Global X MSCI China Consumer Discretionary ETF (ARCA: CHIQ)

에 대한 최신 뉴스 Global X MSCI China Consumer Discretionary ETF (ARCA:CHIQ)

Global X China Consumer ETF

Consumer Cyclical

Consumer Defensive

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Technology

Industrials

The Fund invests at least 80 percent of its total assets in the securities of the MSCI China Consumer Discretionary 10/50 Index (Underlying Index) and in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on the securities in the Underlying Index. The Fund also invests at least 80 percent of its total assets in securities of consumer discretionary companies that are economically tied to China. For purposes of this policy, consumer discretionary companies include those companies that are classified in the consumer discretionary sector under the Global Industry Classification System (GICS). The Fund's 80 percent investment policies are non-fundamental and require 60 days prior written notice to shareholders before they can be changed. The Fund may lend securities representing up to one-third of the value of the Funds total assets (including the value of the collateral received).

Meituan-class B

PDD Holdings Inc

Byd Co Ltd-H

Byd Co Ltd H

Yum China Hldgs Inc

Pop Mart Interna

Global X MSCI China Consumer Discretionary ETF

Pinduoduo shutter

Asia

Earnings

Equities

Large Cap

Sector ETFs

Tech

ETFs

CHIQ

CLIX

CQQQ

KWEB

ONLN

Citigourp Global Markets 2% Protected Notes Linked To The Djia

PDD 홀딩스(NASDAQ:PDD)의 미국 예탁증서(ADR)는 월요일에 거의 30% 급락해 회사가 2018년 상장한 이후 최악의 실적을 기록했다. 이러한 급격한 하락세는 이 회사의 암울한 2분기 실적과 더 비관적인 매출 전망으로 인해 촉발된 광범위한 판매 압력으로 인해 발생했다.

중국 소매 거물 PDD, 실망스러운 실적 이후 약 30% 급락: 영향을 받는 ETF는?

As geopolitical <a href="https://www.benzinga.com/topic/china">tensions between China and the U.S.</a> rise and viral videos on TikTok expose layers of luxury supply chains, investors are facing a new type of reckoning: brand dilution by exposure. While some luxury brands are gearing up to pass the cost on to affluent customers, others may be at risk of reputational damage and shifting consumer sentiment, particularly those with undisclosed connections to Chinese manufacturers.
For <a href="https://www.benzinga.com/etfs">luxury retail ETFs</a>, the narrative is no longer merely one of premium brand cachet. It&#8217;s one of origin transparency, tariff risk and the danger of counterfeit inundating mainstream markets.
<h2 class="wp-block-heading">3 Luxury Retail ETFs Under The Microscope</h2>
SPDR Select Sector Fund &#8211; Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)
As one of the largest and most liquid ETFs in the space, XLY includes mega-cap names like Home Depot (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>) and Nike (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>). While not exclusive to luxury, it offers heavy exposure to branded discretionary spending. If consumer sentiment shifts against companies perceived as outsourcing to China or overcharging for imported goods, XLY could be vulnerable to sector-wide repricing.
As CNN notes, lots of luxury products are partially assembled in China and then receive final touches in Europe. 
Amplify Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBUY#NYSE">IBUY</a>)
Targeting U.S. consumer and e-commerce platforms, IBUY features brands that are most exposed to the ascendance of wholesale Chinese apps such as DHgate and Taobao. <a href="https://edition.cnn.com/2025/04/16/business/chinese-manufacturers-tiktok-trade-war/index.html">According </a>to CNN, the platforms are now dominating app store rankings in the U.S., offering ultra-low-cost facsimiles that impersonate (or purport to be) OEMs for luxury brands such as Gucci, Prada and even Birkin.
Wang Sen, a TikTok personality who stated he was an OEM for high-end handbags, was caught on camera facing a wall full of what appeared to be Birkin bags. In a now-deleted video, he asked viewers to reach out and purchase directly from them, as reported by CNN. Real or not, the effect is the same: IBUY constituents are being competed against by direct-from-factory sellers encroaching on their territory.
First Trust Consumer Discretionary AlphaDEX Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXD#NYSE">FXD</a>)
This ETF comprises high-end U.S. consumer brands like Ralph Lauren&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RL#NYSE">RL</a>) and Nike – companies often <a href="https://www.fibre2fashion.com/news/industrial-textiles-news/viral-tiktok-videos-promote-chinese-factory-buys-to-dodge-us-tariffs-302029-newsdetails.htm?amp=true">cited </a>in viral videos as sending manufacturing offshore to China. If sales of these companies take a hit as consumers shift to direct purchasing, this fund is likely to feel the pain.
Also Read: <a href="https://www.benzinga.com/25/04/44870375/blackrock-debuts-first-3-capped-sp-500-etf-to-tame-mega-cap-dominance">BlackRock Debuts First 3% Capped S&amp;P 500 ETF To Tame Mega-Cap Dominance</a>
<h2 class="wp-block-heading">The TikTok Trade War</h2>
What&#8217;s behind this viral content bonanza is more than transparency—there&#8217;s a larger trade war narrative. In a new twist on U.S.-China tensions, CNN explains that Chinese influencers are flooding TikTok to pressure Americans to bypass Trump&#8217;s 145% tariffs by purchasing directly from Chinese manufacturers. One video purporting to document the suppliers of Lululemon leggings has over 1.5 million likes. In comments? &#8220;Now this is how you do a trade war.&#8221;
Apps such as Taobao and DHgate, notorious for carrying &#8220;dupes,&#8221; burst into the U.S. App Store&#8217;s top 10 this month. Even if they are not selling original OEM products, they still undercut the prestige and price power of luxury brands.
A popular video cited by the outlet showed a user saying Lululemon&#8217;s $98 leggings were purchased for $5–$6 from a factory in Yiwu. Lululemon quickly dismissed any connection to those manufacturers, stating the names does not appear on its formal 2025 list of suppliers.
Luxury groups, however, are adapting. French luxury brand Hermès indicated that it would pass the total cost of US tariffs to buyers, according to Reuters. The French luxury group, known for its Birkin and Kelly handbags, which sell for $10,000 or more, generated a 7% year-over-year increase in Q1 revenues on a constant currency basis, falling short of the almost 10% surge that analysts had estimated, according to HSBC data cited by Reuters.
Hermès can count on its high-end clientele to swallow higher prices, but not everyone in the industry enjoys such pricing power. LVMH, a bellwether, saw a 5% decline in its fashion and leather segment.
The Illusion Of Reshoring
While the Trump administration is counting on tariffs to restore manufacturing to U.S. shores, the situation is more complicated. A recently released CNBC Supply Chain Survey revealed that 74% of firms identify cost as the main obstacle preventing them from reshoring. Few are contemplating returning to America. Most prefer to move to other low-tariff nations such as Vietnam and Cambodia.
This implies that ETFs with U.S. luxury and consumer brand exposure will continue to be tied to impenetrable global supply chains—most of which are still routed through China.
Final Word For Investors
For investors in ETFs, the actual concern might not be where things are produced, but whether companies are honest about it. The viral TikTok clips, grounded in reality or not, have highlighted a building consumer desire for authenticity in labeling and sourcing.
High-end brands that fail to satisfy this expectation can risk more than just their reputations. They stand to lose their price power, their exclusivity, and ultimately, their appeal to investors.
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Photo: Shutterstock

Specialty ETFs

Retail Sales

First Trustnsumer Discretionary AlphaDEX Fund

IBUY

Select Sector SPDR-Consumer Discretionary

The $10K Handbag Hoax? TikTok's Trade War Puts Luxury ETFs In The Hot Seat

On Thursday, Alibaba Group Holding.&nbsp;(NYSE:&nbsp;BABA), also known as <a target="_blank" href="https://www.benzinga.com/topic/chinese-tech-stocks" rel="noreferrer noopener">China&#8217;s tech barometer</a>, traded upwards as China kicked off its annual economic work conference&nbsp;on Wednesday to outline its policies and growth targets for 2025.&nbsp;
The two-day Central Economic Work Conference was expected to run through Thursday. Investors are watching for additional stimulus measures.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42394872/jack-ma-makes-rare-appearance-at-alibaba-fintech-event-stresses-on-ai-revolution" rel="noreferrer noopener">Jack Ma Makes Rare Appearance At Alibaba Fintech Event Stresses On AI Revolution</a>
The market expects more stimulus measures to counter possible tariffs launched by President-elect Donald Trump, as he promised during his campaigns.
Other U.S.-listed Chinese stocks, including JD.com, Inc.&nbsp;(NASDAQ:&nbsp;JD),&nbsp;Baidu, Inc.&nbsp;(NASDAQ:&nbsp;BIDU),&nbsp;NIO Inc. (NYSE:&nbsp;NIO),&nbsp;Li Auto Inc.&nbsp;(NASDAQ:&nbsp;LI),&nbsp;and XPeng Inc.&nbsp;(NYSE:&nbsp;XPEV)&nbsp;also saw positive movement in their share price trajectory in the premarket session.
However, according to a <a target="_blank" href="https://abcnews.go.com/Business/wireStory/china-ends-planning-meeting-vows-stabilize-economy-details-116716806" rel="noreferrer noopener">report</a>, Chinese leaders on Thursday assured of taking a proactive approach to boosting the economy but provided no details.
Post-meeting, lack of details on definitive measures led to a negative reaction from investors, leading to a fall in U.S.-listed Chinese stocks, which gave up all the premarket gains.
On Monday, President Xi Jinping&#8217;s Politburo pledged <a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42391254/us-listed-chinese-stocks-jump-on-chinas-stimulus-measures-looser-monetary-policy-assurances" rel="noreferrer noopener">aggressive fiscal measures</a> and a relatively more flexible monetary policy in 2025 to boost domestic consumption.
Tao Wang of UBS Group AG <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-12-10/china-begins-annual-economic-meeting-to-hash-out-stimulus-plan?sref=TBDibEcD" rel="noreferrer noopener">told</a> Bloomberg that he expects China to boost policy support in the next two years, including more supportive policy tones for 2025.
China&#8217;s stimulus so far has focused on producers and infrastructure, especially electric vehicles, solar energy, and batteries.
Economists expect China to set a higher-than-usual budget&nbsp;deficit target&nbsp;of up to 4% of GDP.
According to Bloomberg, Xi expressed confidence in the world&#8217;s second-largest economy in several meetings over the past week.&nbsp;
Larry Hu of Macquarie told Reuters that China&#8217;s initiatives for 2025 will depend on its GDP target and the new U.S. tariffs. He does not expect China to announce 2025 growth, budget deficit, or other targets.
Investors can gain exposure to Chinese equities through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>), ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>).
Price Actions: At the last check on Thursday, BABA stock is up 0.09% to $89.06. JD is down 1.60%, BIDU is down 0.85%, NIO is down 0.64%, LI is down 0.36%, and XPEV is down 0.39%.
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Photo by Tatiana Popova and rawf8 via Shuttterstock

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PowerShares Golden Dragon Halter USX China Portfolio

XPEV

US-Listed Chinese Stocks Give Up Gains In Anticipation Of More Stimulus

American depositary receipts (ADRs) of PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) plunged nearly 30% on Monday, marking their worst performance since the company went public in 2018. The sharp decline comes amid widespread selling pressures triggered by the company&#8217;s dismal second-quarter earnings and a <a href="https://www.benzinga.com/news/earnings/24/08/40548945/temu-parent-pdd-posts-86-q2-topline-growth-stock-drops-after-ceo-flags-upcoming-challenges">more pessimistic revenue forecast.</a>
The sell-off was driven by a combination of lackluster second-quarter results and a bleaker revenue outlook that rattled investor confidence.
The Chinese retail giant reported quarterly revenues of RMB97.06 billion ($13.4 billion), an 86% increase from RMB52.28 billion in the same quarter of 2023. However, the figure fell short of analyst expectations, which were set at $13.78 billion. 
<h3 class="wp-block-heading">Market Punishes PDD On Disappointing Q2 Results, Goldman Sachs Holds Bullish Outlook</h3>
Goldman Sachs analyst Ronald Keung, noted that the negative market reaction was likely driven by heightened expectations ahead of the earnings release, as the stock had surged about 20% from the low $120s since late July in anticipation of strong results.
Keung also highlighted initial signs of a slowdown in online marketing services growth, which came in at 29% year-over-year, below the consensus estimates of 36%, as well as management&#8217;s comments about slower revenue growth, fluctuating profits due to intensified competition, and the potential long-term decline in domestic profitability added to the concerns.
"While encouraged by the solid progress we made in the past few quarters, we see many challenges ahead," said Lei Chen, chairman and co-CEO of PDD Holdings. 
"We are committed to transitioning toward high-quality development and fostering a sustainable ecosystem. We will invest heavily in the platform's trust and safety, support high-quality merchants, and relentlessly improve the merchant ecosystem. We are prepared to accept short-term sacrifices and a potential decline in profitability," Chen added.
Despite the disappointing earnings, Goldman Sachs maintained a Buy rating on PDD, with a 12-month price target of $184, equating to a nearly 90% upside from current market levels.
The investment bank highlighted PDD&#8217;s strong adtech capabilities, cost-competitive Chinese suppliers, and favorable risk-reward profile, indicated that the current market cap does not account for any valuation attributed to PDD&#8217;s online marketplace Temu.
<h3 class="wp-block-heading">ETFs With Significant Exposure To PDD Suffer A Blow</h3>
PDD's dramatic single-day decline had a ripple effect on several exchange-traded funds (ETFs) with significant exposure to the stock. Here are the most affected ETFs:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Weight %</th>
<th>1-day % Change</th>
</tr>
</thead>
<tbody>
<tr>
<td>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>)</td>
<td>11.27%</td>
<td>-4.6%</td>
</tr>
<tr>
<td>Global X MSCI China Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHIQ#NYSE">CHIQ</a>)</td>
<td>10.23%</td>
<td>-4.3%</td>
</tr>
<tr>
<td>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>)</td>
<td>9.87%</td>
<td>-4.6%</td>
</tr>
<tr>
<td>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>)</td>
<td>9.32%</td>
<td>-3.5%</td>
</tr>
<tr>
<td>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>)</td>
<td>9.05%</td>
<td>-3.22%</td>
</tr>
</tbody>
</table>
</figure>
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Photo: Shutterstock

Chinese Retail Giant PDD Plummets Nearly 30% After Disappointing Earnings: Which ETFs Are Most Impacted?

Yum China Holdings, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NYSE">YUMC</a>) shares are trading higher after the company reported second-quarter results yesterday. Revenue&nbsp;increased 1% year over year to&nbsp;$2.68 billion, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40172102/yum-china-reports-second-quarter-results" rel="noreferrer noopener">missing the consensus of $2.77 billion</a>.
Total system sales rose 4% Y/Y, excluding currency effects, due to an 8% increase of in net new units.
Same-store sales were at 96% of last year&#8217;s level, with same-store transactions up 4% Y/Y in the quarter. Delivery sales increased 11% YoY, continuing Yum China&#8217;s decade-long double-digit growth trend.
Digital sales hit $2.2 billion in the quarter, with digital ordering comprising about 90% of total company sales.
KFC&#8217;s system sales grew 5% YoY, driven by an 8% contribution from new units, while Pizza Hut&#8217;s system&nbsp;sales rose 1% YoY, also boosted by an 8% increase from new units.
Core operating profit grew 12% Y/Y to $275 million, with a margin of 10.0% vs. 9.3% a year ago quarter. EPS $0.55 surpassed<a href="https://www.benzinga.com/earnings" target="_blank" rel="noreferrer noopener"> the street view of $0.47</a>.
As of June 30, 2024, the total store count was 15,423, comprising 10,931 KFC and 3,504 Pizza Hut locations. The company added 401 net new stores in the quarter, with 99 opened by franchisees.
In the second quarter, Yum China returned $249 million to shareholders through share repurchases and cash dividends.
Joey Wat, CEO of Yum China, said, &#8220;We achieved our most profitable second quarter since the spin-off, with core operating profit growing by 12% despite challenging industry dynamics. Our sharp focus on value-for-money and innovative new products worked well, driving robust same-store transaction growth.&#8221;
Outlook: Yum China reiterated FY24 targets and plans to open 1,500 to 1,700 new stores, invest $700 million to $850 million in capital expenditures, and return $1.5 billion to shareholders through <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">dividends and share repurchases</a>.
Apart from this, Yum China disclosed that Chief Financial Officer Andy Yeung will resign for personal reasons, effective September 30, 2024. Adrian Ding will serve as <a target="_blank" href="https://www.benzinga.com/pressreleases/24/08/n40172088/yum-china-board-announces-cfo-transition-and-welcomes-new-board-member" rel="noreferrer noopener">Acting CFO starting October 1, 2024</a>.
Yum China&nbsp;also announced the appointment of&nbsp;Mikel Durham to the Board of Directors, effective&nbsp;August 12, 2024. In connection with the&nbsp;appointment, the&nbsp;size of the&nbsp;Board was increased to&nbsp;12&nbsp;directors, ten of whom are independent.
Investors can gain exposure to YUMC via Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and Global X MSCI China Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHIQ#NYSE">CHIQ</a>).
Price Action: YUMC shares are up 8.39% at $32.30 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by aleks-dorohovich- for Unsplash

Guidance

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YUMC

Restaurant Company Yum China Posts Mixed Q2 Results, Announces CFO Change

Alibaba Group Holding Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) rival&nbsp;PDD Holdings Inc&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) Temu will be subject to stringent EU online content regulations that currently affect&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37911506/apple-meta-and-googles-alphabet-under-scrutiny-eu-launches-antitrust-probes" rel="noreferrer noopener">major tech firms</a>&nbsp;like&nbsp;Meta Platforms Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>),&nbsp;Alphabet Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)&nbsp;Google, Elon Musk&#8217;s&nbsp;X, and&nbsp;TikTok.&nbsp;
This development follows as Temu&#8217;s average monthly users in Europe surpassed the significant threshold of 45 million.&nbsp;
According to the European Union&#8217;s Digital Services Act (DSA), platforms with over 45 million users are considered massive online platforms (VLOPs) and must undertake more significant efforts to eliminate illegal and harmful content and counterfeit products on their sites, Reuters reports.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/03/37866299/amazon-amps-up-delivery-speed-and-trust-to-tackle-alibaba-rivals-temu-and-sheins-rapid-us-expansion" rel="noreferrer noopener">Amazon Amps Up Delivery Speed and Trust to Tackle Alibaba Rivals Temu and Shein&#8217;s Rapid US Expansion</a>
Having launched in the EU market in April of the previous year, Temu reported approximately 75 million average monthly active users in the European Union for the six months ending March 31 this year.&nbsp;
The European Commission has acknowledged that Temu&#8217;s user figures have crossed the DSA threshold and has initiated contact with the platform regarding a potential future designation as a VLOP.
The Chinese-founded fast-fashion giant Shein also reported having 108 million active users on average in the 27-country bloc last month. Shein is engaging with the Commission about its possible designation under the DSA.
In March, PDD reported&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/03/37844064/pdd-holdings-stock-is-shooting-upwards-wednesday-whats-going-on" rel="noreferrer noopener">fourth-quarter fiscal 2023</a>&nbsp;revenue growth of 123% year-on-year to $12.52 billion, beating the consensus of $11.01 billion. The adjusted earnings per ADS of $2.40 increased from CNY8.34 Y/Y, beating the consensus of $1.60.
PDD stock gained 68% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Global X MSCI China Consumer Discretionary ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHIQ#NYSE">CHIQ</a>) and&nbsp;Invesco China Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>).
Price Action:&nbsp;PDD shares traded higher by 1.09% at $116.76 in the premarket on the last check Monday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38017994/microsoft-decouples-teams-from-office-globally-in-response-to-antitrust-concerns-report" rel="noreferrer noopener">Microsoft Decouples Teams from Office Globally in Response to Antitrust Concerns: Report</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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PDD Holdings Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) reported fourth-quarter fiscal 2023 revenue growth of 123% year-on-year to $12.52 billion (CNY88.88 billion), beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/g37841430/pdd-holdings-announces-fourth-quarter-2023-and-fiscal-year-2023-unaudited-financial-results" rel="noreferrer noopener">consensus of $11.01 billion</a>.
The Chinese online retailer&#8217;s adjusted earnings per ADS of $2.40 (CNY17.32) increased from CNY8.34 Y/Y, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus of $1.60</a>. The stock price climbed after the results.
Revenues from online marketing services and others rose 57% Y/Y to $6.86 billion.
Revenues from transaction services jumped 357% Y/Y to $5.66 billion.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/03/37791010/alibabas-strategic-shift-new-ceo-for-grocery-arm-and-bold-move-to-enhance-harmonyos-with-huawei" rel="noreferrer noopener">Alibaba&#8217;s Strategic Shift &#8211; New CEO for Grocery Arm and Bold Move to Enhance HarmonyOS with Huawei</a>
The&nbsp;Alibaba Group Holding Limited&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) rival posted an adjusted operating profit of $3.46 billion, up 112% Y/Y.
Pinduoduo held $30.6 billion in cash and equivalents as of December 31, 2023, and generated $5.2 billion in operating cash flow.
&#8220;In the fourth quarter, we saw growing demand driven by encouraging consumer sentiment,&#8221; said Jiazhen Zhao, Executive Director and Co-Chief Executive Officer of PDD Holdings.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/20075740/newplot-31.png" alt="" class="wp-image-258881" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/20075740/newplot-31.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/20075740/newplot-31-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The stock gained 62% last year. Investors can gain exposure to the stock via&nbsp;Global X MSCI China Consumer Discretionary ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHIQ#NYSE">CHIQ</a>) and&nbsp;Invesco China Technology ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>).
Price Action: PDD shares traded higher by 15.7% at $147.52 in the premarket on the last check Wednesday.
Also Read: <a href="https://www.benzinga.com/news/24/03/37828477/alibaba-unveils-new-processor-and-open-source-laptop-based-on-risc-v-processors">Alibaba Unveils New Processor and Open-Source Laptop Based On RISC-V Processors</a>
Photo via Shutterstock

General

PDD Holdings Stock Is Shooting Upwards Wednesday, What's Going On?

Today is Veterans Day in the U.S. In China, it&#39;s Singles Day, a retail event that makes Amazon&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) Prime Day look like a minor league game.
Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), often referred to as the Amazon of China, confirms the gravity of Singles Day. On Tuesday, just as it was becoming Wednesday in China, the e-commerce behemoth took to Twitter, noting it was processing, at one point, a staggering <a href="https://twitter.com/AlibabaGroup/status/1326221672886591488">583,000 orders per second</a>.
Mega numbers like that make sense because China is the world&#39;s largest internet market and it&#39;s home to two of the five largest e-commerce companies &ndash; Alibaba and JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>). Good news: There are plenty of China ETFs, <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/11/18265589/rookie-china-etf-has-2-kinds-of-green-appeal">many of which are soaring</a>, with robust exposure to China&#39;s online retail space. Here are several to consider.
See Also: <a href="https://www.benzinga.com/news/20/11/18315102/alibaba-shatters-singles-day-sales-record-at-56b-with-another-24-hours-to-go">Alibaba Shatters Singles Day Sales Record At $56B &mdash; With Another 24 Hours To Go</a>
KraneShares CSI China Internet ETF (KWEB)
The KraneShares CSI China Internet ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kweb#NYSE">KWEB</a>) is the godfather of China internet ETFs as the $3.89 billion fund is now more than seven years old. Alibaba and JD.com combine for over 16% of KWEB&#39;s roster, but that&#39;s only part of the story with this ETF, which is up more than 48% year-to-date.
Over nearly eight&nbsp;years on the market, KWEB is developing a penchant for easily topping traditional China ETFs, broader emerging markets funds and some U.S.-focused rivals. Of course, it&#39;s good to have the heft of China&#39;s online retail market as a foundation.
&ldquo;Chinese retail web sales totaled US$1.5 trillion in 2019 (compared to US$601.7 billion in the United States), representing an increase of 16.5% year-over-year,&rdquo; <a href="https://kraneshares.com/kweb/">according to KraneShares</a>.
Remember, that&#39;s happening with China&#39;s internet penetration being significantly less than that, on a percentage basis, of major developed markets.
Global X MSCI China Consumer Discretionary ETF (CHIQ) 
In the pantheon of consumer cyclical ETFs, the Global X MSCI China Consumer Discretionary ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chiq#NYSE">CHIQ</a>) is often overlooked, but with almost $448 million in assets under management, CHIQ is no shrinking violet.
Of course, performance is more important than heft and CHIQ has the former. It&#39;s up 74.32% this year, a showing that&#39;s better than three and a half times that of the Amazon-heavy S&amp;P 500 Consumer Discretionary Index.
One secret to CHIQ&#39;s success is an 8.67% weight to electric vehicle maker Nio (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nio#NYSE">NIO</a>). Another is one of the highest JD.com allocations among all ETFs.
&ldquo;In December 2019, the market capitalization of the Beijing-based company hit $51.7bn. In the next six months, this figure increased by 45% to almost $60bn,&rdquo; <a href="https://buyshares.co.nz/2020/11/10/market-cap-of-five-ecommerce-giants-soared-by-90-to-2-6t-jd-com-leads-with-a-215-yoy-growth/">according to BuyShares</a>. &ldquo;The noticeable upward trend continued in the following months, with the market cap soaring by 215% YoY to $129.6bn in October, the most significant increase among the top five companies.&rdquo;
Invesco Golden Dragon China ETF (PGJ)
The Invesco Golden Dragon China ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pgj#NASDAQ">PGJ</a>) is practically ancient by the standards of China-specific ETFs at almost 16 years. While it&#39;s positioned as broader fund than the aforementioned products, PGJ does a better job of representing China&#39;s internet economy than many of its comparably aged rivals.
For example, consumer cyclical names represent more than 45% of the fund&#39;s weight while communication services and technology stocks combine for another 43%. Those are large overweights to those groups relative to China ETFs in the 10 to 15 years old category. Those exposures are working in investors&#39; favor this year as PGJ is up nearly 35%.

Long Ideas

Emerging Market ETFs

Events

Global

AMZN

3 ETFs For China's Singles Day

With China being the country where the coronavirus first appeared, it&#39;d be easy to be dismissive of Chinese stocks and the related exchange-traded funds, but there&#39;s more to the story.
The MSCI China Index is higher year to date, something that can&#39;t be said of either the MSCI Emerging Markets Index or the S&amp;P 500. Obviously, China-specific funds are proving to better bets than broader emerging markets benchmarks and that trend could continue <a href="https://www.benzinga.com/news/20/06/16314927/wall-street-gains-some-optimism-on-report-that-china-plans-to-buy-more-u-s-ag-goods">if trade relations</a> with the U.S. steady or even improve.
There are other catalysts to consider when it comes to China ETFs. Recently, Morgan Stanley<a href="https://www.etftrends.com/china-etfs-erase-early-year-losses-push-toward-growth/"> lifted its forecast</a> the mainland benchmark CSI 300 Index and many economists are saying the world&#39;s second-largest economy will rebound in earnest in the fourth quarter.
Some ETFs may already be pricing in that scenario, including the following trio, which hit record highs last Friday.
<h3>Global X MSCI China Consumer Discretionary ETF (CHIQ)</h3>
The Global X MSCI China Consumer Discretionary ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chiq#NYSE">CHIQ</a>) is on a torrid pace, soaring 14.13% over the past month, a move punctuated by last Friday&#39;s ascent into the all-time high club. Obviously, a consumer cyclical fund performing well is a sign Chinese consumers are on the mend and data confirm as much.
Many investors in the U.S. are familiar with China&#39;s Singles Day, which is something like Amazon&#39;s (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) Prime Day, but China has another big shopping day that recently took place: the 618 festival.
During that event sales across Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) and JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) platforms <a href="https://www.cnbc.com/2020/06/19/alibaba-jdcom-handle-record-sales-during-618-event.html">exceeded $136.5 billion</a> and that&#39;s relevant to CHIQ because the ETF devotes over 16% of its combined weight to those stocks.
<h3>Global X MSCI Consumer Staples ETF (CHIS) </h3>
Home to just $7.41 million in assets under management, the Global X MSCI Consumer Staples ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chis#NYSE">CHIS</a>) flies under the radar compared to other China sector ETFs, but the fund is often more exciting than U.S. equivalents as highlighted by a second-quarter gain of almost 28%.
Regarding CHIS, another point being overlooked is that off the CSI 300 Index&#39;s March bottom, consumer staples is essentially tied with the more exciting health care and technology groups as the <a href="https://asiatimes.com/2020/06/china-leads-world-economic-recovery/">best-performing sector</a> over that period.
Global X MSCI China Health Care ETF (CHIH)
The Global X MSCI China Health Care ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chih#NYSE">CHIH</a>) is a predictable addition to this list because of speculation that China will bring the first coronavirus vaccine to market. Clearly, some investors are buying into that speculation because CHIH is up almost 42% in the current quarter and is crushing it global and U.S. rivals on a year-to-date basis.
There&#39;s some risk here, namely that a Chinese company won&#39;t win the coronavirus vaccine race, but a pullback could spell opportunity.
Even if COVID-19 is vanquished tomorrow, there are still compelling reasons to consider Chinese healthcare stocks, not the least of which are the country being home to one of the fastest-growing large health care markets in the world and its rapidly aging population.

Markets

CHIH

CHIS

3 China ETFs Hitting New Highs

Money manager Glovista Investments, which runs a variety of emerging markets and global investment strategies, said Tuesday it&#39;s rolling out a China sector rotation model based on 11 sector exchange traded funds issued by Global X.
<h3>What Happened</h3>
The aim of the China Sector Rotation Strategy is to outperform the widely followed MSCI China Index by at least 3% per year using Global X funds, such as the Global X MSCI China Energy ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chie#NYSE">CHIE</a>) and the Global X MSCI China Materials ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chim#NYSE">CHIM</a>).
New York-based Global X offers <a href="https://www.globalxetfs.com/">a relevant China ETF</a> for each of the 11 sectors represented by the global industry classification standard (GICS).
&ldquo;The global macro module seeks to tilt to Chinese sectors based on the outlook for near-term economic growth drivers, including: consumption, investment, net exports versus government spending, currency, as well as views on global style drifts and investor positioning,&rdquo; <a href="https://www.globenewswire.com/news-release/2019/11/05/1941591/0/en/Glovista-Launches-New-China-Sector-Rotation-Strategy-Using-Global-X-ETF-s-China-Sector-Suite.html">according to a statement issued by Global X</a>.
<h3>Why It&#39;s Important </h3>
Other Global X China sector ETFs include the Global X MSCI China Industrials ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chii#NYSE">CHII</a>), Global X MSCI China Consumer Discretionary ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chiq#NYSE">CHIQ</a>) and the Global X MSCI Consumer Staples ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chis#NYSE">CHIS</a>).
The oldest members of the group are nearly a decade old while some of the new products are less than a year old.
The largest Global X China sector ETF is the aforementioned CHIQ, which has $160.22 million in assets under management. CHIQ is followed by the Global X MSCI China Financials ETF (NYSEARCA: CHIX) at $62 million and the Global X MSCI China Communication Services ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chic#NYSE">CHIC</a>) at nearly $22 million.
<h3>What&#39;s Next</h3>
This isn&#39;t the first time a U.S.-based issuer of China ETFs has partnered with a purveyor of investment models. Last week, KraneShares and Dorsey Wright said they&#39;re partnering on a relative strength model that will use eight KraneShares <a href="https://www.benzinga.com/trading-ideas/long-ideas/19/10/14668452/kraneshares-joins-forces-with-dorsey-wright-for-etf-rotation-model">China and emerging markets funds</a>.
With China&#39;s weight in global benchmarks increasing, institutional investors may be drawn to the new Glovista strategy, potentially driving more assets to the Global X sector ETFs.
&ldquo;The sector and industry analysis module incorporates industry-specific themes, margin and growth dynamics, regulatory impact, and technical analysis,&rdquo; according to the statement. &ldquo;The ETF constituent module captures variances in factor exposures owing to the difference in ETF holdings versus the MSCI China Index composition. The bottom-up module tilts China sectors based on earnings, margins, leverage and valuation dynamics derived by aggregating data and stock-specific views at the individual company level for the largest constituents of each sector ETF.&rdquo;
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<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/11/14727786/3-europe-etfs-hitting-new-highs">3 Europe ETFs Probing Fresh Highs</a>

CHIC

CHIE

CHII

CHIM

CHIX

Glovista Investments Debuts China Sector Rotation Model Featuring Global X ETFs

With the seemingly unabated ascent of Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), U.S.-focused consumer discretionary exchange traded funds are getting plenty of attention and rightfully, but there are some other ideas within the sector worth considering.
<h3>What Happened</h3>
While it has been volatile relative to its U.S. rivals, the Global X MSCI China Consumer Discretionary ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chiq#NYSE">CHIQ</a>) is up 24.3% year to date, performing inline with the Consumer Discretionary Select Sector SPDR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/xly#NYSE">XLY</a>). The $150.25 million CHIQ tracks the MSCI China Consumer Discretionary 10/50 Index.
China&#39;s effort to stir domestic consumption, reducing the giant economy&#39;s dependence on exports, could increase the allure of CHIQ for long-term investors.
&ldquo;Among the most powerful are those areas tied to the rising impact of China&rsquo;s consumers, who have experienced years of high wage growth, migration into cities, and an expansion of internet connectivity,&rdquo; <a href="https://www.globalxetfs.com/china-sector-analysis-consumer-discretionary/">according to Global X research</a>. &ldquo;The government has also made consumption a priority as the economy transitions away from export-led industries.&rdquo;
<h3>Why It&#39;s Important</h3>
CHIQ is home to plenty of U.S.-listed stocks, including familiar fare such as Alibaba (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and Ctrip.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ctrp#NASDAQ">CTRP</a>). China&#39;s middle class is widely as a major catalyst for the country&#39;s consumer discretionary sector and rightfully so.
&ldquo;China&rsquo;s middle class, which is larger than the entire population of the United States, is spending time and money on goods and services, spanning travel and leisure, e-commerce, social media, gaming, and health and wellness,&rdquo; said Global X.
By market value, consumer discretionary in China is worth just over $1 trillion, less than half the U.S. value on that sector. However, data indicate Chinese consumer cyclical stocks are less expensive than their American peers.
<h3>What&#39;s Next</h3>
Expect e-commerce and internet retail names to be big drivers of China&#39;s consumer cyclical going forward.
&ldquo;As the world&rsquo;s leading e-commerce market, China accounts for more than 40% of the world&rsquo;s e-commerce transactions, up from just 1% from a decade ago,&rdquo; said Global X. &ldquo;With rising highspeed internet coverage and broad adoption of mobile payments, e-commerce platforms in China are growing fastest in the country&rsquo;s smaller Tier 3 and 4 cities, where access to online stores provides greater convenience and wider selection to customers.&rdquo;
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<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/07/14043612/a-consumer-cyclical-etf-hitting-on-all-cylinders">A Surging Consumer Cyclical ETF</a>

CTRP

Another Consumer Discretionary ETF To Consider

Typical iterations of China sector exchange traded funds predominantly focused on Internet and technology stocks, but Global X has long offered sector ETFs targeting China&#39;s energy, financial services and industrial groups, among others.
The New York-based ETF issuer added to its China sector lineup in a big way Tuesday with the debuts of six funds.
<h3>What Happened</h3>
Global X now offers 11 China sector ETFs, each of which tracks an index from MSCI. Among the new ETFs are the the Global X MSCI Consumer Staples ETF (NYSE:CHIS) and the Global X MSCI China Health Care ETF (NYSE:CHIH).
CHIH enters a growing arena of China-specific health care ETFs and is the third such fund to come to market this year. The new ETF tracks the MSCI China Health Care 10/50 Index. Home to 35 stocks, CHIH allocates nearly <a href="https://www.globalxfunds.com/content/files/CHIH-factsheet.pdf">three-quarters of its weight </a>to pharmaceuticals companies and health care providers.
CHIS, the new China consumer staples ETF, follows the MSCI China Consumer Staples 10/50 Index and holds 24 stocks. China&#39;s consumer staples is not as expansive as the same sector in the U.S. as highlighted by just four industry groups being represented in the new CHIS.
<h3>Why It&#39;s Important</h3>
Global X, which already had a fund representing China technology and Internet stocks, also unveiled the Global X MSCI China Information Technology ETF (NYSE:CHIK), which tracks the MSCI China Information Technology 10/50 Index. That new ETF holds 34 stocks, <a href="https://www.globalxfunds.com/content/files/CHIK-factsheet.pdf">over half of which</a> are makers of electrical components or semiconductors.
The Global X MSCI China Communication Services ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chic#NYSE">CHIC</a>) is the first China-specific fund for that sector. Communication services officially debuted in the U.S. in September with the first domestic ETF dedicated to the sector launching last June. Software and hardware companies combine for about 85 percent of that new ETF&#39;s roster.
<h3>What&#39;s Next</h3>
Global X&#39;s new China sector ETFs span groups that, in the U.S., are usually viewed as conservative. The Global X MSCI China Real Estate ETF (NYSE:CHIR) and the Global X MSCI China Utilities ETF (NYSE:CHIU) round out Global X&#39;s new offerings.
Each of the new ETFs carries annual fees of 0.65 percent, or $65 on a $10,000 investment.
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New ETFs

A Slew Of China Sector ETFs Debut

Amid a trade war with the United States, Chinese stocks are languishing this year. The large-cap FTSE China 50 Index is down 7.1 percent year-to-date. While that&#39;s less worse than the 8.2 percent lost by the MSCI Emerging Markets Index, Chinese stocks are slumping while their U.S. counterparts are making record highs.
A wide range of U.S.-listed China exchange-traded funds are trailing the FTSE China 50 Index, but some market observers argue China overcome its trade spat with the U.S.
<h3>What Happened</h3>
Although it has recently shown some signs of life, the Global X China Consumer ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chiq#NYSE">CHIQ</a>) is down 14.1 percent this year. CHIQ is down 4.3 percent this month, a decline that&#39;s perhaps a symptom of the aforementioned trade tensions. The $194.22 million CHIQ follows the Solactive China Consumer Total Return Index.
Predictably, a consumer-heavy ETF could be vulnerable to trade tensions, but CHIQ&#39;s recent struggles may overstate China&#39;s dependence on trade with the U.S.
&ldquo;These are two heavyweights going at each other, so the implications are not insignificant,&rdquo; <a href="https://www.globalxfunds.com/chinas-macro-trends-remain-compelling/">said Global X</a>. &ldquo;But it is worth noting that the estimated $500 billion of Chinese exports to the U.S. account for only 20% of the total value of China&rsquo;s exports. That means the U.S. tariffs on $50 billion worth of goods thus far affect only 2% of all Chinese exports.&rdquo;
<h3>Why It&#39;s Important</h3>
Important to the long-term thesis for an ETF like CHIQ is China&#39;s effort to reduce dependence on exports and turn to more a internal consumption-driven economy. Data suggest that effort is bearing fruit.
&ldquo;China is much less export-driven than it has been historically and exports account for far fewer of China&rsquo;s GDP today versus just ten years ago,&rdquo; according to Global X. &ldquo;Likewise, final consumption expenditure as percent of GDP in China has grown to 38% of GDP since 2010 despite high GDP growth, which suggests that consumption is increasing faster than its notable GDP growth.&rdquo;
<h3>What&#39;s Next</h3>
There is a near-term case for CHIQ, though it requires looking beyond China&#39;s trade relationship with the U.S. Data indicate there&#39;s some merit in that approach.
&ldquo;Domestic and international demand for Chinese goods has remained robust thus far,&rdquo; said Global X. &ldquo;Export and import data have not yet shown ill effects from the trade war bluster. Exports rose 12.2% year-over-year in dollar terms in July and imports jumped 27.3%, with the country achieving an overall trade surplus in July of $28 billion.&rdquo;
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Politics

China ETFs Try To Rebound From Trade War Concerns

As the largest country exposure in most traditional emerging markets exchange traded funds (ETFs), China is a big reason why these funds are soaring in 2017. But old guard China ETFs can leave investors wanting more.
Weighted by market capitalization, traditional China ETFs and equity indexes are usually heavy on financial services and other state-owned enterprises. Only recently have these products seen increased exposure to high-flying Chinese internet and technology companies. Still, many China ETFs do not do an adequate job of reflecting more refined, faster-growing opportunities in the world&#39;s second-largest economy.
ETFs such as the Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>) and the Global X NASDAQ China Technology ETF (NASDAQ: <a class="ticker" href="/stock/qqqc#NASDAQ">QQQC</a>) allow investors to isolate more lucrative niches of the China investment story without the confines of lumbering banks and energy firms.
<h3>
	Paying Off</h3>
The MSCI China Index, which allocates 41.5 percent of its weight to technology stocks, is up an impressive 53 percent this year. CHIQ and QQQC offer their own stellar performance with 2017 returns of 61 percent and 46.6 percent, respectively. Still, enthusiasm is lacking for China ETFs.
&ldquo;According to Bloomberg, Emerging Market-focused ETFs have brought in nearly $35 billion in net assets this year, representing 33 percent of the total assets in the space at the end of 2016,&rdquo; <a href="https://www.globalxfunds.com/rethinking-exposure-to-china/">said Global X</a>. &ldquo;China-focused ETFs, on the other hand, have in the aggregate brought in less than $1 billion in net new assets this year, which is equivalent to 12 percent of 2016&rsquo;s year-end total assets under management (AUM) for the segment.&rdquo;&nbsp;
CHIQ, which follows the Solactive China Consumer Total Return Index and is nearly eight years old, offers a play on Chinese consumer trends, including the jaw-dropping growth of Chinese shoppers embracing e-commerce. The ETF allocates a combined 10 percent of its weight to Alibaba Group Holding Ltd. (NYSE: <a class="ticker" href="/stock/baba#NYSE">BABA</a>) and JD.com Inc.(NASDAQ: <a class="ticker" href="/stock/jd#NASDAQ">JD</a>).
<h3>
	Focusing On What Matters</h3>
Data support the notion that banking on the Chinese consumer is a viable, long-term trend and with China&rsquo;s &quot;Singles Day&quot; just days away, CHIQ could be worth considering right here, right now.
&ldquo;To us, the clearest trend in China is the rising spending power of the country&rsquo;s middle class,&rdquo; said Global X. &ldquo;As incomes in China rise, its massive population is expected to increasingly rise to middle class ranks, driving more discretionary purchases of gifts, travel, electronics, and other products and services that historically were exclusive to more niche pockets of the population.&rdquo;
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QQQC

Getting Refined With China ETFs

ETF Outlook for the Week of July 7, 2014:

	The Dow Jones Industrial Average closed above 17,000 for the first time ever last week before heading into the holiday weekend.

	The close above the round number may have created a few headlines for investors to discuss over the holiday, however in reality it does not mean much in the way of the charts.&nbsp;

	Investors should be prepared for more headlines when the index is able to breakout above the psychological number.

	Below are a few ETFs that may be on the move.

	SPDR S&amp;P Retail ETF (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>)

	The retail stocks had a strong week and closed within one percent of a new all-time high. In a holiday-shortened week the ETF gained 2.4 percent as the overall market pulled many sectors higher.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/14/06/4668768/chinese-tech-and-mlp-etfs-on-a-tear">Chinese Tech &amp; MLP ETFs On A Tear</a></bzrelatedlink>

	heaThe better than expected jobs number on Friday was a big boost to the consumer and retail stocks as more people are employed it suggests more money will be put back into the economy. From the chart perspective, the ETF has run into resistance at the $89 area several times since late last year, only to fail and sell off for a few weeks.

	This week will be very important for the ETF that closed out last week at $88.65.

	Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>)

	Retail auto sales in China rose by 14 percent in June to a total of 1.47 million units. Sales during the first six months of 2014 are up 11 percent over last year at the same time.

	Chinese auto manufacturers make up about 14 percent of the ETF and several of the top holdings are auto companies.

	The ETF closed at the best level in over two months last week and as the middle class continues to grow in China this niche ETF could be a big winner.

	iShares MSCI All Peru Capped Index ETF (NYSE: <a class="ticker" href="/stock/epu#NYSE">EPU</a>)

	A big four-day rally for EPU resulted in the ETF breaking out of a year-long consolidation phase. A large portion of the move has to do with the materials sector and more specifically the copper stocks.

	The ETF&rsquo;s second largest holding, Southern Copper (NASDAQ: <a class="ticker" href="/stock/scco#NASDAQ">SCCO</a>), closed with a gain of 10 percent last week to hit a new 52-week high. EPU had some major issues in 2013, but if the charts are telling the correct story it appears they may be in the rearview mirror.

Previews

Pre-Market Outlook

SCCO

Prepare For Headlines This Week With These 3 ETFs

ETFs to Watch for Tuesday October 22, 2013

	First Trust Cloud Computing ETF (NYSE: <a class="ticker" href="/stock/skyy#NYSE">SKYY</a>)

	The ETF could be on the move today after the third largest holding reported earnings after the bell last night. The online content giant, Netflix (NASDAQ: <a class="ticker" href="/stock/nflx#NASDAQ">NFLX</a>), reported earnings that beat expectations and that sent the stock higher by 10 percent after hours. SKYY closed at its best level ever yesterday along with NFLX and both should see continued buying today. The top two holdings in the ETF are Facebook (NASDAQ: <a class="ticker" href="/stock/fb#NASDAQ">FB</a>) and Brightcove (NASDAQ: <a class="ticker" href="/stock/bcov#NASDAQ">BCOV</a>), both are trading near their yearly highs.

	Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>)

	The niche international ETF has quietly broken out of a bullish pattern to a new 2-year high. The close above $16.24 was a breakout above a triple top pattern that goes back to last 2011. 

	The ETF is up 10 percent in 2013 and lagging the S&amp;P 500 and many of its international peers, but the recent action has been swung the ETF back into bullish territory. By focusing on companies that sell good and services to the local Chinese citizen, the ETF benefits from the emergence of the middle class in the country. The top sectors include retail, automotives, food, and household goods. The key level to watch is the old resistance level of $16.24.

	Guggenheim Solar ETF (NYSE: <a class="ticker" href="/stock/tan#NYSE">TAN</a>)

	Yesterday one of the biggest gainers was solar company First Solar (NASDAQ: <a class="ticker" href="/stock/fslr#NASDAQ">FSLR</a>) with an increase of 8 percent. The move helped push TAN to the best level in over two years as investors are warming up to the beaten down industry.

	The ETF is up 156 percent in 2013, but remains down 65 percent from its all time high set in early 2010. The trend is clearly higher for the volatile ETF, but investors should be cautious chasing the industry after the huge gains this year. FSLR makes up 5.8 percent of the ETF and is the third largest holding in the portfolio.

	iShares MSCI Canada Index ETF (NYSE: <a class="ticker" href="/stock/ewc#NYSE">EWC</a>)

	Canadian stocks have not been able to regain their previous highs as the S&amp;P 500 has been able to do in the last few days. As a matter of fact, EWC is down 17 percent from its 2007 high. 

	The good news is that the ETF is within striking distance of a major breakout to a multi-year high. A close above $29.64 would break a quadruple top pattern and signal a new buying opportunity for investors. Failure would likely send the ETF back to support at the $27 area.

Broad U.S. Equity ETFs

FSLR

NFLX

SKYY

ETF to Watch for Tuesday October 22, 2013

There are plenty of nasty statistics that paint ugly pictures of how just how much scores of China and India ETFs have struggled this year.

	When it comes to India ETFs, some of the group's most popular funds are battling with their Brazilian equivalents for the ominous honor of worst-performing BRIC ETFs.

	Last month, several of the 10 worst-performing non-leveraged ETFs were India funds. The most popular China ETFs have been no place to hide, either. For example, the iShares China Large-Cap ETF (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>) is one of the 10 worst ETFs this year <a href="http://www.benzinga.com/markets/bonds/13/08/3812508/july-etf-inflows-top-44-billion">in terms of outflows</a>.

	Investors have pulled over $2.3 billion from FXI, according to BlackRock data. With those struggles in mind, it might seem impossible that a combination China/India ETF could be enjoying a respectable 2013, but that is exactly what the First Trust ISE Chindia Index Fund (NYSE: <a class="ticker" href="/stock/fni#NYSE">FNI</a>) is doing.

	FNI, which has been around for over six years, selects "the top 25 stocks from each country by liquidity score. If less than 25 stocks are available for a country, then continue selecting stocks from the other country until a maximum of 50 stocks are selected," <a href="http://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FNI">according to First Trust</a>. From there the top three stocks from each country receive allocations of seven percent apiece and the next three get weights of four percent each.

	Currently, Baidu (NASDAQ: <a class="ticker" href="/stock/bidu#NASDAQ">BIDU</a>), FNI's largest holding, has a weight of nearly nine percent. Investors looking to get to the bottom line will be interested to know that FNI is up nearly 11 percent year-to-date and has surged 13.4 percent in the past month.

	Part of the reason for FNI's durability relative to other China and India ETFs this year could be attributable to investors still believing in the emerging markets consumer. Rapid growth Asia-Pacific markets are expected to see their share of global consumption jump to 25 percent by 2020 from 14 percent in 2010, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3135191/case-for-em-consumer-bolstered-by-new-statistics">Ernst &amp; Young said last year</a>.

	Growth is slowing in China and India, there is no doubt about that, but there is also no doubt the rates of growth in those countries are still well above what investors will find in much of the developed world. As for believing in the emerging markets consumer, other ETFs suggest investors are doing that. The Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>) is up nine percent in the past month.

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2965345/prepare-for-chindias-consumer-spending-surge-with-etfs">Prepare For Chindia's Consumer Spending Surge With ETFs</a>.

	Another reason that explains FNI out-performance of more mainstream China and India ETFs this year is the fund's almost 42 percent weight to the technology sector. That is one group that could benefit from the weak Indian rupee. More importantly, <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3767598/leave-the-banks-take-this-china-etf">ETFs with significant exposure to Chinese tech names</a> have been the shining stars of the China ETF group this year. Fourteen of FNI's 50 holdings are Chinese technology or Internet stocks, including Baidu, Sina (NASDAQ: <a class="ticker" href="/stock/sina#NASDAQ">SINA</a>) and Ctrip.com (NASDAQ: <a class="ticker" href="/stock/ctrp#NASDAQ">CTRP</a>).

	FNI has also been getting a lift from Michael Kors (NYSE: <a class="ticker" href="/stock/kors#NYSE">KORS</a>). That company is based in Hong Kong, making it eligible for inclusion in FNI at a weight of 7.1 percent. That is good news because the stock is up 33.6 percent year-to-date.

	Oh wait, there is something the critics could say about FNI, that being <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3728299/two-sub-100m-etfs-that-have-outperformed-larger-rivals">the ETF has less than $100 million in assets under management</a>. Due to that, investors should stay away is the advice naysayers would be apt to give.

	Figure it this way: FNI has $61.8 million in assets and has posted a double-digit gain this year. The largest China and India ETFs have over $6 billion in AUM combined and are down 11.3 percent and 19.8 percent, respectively.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Short Ideas

KORS

SINA

A China/India ETF That is Actually Going Up

Global X, the New York-based ETF issuer best known for its commodities and income-focused funds, will introduce two new ETFs on Wednesday, April 3 with a heavy focus on frontier markets. The Global X Nigeria Index ETF and the Global X Central Asia &amp; Mongolia Index ETF will both debut tomorrow.

	The Global X Nigeria Index ETF will trade under the ticker "NGE" while the Global X Central Asia &amp; Mongolia Index ETF will trade under the ticker "AZIA." Both funds will be listed on the New York Stock Exchange.

	Indicating that sometimes it can take a while from the time an issuer files to list a new fund until the ETF actually comes to life, <a href="http://www.benzinga.com/etfs/commodities/11/07/1754914/global-x-filing-details-massive-potential-expansion-plans">Global X filed plans for its Nigeria and Central Asia ETFs in July 2011</a>.

	Still, Global X will have the first-mover advantage with both ETFs. Van Eck, parent company of Market Vectors, filed plans for Mongolia and Nigeria ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2478898/10-wackiest-etf-ideas-tvix-onn-gaz">in 2011, actually before Global X did</a>, but those funds have yet to come to market.

	In addition to Mongolia, which is home to bountiful coal reserves, AZIA will also offer exposure to Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The iShares MSCI Frontier 100 Index Fund (NYSE: <a class="ticker" href="/stock/fm#NYSE">FM</a>) is one of just a small amount of ETFs to offer any exposure to any of those countries with a 3.8 percent allocation to Kazakhstan. FM also has a 13.6 percent weight to Nigeria.

	AZIA and NGE will have annual fees of 0.69 percent and 0.68 percent, respectively, <a href="http://www.globalxfunds.com/Prospectus/Fund145.pdf">according to the Global X prospectus</a>.

	The firm sponsors some other popular emerging markets ETFs, including the The Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>), which has over $200 million in assets, and the $190.1 million Global X FTSE Colombia 20 ETF (NYSE: <a class="ticker" href="/stock/gxg#NYSE">GXG</a>).

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Intraday Update

Global X to Roll Out Nigeria, Central Asia ETFs on Wednesday

Well-documented was the rise of diversified emerging markets ETFs in 2012. Multi-country funds such as the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) and the WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) delivered solid returns while attracting a steady stream of new assets from investors.

Country-specific funds such as the those tracking <a href="http://www.benzinga.com/markets/bonds/12/12/3175050/can-the-philippines-etf-keep-up-its-torrid-pace-in-2013">the Philippines and Turkey</a> got in on the act as well, delivering jaw-dropping returns.

Just a few trading days into 2013, emerging markets ETFs are extending their 2012 gains as EEM and DEM are in the green and some country funds <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3218153/foreign-investors-saviors-of-vietnamese-banks-vietnam-etf">such as the Market Vectors Vietnam ETF (NYSE: </a><a class="ticker" href="/stock/vnm#NYSE">VNM</a>) have already set a torrid pace. 

Amidst all the ebullience, emerging markets sector ETFs can go overlooked. Ignoring these sector funds in 2013 could prove to be a mistake <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3135191/case-for-em-consumer-bolstered-by-new-statistics">because some have already outperformed traditional diversified and country-specific</a> developing markets ETFs. With that in mind, consider the following ETFs as the among the best bets at sector level in the developing world this year.

EGShares Emerging Markets Domestic Demand ETF (NYSE: <a class="ticker" href="/stock/emdd#NYSE">EMDD</a>)
The EGShares Emerging Markets Domestic Demand ETF is more of a thematic concept than a sector-specific play. That theme, as EMDD's name implies, is a goal of a plethora emerging markets, both large and small: Increased domestic consumption.

While rapidly rising export numbers can be seductive, a heavy dependence on exports exposes any country to the economic woes of its trading partners. Just ask Australia, Brazil and on and on. Is it possible for a developing economy to be focused on domestic consumption while growing in size? The answer is yes. Just look at Indonesia, Southeast Asia's largest economy, where <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3208282/10-for-13-emerging-markets-etfs-for-2013">domestic consumption represents 60 percent of GDP</a>.

Regarding EMDD, the ETF is one way of avoiding a misguided approach to tapping into the emerging markets consumer theme. That being the flawed thinking that Western multinationals are the way to play rising middle classes in the developing world. In reality, many emerging markets consumers prefer the brands they have known their whole lives. 

At the sector level, EMDD is fairly conservative as the fund is heavy on food and beverage and telecommunications names. EMDD does offer a direct avenue to the expected vibrancy of Asia's local demand story over the coming years. India and China combine for over 30 percent of the fund's weight. EMDD also features smaller allocations to Indonesia, Malaysia, Thailand and the Philippines. EMDD has returned 12.3 percent over the past six months.

Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>)
In <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2975987/believe-china-is-cheap-try-these-etfs">early October 2012</a>, the Global X China Consumer ETF was identified as one China fund beyond the usual suspects that could benefit from a rebounding Chinese economy and government stimulus efforts. Since then, CHIQ has jumped 13.6 percent.

With retail and food names combing for over 41 percent of CHIQ's weight, the ETF is heavily exposed to Chinese consumers' everyday needs. Being exposed to the Chinese consumer at all is not such a bad thing, particularly for patient investors. 

A study by Boston Consulting Group shows consumer spending in China and India is expected to reach a combined $10 trillion per year by 2020. In the years leading up to 2020, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2965345/prepare-for-chindias-consumer-spending-surge-with-etfs#ixzz2HeV86g00">the amount expected to be spent by consumers in the two countries is $64 trillion</a>.

CHIQ already has some believers. The ETF had about $111 million in assets under management in October 2012. That number is now almost $198 million, <a href="http://www.globalxfunds.com/CHIQ">according to Global X data</a>.

iShares S&amp;P Emerging Markets Infrastructure Index Fund (NYSE: <a class="ticker" href="/stock/emif#NYSE">EMIF</a>)
Investing in the emerging markets infrastructure theme can be a frustrating endeavor. Back in 2011, Bank of America Merrill Lynch forecast that select emerging markets will need to spend about $6 trillion on infrastructure over just the next three years. 

Not to mention, many emerging markets such as <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3068174/this-brazil-etf-could-be-headed-for-disappointment">Brazil and India are in dire need of significant infrastructure upgrades</a>. However, those fundamental factors have not always lead to stellar returns for EM infrastructure funds.

With the iShares S&amp;P Emerging Markets Infrastructure Index Fund, it pays to keep in mind that Brazil and China combine for almost 58 percent of the fund's weight. The latter has a reputation for not being shy about using infrastructure spending as domestic economic stimulus, a trend that should it continue, will benefit EMIF.

For its part, Brazil announced a $66 billion stimulus program in August, but immediately following that announcement, the EGShares Brazil Infrastructure ETF (NYSE: <a class="ticker" href="/stock/brxx#NYSE">BRXX</a>) tumbled. Whether or not ETFs such as BRXX and EMIF benefit from Brazilian infrastructure projects this year remains to be seen. This much is clear, however. The funds' constituents will be busy. On its own, the state of Rio de Janeiro needs $13.5 billion in new infrastructure and upgrades in advance of the 2014 World Cup.

EGShares Emerging Markets Metals &amp; Mining ETF (NYSE: <a class="ticker" href="/stock/emt#NYSE">EMT</a>)
The EGShares Emerging Markets Metals &amp; Mining ETF has a nifty feature to it often goes ignored. 

"EMT is designed to provide non-U.S. dollar, equity-based commodity exposure to the largest miners of copper, nickel, platinum, palladium, iron ore, and coal in the emerging markets. With exposure to emerging market currencies such as the Brazilian real, South African rand, and Russian ruble, EMT can benefit from currency appreciation versus the U.S. dollar," <a href="http://www.emergingglobaladvisors.com/emt.cfm">according to EGShares</a>.

In other words, EMT can act as a dollar hedge within portfolios. Still, EMT is another case of investors needing to know exactly what they are buying before jumping. Four countries – South Africa, Brazil, China and Russia – combine for about two-thirds of the fund's country weight. Additionally, Brazil's Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>) is the fund's top holding at almost 10.4 percent.

That means the recent rebound in iron ore prices, due in part to a spate of positive Chinese economic news, needs to continue to help EMT move higher. Add to that, EMT does feature some exposure to gold miners an often <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3233185/gold-miner-etfs-soar-despite-collapsed-african-barrick-talks">frustrating sub-sector for investors over the past two years</a>.

Bottom line: EMT has a lot of moving parts to its upside case in 2013, but the ETF has gained 9.3 percent in the past month.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Futures

Commodities

Econ #s

Emerging Global Shares INDXX Brazil Infrastructure Index Fund

BRXX

EMDD

iShares S&P Emerging Markets Infrastructure Index Fund

EMIF

Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund

VALE

Some EM Sector ETFs Could Soar in 2013

The investment thesis behind the emerging markets consumer theme has arguably proven to be a dichotomy. Foreign investors grasp the concept of increasing wages, rising middle classes and the benefits those factors can have for a developing economy. 

Conversely, it has been the methods by which investors choose to tap into emerging markets consumers that have proven vexing. On the surface, Western companies with stellar brand recognition such as Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) and McDonald's (NYSE: <a class="ticker" href="/stock/mcd#NYSE">MCD</a>) would appear to be fine ways to play consumers in the developing world. The reality is those companies and others like them have massive top lines and emerging markets still only represent a fraction of their revenue.

That is to say, investors are best served by focusing on stocks and ETFs that offer exposure to local brands. Some fresh statistics reiterate as much. 

"Consumer spending will grow faster in Asia's rapid growth markets than in advanced economies. Our forecasts suggest that Asia-Pacific rapid growth markets will see their share of global consumption rise from under 14% in 2010 to almost 25% by 2020," according to an Ernst &amp; Young report on the emerging markets consumer. 

That forecast is not surprising. Earlier this year, Boston Consulting estimated <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2965345/prepare-for-chindias-consumer-spending-surge-with-etfs">Chinese and Indian consumers will spend a combined $64 trillion</a> in the years leading up to 2020.

There are some direct ETF plays on that theme such as the First Trust ISE Chindia Index Fund (NYSE: <a class="ticker" href="/stock/fni#NYSE">FNI</a>) which offers a sizable allocation to discretionary names. Of course, the Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>) and the EGShares India Consumer ETF (NYSE: <a class="ticker" href="/stock/inco#NYSE">INCO</a>) are direct plays on the consumers of those countries, but there is more to the story.

"In rapid growth markets, markets for many consumer goods are reaching ‘takeoff points,' where rising per capita income generates a more-than-proportionate increase in market size. Demand for consumer durables is set to boom," <a href="http://www.ey.com/GL/en/Issues/Driving-growth/Beyond-Asia---new-patterns-of-trade-in-Asia-Pacific---Report-hightlights">said Ernst &amp; Young</a>.

Additionally, Ernst &amp; Young sees a strong increase in exported goods and services in the Pacific Rim over the next decade. That increase will be driven, in part, by booming domestic demand. The domestic demand story in the developing world reminds investors multinationals are not always the best way to tap into the emerging markets consumer.

An alternative avenue is the newly minted EGShares Emerging Markets Domestic Demand ETF (NYSE: <a class="ticker" href="/stock/emdd#NYSE">EMDD</a>). The EGShares Emerging Markets Domestic Demand ETF, which debuted in July, was created to offer investors a better way of exploiting the domestic demand story in the emerging world. U.S. multinationals such as Coca-Cola and McDonald's are not found in this fund.

However, EMDD does offer a direct avenue to the expected vibrancy of Asia's local demand story over the coming years. India and China combine for over 30 percent of the fund's weight. EMDD also features smaller allocations to Indonesia, Malaysia, Thailand and the Philippines.

For more on the emerging markets consumer, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2858514/the-definitive-guide-to-em-consumer-etfs">here</a>.

Economics

INCO

Case For EM Consumer Bolstered by New Statistics

For the bulk of 2012, it has been troublesome economic data that has kept a lid on Chinese equities and the corresponding ETFs. However, Chinese data points, along with stocks there, have improved in recent weeks. The latest sign is the October China HSBC Flash Manufacturing Purchasing Managers Index, which registered 49.1. 

That is good enough for the best reading since April and combined with rising retail sales and third-quarter GDP growth of 7.4 percent could be reason enough for more investors to become with already surging China ETFs.

Russ Koesterich, iShares global chief market strategist, advocates an Overweight rating on the world's second-largest economy. In a <a href="http://isharesblog.com/blog/2012/10/23/going-cheap-with-chinese-stocks/">new blog post</a>, Koesterich notes the most dire of scenarios many predicted for China's economy has not come to pass.

"Our expectation is that Chinese growth has probably slowed to around 7.5% – 8%," he wrote. "We believe that the more dire predictions of a Chinese hard landing appear less likely and recent market selling is overdone."

With it becoming more apparent the hard landing so many had called for has been avoided, China ETFs have soared in recent weeks. In the past month, the iShares MSCI China Index Fund (NYSE: <a class="ticker" href="/stock/mchi#NYSE">MCHI</a>) and the Guggenheim China Small-Cap ETF (NYSE: <a class="ticker" href="/stock/hao#NYSE">HAO</a>) are both up nearly 10 percent. The iShares FTSE China (HK Listed) Index Fund (NYSE: <a class="ticker" href="/stock/fchi#NYSE">FCHI</a>) has popped nearly nine percent. The iShares FTSE China 25 Index Fund (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>), the largest China ETF by assets, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2990830/china-conundrum-resisting-fxis-temptation">has been a "laggard" with a gain of just six percent</a>.

Those ETFs and others may have more room for upside because, as Koesterich notes, Chinese equities are inexpensive on a valuation basis.

"Chinese stocks are down a stunning 66% from their 2007 top," wrote Koesterich. "Chinese equities are now trading at approximately 1.3 times book value and less than nine times next year's earnings. On a relative basis, the Chinese stock market has never looked cheaper. Historically, Chinese stocks traded at a 56% premium to other emerging market (EM) countries, but today they are trading at a 10% discount."

The compelling valuations apply to China ETFs as well. The iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) sports a price-to-earnings ratio of 17.3 and a price-to-book ratio of three,<a href="http://us.ishares.com/product_info/fund/overview/EEM.htm?fundSearch=true&amp;qt=EEM">according to iShares data</a>. 

By comparison, FCHI trades at 12.7 times earnings and with a price-to-book ratio of 1.65. MCHI goes for 14.7 times earnings with a price-to-book ratio of 2.5. FXI is cheaper than both at 12.5 times earnings and a price-to-book ratio of 1.55. 

Chinese small-caps, as measured by HAO, are even cheaper. That ETF has a price-to-earnings ratio of just 7.8 and a price-to-book ratio of one, <a href="http://www.guggenheimfunds.com/etf/fund/hao">according to Guggenheim data</a>.

"While Chinese growth is unlikely to revert back to the glory days of 2010, when the economy expanded by over 10%, it looks like current valuations now more than reflect the slowdown in growth," said Koesterich.

Even some <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/3008860/as-china-rebounds-other-etfs-join-fxi-on-the-upside">niche China ETFs have gotten in on the act</a> in recent weeks. The EGShares China Infrastructure ETF (NYSE: <a class="ticker" href="/stock/chxx#NYSE">CHXX</a>) has surged 9.3 percent in the past month while the Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>) is up 5.3 percent. 

Slumping retail sales in China during the first half of 2012 punished CHIQ, sending the ETF tumbling by approximately 31 percent from early March through late July. CHIQ's current price-to-book ratio is 1.62.

Buoyed by China's infrastructure stimulus plans and a <a href="http://stocktwits.com/message/9957715">strong technical picture</a>, CHXX has rebounded from its 52-week low set in early September. Even with that impressive bounce, CHXX trades at just 8.4 times trailing earnings with a price-to-book ratio of 1.1.

For more on China ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/3008860/as-china-rebounds-other-etfs-join-fxi-on-the-upside">here</a>.

Emerging Global Shares INDXX China Infrastructure Index Fund

CHXX

FCHI

MCHI

Koesterich Reiterates Overweight Rating on China

PDD 홀딩스(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>)의 미국 예탁증서(ADR)는 월요일에 거의 30% 급락해 회사가 2018년 상장한 이후 최악의 실적을 기록했다. 이러한 급격한 하락세는 이 회사의 암울한 2분기 실적과 <a href="https://www.benzinga.com/news/earnings/24/08/40548945/temu-parent-pdd-posts-86-q2-topline-growth-stock-drops-after-ceo-flags-upcoming-challenges">더 비관적인 매출 전망</a>으로 인해 촉발된 광범위한 판매 압력으로 인해 발생했다.
이러한 매도세는 부진한 2분기 실적과 투자자의 신뢰를 떨어뜨린 암울한 매출 전망이 결합되어 발생했다.
중국 거대 소매업체는 분기별 매출이 970억 6천만 위안(134억 달러)으로 2023년 같은 분기의 522억 8천만 위안보다 86% 증가했다고 보고했다. 그러나 이 수치는 분석가 예상치인 137억 8천만 달러에 미치지 못했다.
<h3 class="wp-block-heading">시장은 PDD의 실망스러운 2분기 실적을 응징, 골드만삭스는 긍정적인 전망 유지</h3>
골드만삭스의 애널리스트 로널드 겅(Ronald Keung)은 주가가 부정적인 시장 반응을 보인 것은 실적 발표를 앞두고 기대감이 높아진 탓이라고 언급했다. 주가는 강력한 실적을 예상하며 7월 말 이후 약 20% 상승해 120달러 초반대에서 거래되고 있었다.
겅은 또한 온라인 마케팅 서비스 성장 둔화의 초기 징후를 지적했는데, 이는 전년 대비 29% 증가로, 컨센서스 예상치인 36%에 미치지 못했다. 또한 경영진이 언급한 느린 매출 성장, 치열해진 경쟁으로 인한 변동하는 수익, 그리고 국내 수익성의 장기적인 감소 가능성도 우려를 더했다고 설명했다.
PDD 홀딩스의 회장 겸 공동 CEO인 레이 첸(Lei Chen)은 &#8220;지난 몇 분기 동안 우리가 이룬 견고한 진전에 고무되었지만, 앞으로 많은 도전 과제가 있을 것으로 보인다,&#8221;고 말했다.
&#8220;우리는 고품질 개발로 전환하고 지속 가능한 생태계를 조성하는 데 전념하고 있다. 우리는 플랫폼의 신뢰와 안전에 크게 투자하고, 고품질 상인들을 지원하며, 상인 생태계를 지속적으로 개선해 나갈 것이다. 단기적인 희생과 수익성 감소 가능성을 기꺼이 감수할 준비가 되어 있다,&#8221;고 첸이 덧붙였다.
실망스러운 실적에도 불구하고, 골드만삭스는 PDD에 대해 매수 등급을 유지했으며, 12개월 목표 주가를 184달러로 제시했다. 이는 현재 시장 수준에서 약 90%의 상승 여력을 의미한다.
투자은행은 PDD의 강력한 광고 기술 역량, 비용 경쟁력이 있는 중국 공급업체, 유리한 위험 대비 보상 프로필을 강조하며, 현재의 시가총액이 PDD의 온라인 마켓플레이스인 테무(Temu)에 대한 평가를 반영하지 않고 있다고 언급했다.
<h3 class="wp-block-heading">PDD에 상당한 비중을 둔 ETF에 큰 타격</h3>
PDD에 상당한 비중을 둔 ETF에 큰 타격 PDD의 극적인 하루 주가 하락은 해당 주식에 상당한 비중을 둔 여러 상장지수펀드(ETF)에 파급 효과를 미쳤다. 가장 큰 영향을 받은 ETF는 다음과 같다:
<figure class="wp-block-table is-style-stripes">
<table style="overflow:auto; height: 90px; display: block;">
<thead>
<tr>
<th>ETF 이름</th>
<th>비중 %</th>
<th>1일 % 변화</th>
</tr>
</thead>
<tbody>
<tr>
<td>ProShares Online Retail ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ONLN#NYSE">ONLN</a>)</td>
<td>11.27%</td>
<td>-4.6%</td>
</tr>
<tr>
<td>Global X MSCI China Consumer Discretionary ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHIQ#NYSE">CHIQ</a>)</td>
<td>10.23%</td>
<td>-4.3%</td>
</tr>
<tr>
<td>ProShares Long Online/Short Stores ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLIX#NYSE">CLIX</a>)</td>
<td>9.87%</td>
<td>-4.6%</td>
</tr>
<tr>
<td>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>)</td>
<td>9.32%</td>
<td>-3.5%</td>
</tr>
<tr>
<td>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>)</td>
<td>9.05%</td>
<td>-3.22%</td>
</tr>
</tbody>
</table>
</figure>
다음 읽기:
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40558693/telegram-ceo-pavel-durov-faces-12-serious-charges-french-prosecutor-reveals">텔레그램 CEO 파벨 두로프, 12가지 중범죄 혐의에 직면</a></li>
</ul>
사진: Shutterstock
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Global X MSCI China Consumer Discretionary ETF

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