From Nasdaq: 2024-06-07 08:00:00

1. Chinese stocks face challenges due to anti-growth policies, COVID-19 measures, and real estate crisis. iShares MSCI China ETF (MCHI) and iShares China Large-Cap ETF (FXI) fell 21.2% and 34% in the last 5 years.

2. IMF raises China’s GDP growth forecast to 5% for 2024. Exports grew 7.6% in May despite trade tensions. China’s central bank maintains policy interest rates to support the economy.

3. Chinese companies use convertible bonds for funding. Tech giants like Alibaba, Tencent, and JD.com announce buybacks as bullish catalysts. ETFs like FXI, FLCH, and MCHI trade at lower P/E ratios compared to SPY.

4. Corporate Fund-Raising Activities Going On in China. Chinese companies are leveraging a resurgence in the equity markets to secure funding. The use of convertible bonds has escalated, offering an advantageous route for companies to raise funds without immediate stock dilution.



Read more at Nasdaq: Time for China ETFs? | Nasdaq