FXI Stock Recent News

China's stocks have endured serious declines, with the median stock down over 20% amid government missteps in stabilizing markets. Beijing has been pursuing a piecemeal strategy to inject stimulus into select sectors like real estate to prop up growth.

China's securities regulator said on Monday that it would tighten scrutiny of margin financing, malicious short selling and seek to ward off risks involving pledged shares.

Chinese stocks suffered another rout on Monday, with a gauge of small-cap stocks trading on the mainland slumping nearly 9% at its lows, as former U.S. President Trump threatened a renewed trade war should he win re-election in November.

EPI Scores Massive YoY Gains At The Expense Of China, Nifty Returns In India

Investing in China remains a topic of interest, but it comes with a range of challenges and opportunities. While recent policy easing in China is plus, renewed crisis in the property sector is a minus.

It's been over 15 years since China's equity market was in a long-term bullish position. Now don't get me wrong, there have been plenty of medium term trends to trade and make money but the long-term chart for the major China ETF (FXI) has traded sideways since the 2009 low.

Valuations in the Chinese stock market are collapsing in the new year, heaping more pressure on shares of some of the most respectable companies trading in the world's second-largest economy.

iShares China Large-Cap ETF has underperformed leading U.S. stock market indices, falling 15.09% in 2023. China's weak economy and geopolitical tensions have led to investors shunning Chinese equities. If geopolitical factors stabilize, there could be a flow of money into Chinese stocks, presenting a potential opportunity for investors.

China stocks trade at a low valuation with a P/E ratio below 10, due to a harsh politburo and concerns of quasi-government ownership of major companies. The iShares China Large-Cap ETF has a hold rating, with potential for undervalued opportunities but significant macro and technical risks. The FXI ETF has a large exposure to consumers in China, with the Consumer Discretionary sector being the largest weight, but there are diversification risks.

With promising economic data and optimistic growth projections, the Chinese economy stands poised for a potential resurgence in 2024. Explore ETFs to leverage and capitalize on China's anticipated economic revival.