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iShares MSCI Hong Kong ETF (EWH)

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  • Dec. 3, 2011, 10:00 AM
    A EU free Saturday morning shall we? Michael Pettis (not yet available for publication) believes Wednesday's reserve ratio requirement decrease in China is more about the PBOC trying to offset what he believes are continued net outflows of speculative capital from the country. The yuan is no longer a one way bet, and in fact has been trading down sharply each day before the PBOC steps in to fix it.
    | 9 Comments
  • Dec. 1, 2011, 11:07 AM
    An FT video report from Chinese manufacturing hub Wenzhou illustrates the limits of the country's low value added export model. Razor-thin margins combined with labor shortages, vanishing credit availability, and an overseas slowdown make for a difficult situation. "If a big chain cancels an order, somewhere in China a factory shuts down," said some bright guy not long ago.
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  • Nov. 30, 2011, 3:45 PM
    Capital Economics notes the significance of the move by China, saying the PBOC has already been stealthily easing, but today's action means Beijing wants the world to know about it. "Further RRR cuts will follow ... bank lending will pick up." As for official interest rates, they may or may not come down, but are not a significant policy tool in China.
    | Comment!
  • Nov. 30, 2011, 7:19 AM
    Showing the power of easier monetary policy to (at least temporarily) move shares, the China 25 ETF (FXI +2.1%) is sharply higher premarket despite a 3.3% swoon in Chinese shares overnight (easing announcement was made after Shanghai's close).
    | 1 Comment
  • Nov. 30, 2011, 7:08 AM
    Given the horrid investment performance of the BRICs, SocGen's professional bear Albert Edwards suggests the acronym ought to stand for Bloody Ridiculous Investment Concept. YTD: Brazil EWZ -28%, Russia -23%, India INDY -32%, China FXI -20%. Could China's move to easing turn things around?
    | Comment!
  • Nov. 28, 2011, 9:17 AM
    Not news that sell-side firms and "sell" ratings are unfamiliar with each other, it's doubly so for China. Forensic Asia finds brokerages offering 19.2 "buy' recommendations on Chinese shares for every 1 "sell," compared to a 10.5:1 ratio for U.S. stocks and 7.3:1 for Asia ex-China."At sell-side firms there is overwhelming pressure to believe in the 'China cannot fail' story."
    | 1 Comment
  • Nov. 25, 2011, 7:03 AM
    Holding more clues about the state of the world than you know, Malaysian Palm Oil prices continue their fall as the Indian and Chinese economies (the 2 greatest consumers) lose momentum. The latest news has China cancelling a 300K ton order and delaying receipt of another 400K tons. Prices are off about 20% YTD.
    | Comment!
  • Nov. 24, 2011, 5:46 AM
    Chinese factory output growth will probably slow slightly to 12-13% next year because of softening global demand, the industry ministry says. That would still ensure GDP growth of 8-9%, the level that China needs to create enough jobs to stem social unrest and avoid a "hard landing."
    | Comment!
  • Nov. 23, 2011, 12:21 PM
    Jim Chanos comes back from his trip to Hong Kong and Australia even more bearish. "The Chinese banking system is build on quicksand," he says, pointing out the government's vaunted $3T in FX reserves are not cash in the bank, but assets against which there are $3T in liabilities. His concerns spread to a complacent Oz, which "has hitched its wagon to the tail of the tiger."
    | Comment!
  • Nov. 23, 2011, 11:52 AM
    Amidst ever-clearer signs its economy is rolling over, China is seeing a sharp rise in labor unrest, as something new - factory closures and salary cuts - combines with poor working conditions. Despite reports of labor shortages, one watcher says firms do not hesitate to pass on the effects of slowing orders to their workers.
    | 6 Comments
  • Nov. 17, 2011, 10:58 AM
    The meme that public housing projects would take up the slack for a struggling private building sector is given a blow by a housing ministry admission that one third of 10M reported "construction starts" are little more than holes in the ground. The news makes clear the reason for a divergence between rising "starts" and slowing cement and steel usage.
    | 1 Comment
  • Nov. 17, 2011, 10:35 AM
    The carnage in China's property developers spreads as Zoomlion - the country's 2nd largest maker of cranes and construction equipment - tanks 6.9% last night. "Demand for construction machinery has shrunk drastically and growth will no doubt continue to slow next year," says its chief.
    | 1 Comment
  • Nov. 14, 2011, 3:40 PM
    Sir Anthony Bolton - one of China's biggest bulls - who raised £430M in 2010 with which to back up his thesis, has his tail between his legs after a 15% loss last year and 32% so far this year. He's not throwing in the towel though, instead blaming the China "hard landing" chorus for destroying market sentiment there.
    | 1 Comment
  • Nov. 10, 2011, 8:35 AM
    A peek behind the Chinese trade figure shows even more weakness, as export growth - dropping to the lowest level in two years - is even slower when accounting for inflation and changes in exchange rates. Import growth also showed a sharp drop, and with the housing downturn promising to slow building, the outlook for future months wanes.
    | 1 Comment
  • Nov. 9, 2011, 10:16 AM
    "The task of promoting economic growth will gradually replace controlling inflation as top priority," says Standard Chartered economist Li Wei of China. Mr Li and others are encouraged by the clear slowdown in official inflation statistics, but expects easing to be at the margin rather than the hammer of interest or reserve ratio cuts.
    | Comment!
  • Nov. 9, 2011, 8:33 AM
    Hong Kong CEO Donald Tsang offers Bill Ackman some investment advice, telling him he's going to lose a lot of money betting on a revaluation of the HK dollar. The peg is a "very important underpinning to HK growth and monetary stability, and we are not going to change." One thing is certain, revaluations don't happen during recessions.
    | 1 Comment
EWH vs. ETF Alternatives
EWH Description
The iShares MSCI Hong Kong Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Hong Kong market, as measured by the MSCI Hong Kong Index.
See more details on sponsor's website
Country: Hong Kong
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