Will China ETFs Feel the Heat of Weak Economic Data?

The world’s second-largest economy continues to see a streak of disappointing economic data for August. According to the National Bureau of Statistics (NBS), industrial production increased 5.3% year over year in August (seeing the weakest pace since July 2020), comparing unfavorably with the 6.4% increase in July. The metric also lagged analysts’ forecast of a 5.8% rise, per a Reuters article. China’s retail sales rose 2.5% year over year in August, lagging the forecast of 7% growth (according to a Reuters article).

Click to get this free report, Zacks Investment Research

– Zacks

Commenting on the data, Louis Kuijs, Head of Asia Economics at Oxford Economics, has said, “Economic growth slowed in August as consumption was hit by the lingering impact of earlier COVID outbreaks and investment remained weak. Meanwhile, a new outbreak which started a few days ago in Fujian is posing downside risk to our forecast of a pick-up in growth in Q4 after a weak Q3,” as stated in a Reuters article.

There is no doubt that China showed fast recovery from the pandemic-led economic slowdown. However, it appears like slowing export levels, strict initiatives to control hot property prices, the coronavirus outbreak and efforts to reduce carbon emissions might have triggered a slowdown in economic recovery.

Considering the current economic conditions, various analysts are expecting enhanced government support. In this regard, Jingyang Chen, Greater China economist at HSBC, has said, “As growth is approaching the lower end of the officially-estimated potential growth range of 5.0-5.7%, Beijing may step up targeted easing to generate a moderate pick-up in growth in our view. We expect the government to further speed up special bond issuance and the central bank to roll out more targeted easing measures, including targeted RRR cuts, to support SMEs,” as stated in a Reuters article.

Moreover, China’s economy grew 7.9% year over year in the second quarter of 2021, slowing sharply from a record 18.3% expansion in first-quarter 2021 and falling short of the market consensus of 8.1%. A slowdown in factory activity, higher raw material costs and the COVID-19 outbreak stalled the recovery. Meanwhile, China has set an economic growth target of above 6% for 2021.

Another important economic data released earlier was also disappointing. China’s official manufacturing Purchasing Manager’s Index (PMI) came in at 50.1 for August in comparison with 50.4 in July. The metric also lagged analysts’ forecast of 50.2, per a Reuters article. Notably, any reading above 50 signals expansion. Surging raw material prices and COVID-related constraints are likely to have impacted manufacturers, building pressure on them. Going on, China’s official non-manufacturing PMI for August stood at 47.5, the lowest since the height of the pandemic in early 2020.

China ETFs That Might Suffer

Against this backdrop, investors can keep a tab on a few China ETFs like iShares MSCI China ETF MCHI, iShares China Large-Cap ETF FXI, Xtrackers Harvest CSI 300 China A-Shares ETF ASHR, SPDR S&P China ETF GXC, iShares MSCI China A ETF CNYA and Invesco Golden Dragon China ETF PGJ.

MCHI

This fund tracks the MSCI China Index. It comprises 613 holdings. The fund’s AUM is $6.32 billion and expense ratio is 0.59% (read: Alibaba Misses Revenue Estimates: ETFs in Focus).

FXI

This fund seeks long-term growth by tracking the investment returns, before fees and expenses, of the FTSE China 50 Index. It comprises 50 holdings. The fund’s AUM is $4.99 billion and expense ratio is 0.74%.

ASHR

This fund tracks the CSI 300 Index. It comprises 304 holdings. The fund’s AUM is $2.43 billion and expense ratio is 0.65%.

GXC

The fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P China BMI Index. It comprises 834 holdings. The fund’s AUM is $1.82 billion and expense ratio is 0.59% (read: Is This the Time to Buy China ETFs on Bargain?).

CNYA

The fund tracks the MSCI China A Inclusion Index. It comprises 483 holdings. The fund’s AUM is $715.5 million and expense ratio is 0.60%.

PGJ

This fund follows the NASDAQ Golden Dragon China Index, which offers exposure to the U.S. exchange-listed companies headquartered or incorporated in the People’s Republic of China. It holds a basket of 99 stocks. The product has AUM of $236.3 million and charges 70 basis points in annual fees.


Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

iShares China LargeCap ETF (FXI): ETF Research Reports

 

SPDR S&P China ETF (GXC): ETF Research Reports

 

iShares MSCI China ETF (MCHI): ETF Research Reports

 

Xtrackers Harvest CSI 300 China AShares ETF (ASHR): ETF Research Reports

 

Invesco Golden Dragon China ETF (PGJ): ETF Research Reports

 

iShares MSCI China A ETF (CNYA): ETF Research Reports

 

To read this article on Zacks.com click here.

 

Zacks Investment Research

Internet Explorer Channel Network
News Related

OTHER NEWS

The Crypto Wallet Hustle -- What You Need to Know

Since the inception of time, there have been nefarious individuals looking to take advantage of their fellow humans: pickpockets, conmen, hustlers, etc. So, the rise of digital and crypto scammers is ... Read more »

Elon Musk Posts Sexual Bitcoin Meme and Sends Twitter Into a Frenzy

Elon Musk is back at it again with his Twitter antics, but this time it isn’t to rip on longstanding rival Jeff Bezos or to promote the meme-able cryptocurrency Dogecoin. ... Read more »

Unemployment Claims Fall to Pandemic Low Amid Tight Labor Market

The Department of Labor reported that the number of Americans filing new claims for jobless benefits dropped to a 19-month-low last week. First-time filings for unemployment claims totaled 290,000 for that week ended ... Read more »

Netflix Employees Walk Out Over Dave Chappelle Special

Some Netflix employees walked out Wednesday in protest of the latest comedy special from Dave Chappelle, The Closer, which features jokes about transgender people. They and allies rallied and chanted, ... Read more »

Mariah Carey Encourages Women to Enter the Crypto Game, Support Black Girls Code

Mariah Carey is partnering with cryptocurrency platform Gemini on a new campaign aiming at making the asset class less daunting and more accessible to women. Jamie McCarthy | Getty Images According to Gemini, ... Read more »

Popeyes' New Collaboration With Megan Thee Stallion Just Broke the Internet

Real hot girl chicken! Scott Olson | Getty Images The iconic chicken chain has teamed up with Grammy Award-winning rapper and social media icon Megan Thee Stallion for a full ... Read more »

This Is Why My Dad Always Had a Full Tank Of Gas In 1973

In 1973 there was a huge oil crisis. How huge? Imagine the price of a gallon of gas rising almost 50% in just a few months. Imagine President Biden — as President ... Read more »

SpaceX Will Make Elon Musk a Trillionaire, According to Predictions

Elon Musk is currently the world’s richest person, with a net worth of $242 billion. And according to an expert at investment-banking company Morgan Stanley, that number is well-positioned to get even ... Read more »

Incheon int'l Airport reports sharp recovery in traveler flow in past 2 mths

Incheon International Airport (Yonhap)Incheon International Airport, the main gateway to South Korea, has seen a sharp recovery in the number of inbound and outbound travelers over the past two months ... Read more »

First Western (MYFW) Q3 Earnings and Revenues Beat Estimates

First Western (MYFW) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $1.20 per share a ... Read more »

Thermo Fisher Scientific (TMO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Thermo Fisher Scientific (TMO) closed at $608.41, marking a +0.46% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%. ... Read more »

Bay Commercial Bank (BCML) Meets Q3 Earnings Estimates

Bay Commercial Bank (BCML) came out with quarterly earnings of $0.51 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.27 per share a year ... Read more »

TrustCo Bank (TRST) Beats Q3 Earnings Estimates

TrustCo Bank (TRST) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.75 per share a ... Read more »

Volkswagen AG (VWAGY) Outpaces Stock Market Gains: What You Should Know

Volkswagen AG (VWAGY) closed at $32 in the latest trading session, marking a +1.62% move from the prior day. This change outpaced the S&P 500’s 0.3% gain on the day. ... Read more »

Colony Bankcorp (CBAN) Beats Q3 Earnings and Revenue Estimates

Colony Bankcorp (CBAN) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.39 per share a ... Read more »

Bar Harbor Bankshares (BHB) Beats Q3 Earnings and Revenue Estimates

Bar Harbor Bankshares (BHB) came out with quarterly earnings of $0.73 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.61 per share ... Read more »

Sigma Labs, Inc. (SGLB) Reports Q3 Loss, Tops Revenue Estimates

Sigma Labs, Inc. (SGLB) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to loss of $0.42 ... Read more »

Shell Oil (RDS.A) Stock Sinks As Market Gains: What You Should Know

Shell Oil (RDS.A) closed at $48.85 in the latest trading session, marking a -1.19% move from the prior day. This change lagged the S&P 500’s daily gain of 0.3%. – ... Read more »

SVB Financial (SIVB) Q3 Earnings and Revenues Beat Estimates

SVB Financial (SIVB) came out with quarterly earnings of $7.26 per share, beating the Zacks Consensus Estimate of $5.06 per share. This compares to earnings of $8.47 per share a ... Read more »

Twilio (TWLO) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Twilio (TWLO) closed at $369.23, marking a +0.72% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%. – Zacks ... Read more »

Boston Beer (SAM) Q3 Earnings Lag Estimates

Boston Beer (SAM) came out with quarterly earnings of $2.97 per share, missing the Zacks Consensus Estimate of $4.04 per share. This compares to earnings of $6.10 per share a ... Read more »

Texas Instruments (TXN) Outpaces Stock Market Gains: What You Should Know

Texas Instruments (TXN) closed the most recent trading day at $201.29, moving +0.96% from the previous trading session. This change outpaced the S&P 500’s 0.3% gain on the day. – ... Read more »

Alpine Income (PINE) Q3 FFO and Revenues Surpass Estimates

Alpine Income (PINE) came out with quarterly funds from operations (FFO) of $0.37 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to FFO of $0.35 ... Read more »

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

How many entrepreneurs are as confident now as they were before the Covid-19 pandemic began? Yes, we know the majority of the S&P 500 are companies that began in down ... Read more »

Capstar Financial (CSTR) Surpasses Q3 Earnings and Revenue Estimates

Capstar Financial (CSTR) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.43 per share a ... Read more »

This Dow laggard's chart is so bad, it's good, trader says

The Dow Jones Industrial Average may have hit a record this week, but some of its components still have room to catch up. One-third of the Dow is still more ... Read more »

Stock futures dip slightly after S&P 500 hits new record close

A specialist trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, October 6, 2021.Brendan McDermid | Reuters Stock futures dipped ... Read more »

Financial watchdog to investigate British Steel Pension Scheme scandal

© Getty Tata Steel Nearly 8,000 people transferred out of the BSPS ahead of a restructuring of the scheme in 2018, after receiving advice from financial advisers. Together, they accounted ... Read more »

Martin Lewis explains three things homeowners must do now as mortgage rates could soar

Martin Lewis has explained three things homeowners must do now over fears mortgage rates could be about to soar. The MoneySavingExpert used his ITV show this evening to explain how ... Read more »

Stocks making the biggest moves after hours: Snap, Intel, Chipotle and more

People walk past Snap Inc. Snapchat signage displayed in downtown Los Angeles, California on October 2, 2021.Patrick T. Fallon | AFP | Getty Images Check out the companies making headlines ... Read more »

Bigger state and local tax deductions still possible as Democrats grapple over spending plan

House Speaker Nancy Pelosi, D-Calif., speaks outside of the U.S. Capitol on Oct. 20, 2021.Mandel Ngan | AFP | Getty Images As Democrats wrestle over their spending package, key lawmakers ... Read more »

3 Defense Equipment Stocks to Buy Amid Supply Chain Disruption

Frequent mergers and acquisitions tend to boost revenue generation prospects along with production efficiency of stocks in the Aerospace-Defense Equipment industry. Moreover, the recent recovery observed in the global commercial ... Read more »

Fed to ban policymakers from owning individual stocks, restrict trading following controversy

The Marriner S. Eccles Federal Reserve building in Washington, D.C., on Friday, Sept. 17, 2021.Stefani Reynolds | Bloomberg | Getty Images Responding to a growing controversy over investing practices, the ... Read more »

Expanded child tax credit may last for 1 more year instead of 5 as Democrats cut economic plan

Getty Images The enhanced child tax credit has sent monthly checks to millions of American families since July. Now, it's one of the programs on the chopping block as Democrats ... Read more »

What to expect as Education Department gets ready to resume student loan payments

The U.S. Department of Education in Washington, D.C.Caroline Brehman | CQ-Roll Call, Inc. | Getty Images In March 2020, the U.S. Department of Education offered the millions of Americans with ... Read more »

The worst-off of Istanbul: Pakistani and Afghan waste paper collectors

This article first appeared on our partner site, Independent Turkish © Independent Turkey The jobs of the waste paper collectors are under threat – Independent Turkey Waste paper collectors across ... Read more »

Goldman Sachs wants to build an investor-friendly SPAC business following market bust

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, Sept. 20, 2021.Michael Nagle | Bloomberg | Getty Images Goldman Sachs just closed its ... Read more »

1 in 5 gig drivers got unemployment benefits at pandemic peak

hxyume | E+ | Getty Images About 1 out of every 5 drivers in the gig economy was collecting unemployment benefits at the pandemic's peak, according to a new analysis ... Read more »

Low-income households in Scotland falling behind on bill payments, report reveals

Almost a third of low-income households in Scotland are behind on bill payments, a report from the Joseph Rowntree Foundation (JRF) has warned. © People in low income households are ... Read more »

Two under-the-radar stocks could help hedge against inflation, trader says

Rising concerns around inflation have one trader looking past the market's most popular names for protection. “In these markets, we want stocks that are able to maintain their margins and ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic