iShares MSCI China ETF (MCHI)
MCHI: Don't Fight The Chinese Government
The MCHI ETF provides broad exposure to 85% of China's market cap. Weak economic data has led to the Chinese government announcing massive stimulus plans aimed at boosting investor sentiment and growth. Despite recent rallies, Chinese stocks remain undervalued compared to global markets, supporting a buy rating for MCHI ETF on pullbacks.
Watch These MSCI China ETF Price Levels After This Week's 20% Surge
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.
MCHI: China Stocks 10x Earnings, But Sharp Underperformance Persists
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.
