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iShares China Large-Cap ETF (FXI)

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  • Nov. 21, 2013, 2:08 AM
    • The HSBC Chinese flash PMI has slipped to 50.4 in November from 50.9 and missed consensus that was also 50.9.
    • However, the output index has edged up to an eight-month high of 51.3 from 51.1.
    • PMI "moderated due to the weak new-export orders and slowing pace of restocking activities," HSBC said. "The muted inflationary pressures should enable Beijing to keep policy relatively accommodative to support growth."
    • Citigroup economist Ding Shuang says the recent growth rebound may have peaked. "Tighter credit conditions and reform measures will continue to weigh on investment and growth through next year," Ding says. Reforms could be slowed down if the risk of GDP growth falling below 7% "becomes material."
    • The Shanghai Composite is -0.2% and the Hang Seng is -0.35%. (PR)
    • ETFs: FXI, PGJ, GXC, FXP, HAO, YINN, CYB, CNY, TAO, CHIQ, CHIX, YANG, MCHI, PEK, XPP, CQQQ, QQQC, YAO, DSUM, CHXX, CHII, CHXF, FXCH, ECNS, ASHR, CHIE, YXI, CHIM, KFYP, KWEB, TCHI, FCA, CHLC, CHNA
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  • Nov. 20, 2013, 3:35 PM
    • Sell the Chinese banks into any continued rally, says JPMorgan, arguing reform promises are nice, but what's really needed is a solution for the financial system's massive nonperforming loan problem. The country's banks also face competitive pressure thanks to Beijing's reform efforts which include interest rate liberalization and licensing of private lenders.
    • For those keeping track, the China Financials ETF (CHIX) is up 9% in the last 5 sessions after big reform plans. Broader ETFs to name two: FXI +9%, MCHI +7%.
    • Other sectors to sell on the rip, says the team, are the polluters - coals, steels, aluminum, and heavy industries - related ETFs: CHII, CHIM. Industries to buy on the rip: Healthcare, insurance, selected consumption (CHIQ), and Internet.
    • China equity ETFs: FXI, PGJ, GXC, FXP, HAO, YINN, TAO, CHIQ, CHIX, YANG, MCHI, PEK, XPP, CQQQ, QQQC, YAO, CHXX, CHII, CHXF, ECNS, ASHR, CHIE, YXI, CHIM, KFYP, KWEB, FCA, TCHI, CHNA
    | 2 Comments
  • Nov. 19, 2013, 4:52 AM
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  • Nov. 18, 2013, 5:01 AM
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  • Nov. 18, 2013, 3:39 AM
    • Prices for new homes in China's four main cities continued to soar in October, strengthening concerns about a property bubble in the country - although apparently not at Moody's.
    • Prices increased in 69 of the 70 cities tracked by the government, with sales surging 33% in the first 10 months of the year.
    • Moody's described the sales growth as "moderate" and the outlook for the property sector as stable.
    • The data follows Friday's release of the details of a comprehensive reform program in which the Communist Party plans to let the market play a "decisive" role in the economy. That, say Barclays analysts, indicates that property market regulation will shift to the supply side from the demand side, which hasn't been particularly successful in curbing demand.
    • ETFs: FXI, GXC, PGJ, FXP, CYB, YINN, CNY, TAO, CHIQ, CHIX, YANG, PEK, MCHI, XPP, YAO, DSUM, CHXX, CHII, CHXF, FXCH, YXI, CHIM, ASHR, KFYP, FCA, TCHI, CHLC, CHNA
    | 1 Comment
  • Nov. 15, 2013, 4:22 PM
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  • Nov. 15, 2013, 11:22 AM
    • "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
    | 2 Comments
  • Nov. 15, 2013, 7:06 AM
    • China has released the details of the sweeping reform plan that the government approved at its Third Plenum this week. The measures include:
    • Accelerating capital account convertibility, speeding up interest rate reform and the creation of a deposit-insurance system.
    • Encouraging overseas investment.
    • Cutting barriers on private firms entering certain sectors.
    • Encouraging private firms to take part in the reform of state-owned enterprises.
    • Creating more free trade zones in different cities.
    • Letting local municipalities broaden their financing channels, including issuing bonds.
    • Cutting government intervention in resource allocation.
    • Improved protection for property rights.
    • Easing the one-child policy.
    • Abolishing the labor camp system.
    • Scrapping residence restrictions in small cities.
    • 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
    | 3 Comments
  • Nov. 15, 2013, 5:20 AM
    • The Shanghai Composite has closed +1.7% and the Hang Seng +1.65% after senior Chinese economic official Yang Weimin said the government had approved a 20,000-word document at the Third Plenum this week about reforms involving 15 sectors.
    • "Every sentence is reform, every word packs a punch," Yang said. The document "seizes onto the most deep-seated problems in reforming our country’s economic system."
    • Investors were disappointed earlier this week by the lack of details in the government's initial pronouncements about its reform agenda.
    • 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
    | 3 Comments
  • Nov. 13, 2013, 3:47 AM
    • "While the [Plenum] communique may have disappointed some, it is normal practice for the post-event statement to cover only broad principles," a Barclays economist quoted by CNBC says, regarding investors' reaction to the conclusion of a four-day meeting at which China's leaders sketched a forward-looking plan for their country's economy.
    • Shares are nearly 2% lower in both Shanghai and Hong Kong as the 5000-word statement that followed the meeting struck analysts and investors as too vague and borderline contradictory.
    • Some expect a final document (called the "Decision Document") due out next week to provide more detail on specific reforms.
    • 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
  • Nov. 12, 2013, 4:07 AM
    • China's leaders are set unveil a 10-year reform plan today following a four-day meeting that involved the 205-member Central Committee of the country's ruling Communist Party.
    • While the government has been playing up the possible outcome of the parley, economists have been dampening expectations. China's leaders need to balance their desire to overhaul the economy with what is seen as the need to ensure that growth remains strong enough to preserve stability.
    • Reform could involve eight key areas, including finance, taxation, state assets, innovation, foreign investment and governance. The liberalization of the economy is expected to be a key element of the program.
    • Meanwhile, aggregate financing in China dropped to 856.4B yuan ($140.6B) in October from 1.4T in September and came in well below forecasts of 1.115T yuan. The decline may well reflect a tightening of lending conditions by the People's Bank of China.
    • The M2 money supply rose 14.3% on year vs consensus of +14.2%.
    • The Shanghai Composite +0.8%.
    • 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
  • Nov. 11, 2013, 1:26 PM
    • Among the potential reforms being looked by China's leaders for the country's state-owned firms would be allowing private investors to hold up to a 15% stake, according to a local report. "We welcome private capital to invest in the state-owned enterprises," says one official when questioned about the story.
    • The trial balloon comes as the Communist Party's top officials meet in Beijing - the meeting's conclusion and the communique come tomorrow.
    • Private investors currently may buy shares of those publicly-traded state-owned firms on the stock exchange, but these can't amount to much for any one buyer. Larger stakes are one thing, but what about boardroom access to improve efficiency and corporate governance. I'll believe it when I see it, says an economist (in so many words) at Industrial Bank.
    • Related ETFs: FXI, GXC, PGJ, FXP, HAO, CYB, YINN, CNY, TAO, CHIQ, CHIX, YANG, PEK, MCHI, XPP, CQQQ, QQQC, YAO, DSUM, CHXX, CHII, FXCH, CHXF, ECNS, YXI, CHIE, CHIM, KFYP, KWEB, FCA, TCHI, ASHR, CHLC, CHNA
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  • Nov. 10, 2013, 1:04 AM
    • Chinese inflation slowed in October to 0.1% on month from 0.8% in September and came in below consensus of 0.2%.
    • On year, though, a rise in food prices helped CPI increase to an eight-month high of +3.2% from +3.1%, but the metric still undershot forecasts of +3.3% and was within the government's 2013 target of +3.5%. While China's leaders have recently warned about inflation and the central bank has been tightening, UBS economist Wang Tao doesn't believe rising prices are "going to be a serious threat anytime soon."
    • China's producer price index dropped for the 20th month in a row, falling 1.5% vs -1.3% and -1.4%. The trend indicates softness in demand for raw materials and factory products, and suggests that China still very much has to contend with deflationary forces even as annual inflation rises.
    • The growth in industrial production increased to 10.3% on year from 10.2% and exceeded forecasts of 10%.
    • The rise in retail sales held steady at 13.3% but slightly missed predictions of 13.4%.
    • As expected, urban investment grew 20.1%, down from 20.2% a month earlier.
    • The data dump comes as Chinese leaders meet to discuss major economic reform.
    • 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
  • Nov. 8, 2013, 4:26 AM
    • China's trade surplus more than doubled on month to $31.1B, which could increase pressure on the country to let the yuan appreciate further.
    • Exports to the EU +12.7% on year, to the U.S. +8.1%. The strong numbers are particularly surprising, as last year's figures are widely thought to have been over-reported.
    • "Combined with...better export data in Korea and Taiwan, China's export numbers suggests some — although not yet decisive — improvement in global demand momentum," says RBS economist Louis Kuijs. The import growth reflects "healthy expansion of demand" in China. (Previous)
    • The data comes ahead of a four-day meeting of China's leaders starting tomorrow, when they are set to discuss "comprehensive reforms" of the economy. These are expected to include the liberalization of interest and exchange rates, promoting competition, cutting red tape, strengthening the fiscal system and pushing innovation, and developing the service sector.
    • Ultimately, the government wants to reduce the economy's over-dependence on heavy industry, state investment and exports to one that is more reliant on private consumption and greater diversification. They're also looking to reduce the risks of the huge build-up in lending.
    • The Shanghai Composite is -1.1%.
    • 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
  • Nov. 7, 2013, 9:49 PM
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  • Nov. 5, 2013, 4:46 AM
    • China needs to maintain GDP growth of 7.2% in order to create 10M jobs a year and prevent the urban unemployment rate from exceeding 4%, Premier Li Keqiang has said.
    • However, Li warned that the government couldn't further loosen policy, especially with the M2 money supply twice the size of GDP at 100T yuan. "To print more money may lead to inflation," Li said.
    • He reiterated that China remains on course to achieve it 2013 growth target of 7.5%, although he cautioned that weak exports are a risk.
    • The People's Bank of China has also warned about inflation, saying that "upwards pressure on prices still exists," and that the foundation for price stability is "not solid."
    • The PBOC said it will look to rein in speculative property demand, while it expects China's economy to undergo a long deleveraging process.
    • The Shanghai composite rose 0.35%.
    • 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
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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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