1 Comment
  • Apr. 3, 2014, 9:01 AM
    • Sotheby's (BID) stock price does a pretty good job tracking speculative bubbles, says Jim Chanos appearing on Squawk Box with this chart to explain his short of the name.
    • On China: The government is "panicking" over the economic slowdown. "One has to keep in mind, if you're a Western investor in stocks and bonds in China, you are investing in a scheme, not a market ... You are basically providing capital to them and you might not see any profits or dividends from them."
    • On the Dow's best-performing stock of the year: Chanos says he's still short Caterpillar (CAT).
    • Multi-level marketers, i.e. Herbalife (HLF): It's "no secret we side with the bears on this one."
    • On the round-trip in Greek bond yields (they're back to pre-crisis levels): "I find that stunning ... and scary."
    • China ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, HAO, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHNA, KBA
    | Apr. 3, 2014, 9:01 AM | 38 Comments
  • Apr. 3, 2014, 2:26 AM
    • China's State Council has unveiled another mini-stimulus package as part of an attempt to stabilize slowing growth even as the government looks to reform the economy so that it relies less on the state sector.
    • "There's a balance," says Mark Williams of Capital Economics. "The leadership wants to push ahead with reform, but it's aware that it has to maintain confidence."
    • The program includes selling 150B yuan ($24.6B) in bonds for railway construction and creating a development fund of 200-300B yuan a year for a similar purpose, improved housing for those on low incomes, and tax relief for struggling small companies.
    • The measures had already been announced but not as a package to boost GDP, while the program is a bit of a re-run of a mini-stimulus that China introduced last year to lift flagging growth.
    • The State Council didn't say whether monetary policy would be loosened - the dilemma for the government is that it's also trying to rein in soaring lending.
    • State Council statement
    • Meanwhile, China's official non-manufacturing PMI slipped to 54.5 in March from 55 in February, while the HSBC services PMI rose to 51.9 from 51.
    • The Shanghai Composite is -0.95%, while the Hang Seng is +0.2%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, FXCH, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA, KBA
    | Apr. 3, 2014, 2:26 AM | 4 Comments
  • Apr. 1, 2014, 2:02 AM
    • As expected, Chinese official manufacturing PMI, which focuses on larger state-owned enterprises, edged up to 50.3 in March from 50.2 in February. (PR)
    • The HSBC index, which gives more weight to smaller private companies, slipped to 48 (flash 48.1) from 48.5. Output and new orders contracted at faster rates, although new export orders returned to growth. Input costs and output charges fell sharply.
    • HSBC says that its reading confirms the weakness of domestic demand. "This implies that 1Q GDP growth is likely to have fallen below the annual growth target of 7.5%. We expect Beijing to fine-tune policy sooner rather than later to stabilize growth," HSBC says. (PR)
    • The Shanghai Composite is +0.5%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, FXCH, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA, KBA
    | Apr. 1, 2014, 2:02 AM | 1 Comment
  • Mar. 27, 2014, 4:53 AM
    | Mar. 27, 2014, 4:53 AM
  • Mar. 26, 2014, 8:30 AM
    • “The apparent deterioration in productivity and diminishing returns to leverage are not as severe as the consensus thinks when one takes into account true activity," writes the team, arguing China's consumption and services are larger than officially reported. If true, it gives the economy more room to cope with slowing productivity growth. Plus, there's Beijing's "formidable" financial resources.
    • Higher overnight, the MSCI China Index is off 7.6% on the year - heading for its worst quarter since 2008. The index trades at 9x reported earnings, a 23% discount to the MSCI Emerging Markets Index.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, HAO, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHNA, KBA
    | Mar. 26, 2014, 8:30 AM | 1 Comment
  • Mar. 26, 2014, 4:42 AM
    • Hundreds of people have rushed to take their money out of Jiangsu Sheyang Rural Commercial Bank, a small bank in the troubled Jiangsu province, following a rumor that the firm was close to collapsing.
    • The event, while localized, highlights the increasing nervousness about the viability of soaring debt in China. It also comes not long after the failure of co-operatives in the region and after the first ever default in the domestic corporate-bond market.
    • The bank run also emphasizes the need for bank-deposit insurance in China, which the government has said it plans to introduce.
    • Meanwhile, struggling firms are being asked to pay more for smaller loans, Reuters reports. The trend shows how banks, as per the desire of regulators, are being more discerning with their loans.
    • The Shanghai composite is -0.2%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CHIX, YANG, MCHI, XPP, YAO, YXI, CHXF, FCA, TCHI
    | Mar. 26, 2014, 4:42 AM | 2 Comments
  • Mar. 24, 2014, 2:24 AM
    • HSBC Chinese flash manufacturing PMI has indicated contraction for a fifth consecutive month, slipping to 48.1 in March from 48.5 in February and missing consensus of 48.7.
    • New orders, employment and output shrank, although new export orders grew for the first time in four months.
    • The reading adds to other data which indicate that China's economy is slowing.
    • "Weakness is broadly based with domestic demand softening further," says HSBC. "We expect Beijing to launch a series of policy measures to stabilize growth."
    • Hopes of such stimulus have helped push the Shanghai Composite up 1%, while the Hang Seng is +1.7%. (PR)
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, KWEB, HAO, CNY, ASHR, CHIQ, DSUM, CHIX, TAO, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, FXCH, CHII, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA, KBA
    | Mar. 24, 2014, 2:24 AM | 6 Comments
  • Mar. 21, 2014, 4:30 AM
    | Mar. 21, 2014, 4:30 AM
  • Mar. 20, 2014, 3:23 AM
    • China's government just can't help itself. The State Council intends to accelerate construction projects and enact other measures in order to expand domestic demand and stabilize growth.
    • The plan comes amid data which suggests that the economy is softening. However, it also contrasts with noises from China's leadership that it's prepared to tolerate slower growth in order to enact reform that would shift the economy away from heavy industry and towards consumption.
    • Meanwhile, foreign money entering China plummeted to a five-month low of $21.1B in February from $72.3B in January. The plunge suggests that the government's attempts to discourage speculation on yuan appreciation by forcing the currency to fall may be enjoying initial success. The inflows of hot money can be a problem, as they can inflate asset prices.
    • The Shanghai Composite is -0.3%, while the USD-CNY is +0.4% at 6.219 yuan.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, KWEB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, YXI, CHII, FXCH, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA, KBA
    | Mar. 20, 2014, 3:23 AM | 7 Comments
  • Mar. 19, 2014, 4:54 AM
    • The onshore yuan is back below 6.20 to the dollar after briefly breaching the level, which Morgan Stanley has called a "danger zone."
    • That's because a sustained fall to under 6.20 could cause losses on billions of dollars of hedging products that Chinese companies have taken out as part of a bet on the renminbi's appreciation.
    • Strategist Geoff Kendrick estimates that mark-to-market losses on the products top $2B.
    • The offshore yuan, to which the derivatives are tied, is at 6.1905.
    • The onshore currency is at 6.1965 after falling to as low as 6.2026, with the movement being the first time the renminbi has deviated more than 1% from the central bank's daily midpoint after it doubled the currency's trading band to 2% from that point over the weekend. The bank set today's midpoint at 6.1351.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, CNY, DSUM, YANG, MCHI, XPP, YAO, YXI, FXCH, CHXF, FCA, TCHI, CHLC
    | Mar. 19, 2014, 4:54 AM
  • Mar. 18, 2014, 2:43 AM
    • Average new home prices in 70 major cities rose 8.2% on year in February after moderating to 9% in January, the WSJ calculates. On a monthly basis, home prices rose in 57 cities vs 62 in January. The weakening of the growth in house prices comes amid Chinese government efforts to cool the sector.
    • Meanwhile, foreign direct investment in China grew 4.1% on year to $8.6B in February, press calculations show, but growth was down sharply from 16.1% in January.
    • FDI climbed 10.4% to $19.3B in the first two months of the year, the government said.
    • The reading comes with the rider, as is the case with other economic data, that the Lunar New Year may well distorted the figures.
    • The latest data follows China unveiling a long-awaited urbanization plan to move 100M people into cities from rural areas. Farmers will be able to more easily sell or lease their land, find jobs in cities, and receive public services in urban areas.
    • The Shanghai Composite is +0.1%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, KWEB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, CHII, FXCH, CHXF, YXI, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA, KBA
    | Mar. 18, 2014, 2:43 AM | 1 Comment
  • Mar. 16, 2014, 2:49 AM
    | Mar. 16, 2014, 2:49 AM
  • Mar. 13, 2014, 3:51 PM
    • Worries about the health of industries with massive overcapacity have many banks cutting lending to certain sectors by up to 20%, reports Reuters. At the same time, Beijing has asked banks to include loans linked to derivative products and debt financing along with regular reports of outstanding loans by sector.
    • The specific sectors facing audi are steel, cement, aluminum, smelting, flat-glass, and shipbuilding, says a bank source, and one area of particular concern is the common practice of bank loans backed by commodities like steel and copper.
    • The moves come in the wake of last week's landmark bond default by Chaori Solar as well as the default of a coal-related high-yield trust product, but is it the real deal? Stories of Beijing cracking down on industrial sectors with excess capacity have been floating around for a decade, but the train has kept on rolling (or bubble inflating, depending on your point of view). FXI -2.2%
    • China ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, HAO, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, CHII, YXI, CHXF, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHNA, KBA
    | Mar. 13, 2014, 3:51 PM | 6 Comments
  • Mar. 13, 2014, 3:17 AM
    • China's industrial production growth slowed to 8.6% on year in January and February from 9.7% previously and missed consensus of 9.5%.
    • Retail sales softened to +11.8% from +13.6% and vs +13.5%.
    • Urban fixed-asset investment +17.9% vs +19.6% and +19.4%.
    • The disappointing readings add to other data that indicate that China's economic growth is moderating, including plunging exports.
    • However, Chinese Premier Li Keqiang became the latest member of the government to indicate that the leadership is prepared to accept slower growth. "The GDP growth target (for 2014) is around 7.5%," Li said. "'Around' means there is some flexibility and we have some tolerance."
    • Li also reiterated the government's increased acceptance of bankruptcy, saying that some loan defaults are "hard to avoid." He added that the government needs to "enhance oversight" and ensure that there's no "systemic and regional risks."
    • Meanwhile, Chinese cadres will be assessed on a range of metrics, such as the environment and improving people's lives, and not just on economic growth.
    • Despite the disappointing data, the Shanghai Composite rose 0.95% amid speculation that listed firms will be permitted to offer preferred shares for the first time.
    • ETFs: FXI, PGJ, GXC, FXP, CYB, YINN, KWEB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, PEK, QQQC, XPP, YAO, CHXX, CHII, FXCH, CHXF, YXI, ECNS, CHIM, CHIE, KFYP, FCA, TCHI, CHLC, CHNA, KBA
    | Mar. 13, 2014, 3:17 AM | 3 Comments
GXC Description
The SPDR® S&P® China ETF, before expenses, seeks to closely match the returns and characteristics of the total return performance of the S&P China BMI Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
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Country: China
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