The iShares MSCI China ETF (MCHI) has gained nearly 20% this week, bolstered by Beijing announcing significant stimulus measures in recent days to revive the country's economy.
Chinese stocks have been performing poorly, down 43% over the past three years, as measured by the total return on MCHI. Despite being historically inexpensive with a P/E ratio of around 10, MCHI is currently in a steep bear market with poor momentum. MCHI is a large ETF with $4.4 billion in assets under management, featuring a concentrated portfolio and high yield, but with significant risks and bearish seasonal trends.