The FXI ETF: The Risk-Reward Profile For Chinese Stocks Post Liberation Day
The U.S.-China trade war has led to significant volatility in Chinese stocks, particularly those trading on U.S. exchanges, due to unprecedented tariffs. iShares China Large-Cap ETF has underperformed compared to the S&P 500 Index, with recent trends showing marginal improvement due to Chinese economic stimulus measures. The bearish case for the FXI ETF includes ongoing U.S.-China tensions, potential delisting of Chinese companies, and geopolitical risks like Taiwan.
Chinese Blue Chips: Caution Advised Ahead Of Delisting Rumors
Rumors of the Trump administration considering delisting Chinese shares from U.S. indices could lead to significant market turmoil and capital flight. Despite potential delisting risks, I believe Chinese stocks are undervalued and present a generational buying opportunity, especially if trade negotiations progress. Chinese government actions to prop up the market and recent economic growth indicate a strong long-term trajectory for Chinese stocks.
China vows retaliation against countries that follow U.S. calls to isolate Beijing
China has warned it will retaliate against countries that cooperate with the U.S. in ways that compromise Beijing's interests, according to a statement from the Chinese Ministry of Commerce. The threat comes as U.S. President Donald Trump's administration is reportedly planning to use tariff negotiations to pressure U.S. partners to limit their dealings with China.
ETF Prime: Islam Analyzes Tariffs Impact on ETFs
On this week's episode of ETF Prime, host Nate Geraci sat down with Roxanna Islam, head of sector & industry research at VettaFi. She offers insights on how the recent tariffs announcement could impact ETFs.
The Big 3: FXI, GS, TLT
Chinese mega caps and American financials take the focus of today's Big 3. @Theotrade's Don Kaufman explains why he's bearish on the iShares China Large-Cap ETF (FXI) and Goldman Sachs (GS) while maintaining bullishness on the iShares 20+ Year Treasury Bond ETF (TLT).
Chinese stocks move higher as Beijing moves to boost economy
CNBC's Seema Mody reports on news from the stock markets in China.
FXI: China's Technology And Banking Sectors Diverge
The Chinese stock market index fund, FXI, rose 59% YoY, driven by significant stimulus efforts and the launch of China's DeepSeek AI. FXI's performance is buoyed by its increased exposure to technology and consumer sectors, reducing its reliance on the struggling financial, industrial, and real estate sectors. Despite recent gains, I remain mildly bearish on FXI due to China's opaque financial system and the long-term risks of its debt-driven stimulus policies.
Goldman Sachs sees AI driving $200 billion inflows into China stocks
Goldman Sachs has raised its outlook for Chinese stocks, citing artificial intelligence (AI) as a key driver of earnings growth and market inflows. The investment bank now expects AI adoption to contribute significantly to corporate profits, potentially attracting as much as $200 billion in capital, Reuters reported.
Ignore the Headlines, Buy Chinese Stocks
Despite concerns surrounding China's economy, a confluence of factors suggest a compelling bullish case for Chinese equities. Resilient price action, contrarian sentiment, government stimulus, attractive valuations, and rapid AI advancements create immense growth potential.
FXI: China - The Ideal Hedge For A U.S. Equities Portfolio
FXI is a viable hedge against VTI due to its undervaluation and positive trend, contrasting with VTI's overvaluation. China's economic resilience, ongoing stimulus measures, and low valuations make FXI an attractive long-term investment despite current economic challenges. Tariffs on Chinese imports could harm the U.S. economy more, reinforcing the need for a diversified portfolio, including FXI.
FXI: Real Estate Collapse Could Bring Even More Damage
Not only was the US a winner with its stock market in 2024, China was even more so. Despite this, the housing crisis is already showing signs of being more severe than the American housing crisis. And the government is looking for different ways to restimulate the economy. Although the valuation is extremely cheap, especially compared to India, the risk/return ratio does not seem attractive with a new trade war looming.
10 Most Heavily Traded ETFs of the Past 3 Months
We have highlighted 10 ETFs that have seen higher average volumes over the past three months.
