FXI Stock Recent News

Gina Sanchez, Lido Advisors chief market strategist, joins 'The Exchange' to discuss the impact of China's reopening, investment opportunities in the country, and more.

Chinese stocks have faced adversity in 2023, attracting contrarians and value investors looking for opportunities with underlying value. Chinese stocks are trading at depressed levels compared to their historical valuations and relative to other major international markets. Chinese tech stocks, represented by ETFs like KWEB and CQQQ, offer a compelling value proposition for investors bullish on the longer-term prospects of the Chinese economy.

A surprising mid-year budget revision from policymakers in China was recently approved, widening the budget deficit from 3.0% to 3.8%. This occurrence is unusual, as previous revisions mostly resulted from major economic events like earthquakes and financial crises.

iShares China Large-Cap ETF holds top Chinese companies like Tencent, Alibaba, and Baidu. The FXI ETF slightly outperformed the SPDR® S&P 500 ETF Trust in Q3, suggesting a possible bottom. A weak Chinese economy and geopolitical factors continue to weigh on FXI, but it offers significant value and potential rewards.

On a recent trip to Shanghai and Beijing, I met with investors, companies, and politicians, giving me unique insight into the outlook for Chinese debt. Here are 10 insights that emerging markets debt investors may want to consider.

The third-quarter 2023 was a downbeat period for investors, mainly due to rising rates.

High trading volume indicates high liquidity, which is a key characteristic of ETFs.

Chinese stocks have been a growth story, but they have also been characterized by significant risks that investors sometimes ignore, leading to a cyclical pattern of enthusiasm and disappointment. iShares China Large-Cap ETF aims to provide diversified exposure to China's largest and most established companies. However, its performance has been mixed, with negative ten-year returns and significant. Risks in investing in Chinese stocks include regulatory and political risks, a lack of transparency in financial reporting, and a lack of shareholder rights.

Soft consumer confidence and property-market woes are playing a large role in the slowdown of China's economy. We believe that recently unveiled measures to support the housing market are likely to only have modest effects on bolstering economic growth.

The recent surge in Chinese stocks following the implementation of property support measures reflects both short-term optimism and cautious expectations about the sustainability of this positive trend.