Time for China ETFs?

From Yahoo Finance: 2024-06-07 08:00:00

Investing in Chinese stocks faces challenges due to government policies, market slump, COVID-19 measures, and real estate crisis. MCHI and FXI fell significantly in the past five years, with Evergrande’s collapse impacting the real estate sector. Despite trade tensions, China’s exports grew in May while imports decreased. China’s GDP growth forecast has been raised to 5% this year, with strong first-quarter data contributing to optimistic projections. China’s central bank maintains its monetary policy stability to support the economy. Chinese companies are resorting to corporate fund-raising activities, including buybacks by tech giants like Alibaba, Tencent, and JD.com. ETFs like FXI, FLCH, and MCHI offer cheaper valuations compared to SPY.



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