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iShares China Large-Cap ETF (FXI)

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  • 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
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  • Oct. 2, 2013, 9:56 PM
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  • Oct. 2, 2013, 9:18 AM
    • The Asian Development Bank revises down its growth forecast for developing Asia to 6% in 2013 (from 6.6%) and 6.2% in 2014 (from 6.7%).
    • India suffers the largest downward revision, with the ADB now predicting economic growth of 4.7% this year versus its previous estimate of 6%. China's forecast is haircut slightly, to 7.6% from 7.4%, although the country's slowdown is described as "healthy" and "intentional," and the bank's chief economist still expects China's economy to grow at a 7% clip over the next 10 years. Chinese and Indian markets are closed for holidays.
    • Meanwhile, economists' rosy outlook for the Philippine economic machine is intact, as the ADB now sees the country's economy growing at a 7% pace in 2013 (from a previous forecast of 6%) and 6.1% in 2014 (from a previous forecast of 5.9%). The Philippine economy has expanded at a 7% pace for four-straight quarters. The PSEi rallied on the news, rising 2.7% in Manila.
    • 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
    • India ETFs - INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMIN
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  • Sep. 30, 2013, 10:19 PM
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  • Sep. 30, 2013, 4:54 AM
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  • Sep. 30, 2013, 2:01 AM
    • HSBC's final reading for September Chinese manufacturing PMI has come in at 50.2, sharply below the flash print of 51.2 but slightly above 50.1 in August.
    • New orders remained flat on month and external demand improved, HSBC says, while manufacturers continued to restock, albeit slowly.
    • There are still a lot of structural headwinds ahead, says HSBC's Frederic Neumann. "This is as good as it gets for the time being. It reflects the stimulus over the summer but don't expect too sharp an acceleration from here.
    • Nomura's Zhiwei Zhan believes that the marginal improvement in August indicates that China's economic recovery is unsustainable, and he expects growth to peak in Q3 and then resume slowing.
    • Chinese shares +0.6%. (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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  • Sep. 29, 2013, 10:54 AM
    • China has officially opened the Shanghai Free Trade Zone (FTZ), which the government sees as a major step in liberalizing the country's economy and enacting other reforms.
    • The FTZ will be used as a place to test those reforms, such as with the convertibility of the yuan.
    • Twenty-five companies have received approval to establish operations in the zone, including Citigroup (C). Banks are expected to have more leeway in setting interest rates, while foreign institutions will be able to issue bonds in the domestic market. The government also intends to create an international oil futures trading platform.
    • Overseas firms will be able to manufacture video-game consoles in the FTZ and sell them in 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
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  • Sep. 27, 2013, 4:06 AM
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  • Sep. 25, 2013, 7:39 AM
    • The famously bearish-on-China Jim Chanos and Goldman's former sunny BRIC evangelist Jim O'Neill spent half an hour talking China at a Bloomberg conference last night.
    • China will have a "credit event" in five years, says Chanos; the Chinese economy will double in five years to $16T (the size of the U.S.), says O'Neill.
    • I can't really argue with being short the 'old' China," says O'Neill. Any slowing of the economy is being done deliberately in order to shift from a focus on investment to one on consumption. The "new" China will lead to investment opportunity.
    • If you think the macro picture in China is ugly, wait until you look at he micro picture, says Chanos.
    • Among the points the two agree on is mining - the industry will face difficulties. Those countries (Brazil and Australia come to mind) with exposure to iron ore will be in trouble over the next 12 months, says Chanos.
    • Brazil ETFs: EWZ, BRF, EWZS, BRAF, BRXX, UBR, BZQ, BRAZ, BRAQ, BRZS, BRZU.
    • Aussie ETFs: EWA, EWAS, KROO, AUSE, FAUS, Bonds: AUD, AUNZ, FXA, GDAY, CROC.
    • China ETFS: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYPHAO, ECNS.
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  • Sep. 25, 2013, 2:25 AM
    • In contrast to data showing that China's economy is picking up, the country's unofficial "Beige Book" shows that it is slowing down.
    • Growth in manufacturing softened, the private survey said, as opposed to government figures that indicate that factory output accelerated in July and August
    • The Beige Book also revealed "weakening gains in profits, revenues, wages, employment and prices."
    • Meanwhile, Marc Faber, the author of the "Gloom, Boom & Doom Report," has argued that China's economy is growing at annual rate of 4%, well below the government's growth target of 7.5%.
    • To back up his case, Faber pointed to trade data from the country's neighbors as a way of assessing Chinese 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
    • Shares -0.2%
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  • Sep. 23, 2013, 1:57 AM
    • HSBC flash manufacturing output rose to a five-month high of 51.1 in September from 50.9 in August.
    • Improvements of external and domestic demand helped boost Chinese PMI, HSBC's Qu Hongbin said. "We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand," Qu added. "This will create more favorable conditions to push forward reforms, which should in turn boost mid- and long-term growth outlooks."
    • However, Standard Chartered's Li Wei expressed caution. "Company owners are still conservative about the economic outlook and we haven't see rapid improvement in the real economy," Li said.
    • Shares +0.8%. (Previous) (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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  • Sep. 22, 2013, 10:03 PM
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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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