Chinese stocks saw their worst week

29 April, 2019

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai composite index rallying nearly 24% and the Shenzhen Component Index Fund ETF up over 34%.

But the Chinese market tanked this week, with the Shanghai index — which was up more than 30% as of last Friday — falling nearly 6%. That makes this the worst week for Chinese stocks since October.

Capital Economics, an independent research firm, attributed the weakness to comments made by China’s top decision-making body about the country’s economic stimulus plans. While Chinese officials said they would continue to support the economy, better-than-expected first-quarter GDP results sparked worries about potential near-term policy easing.

Even so, a number of exchange-traded funds pegged to the Chinese market are rallying — and even beating the S&P 500. The iShares MSCI China ETF, the WisdomTree ICBCCS S&P China 500 Fund, and the WisdomTree China ex-State-Owned Enterprises Fund have all outpaced the S&P this year, up about 21%, 26% and 31% respectively.

And, according to WisdomTree Asset Management’s Executive Vice President and Global Head of Research Jeremy Schwartz, their advantages have a lot to do with the types of stocks they hold.

With U.S.-based and Hong Kong-listed companies in the mix, Schwartz said WCHN offers “the broadest beta solution in the marketplace today.” But outperforming even that is WisdomTree’s China ex-State Owned Enterprises Fund, which excludes government-owned Chinese entities.


Source link  
Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...


Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...

Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...

May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...


Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

US-China trade talks: deadline postponed

China's blue-chip index jumped more than 6% on Monday morning on news that Trump would postpone of the tariff's introduction. The U.S. President...

China buys American oil again

The first U.S. oil shipments to China in months will reach their destinations just days from now, punctuating a pledge by President Donald Trump in December that China would begin buying...

  


Share it on:   or