FXI Stock Recent News

Equities swooned in both China and Hong Kong, led by semiconductor and tech hardware stocks, which had risen the most over the past weeks.

Mexico's government is set to raise tariffs on Chinese imports, including cars, textiles, and plastics, as part of its 2026 budget proposal next month, Bloomberg News reported on Wednesday, citing three people briefed on the matter.

Chinese stocks are at decade highs after a rally powered by support from state-backed institutions and bigger investors, with retail money slowly making their way back into shares providing a fresh tail wind.

In a fiery Truth Social post on Monday, Trump threatened “substantial” tariffs and chip export curbs on countries with these taxes, which the White House has argued pose a threat to free speech.

Morning Brief anchor Allie Canal breaks down the day's market news for August 26, 2025. President Trump has threatened 200% tariffs on China if China curbs exports of rare-earth magnets to the United States.

Trump threatened 200% tariffs on China if Beijing does not export rare-earth magnets to the U.S. Trump also said that airplane parts were a key leverage that Washington has to counter Beijing's grip on rare earths.

Chinese stocks have been climbing since early this year, when DeepSeek's simpler, cheaper AI models reinvigorated interest in China's technology companies.

FXI has shown resilience and outperformance versus the S&P 500 despite ongoing trade tensions, reflecting investor confidence in Chinese large-cap equities. China's exports to the U.S. represent a small portion of its GDP, limiting the impact of tariffs, while the U.S. faces challenges replacing Chinese imports. Chinese equities, especially those in FXI, are significantly undervalued compared to U.S. counterparts, offering attractive growth at lower valuations.

China's GDP growth slowed to ~5%, but large-cap ETFs like FXI outperformed with strong consumer and tech sector exposure. Real estate weakness frees capital for discretionary spending, benefiting EVs, tech, and consumer brands rather than property developers. FXI's holdings avoid real estate developers largely, focusing on financials, consumer discretionary, and communication services, with minimal property exposure.

Chinese equities are surging even as the economy shows more signs of weakness, with recent credit and activity numbers fueling worries of a deepening downturn. BofA Global Research's Helen Qiao and BNP Paribas' Jason Lui share their insights on the divergence between China's macro environment and markets on “Bloomberg: The China Show.”