FXI: China In 2023? Yes, Please

Jan. 31, 2023 7:07 PM ETiShares China Large-Cap ETF (FXI)2 Comments


  • Chinese equities (FXI) have performed well recently. While it may make sense to be cautious, I see continued gains ahead in 2023.
  • With recession fears plaguing the U.S. and the E.U., China offers a recovery story. That entices me as a developed world equity hedge.
  • There is a lot of bullish momentum and investor interest in this space. This could help deliver more upside.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »

shanghai stock market


Main Thesis & Background

The purpose of this article is to discuss the iShares China Large-Cap ETF (NYSEARCA:FXI) as an investment option at its current market price. This is a fund with an objective to "track the

Fund Performance

Fund Performance

Recent Performance (Various Sectors)

Recent Performance (Various Sectors) (Bloomberg)

Chinese Economic Metrics

Chinese Economic Metrics (World Bank)

FXI's Sector Exposure

FXI's Sector Exposure (iShares)

S&P 500 net earnings revisions

S&P 500 net earnings revisions (FactSet)

Earnings Estimates

Earnings Estimates - 2023 (Goldman Sachs)

Foreign Inflows & Outflows In To Chinese Shares

Foreign Inflows & Outflows Into Chinese Shares (Yahoo Finance)

Consider the Income Lab

This article was written by

Dividend Seeker profile picture
CEF/ETF income and arbitrage strategies, 8%+ portfolio yields

I've been an investor since 2008, which was an invaluable and humbling experience. This is central to my strategy of looking for quality, value, and diversification - generally staying away from risky/over-hyped ideas. I won't pump any investment nor discuss a topic I don't genuinely follow / research. In that spirit, I list my portfolio here for transparency.  

I'm a native New Yorker and I work for a major U.S. bank. I escaped to North Carolina for graduate school and I don't see myself ever leaving. I was a D1 athlete in college (men's tennis) and compete competitively to this day. My Bachelor's and MBA are both in Finance.

Broad market: VOO; QQQ; DIA, RSP



Dividends: DGRO; SDY, SCHD

Municipals/Debt Funds: NEA, PCK, VCV, PML, BGT, PDO


Cash position: 30%

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in FXI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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