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iShares MSCI China ETF (MCHI)

  • Aug. 7, 2013, 12:22 PM
  • Jul. 22, 2013, 12:04 PM
    Ready to launch this week is the KraneShares CSI China Five Year Plan ETF (KFYP) - set up to take advantage of Chinese central planning by investing in those companies it deems to benefit from Beijing's policies. Pretty much any stock-picker would try to do the same and indeed the fund's prospectus lists about the entirely of industries, excepting financials. It will be interesting to see how the holdings end up differing from FXI, GXC, CAF, or MCHI.
  • Jul. 11, 2013, 7:27 AM
    With a 3.2% gain overnight, Chinese stocks (CAF) have put together their biggest 2-day rally in 18 months on hope the government will loosen policy. The banks (CHIX) had their biggest surge since March 2009 after Premier Li Keqiang said the government has a floor in mind for economic growth (and a ceiling for unemployment) and isn't willing to see either breached. Q2 GDP figures are due on July 15. FXI +3.5% premarket. Hong Kong (EWH) +2.6%.
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  • Jul. 9, 2013, 8:16 AM
    China's growth bulls capitulate with GaveKal's Arthur Kroeber suggesting GDP growth could come in below 6% next year. Capital Economics sees 7% next year as a "relatively optimistic scenario." Citigroup joins in, cutting 2014 to 7.1% from 7.3% previously. One thing the 3 agree on is the slowdown being healthy medicine for the over-investment-led economy. Shanghai (FXI, CAF) gained 0.3% overnight.
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  • Jul. 8, 2013, 5:34 PM
    Beijing's talking a tough line about reforming China's (over) investment-led growth model, but the impending failure of the country's largest shipbuilder -Rongsheng Heavy Industries, well-connected and employing 20K - will likely cause policymakers to blink. Talk about a miss - the company had sales of $55.6M last year against a target of $1.8B. The annual report shows short-term borrowings 8x greater than cash on hand.
  • Jul. 8, 2013, 9:11 AM
    Shanghai slid 2.4% overnight led by energy shares falling back to 2008 levels, and as Goldman cuts its forecasts for miners. It's not just lower prices, says Goldman, but rising volatility makes it more difficult to manage inventory and hedging. The squeeze in the country's money-markets is likely to reduce credit growth by $122B this year, according to a Bloomberg survey - the equivalent of the size of Vietnam's economy. The China 25 Index ETF (FXI), however, is +0.3% premarket.
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  • Jul. 5, 2013, 7:44 AM
    China (FXI), Hong Kong (EWH), and India (EPI) are in a "high-risk danger zone" thanks to monetary policy that's been too loose for too long, according to a Nomura report showing skying debt levels across nearly all of Asia. Countries in the middle-risk range are South Korea (EWY), Malaysia (EWM), Singapore (EWS), and Thailand (THD). Meanwhile, Kyle Bass returns from a trip to Japan to talk about the coming collapse in China. He's "dramatically reduc(ing) risk in the portfolio."
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  • Jul. 3, 2013, 7:53 AM
    There's "no rainbow" ahead for Chinese equities, says Goldman, slashing its year-end target for the China Security Index by 15% to 2,380, still 8% above today's level. "We expect liquidity in H2 to see a tightening bias given (Beijing's) seeming intention ton control financial risks by deleveraging with a higher tolerance for slower growth." FXI -1.7% premarket.
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  • Jul. 1, 2013, 3:25 PM
    The cash squeeze in China was instigated in Beijing by a central bank grasping for some way to slow out-of-control credit growth, reports the WSJ, citing internal bank documents. With the panic subsided (for the moment), the finger-pointing begins, taking away from the question of what to do about what even Beijing leadership sees is a massive credit bubble. FXI continues near a 52-week low, and so do assets like the Aussie dollar (FXA), and miners VALE, RIO, and BHP Billiton (BHP, BBL).
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  • Jun. 27, 2013, 8:32 AM
    China's plan for short-term pain leading to long-term gain is dubbed Likonomics - for Premier Li Keqiang - by Barclays, who says it's just what's needed to put the country's economy on a sustainable path of 6-8% growth for the next decade. Unfortunately for the short term, the plan's 3 pillars - no stimulus, deleveraging, and structural reform - mean a "temporary hard landing" of economic growth of just 3% sometime soon. Shanghai (FXI, CAF) was flat overnight, and is off nearly 15% YTD.
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  • Jun. 25, 2013, 7:43 AM
    "The worst is now past," says an HSBC economist after the PBOC's Ling Tao assures the bank will keep money-market rates "within reasonable ranges." The overnight repo rate fell another 47 bps to 6% after nearing 13% just a couple of sessions ago. The Shanghai Composite (CAF), off nearly 4% in earlier trade, rallied to close near unchanged.
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  • Jun. 24, 2013, 8:36 AM
    Influential technician Tom DeMark calls a bottom in China, saying his indicators flashed buy on June 21. His note went out before last night's 5.3% plunge, but he did say it could take a couple of days for the Shanghai Composite (FXI, CAF) to gain traction. "It is ideal for a market to bottom in conjunction with negative news to exhaust a downtrend and encourage the last weak seller to capitulate."
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  • Jun. 24, 2013, 7:36 AM
    FXI slumps 2.8% premarket after the PBOC signalled it sees no reason to step in to ease a liquidity crunch in the financial system, and the Shanghai Composite dove 5.3% overnight. Veterans of central bank-speak know the drill - 1) act tough 2) act tough some more 3) cave. It's worth noting benchmark money market rates tumbled for a 2nd consecutive day, the overnight repo rate off 196 bps to 6.47% (it had been near 13% two sessions ago). Tracking the Shanghai Composite a bit more than FXI might be CAF and it's off 18% in a month compared to 12% for FXI.
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  • Jun. 21, 2013, 7:04 AM
    Off another 0.5% overnight even as the PBOC reportedly eased cash-crunch concerns for the banking system, stocks in Shanghai (FXI, CAF) fell 4.1% on the week and are off 11% thus far this month. "Balancing growth would be achieved easier by boosting consumption, not by restricting credit," says Credit Agricole's Dariusz Kowalczyk, expecting more steps to ease liquidity for lenders.
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  • Jun. 19, 2013, 7:22 AM
    China's GDP growth forecast is cut to 7.4% by HSBC for both 2013 and 2014 from 8.2% and 8.4% previously. HSBC's view is now south of consensus as chief economist Qu Hongbin says reform measures - positive in the long-term - will actually be harmful to growth in the more immediate future. Shanghai (FXI, CAF) continues to slide, falling another 0.75% overnight.
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  • Jun. 6, 2013, 7:38 AM
    China (FXI, CAF) fell 1.3% overnight, its 6th consecutive decline - the worst losing streak in a year. Among the decliners was China Vanke (CVEKY.PK), sliding 2.9% as its chairman warned of a property (TAO) bubble in the country. "If the bubbles are not controlled, the result will be catastrophic."
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MCHI Description
The iShares MSCI China Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Index.
See more details on sponsor's website
Country: China
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