ASHR Stock Recent News

Chinese mainland blue chips had another torrid year in 2023. Yields are up, but valuations are not that cheap; nor has the macro backdrop improved. A-share vehicles like ASHR might still have more room to correct before we hit bottom.

PMI data for October showed momentum in China's economy waned following recent improvements in hard activity data. By industry type, most manufacturing sectors experienced a slowdown in growth in October, though for companies that are heavy consumers of energy, activity actually declined slightly, perhaps affected by recent increases in the prices of crude energy.

The IMF, the World Bank, and the United Nations all rank China and Japan as the second and third largest economies on the planet. More of what is occurring in the markets should reflect what is happening in China and Japan which are strongly linked economically.

Chinese equities are slumping Thursday, with exchange-traded funds that target stocks in the country seeing sharp drops amid concerns over the world's second largest economy.

Outflows from ETFs tracking Chinese equities continue despite Beijing's measures to boost sentiment. Emerging Market ETFs, as a whole, also seeing a third consecutive week of outflows.

Foreign direct investment (FDI) in China has plummeted to some of the lowest levels seen in the 21st century. China's currency, the yuan, has been depreciating, and confidence in the Chinese economy is declining.

Exchange-traded funds focused on equities in China have seen double-digit percentage drops over the past six months, including the iShares MSCI China ETF MCHI, KraneShares CSI China Internet ETF KWEB, Invesco China Technology ETF CQQQ, Xtrackers Harvest CSI 300 China A-Shares ETF ASHR and Rayliant Quantamental China Equity ETF RAYC, according to FactSet data.

Chinese A-shares extended their underperformance in Q2. With the reopening impulse fading, investor sentiment is now being propped up by stimulus hopes. Equities seem cheaply priced here but could still de-rate, given the mounting near and long-term challenges.

Investors are paying close attention to China, Japan, and India ETFs lately, according to VettaFi's Explorer data and analytics tool. Interest in non-U.S. economies is high as investors look for more ways to diversify their portfolios.

Exchange-traded funds that target Chinese stocks were falling Monday, after China reported disappointing growth for the second quarter, bringing the ETFs deeper into the red so far this year.