|Bid||61.11 x 200|
|Ask||71.93 x 200|
|Day's Range||63.28 - 63.78|
|52 Week Range||58.04 - 76.72|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.62%|
While fund managers are bullish on US equities (SPY), there is still no lack of concern. In the BAML (Bank of America Merrill Lynch) July 2018 survey, for the third month in the last five months, trade war concerns were cited as the top concern of global fund managers. A total of 60% of the fund managers surveyed cited the trade war risk as the top tail risk.
Chinese stocks have been slumping amid concerns about escalating trade tensions with the U.S. and a potential economic slowdown. When it comes to tariffs, markets appear to buy the story that the U.S. will emerge less bloodied from a trade war and that China will blink first, writes Yardeni Research strategist Ed Yardeni. U.S. stocks have been much more resilient than Chinese stocks, which have fallen about 15% over the last seven weeks.
A hawkish Federal Reserve and President Donald Trump’s trade aggression have knocked 9% off the iShares MSCI China exchange-traded fund in the past month. “But China remains enormously interesting, with businesses and industries being made and remade every day.” Washington is a decade late in launching economic war on Beijing, says Andy Rothman, investment strategist at fund manager Matthews Asia. “The impact of a trade war on the majority of listed Chinese companies will be quite modest, because China is not an export-driven economy,” he says.
The inclusion of Chinese A-Shares into the MSCI Emerging Markets Index at the beginning of June was intended to introduce Chinese companies with attractive valuations into the marketplace, but its impact has been lost in the crossfire of trade concerns with the United States. In the beginning of June, 234 Chinese companies were introduced into the MSCI Emerging Index, which would include A-shares--a mix of Chinese companies with a penchant for strong earnings per share growth potential. Analysts debated the impact this would have, but most would agree that it would introduce diversification into the emerging markets and investor ingress into this once hard-to-access marketplace would be easier.
China ETFs continue to feel the downward pressure of trade fears as three of the biggest based on total assets were down after the Asian markets faltered on Monday. As of 12:00 pm Eastern Time, iShares ...
President Trump’s imposition of tariffs on China (MCHI) and key allies has rattled the markets (DIA) across the globe. China is the largest holder of US Treasuries (TLT). In March and April, several foreign governments reduced their US debt holdings—including T-bills—by $47.6 billion.
Donald Trump added fuel to the trade war fire by announcing that the United States would extend 10% tariffs to $200 billion of Chinese (GXC) imports if China retaliates in response to Trump’s previously announced tariffs on $50 billion of Chinese imports. This announcement was a result of China (FXI) suggesting that it would match any US tariffs imposed on Chinese imports.
Markets have focused on escalating trade tensions between the U.S. and China, but investors may want to look at some of the other reasons to worry about Chinese stocks. Credit stress is rising and economic growth is slowing as China tries to decrease risk in its financial system, says Long Chen of Gavekal Research in a note this morning. China is slowing credit growth, which in turn means it is harder to raise money to fuel growth.
The latest news of U.S. President Donald Trump imposing a 25 percent charge on up to $50 billion in Chinese goods sank five large China ETFs in the process. At the opening of the U.S. markets, the Dow sank over 200 points, the S&P 500 sank 12 points and the NASDAQ was down 30 points. In turn, China ETFs with the largest total assets responded on the down side-- iShares China Large-Cap ETF (FXI) was down 1.64%, iShares MSCI China ETF (MCHI) was down 1.38%, KraneShares CSI China Internet ETF (KWEB) was down 0.87%, SPDR S&P China ETF (GXC) was down 1.22%, and Xtrackers Harvest CSI 300 China A ETF (ASHR) was down 1.33%.
China’s manufacturing PMI for April indicates an improvement in manufacturing. It was 51.4 in April compared to 51.5 in March, which beat the market expectation of 51.3.
Will China suddenly increase the imports of certain products? If it does, will there be sufficient demand for these products in China, or will China cut the imports of such products from its other trading partners?
In the previous part of the series, we saw that Qualcomm (QCOM) has been looking to acquire NXP Semiconductors (NXPI) since October 2016 in order to diversify into the fast-growing markets of automotive and IoT (Internet of Things). Qualcomm cleared all the hurdles and secured all necessary approvals for the deal except for approval from China’s Mofcom (Ministry of Commerce). Given the good relations between Qualcomm and China, this didn’t seem like a difficult task.
China has reported less-than-expected retail sales and investments for the month of April. As a result, policymakers and analysts are expecting a slowdown in the economy.
Portfolio Managers Charlie Awdry and May Ling Wee discuss the progress of political, business, financial and social reforms in China under President Xi’s leadership, and its implications for markets and investors. Five years ago, Chinese President Xi ...
Previously, we saw that Advanced Micro Devices’ (AMD) and NVIDIA’s (NVDA) discrete GPU (graphics processing unit) demand rose in June 2017 and further in January 2018 before cooling a little in March, following Ethereum prices.
Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) reported fourth-quarter fiscal 2018 results before the opening bell yesterday wherein it surpassed both the earnings and revenue expectation and provided an upbeat fiscal revenue guidance.Source: Shutterstock
Wafer fab equipment maker Lam Research (LRCX), which mainly supplies equipment to memory chipmakers, expects its shipments to fall $100 million sequentially to $3 billion in the June quarter. Analysts have been expecting the memory market growth to slow down in the second half of 2018 and for sales to decline in 2019 and 2020. The memory market is cyclical, with a short period of uptrend followed by a downtrend.
Chinese stocks and country-specific ETFs are underperforming their global peers as high debt levels and a threat of a U.S.-China trade war fuel trader fears. Looking at some of the largest China-related ...