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WisdomTree Chinese Yuan ETF (CYB)

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  • May 11, 2014, 3:15 AM
    • Chinese President Xi Jinping has said his country needs to get used to slower growth as the government carries out reform.
    • "We must boost our confidence, adapt to the new normal condition based on the characteristics of China's economic growth in the current phase and stay cool-minded," Xi said.
    • However, the government must also prevent risks and take "timely countermeasures to reduce potential negative effects," he said.
    • Xi's comments follow data that indicate slowing growth and falling inflation.
    • The remarks are also the latest from a senior figure - including from Xi himself - that China must tolerate more moderate growth; to lower those "potential negative effects," the government has announced mini-stimulus measures.
    • ETFs: FXI, PGJ, GXC, FXP, KWEB, YINN, CYB, HAO, CNY, ASHR, CHIQ, DSUM, YANG, TAO, CHIX, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, FXCH, CHXF, CHII, ECNS, CHIM, CHIE, FCA, KFYP, CHLC, TCHI, CHNA, CN, KBA
    | 11 Comments
  • May 9, 2014, 3:02 AM
    • China's inflation slowed to an 18-month low of 1.8% on year in April from 2.4% in March and came in below consensus of 2%
    • On month, China's CPI fell 0.3% vs -0.5% and -0.1%.
    • Factory-gate prices (PPI) dropped for the 26th consecutive month, declining 2% on year vs -2.3% previously and forecasts of -1.8%. The deflation demonstrates that "overcapacity remains relatively serious," the People's Bank of China said recently.
    • With other data indicating that China's economy is slowing down, economists attributed the fall in CPI to a weakness in demand. Today's data has increased expectations that the government will further ease monetary and fiscal policy.
    • "It's time for the People's Bank of China to cut the reserve requirement ratio," says ANZ economist Liu Li-Gang, adding that the risk of deflation is increasing. At the moment, major banks have to keep 20% of their deposits at the central bank, thereby restricting their lending abilities.
    • The Shanghai Composite is -0.2%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, DSUM, YANG, TAO, CHIX, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, CHXF, FXCH, CHII, ECNS, CHIM, CHIE, FCA, KFYP, CHLC, TCHI, CHNA, CN, KBA
    | 2 Comments
  • May 8, 2014, 2:38 AM
    • Chinese exports increased 0.9% on year in April after falling 6.6% in March and beat consensus for a drop of 1.7%.
    • Imports +0.8% vs -11.3% and -2.3%.
    • The trade surplus more than doubled to $18.45B from $7.71B and topped forecasts of $13.90B.
    • Exports breakdown: U.S. +4.1%, EU +7.8%, Southeast Asia +5.9%, Taiwan -9.7%, Hong Kong -31.3 (due to problematic invoicing last year).
    • The readings follow other data which indicate that China's economy has been slowing and come after a 2.8% fall in the yuan vs the dollar this year.
    • The strong growth "will create pressure for China to reverse the recent yuan depreciation," says Citigroup economist Ding Shuang.
    • "The external demand side is not such a big problem for China now, because the genuine recovery is there," says Wei Yao, the China economist at Societe Generale. "This is actually offering some support to China's growth."
    • The Shanghai Composite is +0.4%.
    • ETFs: FXI, PGJ, GXC, FXP, KWEB, YINN, CYB, HAO, CNY, ASHR, CHIQ, DSUM, YANG, TAO, CHIX, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, CHXF, FXCH, CHII, ECNS, CHIM, CHIE, FCA, KFYP, CHLC, TCHI, CHNA, KBA, CN
    | 1 Comment
  • May 5, 2014, 12:38 PM
    • "This is a great business ... we're less concerned about litigation," says Chris Shumway (former Tiger Cub, now running a family office), suggesting a long position in Moody's (MCO +1.5%) at the Ira Sohn conference. Moody's business is like Bloomberg: Tougher and tougher every year for someone to catch up.
    • On the macro picture: "It feels a little strange out there," he says, noting hammered growth stocks, Ukraine tensions, and the Chinese slowdown. It leads to another idea, which is a short of the yuan. Devaluation, he says, is the easiest way for Beijing to "get themselves out of a tough spot." ETFs: CYB, CNY, FXCH
    • Earlier Sohn coverage
    | Comment!
  • May 5, 2014, 2:13 AM
    • China's HSBC PMI edged up to 48.1 in April from 48 in March but came in below the flash figure of 48.3.
    • Output and new orders contracted at slower rates, staff numbers fell for the sixth month in a row, and there was a "solid reduction" in input and output prices, says Markit, adding that new export orders also shrank.
    • The reading indicates that factory activity contracted for the fourth consecutive month, although the figure contrasts with official data that shows slight growth.
    • While Beijing has recently introduced additional reform aimed at supporting growth by promoting more private-sector investment, HSBC believes that "bolder actions will be required to ensure the economy regains its momentum."
    • The Shanghai Composite is -0.3%. (PR)
    • ETFs: FXI, 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, CHIE, CHIM, FCA, KFYP, TCHI, CHLC, CHNA, KBA
    | Comment!
  • May 1, 2014, 2:58 AM
    • China's official manufacturing PMI edged up to 50.4 in April from 50.3 in March but slightly missed consensus of 50.5.
    • Output, new orders and purchases of inputs expanded, but new export orders, stocks of finished goods, backlogs of orders, imports and stocks of major inputs contracted. Input prices fell while suppliers' delivery was faster.
    • The data, which indicates that manufacturing is just about expanding, adds to HSBC's flash PMI reading, which shows that the sector is contracting.
    • "The economy is showing slight improvements due to recent policy measures but there is no sign of a bottoming out," says economist Sun Wencun.
    • Chinese markets are closed today for a holiday. (PR)
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, YANG, CHIX, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, CHXF, FXCH, CHII, ECNS, CHIE, CHIM, FCA, KFYP, CHLC, TCHI, CHNA, KBA, CN
    | 1 Comment
  • Apr. 28, 2014, 4:51 AM
    | Comment!
  • Apr. 27, 2014, 2:34 AM
    • China's State Administration of Foreign Exchange is widening a trial program to loosen currency controls in the country and will allow domestic and foreign firms with at least $100M in annual foreign-exchange income to transfer money more easily.
    • The move is part of China's plans to reform its economy and allow a bigger role for free markets.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, CYB, CNY, DSUM, YANG, MCHI, XPP, YAO, YXI, FXCH, CHXF, FCA, TCHI, CHLC
    | Comment!
  • Apr. 23, 2014, 2:17 AM
    • HSBC Chinese flash manufacturing PMI has indicated contraction for a fourth consecutive month, although the gauge has edged up to 48.3 in April from 48 in March. Consensus was for 48.4.
    • "Domestic demand showed mild improvement and deflationary pressures eased," said HSBC, "but downside risks to growth are still evident as both new export orders and employment contracted."
    • HSBC believes that the Chinese government will add to its recent stimulus measures and that the People's Bank of China "will keep sufficient liquidity."
    • The Shanghai Composite is -0.5%. (PR)
    • ETFs: FXI, 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, CHIE, CHIM, FCA, KFYP, TCHI, CHLC, CHNA, KBA
    | Comment!
  • Apr. 18, 2014, 3:39 AM
    • China's new-housing inflation weakened to an eight-month low in March, with the average price of new homes in 70 major cities moderating to +7.7% on year from +8.7% in February.
    • On month, housing inflation slipped to 0.2% from 0.3%.
    • Home prices rose on a year-on-year basis in 69 of 70 cities, as in February.
    • The softening in prices reflects the government's attempts to cool the housing sector, although it also adds to concerns about the slowdown in the wider economy.
    • "There are definitely risks in the property market of China's smaller cities," says Standard Chartered's Lan Shen. "The property market will be a big factor that presses the country's economic growth this year."
    • The Shanghai Composite is -0.15%.
    • ETFs: FXI, 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, CHIE, CHIM, FCA, KFYP, TCHI, CHLC, CHNA, KBA
    | 2 Comments
  • Apr. 16, 2014, 2:56 AM
    • China's GDP growth slowed to its lowest level in 18 months in Q1, moderating to 7.4% on year from 7.7% in Q4 but topping forecasts for 7.3%. The figure is below the government's target of 7.5%, although the country's leaders have indicated that the goal is flexible as they try to implement reform.
    • Falling momentum in investment and consumption, struggling real estate, and weak external demand were among the main factors that caused the slower expansion.
    • On quarter, GDP +1.4%, as expected, vs +1.8%.
    • The value of home sales fell 7.7% in Q1 to 1.1T yuan ($177B); new property construction -25% to 291M square meters (3.1B square feet).
    • Industrial production +8.8% in March +8.6% in previously and consensus of +9%.
    • Retail sales +12.2% vs +11.8% and +12.1%.
    • Urban fixed-asset investment +17.6% in Q1 vs +17.9% previously and forecasts of +18.1%.
    • MNI Business Sentiment Indicator 51.1 in March vs 50.2 in February.
    • "All the forward-looking indicators are weak - growth is going to continue to slow," says Standard Chartered's Stephen Green. "We expect a mix of moderate monetary easing over the next few months and more aggressive reform measures."
    • However, Credit Agricole economist Dariusz Kowalczyk expresses a bit of optimism. "The silver lining is that retail sales and industrial output both rebounded in March, suggesting that growth is bottoming out."
    • The Shanghai Composite is flat.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, CHXF, FXCH, CHII, ECNS, CHIM, CHIE, FCA, KFYP, TCHI, CHNA, KBA
    | 1 Comment
  • 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
    | 1 Comment
  • Apr. 8, 2014, 7:57 AM
    • Alongside rallying emerging market equities is a comeback for their currencies as investors grow comfortable with the taper. Also at work is tighter monetary policy in the emerging markets - Turkey, South Africa, and Russia have all boosted rates this year, and Brazil is nearing the end of a year-long rate hike cycle.
    • "The appeal of the carry trade has returned. Emergency measures by emerging market central banks have rendered yields much higher, and hence emerging market currencies are much more attractive to hold," says SocGen's Phoenix Kalen.
    • ETFs: CYB, CNY, BZF, CEW, ICN, INR, FXCH, INCO, AYT, PGD, JEM
    | Comment!
  • Apr. 3, 2014, 8:25 AM
    • Current domestic economic conditions remain within a "reasonable range," says the PBOC in a statement following its quarterly policy meeting. Domestic price levels are basically steady, but the central bank notes continued slowing growth in other emerging economies.
    • ETFs: CYB, CNY, FXCH
    | Comment!
  • 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
    | 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
    | 1 Comment
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CYB Description
WisdomTree Chinese Yuan Fund seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese Yuan relative to the U.S. dollar.
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Country: China
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