Global X China Financials ETF (CHIX)
CHIX Price and Sentiment
CHIX Latest news
CHIX is the Global X MSCI China Financials ETF.
Chinese government has generally had some idea of how much risk Evergrande and other highly leveraged real estate companies pose since last year. Equity holders will most likely be wiped out, with holders of bond and wealth management products taking significant haircuts.
The impact of the policy remedy to China's property market excesses is spreading across global markets. But they would bounce hard on any evidence of a mitigation plan from Beijing.
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 ETFs were crushed this year due to regulators' crackdown on various sectors, mainly the all-important technology space. This made the space cheap at the current level.
In the second quarter of 2021, China's economy grew at a pace of 7.9% year on year. Chinese sector dispersion in Q2 was 29.55%, versus 13.53% in the US.
We have been positive on China's financial stocks since last year but we change our mind now. The unexpected policy move by PBOC last Friday signals the recent economic growth has peaked. Lower interest rates and weaker Yuan also bode ill for China's financial stocks.
The week also saw a range of share splits, closures and launches.
CHIX: A Trading BUY As New Regulatory Measures Support Sentiment
The Global X MSCI China Financials ETF (NYSEARCA: CHIX) was a decent though not spectacular performer last year. Just one day into 2020, the Global X sector fund is making a case for the spectacular category.