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Tuesday, March 12, 7:19 AM Shanghai falls 1%, with regulator plans to increase the supply of shares by resuming IPOs the excuse du jour. Most affected by the bump in supply would be small caps (HAO), and they declined 3.4%. China Life Insurance (LFC) fell 1.7% as its shares began trading again after Monday's suspension. FXI -0.8% premarket. Comment! [Global & FX]
Tuesday, March 5, 7:57 AM Shanghai rebounds 2.3%, though property developers - drubbed for 9.3% Monday -didn't participate in the bounce. "The stock rally is over," says one economist, noting real estate account for 20% of the economy. FXI -6.2%, CAF +0.9% YTD. Real estate ETF: TAO -3.2% yesterday and another 2% AH. 2 Comments [Global & FX]
Monday, March 4, 6:51 AM Shanghai plunges 3.7% after the government further cranks up property tightening measures, with a gauge of property developers falling 9.3%. "When there are new rules like these, it extends far beyond property shares," says an analyst. Industrial Bank -9.1%. FXI -1.8% premarket. Losses extend to Hong Kong, EWH -0.7% premarket, and the States, SPY -0.5%. 11 Comments [Global & FX, On the Move]
Sunday, March 3, 9:30 PM Property developers tumble 7.6% in early trade in China after Beijing continues with pledges to clamp down on what appears to be a reawakening of the country's real estate froth. The Shanghai Composite -1.8%. TAO +22.9% Y/Y. 10 Comments [Global & FX]
Sunday, March 3, 5:26 AM China has begun a week and a half of political pageantry that will complete the handover of power to new leadership, with Xi Jinping set to replace Hu Jintao as President and Li Keqiang to take over from Wen Jiabao as Premier. Observers will be watching the extent of any bureaucratic reorganization as an indicator of Beijing's appetite for reforms. The hugely powerful railways ministry, for example, could broken up and folded into the transport department. 9 Comments [Global & FX, Top Stories]
Sunday, March 3, 2:50 AM Growth in China's services industries declined to its slowest pace in five months in February, with non-manufacturing PMI decelerating to 54.5 from 56.2 in January, hurt by a fall in new orders. Along with softening manufacturing PMI, the services data adds to worries that China's rebound is moderating. 2 Comments [Global & FX, Top Stories]
Friday, March 1, 3:18 AM China's official PMI, which focuses on larger state-owned companies, unexpectedly falls to 50.1 in February from 50.4 in January and vs consensus of 50.5. HSBC PMI, which concentrates on smaller private firms, drops to 50.4 from 52.3. The timing of the Chinese New Year may have affected the figures, with HSBC saying that the average of January and February still indicates good growth. Other data showed improvement in India, Indonesia and Taiwan, but contraction in Vietnam. Comment! [Global & FX, Top Stories]
Tuesday, February 26, 2:40 PM The recent setback in Chinese stock prices is just temporary, says David Lai of the country's largest fund manager. "Gains this year ... don't fully reflect the gradual economic recovery," he says. He expects a number of fiscal stimulus measures to be rolled out soon. ETF selection matters. CAF - tracking China A shares - has sharply outperformed the more popular FXI during the recent rally. 1 Comment [Global & FX]
Tuesday, February 26, 7:49 AM Chinese banks (CHIX) tumble more than 2% after front-page commentary in the China Securities Journal suggests monetary policy needs to be tightened. Developers (TAO) doubled that decline as another report says Beijing has completed a draft of property tightening measures. The Hang Seng's (EWH) 1.3% slide puts it in the red for the year. Shanghai -1.4%. FXI -6% YTD. Comment! [Global & FX]
Friday, February 22, 6:59 AM The Shanghai Composite slides another 0.5% overnight, leading the index to its worst weekly loss (4.9%) in almost 2 years. They call this a "healthy correction" in the business - the decline comes following a 24% rally since Dec. 3. CAF - which outperformed FXI by a wide margin on the way up - gave up ground this week on the way down. Comment! [Global & FX]
Thursday, February 21, 7:15 AM Shanghai falls 3% - its biggest decline in 14 months - following the selloff in the West and tighter policy coming out of its own government as well. Following a State Council meeting headed by Premier Wen, Beijing told authorities to "decisively" curb real estate speculation. FXI -0.9% premarket. 2 Comments [Global & FX]
Tuesday, February 19, 7:10 AM Rallying Shanghai takes a breather from its big rally, falling 1.6% with word Beijing may impose more property curbs a nice excuse to take profits. A property stock sub-index (TAO) fell 4.6%. Anhui Conch tumbled 7.6% and Huaxin Cement 7.2% after the government forecast cement output growth of just 5% this year. FXI -2.1% premarket. 2 Comments [Global & FX]
Monday, February 11, 9:07 AM One of the most common mistakes investors make is going with the known rather than the best ETFs, says Matt Hougan, speaking at Index Universe's Inside ETFs conference. One example is using FXI for China exposure (discussed here, try CAF instead). Another: Buying XLF for financials avoids small caps. Look to IYF for broader exposure. 5 Comments [Global & FX, Quick Ideas]
Monday, February 11, 8:19 AM The Shanghai exchange has been a notorious retail (suckers, to many) market, but the recent big rally is of note for its heavy volume even as the growth in newly opened accounts slows. It could suggest an influx of institutional - i.e., more stable money - coming into the market. Shanghai is closed for the week. FXI -1.5%, CAF +11.5% YTD. Comment! [Global & FX]
Friday, February 8, 7:03 AM Shanghai climbs 0.6%, with solid (but likely distorted) trade data and inflation slowing the excuses to buy. More: Passenger-vehicle sales climbed 49% Y/Y in January to 1.73M, beating estimates of 1.5M. Most Chinese ETFs, including the popular FXI, are missing the big rally in Shanghai (28% since Dec. 1). One that's not is CAF, +41% since then. Comment! [Global & FX]
Wednesday, February 6, 7:35 AM Shanghai climbs just 0.1% overnight, but it's enough for the index's 8th straight gain, and now a 28% advance since early December. Volume is up sharply too as Beijing does what it can to encourage a flow of money into common stocks. The latest was last week's expansion of the number of stocks available for margin financing and short-selling. FXI -0.3% premarket. 2 Comments [Global & FX]

MCHI iShares MSCI China Index ETF

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iShares MSCI China Index ETF