ASHR Stock Recent News

China's stronger-than-expected growth bodes well for many EMs – but does it also mean additional inflation risks down the toad? Even though the IMF spring meetings eased concerns about a recession in advanced economies, both the U.S. and the Eurozone are expected to expand by about 1% or so this year in real terms.

Exchange-traded funds that buy Chinese stocks were trading down Monday after China announced at its annual legislative session over the weekend a growth target near the low end of market expectations.

Chinese stocks are matriculating higher to start 2023, benefiting scores of US-listed exchange traded funds in the process. Up 8.24% year-to-date, the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) is certainly part of that group.

As hoped, looser COVID-19 restrictions have boosted service sector activity in mainland China, adding to hopes that resurgent economic growth will be seen in early 2023 and fueling speculation of diminished global recession risks. Companies widely cited the additional freedoms created by the unwinding of COVID-19 health restrictions as having boosted business levels, driving in particular a resurgence in new business inflows after four months of continual decline, which had been blamed primarily on the Omicron outbreak.

Deutsche X-trackers Harvest CSI 300 China A-Shares ETF tracks an index of China's 300 largest stocks traded on the Shanghai and Shenzen exchanges. The fund, which holds physical China class-A shares, has been around for ten years and holds $3 billion in assets.

BlackRock, Vanguard, and State Street's hold on the ETF market is rock-solid, with the trio holding $5.2 trillion in assets of the $6.7 trillion held in American ETFs.

The reopening of China after its strict zero-COVID policy has set the country on a path to recovery — and investors and analysts have taken notice.

Active fixed-income ETFs allow portfolio managers to stay nimble and avoid sectors and parts of the credit spectrum that might encounter increased stress. There are now a growing number of dividend ETFs that are focused on yield and offer responsiveness to evolving sector dynamics of the broader market.

China has drastically eased its Covid-19 measures. Both domestic mobility and international traffic should increase in 2023.

Most global economists feel that any recovery in China could be more U-shaped than V-shaped. The 2022 Chinese economy can best be described as a spluttering car engine.