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iShares China Large-Cap ETF (FXI)

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  • Oct. 22, 2013, 3:04 AM
    • New home prices in China's four major cities rose at the fastest rate since January 2011 last month, again highlighting the economic dilemma that the government finds itself in.
    • Price jumped 20% on year in the southern business centers of Shenzhen and Guangzhou, 17% in Shanghai and 16% in Beijing. Overall, prices rose in 69 of the 70 cities that the government tracks.
    • On average, prices increased  8.19% vs 7.48% in August and 6.7% in July, the WSJ calculates.
    • "Home prices, especially in big cities, are a bit out of control," says economist Liu Li-Gang, adding that China faces a property bubble.
    • Another economist, Xu Gao, gives the flip side. "If home prices fall, the economy will certainly slump. The government is trying to find a balance," says Xu.
    • The Shanghai Composite is -1%.
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
    | 1 Comment
  • Oct. 21, 2013, 3:41 AM
    • China's economy is "stable and trending for the better," and has the ability to meet the government's targets this year, the country's State Council said yesterday.
    • However, the council warned that the foundations of the recovery are "not yet firm," and that the government needs to be "unrelenting" in applying its economic policies and reform.
    • China's GDP grew 7.8% in Q3, above the annual target of 7.5%.
    • Meanwhile, China is expected to soon publish details about local government debt, which is estimated at 15-30T yuan ($2.46-4.92T). The central government is considering widening a pilot program that allows municipalities to sell bonds as a way to improve the transparency of their debt.
    • The Shanghai Composite is +1.6%.
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
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  • Oct. 18, 2013, 3:22 AM
    • Q3 GDP growth of +7.8% was the fastest this year, reflecting a "mini fiscal stimulus" that included railway spending and tax cuts.
    • However, Bank of America economist Ting Lu believes that the "growth peak" is "now behind us."
    • Nine-month GDP rose 7.7%, above the government's annual target of 7.5%.
    • Investment accounted for 56% of growth, well above the 46% for consumption, while exports subtracted 1.7%. The figures indicate the job the government has to do in its attempt to rebalance the economy towards more consumption.
    • Meanwhile, home sales jumped 34% on month in September after the banks loosened lending requirements in order to stem the economic slowdown earlier this year. On the other hand, the government also wants to cool the frothing housing sector.
    • Shanghai Composite +0.2%.
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
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  • Oct. 17, 2013, 10:11 PM
    • China Q3 GDP: +7.8% Y/Y versus +7.8% expected; +2.2% Q/Q versus +1.9% expected.
    • China September industrial production: +10.2% versus +10.1% expected and 10.4% previous.
    • China September retail sales: +13.3% versus +13.5% expected and +13.4% previous.
    • China ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
    | 9 Comments
  • Oct. 17, 2013, 2:06 AM
    • China's foreign direct investment grew 4.9% on year to $8.8B in September, accelerating from growth of just 0.6% in August but still well below the July expansion of 24.1%.
    • In January-September, FDI rose 6.2% to $88.6B; non-financial FDI climbed 17.4% to $61.6B. (PR)
    • Meanwhile, China's Commerce Ministry is prepared to take measures to support exporters and help ensure that trade growth hits a target of 8%. The ministry warned that exporters particularly face a tough time in emerging markets, which "are starting to lose growth momentum."
    • Shanghai Composite +0.5%.
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
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  • Oct. 14, 2013, 5:21 AM
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  • Oct. 14, 2013, 2:22 AM
    • On month, CPI +0.8% in September vs +0.5% expected and +0.5% in August.
    • The on-year figure of +3.1% was a seven month high but within the government's annual target of +3.5%. Droughts and floods in various regions helped to push food prices up 6.1%.
    • "September CPI inflation gained more momentum on seasonal factors and a low base effect from last year," says economist Li Huiyong. "But we think the inflation situation is still under well control and will not be a concern this year, especially when the economy is struggling with over-capacity problems."
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
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  • Oct. 13, 2013, 9:44 PM
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  • Oct. 13, 2013, 1:27 AM
    • China's exports slipped 0.3% on year to $185.6B in September vs +7.2% in August and consensus for growth of 6%.
    • Imports grew 7.4% to $170.4B vs +7% and +7%.
    • The trade surplus declined 45% to $15.2B.
    • Although the drop in exports raises concerns about global demand and the staying power of China's recent economic recovery, analysts point out that the over-invoicing of exports may have inflated the numbers in September 2012.
    • Meanwhile, customs spokesman Zheng Yuesheng played down the fall as seasonal and said that it anyway shows that as per government policy, "China's economic development has transformed from being driven by external demand to domestic demand."
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
    | 5 Comments
  • Oct. 10, 2013, 3:07 AM
    • Chinese Premier Li Keqiang said his country's GDP probably expanded more than 7.5% in the first nine months of the year, with the economy showing "stronger momentum of steady growth” in the past few months.
    • Economists estimate that GDP accelerated to +7.8% in Q3 from +7.5% in Q2. The data is due out on October 18.
    • Everbright Securities economist Xu Gao says the recovery is "obvious in the third quarter, but whether the momentum can be sustained is open to question."
    • Shanghai Composite -1%.
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
    | 1 Comment
  • Oct. 9, 2013, 9:42 AM
    • "The Fed will be looser for longer. The FOMC will continue to print money until the US economy creates enough jobs to reignite wage pressures and inflation, regardless of asset bubbles, or collateral damage along the way," says a giddy Ambrose Evans-Pritchard of the Yellen nomination.
    • The "dove" label is unfair, says Pritchard. Yellen pushed for pre-emptive hikes in the mid-90s as Greenspan fed the stock market bubble.
    • Ahead of the financial crisis, she was quicker to sense the systemic risk of the subprime crash than the rest of the FOMC. And after:  "Fighting a chorus of amateur alarmists who claimed that inflation was poised to take off," Yellen was an early and enthusiastic backer of QE.
    • A key Yellen speech from earlier this year requires study, says Pritchard, as it shows she's paying attention to the falling labor force participation rate, i.e. a headline UE print of 6.5% may not hold much "tightening" sway with her.
    • Emerging markets - which took a major hit from taper talk - may be set to benefit the most from a the longer and looser policies of Janet Yellen.
    • Overnight: India gained 1.3%, Shanghai gained 0.6%, and southeast Asia posted a nice advance.
    • Emerging market ETFs: AGEM, EEM, ADRE, SCHE, GMM, VWO, DEM, EWEM, PXH, PIE, EWX, DGS, EMLB, EDC, EET, EMSA, EDZ, EEV, EUM, TLTE, HILO, EELV, EEMA, EMFT, DVYE, FEMS, EVAL, EGRW, EMCR, IEMG, EMDR, EEME.
    • India and China: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMINFXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.
    • Seasia: EIDO, IDX, IDXJEPHETHD, TTF, TF.
    | 4 Comments
  • Oct. 8, 2013, 4:42 PM
    • The Daily FTSE China Bull 3X Shares (YINN) and Bear 3X Shares (YANG) ETFs will switch from the BNY Mellon China Select ADR Index to the FTSE China 25 Index this December.
    • This new index, also used by FXI, comprises the 25 most liquid securities on the Hong Kong Stock Exchange and, while it is currently weighted toward the financial sector, the updated prospectus states that this is subject to change.
    • Currently four of FXI's top ten holdings are banks, with financials making up over 50% of the fund; YINN and YANG under their current index have a heavy hand on Chinese internet companies and very little financial representation.
    • Relevant ETFs: MCHI, GXC, FXP, XPP
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  • Oct. 8, 2013, 3:54 PM
    • Set to open for business on Thursday is the PowerShares China A-Share Portfolio (CHNA), which - as its name suggests - plans to hold shares in China's hard-to-invest-in domestic stock market. The fund, however, has not received Chinese government permission to do so, and will try to replicate A-Share returns by holding a combination of futures contracts and other ETFs.
    • The Market Vectors China ETF (PEK) - on the market for two years and with $34M in AUM - tries to tap into A-Shares through the use of swaps and derivatives.
    • Other China equity ETFs: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYPHAO, ECNS.
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  • Oct. 8, 2013, 4:50 AM
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  • Oct. 8, 2013, 2:09 AM
    • HSBC China services PMI declined to 52.4 in September from 52.8 in August and came in well below the official reading of 55.4.
    • With HSBC focusing on smaller private companies and the official figure on larger state-owned enterprises, the data could indicate a two-tier recovery.
    • HSBC composite output dipped to 51.2 from 51.8.
    • An increase in new business offset a fall in new orders, although business expectations dropped sharply to 58.7 from 62.
    • "The Chinese economy is still on the way to a modest recovery," says Markit. "But a more consolidated and sustainable recovery requires structural reforms.
    • Shanghai Composite +1.1%. (PR)
    • ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
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  • Oct. 3, 2013, 3:27 AM
    • The reading of 55.4 represents a six-month high and contrasts with lower-than-expected manufacturing PMI surveys.
    • The gauges for new orders, retail spending and the logistics industry index grew, while tourist numbers for this week's Chinese holiday increased as well.
    • "The rising service PMI suggests that the recovery in Q313 was quite broad based," says Bank of America's Lu Ting. The "robust" service sector indicates that the chances of a hard landing are low. (previous)
    • The services PMI has helped boost sentiment in Hong Kong (EWH), where the Hang Seng is +0.8%.
    • China ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH
    | Comment!
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FXI Description
The iShares FTSE China 25 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE China 25 Index.
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Country: China
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