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iShares China Large-Cap ETF (FXI)

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  • Oct. 13, 2014, 3:18 AM
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  • Oct. 13, 2014, 2:46 AM
    • Chinese exports accelerated to +15.3% on year in September from +9.4% in August and blew past forecasts for a rise of 11.8%.
    • Imports recovered to +7% from -2.4% and vs consensus of -2.7%.
    • China's trade surplus dropped to $31B from $49.83B and missed expectations of $41B.
    • The positive figures provide some cheer amid concerns about a slowdown in the economy, especially in the property sector, although the figures aren't wholly reassuring.
    • "Today's data is less good news than it appears," says RBS economist Louis Kuijs. "It suggests that China's export growth is holding up. However, the important caveat coming from the breakdown of the import data suggests that demand growth in China’s own economy remains weak."
    • For example, the growth in imports has been heavily driven by the processing and re-shipment of goods such as the iPhone 6.
    • The Shanghai composite is -0.6%.
    • Official report
    • ETFs: FXI, EWH, PGJ, KWEB, GXC, YINN, FXP, CYB, HAO, ASHR, CNY, TAO, YANG, CHIQ, CQQQ, DSUM, CHIX, MCHI, QQQC, PEK, XPP, YAO, YXI, FXCH, CHXF, ECNS, CHII, CHIE, CHIM, CN, FCA, EWHS, FCHI, KFYP, ASHS, CNXT, TCHI, CHLC, CHNA, KBA, FHK
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  • Sep. 24, 2014, 10:11 AM
    • Chatter about the exit of long-serving Zhou Xiaochuan isn't new, but speculation is rising, reports the WSJ, suggesting Xi-Jinping is considering replacing Mr. Zhou as part of a wider reshuffle as economic reforms are debated. Zhou was named to a 3rd term by Xi in March 2013 despite his having passed the official retirement age of 65.
    • Zhou has been a big proponent of market reforms, including liberalizing interest rates, a stance some in Chinese leadership aren't fans of. His removal could be a sign momentum for reforms is slowing. "Everybody seems to be interested in talking about reform, but they really fear what they are professing to love," said Zhang Xiaohui, the head of the PBOC's monetary-policy department a few months back.
    • Leading the list as a replacement is Guo Shuqing, a former banker and top securities regulator who is currently governor of Shandong.
    • ETFs: FXI, PGJ, GXC, YINN, FXP, ASHR, YANG, CHIX, MCHI, PEK, XPP, YAO, YXI, CHXF, CN, FCA, CHNA, KBA
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  • Sep. 24, 2014, 7:22 AM
    • Andrew Tilton and team expect Beijing to cut its GDP growth target to 7% in 2015 from 7.5% this year, "in order to limit further accumulation of financial risks and reduce pressure for policy stimulus."
    • There are three factors that contribute to economic growth, says Goldman, and all three - labor growth, capital growth, and technological advance - have their speediest gains behind them.
    • Goldman also cuts its outlook for Hong Kong, now expecting 2.9% GDP growth in 2015 vs. an earlier forecast of 4.4%.
    • Shanghai climbed 1.5% overnight, while the Hang Seng fell 0.4%. FXI +1.5%  remarket
    • ETFs: FXI, EWH, PGJ, GXC, YINN, FXP, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, CN, EWHS, FCHI, FCA, CHNA, KBA, FHK
    | 1 Comment
  • Sep. 23, 2014, 8:38 AM
    • The preliminary HSBC PMI for China rose to 50.5 in September from 50.2 in August. Forecasts had called for a decline to 50.0. It's a mixed picture, says HSBC's Hongbin Qu, noting improvement in new orders and new export orders, but further declines in employment, and intensifying disinflationary pressure.
    • The Shanghai Composite rose 0.9% overnight, with a gauge of industrial shares (NYSEARCA:CHIIup 1.3%.
    • ETFs: FXI, PGJ, GXC, YINN, FXP, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, CN, FCA, CHNA, KBA
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  • Sep. 22, 2014, 7:18 AM
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  • Sep. 18, 2014, 10:37 AM
    • Signaling growing concern over the slowing economy, the PBOC overnight cut the 14-day repurchase rate by 20 basis points to 3.5%. This follows the previous day's $81B cash injection into the nation's 5-largest banks.
    • "This is a significant policy signal," says Liu Dongliang from China Merchants Bank. "The chances of a benchmark interest rate cut are rising because the central bank is clearly guiding interbank rates lower now."
    • The latest sign of the economic slowdown was a report last night showing property prices sliding for a fourth straight month.
    • Shanghai was higher by 0.35% overnight, while the Hang Seng fell 0.85%.
    • ETFs: FXI, EWH, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, FCHI, FCA, FHK
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  • Sep. 17, 2014, 12:29 PM
    • The move percolated somewhat positively through Asian equity markets overnight, but fell short of something more sweeping - say a cut in interest rates - out of Beijing. Some warn the move won't do a whole lot as bank liquidity isn't the issue, but instead slow loan demand from businesses and consumers.
    • The PBOC's action is in the form of 3-month, low-rate loans to banks, according to a bank executive briefed on the action. While there are no explicit conditions attached to the money, says the executive, the PBOC wants to see credit channeled into areas Beijing's central planners have deemed important to the economy.
    • Among the recent evidence pointing to a slowing economy: Industrial production growth hit a six-year low in August, and foreign direct investment hit a four-year low.
    • ETFs: FXI, PGJ, GXC, YINN, FXP, YANG, CHIX, MCHI, XPP, YAO, YXI, CHXF, CN, FCA
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  • Sep. 16, 2014, 7:34 AM
    • A four-year low in foreign direct investment - which fell 14% Y/Y in August to $7.2B - makes for a convenient excuse for Shanghai's 1.8% decline overnight. Hong Kong fell 0.9%. Combined with the slow economic data is a continuing rush of IPOs which investors fear will suck up funds - eleven more were approved yesterday.
    • FDI's 14% drop in August follows June's 17% decline - it's the first back-to-back double-digit losses for the gauge since 2009.
    • FXI -0.3% premarket
    • ETFs: FXI, EWH, PGJ, GXC, YINN, FXP, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, CN, EWHS, FCHI, FCA, CNXT, ASHS, CHNA, KBA, FHK
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  • Sep. 15, 2014, 11:18 AM
    • Many China-related ETFs rely on a quota system - the renminbi qualified foreign institutional investor (RQFII) scheme - through which China allows access to its stocks traded on the mainland. High inflows into RQFII funds - AUM have nearly doubled this year to $12.6B - are rapidly exhausting the quotas, and Deutsche Bank is rationing U.S. access to those China ETFs - ASHR and ASHS - using the RQFII, and has temporarily closed similar funds to new money from European clients.
    • Synthetic ETFs which track Chinese stocks using derivatives have not been affected.
    • Hong Kong-based CSOP Asset Management says more than 96% of its quota has been used up and it's no longer taking money for its flagship China equities fund, the largest RQFII ETF.
    • China A-shares ETFs: ASHR, PEK, CNXT, ASHS, CHNA, KBA
    • Broad China ETFs: FXI, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, FCA
    | 1 Comment
  • Sep. 10, 2014, 8:28 AM
    • “There’s already a lot of money in the pool, and we can’t rely on monetary stimulus to spur economic growth,” said China Premier Li Keqiang overnight after the M2 money supply rose 12.8% in August, down from 13.5% in July. His comments, says one money manager, suggests the economy isn't in good shape, but that the government will be focusing on reform rather than short-term boosts.
    • The Hang Seng closed lower by 1.9%, while the Hang Seng China Index (H-Shares) dove 2.6%. The Shanghai Composite fell 0.4%. Prior to last night, the H-Shares had rallied 21% since mid-March.
    • ETFs: FXI, EWH, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, EWHS, FCHI, FCA, FHK
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  • Sep. 5, 2014, 4:25 PM
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  • Sep. 2, 2014, 7:22 AM
    • Last night's 1.4% gain was led by military-related names amid speculation the government is set to boost defense spending after weekend comments from President Xi Jinping.
    • Over the weekend, China's HSBC PMI fell to a 3-month low of 50.2 in August, about inline with a preliminary read of 50.3. China's official PMI of 51.1 fell from July's 51.7 and came in vs. expectations of 51.2.
    • ETFs: FXI, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, FCA
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  • Aug. 29, 2014, 4:20 PM
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  • Aug. 26, 2014, 7:51 AM
    • Making a convenient excuse for Shanghai's biggest decline in two weeks is a heavy slate of IPOs (10) set to begin marketing this week. "IPO share sales will put pressure on market liquidity," says a money manager. "The market may need a breather and consolidation here before finding a direction."
    • Chinese IPOs have been popular this year, sporting an average 94% gain from their issue price.
    • ETFs: FXI, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, FCA
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  • Aug. 22, 2014, 11:57 AM
    • An estimated $1.4B, or 45% of portfolio inflow into emerging markets went into China - which represents only 20% of the MSCI Emerging Markets Index (ETF: EEM) - according to EPFR Global.
    • It's the 4th straight week of inflows for the country, and comes amid a 3rd quarter bull market, with FXI up 9%, MCHI up 8.4%, and EWH ahead 6.8%. The EEM rose just 2.8% and the iShares MSCI Asia ex-Japan ETF (NASDAQ:AAXJ) gained only 3.7%.
    • ETFs: FXI, PGJ, GXC, YINN, FXP, YANG, MCHI, XPP, YAO, YXI, CHXF, CN, FCA, ASHR, PEK, CHNA, KBA
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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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