FXI Stock Recent News

US-listed Chinese tech stocks surged in New York following strong gains in Hong Kong and in mainland stocks, after China's central bank announced a slew of measures aimed at boosting the economy, the housing sector and the stock market. Bloomberg's Henry Ren joins Caroline Hyde and Ed Ludlow on "Bloomberg Technology.

Although concerns over China's economic challenges remain rife, some billionaire investors are betting big on China ETFs.

China's looming net investor outflows might impact its large-cap stocks and the iShares China Large-Cap ETF, in particular. The FXI ETF has underperformed the MSCI World ETF and other emerging market vehicles in past years. Additional underperformance is likely, as China's slowing economy and instability in the banking industry pose threats to cyclical vehicles such as the FXI ETF.

David Riedel, Riedel Research Group, joins 'Fast Money' to talk the drop off in China foreign investments.

China critics believe Chinese stocks are uninvestable due to a myriad of economic and geopolitical issues. The Chinese stock market being down more than -60% shows many investors believe the same.

International economies have returned much lesser than the U.S. market. Still, these country ETFs gained more than 10% in the past three months.

China's risks seem apparent, but we can take a step back and see if the economic fundamentals are truly distorted amid all the challenges we've seen. A recovery is likely. FXI trades at a weak multiple of ~11x, which offers potential for a growth and a value trade if certain macro conditions are met in the near term. The property sector should not be compared to other systemic crises and recovery is a matter of time given long-term economic fundamentals and inventory pressure.

iShares China Large-Cap ETF experienced a recovery of 20.7% to $26.80 per share in June 2024, outperforming the S&P 500. Chinese stocks have been in a bearish trend since February 2021, lagging U.S. and European stocks near record highs. Value investors like Charlie Munger saw potential in Chinese stocks due to growth prospects and the value of leading companies.

The People's Bank of China kept the one-year medium-term lending facility rate unchanged at 2.5% today, in line with market expectations. We believe that in conjunction with today's data releases and the start of rate cuts in other central banks such as the European Central Bank and Bank of Canada, the odds of a PBoC rate cut in the coming months have risen.

Although the Chinese economy suffered a lot on various issues in the past one year, the economy is slowly showing signs of a recovery.