PEK: Is Now The Time To Buy The China A-Shares ETF?Eric Dutram • Oct. 19, 2011
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Wed, Sep. 24, 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
Wed, Sep. 24, 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
Tue, Sep. 23, 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:CHII) up 1.3%.
- ETFs: FXI, PGJ, GXC, YINN, FXP, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, CN, FCA, CHNA, KBA
Tue, Sep. 16, 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
Mon, Sep. 15, 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
Fri, Aug. 22, 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
Mon, Jul. 28, 8:04 AM
- "Sentiment has turned in favor of growth and cheap valuations in the Chinese market," says a Hong Kong-based fund manager. Shanghai "has been lagging for a long time so [it's catching] up with world markets. The policy changes in China are favorable.”
- Among the more recent measures are the cutting of reserve requirements, accelerated infrastructure spending, and loosened property curbs.
- In Hong Kong, the Hang Seng rose for a fifth straight session, up 0.9% amid reports the so-called "through train" scheme - which would allow direct stock trading between Hong Kong and Shanghai - will launch in October.
- ETFs: FXI, EWH, PGJ, GXC, FXP, YINN, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, EWHS, CN, FCHI, FCA, CHNA, FHK, KBA, ASHS, CNXT
Thu, Jul. 24, 12:46 PM
- The big mover in Asia overnight was China up 1.3% after the flash PMI read for July from HSBC showed a rise to 52 from June's final read of 50.7. Expectations had been for a slight gain to 51.
- “The cumulative impact of mini-stimulus measures introduced earlier is still filtering through,” says Qu Hongbin, HSBC’s chief China economist. “We expect policy makers to maintain their accommodative stance over the next few months to consolidate the recovery.”
- FXI +1.6%
- ETFs: FXI, PGJ, GXC, FXP, YINN, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXX, CHXF, CHII, CHIM, CN, FCA, KFYP, CHNA, KBA
Wed, Jul. 23, 1:26 PM
- The Market Vectors ChinaAMC SME-ChiNext ETF (Pending:CNXT) will join the ETF universe Thursday, July 24th.
- This will be the firm's second China focused ETF, with the Market Vectors ChinaAMC A-Share ETF (NYSEARCA:PEK) tracking an index of 300 A-Share stocks listed on the Shenzhen or Shanghai Stock Exchange.
- Like PEK, CNXT will focus on mainland stocks, but with a focus on the 100 most liquid companies trading on the "Small and Medium Enterprise Board" and the ChiNext Market of the Shenzhen Stock Exchange.
- Other A-Share ETFs: ASHR, CHNA, ASHS, KBA
Wed, Jul. 16, 11:06 AM
- GDP rose 7.5% in Q2 from a year earlier, according to China's statistics bureau. Estimates were for 7.4% growth. On a sequential basis, GDP grew 2% vs. 1.8% forecast, and 1.5% in Q1. Industrial production grew 9.2% vs. forecasts for 9%, and retail sales increased 12.4% vs. 12.5% estimates. Fixed-asset investment increased 17.3% vs. forecasts for 17.2%.
- ANZ Banking Group boosts their 2014 GDP estimate to 7.5% from 7.2%, but calls for continued monetary easing to help hit that number.
- The statistics bureau also reported the value of June home sales as rising 33% from May, though the value for the year's first half fell 9.2% from the same period in 2013.
- Stocks in Shanghai slipped 0.15% overnight, their first decline in four sessions.
- ETFs: FXI, EWH, PGJ, GXC, KWEB, FXP, YINN, HAO, ASHR, CHIQ, YANG, TAO, CQQQ, CHIX, MCHI, QQQC, PEK, XPP, YAO, YXI, CHXX, CHXF, CHII, ECNS, CHIE, CHIM, EWHS, FCHI, CN, FCA, KFYP, CHNA, FHK, ASHS, KBA
Thu, Jun. 26, 11:00 AM
- The Shanghai Composite rose 0.7% overnight, with the ChiNext Index of small company stocks popping 2% after the first IPOs to hit the mainland in four months jumped an average 44%. Trading volume in Shanghai was 9.2% above the 30-day average.
- China's securities watchdog recently lifted a ban on IPOs and it expects to allow about 100 between June and year-end.
- The Hang Seng (EWH) climbed 1.5%.
- China ETFs: FXI, EWH, PGJ, GXC, FXP, KWEB, YINN, ASHR, YANG, CQQQ, MCHI, QQQC, PEK, XPP, YAO, YXI, CHXF, EWHS, FCHI, CN, FCA, CHNA, FHK, KBA
- China small-cap ETFs: HAO, ECNS, EWHS, ASHS
Mon, Jun. 23, 7:37 AM
- The HSBC flash PMI for June rises to 50.8 from May's final read of 49.4. Expectations for the print were 49.7.
- Both JPMorgan and Barclays boosted estimates for Q2 GDP growth after the number, JPMorgan to 7.2% from 6.8% and Barclays to 7.4% from 7.2%.
- “It is a very good number,” says Credit Suisse's Dong Tao. “It is a surprise, too, as most people are focusing on infrastructure investment and the property market.” He nevertheless leaves his Q2 GDP growth forecast at 7.3%
- Stocks were not buoyed by the news as Shanghai slipped 0.1% and Hong Kong 1.7%.
- ETFs: FXI, EWH, PGJ, GXC, FXP, YINN, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXX, CHXF, CHII, EWHS, FCHI, CN, FCA, KFYP, CHNA, FHK, KBA
Thu, Jun. 19, 10:44 AM
- Worries over a rush of IPOs make for a convenient excuse for a 1.6% decline in the Shanghai Composite overnight. Regulators have given the green light to new offerings after a four-month halt and at least four companies are coming public this week. "The secondary market is bleeding," says one strategist. "Investors want to speculate on new stocks."
- China's securities regulator says about 100 companies will list on the mainland by year-end.
- FXI -0.8%
- ETFs: FXI, EWH, PGJ, GXC, FXP, KWEB, YINN, HAO, ASHR, CHIQ, YANG, TAO, CHIX, CQQQ, MCHI, QQQC, PEK, XPP, YAO, YXI, CHXX, CHXF, CHII, ECNS, CHIE, CHIM, EWHS, FCHI, CN, FCA, KFYP, CHNA, FHK, KBA, ASHS
Mon, Jun. 16, 9:59 AM
- China's bank sector (CHIX) was boosted overnight after a number of midsize banks won inclusion into a PBOC move to cut reserve ratios - now a larger program than analysts expected when the central bank unveiled it last week.
- For the PBOC's part, it says the action isn't an expansion of the reserve ratio cut, but that any company is eligible for eased ratios as long as a significant portion of boosted lending goes to agricultural and smaller companies.
- Shanghai closed higher by 0.75%.
- ETFs: FXI, PGJ, GXC, FXP, YINN, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, CN, FCA, CHNA, KBA
Tue, Jun. 3, 8:12 AM
- The HSBC PMI for May rises to 49.4 from 48.1, a 4-month high, but below forecasts for 49.7. This print follows the weekend release of the official PMI gauge which rose to 50.8, a 5-month high.
- “The final PMI reading for May confirmed that the economy is stabilizing, but it is too early to say that it has bottomed out, particularly in light of a weaker property sector,” says HSBC's chief China economist Qu Hongbin. "We expect both monetary and fiscal policy to be loosened gradually over the coming months."
- Previously: China PMI rises to 5-month high
- ETFs: FXI, PGJ, GXC, FXP, YINN, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, CHII, FCA, CN, CHNA, KBA
Mon, Jun. 2, 7:25 AM
- The May PMI (official read) of 50.8 was just ahead of estimates for 50.7 and rose from April's 50.4. The HSBC PMI report is due on June 3, but the flash read last week came in at 49.7, also a 5-month high.
- Shanghai closed marginally lower on the session, with Hong Kong (EWH) gaining 0.3%.
- ETFs: FXI, EWH, PGJ, GXC, FXP, YINN, ASHR, YANG, MCHI, PEK, XPP, YAO, YXI, CHXF, FCHI, FCA, CN, CHNA, FHK, KBA
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The Market Vectors ChinaAMC A-Share ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the CSI 300 Index. The CSI 300, a diversified index, consists of 300 A-Share stocks listed on the Shenzen or Shanghai Stock Exchange.
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