Direxion Dly CSI 300 Chn A Shr Br 1X ETF (CHAD)
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China's property sector is not a growth driver of the Chinese economy, but a growth passenger. China's fiscal system also created incentives for local governments to favor housing market development.
Shares in China continue to post sharp year-to-date losses vs. an otherwise upside bias for global stocks, based on a set of exchange-traded funds tracking the world's major equity regions through yesterday's close (Aug. 25). Some investors see opportunity in beaten-down shares, but there's still a wide-ranging debate as the market prices in higher uncertainty driven by the vagaries of Beijing's evolving policy agenda.
China's latest lockdown measures could be dampening growth markets, causing bearish sentiment to rise in funds like the Direxion Daily CSI 300 China A Share Bear 1X Shares (CHAD). CHAD seeks daily investment results, before fees and expenses, of 100% of the inverse of the daily performance of the CSI 300 Index.
The crash was triggered by new regulations in the booming private education industry. Beyond private education, investors fear that large swaths of high-growth sectors that were market darlings in recent years could be vulnerable to government action.
Traders looking for a bearish play on China A-shares can consider the Direxion Daily CSI 300 China A Share Bear 1X Shares (CHAD). CHAD seeks daily investment results, before fees and expenses, of 100% of the inverse of the daily performance of the CSI 300 Index.
For the sixth consecutive month, mutual fund investors were net purchasers of fund assets, injecting $89.9 billion into conventional funds for May.
Investors Inject $83.6 Billion Into Bond Funds/ETFs In April
Flows into China-focused ETFs are surging as investors position for China's growing economic and financial strength. Non-Chinese investors are generally overlooking China's growing influence on the global economy and in capital markets.
China currently represents just 5% of the MSCI All Country World Index (ACWI) while the US represents 58%. Since the beginning of 2020, the MSCI China A Index has outperformed the CSI 300 Index by 561 basis points, as shown in Figure 2.
Rising fears of the second wave of lockdown globally took Wall Street crashing on Wednesday with the Dow Jones being one of the most hurt.