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PowerShares Golden Dragon China Portfolio ETF (PGJ)

  • Apr. 12, 2012, 10:41 PM
    S&P 500 futures give up early evening gains following the weak Chinese GDP print, now -0.2%. The Hang Seng +1.6%. Shanghai flat. The biggest reaction is in the Aussie dollar, -0.4% to $1.0396. While the slow number may add to global economic concerns, it presumably opens the door a bit wider to a shot of monetary stimulus from Beijing.
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  • Apr. 12, 2012, 1:01 PM
    A rumor China's Q1 GDP is going to print 9% tonight is being give some credit for today's rally in risk assets. Putting aside suspicions about Chinese data, we forget - is it bullish or bearish for the number to come in fast? Wouldn't strong Q1 GDP lessen the need for monetary ease - rumors of which are also getting credit for today's rally.
  • Apr. 12, 2012, 12:21 PM
    China may cut bank reserve ratio requirements as soon as early next week, according to SGH Macro Advisors, which cites "well-informed Chinese sources." Those hoping for an ease will have an eye on tonight's Q1 GDP report to see if it confirms a slowing economy. (more on China stimulus)
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  • Apr. 12, 2012, 12:04 PM
    China's monetary stimulus is starting to take effect, writes Sober Look, pointing to March's jump in new lending. A look at a chart of new loans over a 4-year period shows what an outlier March's figure is. The market is looking for stimulus "no matter where it comes from ... China seems to be just as good (as the Fed)."
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  • Apr. 12, 2012, 11:18 AM
    "Profumo, Berlusconi, and Vince Foster all rolled into one," is how Patrick Chovanec describes the Bo Xilai affair in China. While he agrees Bo's ouster is not likely to threaten the Communist Party's hold on power, it is sure to "shake things up."
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  • Apr. 12, 2012, 10:08 AM
    Construction activity appears to have picked up a bit over the past months in China, according to a Standard Chartered Survey. Yet looking at a chart of sharply rising property inventory, one wonders if that's a good thing. As for 2012's big stimulus - social housing - survey respondents believe little if any of these projects are actually new.
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  • Apr. 12, 2012, 8:34 AM
    "Some people have dubbed the party 'The Family,'" says Jim Chanos of the Chinese communists. He points to the scandal and murder charges surrounding key party chief Bo Xilai as a "peek behind the curtain."
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  • Apr. 12, 2012, 1:48 AM
    The World Bank cuts its forecast for China's growth to 8.2% this year, down from a January projection of 8.4%. That would be a 13-year low for China, as domestic consumption growth slows and the tepid global recovery eats into export demand.
  • Apr. 10, 2012, 11:51 AM
    The wife of Bo Xilai - the once-powerful, now sacked Communist Party chief of Chongqing - has been taken into custody as a suspect in the murder of U.K. businessman Neil Heywood. The intrigue around Bo's ouster has led to ideas of political instability in China, and even rumors of a coup.
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  • Apr. 10, 2012, 7:58 AM
    Behind China's unexpected March trade surplus was a surprise (to some) slowing in imports. With the excuse of the Lunar holiday out of the way, it's another sign of slowing domestic demand there. Iron ore purchases -9.1%, steel product -20%, both Y/Y. Increasing was the value of oil imports, +20% Y/Y, thanks to high Brent crude prices.
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  • Apr. 10, 2012, 2:36 AM
    China posted an unexpected trade surplus in March of $5.35B vs. an expected deficit of $3.15B, with imports up only 5.3% vs. expectations of +9%. Exports were a larger-than-expected +8.9%.
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  • Apr. 9, 2012, 4:46 PM
    "The domestic economy remains beset by ... imbalanced and unsustainable development," says China Railway Group, who, along with China Railway Construction expects lower revenues and earnings in 2012 amidst a sharp fall in national railway spending. "Aggressive," is Daiwa's description of even the reduced revenue projections.
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  • Apr. 9, 2012, 4:28 PM
    China may be experiencing economic contraction right now, says Patrick Chovanec. "There's a disconnect," he says, between China's reported economic numbers and reality on the ground. There isn't a single company he's talking to expecting an increase in revenue this year. "They're struggling to stay even."
  • Apr. 9, 2012, 2:54 PM
    "The economy is just sucking wind right now," says an anonymous Chinese auto industry exec, making it clear which set of manufacturing surveys (one showing expansion, the other contraction) he's buying. "All the bullets were spent a couple of years ago," says an economist arguing the government has little in its policy arsenal to turn things around.
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  • Apr. 9, 2012, 11:28 AM
    Being bearish on China-related investments is in no way analogous to long-term bearishness on the country's economy, writes The Real Interloper. He sees little evidence China will avoid the "investment bubble/collapse/steady growth" process so common throughout economic history.
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  • Apr. 8, 2012, 9:47 PM
    Chinese March CPI rises 3.6% Y/Y vs. expectations of 3.3% (3.2% previous). Shanghai -0.8% in its opening minutes of trade.
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PGJ Description
The PowerShares Golden Dragon China Portfolio (Fund) is based on the Halter USX China Index (Index). The Fund will normally invest at least 90% of its total assets in equity securities that comprise the Index. The Index is comprised of the U.S.-listed securities of companies that derive a majority of their revenue from the People's Republic of China. The Index is designed to provide insight and access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S.-listed securities. The Fund is rebalanced and reconstituted quarterly.
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Country: China
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