에 대한 최신 뉴스 iShares MSCI China ETF (NASDAQ:MCHI)

Consumer Cyclical

Communication Services

Financial Services

Consumer Defensive

Industrials

Healthcare

Technology

Other

Energy

Basic Materials

Real Estate

Utilities

The fund generally will invest at least 90% of its assets in the component securities of the underlying index and in investments that have economic characteristics that are substantially identical to the component securities of the underlying index. The index is a free float-adjusted market capitalization-weighted index designed to measure the performance of equity securities in the top 85% in market capitalization of the Chinese equity securities markets, as represented by the H-shares and B-shares markets. The fund is non-diversified.

Tencent Holdings Ltd

PDD Holdings Inc

Meituan Dianping

iShares MSCI China ETF

Asia

Federal Reserve

ETFs

KWEB

MCHI

중국 국가통계국(NBS)에 따르면 부동산 부문은 투자와 주택 가격이 하락한 반면, 산업 생산은 5월에 5.6% 증가했다고 한다. 산업 생산은 4월보다 둔화되어 블룸버그 전망을 하회했다. 소매 판매는 예상보다 좋았지만 중국 소비자들은 여전히 ​​팬데믹 이전의 소비 습관으로 돌아가는 것을 꺼리고 있다고 블룸버그가 보도했다.

중국 주택시장 침체 심화, 산업 생산은 4월에 비해 둔화, 인민은행 금리 동결

Equities

News

Global

Markets

Tech

BABA

LNVGF

MPNGF

Citigourp Global Markets 2% Protected Notes Linked To The Djia

TCEHY

중국 기술주는 차익실현과 지정학적 불확실성으로 인해 기술적 조정에 가까워지는 등 상당한 하락세를 보이고 있다. 사건의 전말 (What Happened): 홍콩에 상장된 중국 기술주를 추적하는 항셍테크지수는 금요일 0.9%나 하락했다. 블룸버그에 따르면 이러한 하락으로 인해 이 지수는 5월 20일 최고치보다 10% 이상 하락했으며 이는 기술적 조정을 나타낸다.

알리바바와 텐센트의 가격 인하로 中 기술 업계 냉각: 이익 압박, 무역 긴장에 주가 하락

MARUICHI STEEL TUBE LTD by Maruichi Steel Tube Ltd.

Maruichi Steel Tube Ltd

<h4>Key Takeaways:</h4>
<ul>
<li>iHuman&rsquo;s revenue and profit both declined in the first quarter as it accelerated a global expansion plan to diversify beyond its softening home market in China</li>
<li>The company&rsquo;s gross margin and total users both improved, but the omission of its latest paid user count suggests that key metric continued to decline</li>
</ul>
By Doug Young
Sometimes what&rsquo;s left unsaid speaks the loudest.
That could partly explain the 4.3% decline for shares of&nbsp;iHuman Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ih#NYSE">IH</a>), a provider of educational products and services for young children, after it published its&nbsp;<a href="https://www.prnewswire.com/news-releases/ihuman-inc-announces-first-quarter-2024-unaudited-financial-results-302185388.html">latest quarterly results</a>&nbsp;last Friday. The report notably didn&rsquo;t include the company&rsquo;s latest number of paying users at the end of March, ending a previous practice of including that key metric.
Anyone reading between the lines would probably guess that omission was due to the fact that the number wasn&rsquo;t too attractive and continued a recent trend of contraction that saw the figure fall by 17% in the fourth quarter to 1.45 million paid users.
The latest report also lacked any quantifiable information on the company&rsquo;s recent drive to develop its business outside China, which it characterized as a strategic priority. Such a strategy looks prudent for Chinese companies from the educational sector due to the high risk from unpredictable regulatory oversight.
A sudden clampdown on China&rsquo;s K-12 after-school tutoring sector two years ago wiped out an entire multibillion-dollar industry in an instant. iHuman wasn&rsquo;t affected due to its focus on younger children and broader learning skills rather than specific courses like math and science. But there&rsquo;s no guarantee that its area won&rsquo;t become the future target of another crackdown aimed at lightening the burden of extra coursework on impressionable young minds.
iHuman made several references to the international expansion in its latest report, showing the importance it places on the initiative to diversify its business beyond China. But its failure to disclose any specifics suggests that part of the business has yet to produce any meaningful revenue, which may have disappointed investors.
While those unspoken elements probably worried investors, an acceleration in the company&rsquo;s revenue declines was probably the biggest culprit behind the selloff of iHuman&rsquo;s stock after the release of its latest report. iHuman said its revenue fell 11% to 235 million yuan ($32 million) in the first quarter from 265 million yuan a year earlier. The company&rsquo;s revenue began to contract in last year&rsquo;s fourth quarter, falling by a milder 4%, ending three years of steady growth since its IPO in 2020.
iHuman attributed the fourth-quarter revenue contraction to the pandemic, explaining that revenue for the fourth quarter of 2022 was exceptionally high and difficult to beat as many families used its services during lengthy periods of home confinement during China&rsquo;s last-ditch effort to control the spread of Covid. It gave a similar explanation for the 11% decline in the first quarter, even though China had lifted its pandemic controls by the end of 2022 and people were no longer confined to their homes during the year-ago period in the first quarter of 2023.
While the pandemic provides a convenient excuse for its revenue contraction, an equally likely culprit is China&rsquo;s slowing economy that is causing consumers to rein in their spending. Sellers of big-ticket items like cars and homes are feeling the effects of that caution most acutely. But providers of more discretionary items like the kinds of educational services sold by iHuman are also undoubtedly feeling the pinch.
<h3>Left behind</h3>
The selloff of iHuman&rsquo;s shares after the report&rsquo;s release wasn&rsquo;t extremely large, and, in fact, the stock bounced back somewhat over the next two trading days. But more telling is a longer-term trend that&rsquo;s seen iHuman&rsquo;s shares get left behind from a broader rally for U.S.-listed Chinese shares earlier this year.
That rally lifted the iShares MSCI China ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mchi#NASDAQ">MCHI</a>) more than 30% at one point from a low in February, and the index remains up by a much smaller 4.6% year-to-date. By comparison, iHuman&rsquo;s shares have trended steadily downward since the start of the year and are now down 38% year-to-date.
The company has been profitable for the last two years and continued that trend in the first quarter. But the latest figure was down by more than half to 22.3 million yuan from 53.6 million yuan a year earlier, undoubtedly adding to investor concerns, as it attributed the decline to heavier spending on product development and its international expansion.
&ldquo;While these increased investments may temporarily impact our short-term profitability, we believe they are crucial for reinforcing our industry leadership, sustaining our long-term growth, and creating long-term value for our shareholders,&rdquo; CFO Viven Wang said in the earnings announcement.
Its odd mix of relatively solid profits and a sinking share price have left iHuman with a depressed price-to-earnings (P/E) ratio of just 4, and a similarly depressed price-to-sales (P/S) ratio of 0.72. The latter is actually ahead of the 0.33 P/S ratio for&nbsp;Mynd.ai&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mynd#NYSE">MYND</a>), though it trails well behind the 2.9 for&nbsp;Fenbi&nbsp;(2469.HK), both providers of educational products and services for young children. No matter how you slice it, investors are still relatively cautious on Chinese education stocks in general after many got burned from the earlier crackdown.
iHuman&rsquo;s report wasn&rsquo;t all downbeat and did include a few more positive metrics. While its paying users most likely fell during the quarter, the company&rsquo;s monthly average users (MAUs) rose by a strong 25% to 26.4 million year-on-year. That marked an acceleration from the 14% gain for the metric in last year&rsquo;s fourth quarter, and probably shows that parents still want this kind of service for their young children, even if they are less willing to pay for it.
The company&rsquo;s gross margin also improved to 71.5% from 70.0% a year earlier and 71.2% in the previous quarter. Such margins are all quite high, and the improving trend shows iHuman is becoming more efficient in its core business of providing educational products and services for children. The main factor undermining its profit was a 17% increase in its operating expenses, led by a 36% rise in its sales and marketing activities as it rolled out more promotions and tried to build up its international business.
At the end of the day, iHuman is doing its best to navigate a tricky China market where the threat of crackdowns is always a possibility and consumers are increasingly cautious as the economy slows. There&rsquo;s not much it can do about the regulatory risk. But it will need to show some more concrete progress in the international expansion, and also return to revenue and paid user growth before investors might consider returning to its stock.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Penny Stocks

General

MYND

iHuman Misses China Stock Rally As Investors Fret Over Stumbling Growth

Chinese stocks <a href="https://www.benzinga.com/markets/asia/24/07/39570865/tiktok-and-social-media-influencers-drive-gen-zs-shopping-habits-in-asia-pacific-report">improved on Monday </a>after data on June manufacturing came in better than forecast and reached its highest point in three years.
The CSI 300 Index, which follows China&#8217;s largest companies listed in Shanghai and Shenzhen, rise 0.5% on Monday to come out of a four-month low and build on Friday&#8217;s 2% gain, the South China Morning Post <a href="https://www.scmp.com/business/markets/article/3268734/chinas-stock-index-jumps-3-year-high-after-junes-factory-data-surpassed-expectations">reported</a>. Hong Kong's financial markets were closed for a holiday.
Japan's Nikkei 225 edged up 0.1%, while South Korea's Kospi gained 0.2% yet Australia's S&amp;P/ASX 200 declined 0.2%.
The Caixin/S&amp;P Global manufacturing purchasing managers' index (PMI) improved from 51.7 in May to to 51.8 in June to set the fastest pace since May 2021 and beat analysts' forecasts of 51.2, according to the Morning Post.
The upbeat private data quelled concerns following&nbsp;official PMI data, which came in at 49.5 in June and was unchanged from May, according to National Bureau of Statistics data released on Sunday. A reading above 50 indicates expansion of activity, while a reading below suggests contraction.
Also Read:<a href="https://www.benzinga.com/markets/asia/24/07/39567244/chinas-central-bank-could-embrace-federal-reserve-model-in-a-major-reform-under-governor-pan-gongshe"> China&#8217;s Central Bank Could Embrace Federal Reserve Model In A Major Reform Under Governor Pan Gongsheng</a>
Property developer stocks went up in mainland China on hopes that a positive economic climate would entice buyers back to the real estate market. 
Poly Developments and Holdings Group Co., Ltd. jumped 6.2% to 9.31 yuan and China Vanke Co. Ltd. rallied 5.2% to 7.29 yuan. Chip designer Cambricon Technologies rose 3.1% to 204.84 yuan and electronics product maker Foxconn Industrial Internet (601138.SS) ticked up 2.2% to 28 yuan.
Renewed market intervention efforts from "the national team" as indicated by a surge in net assets of the nation's biggest exchange-traded funds has also buoyed sentiment.
A total of 51.1 billion yuan (US$7 billion) came into the market through CSI 300 ETF in the week ended June 28 after the Shanghai Composite Index slipped below the 3,000 psychological level, Morning Post reported , as cited in state-run Securities Times on Monday, Morning Post reported.
Price Action: Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) rose 0.24% to $72.17, Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) gained 0.47% to $81.89 and NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) improved 4.84 % to $4.36.
KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) gained 0.43% as iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) rose 0.62% and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) went up 0.54%.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/news/24/06/39543115/chinese-automakers-to-grab-33-of-global-market-share-by-2030-even-after-us-and-eu-tariffs-report">Chinese Automakers To Grab 33% Of Global Market Share By 2030 Even After US And EU Tariffs: Report</a></li>
</ul>

Emerging Markets

BIDU

Chinese Markets Pick Up Following Positive Data On Manufacturing

A JPMorgan Chase &amp; Co analyst, who was previously bearish on China&#8217;s tech sector, is now predicting a significant increase in stock prices.
What Happened: Alex Yao, the co-head of Asia TMT research at JPMorgan, has made a remarkable shift in his stance on China&#8217;s tech sector. Yao, who was once skeptical about the sector&#8217;s potential, is now forecasting a 20-25% increase in stock prices, <a href="https://www.bloomberg.com/news/articles/2024-06-19/jpmorgan-analyst-known-for-bearish-call-touts-china-tech-stocks">reported</a> Bloomberg on Wednesday.
Yao attributes this potential growth to an improved cost structure and less aggressive competition. He also emphasizes the significance of macroeconomic developments in stabilizing the sector&#8217;s share price trend.
This change in tone from a notable skeptic like Yao is indicative of a broader shift in sentiment toward China&#8217;s tech market, which has been underperforming for several years. Major players like Tencent Holdings Ltd have led this resurgence, coinciding with Beijing&#8217;s shift from stringent regulatory measures to policies aimed at boosting the economy.
Despite uneven growth in China, signs of economic recovery such as improving consumption and robust exports are providing some reassurance to investors. However, concerns remain about the potential impact of geopolitical risks and a growing price war in China&#8217;s emerging artificial intelligence market.
&#8220;The top-down view is that if macro recovers, then the e-commerce names will benefit from the cyclical recovery of consumption," Yao said. "This time the theme is China macro stabilization."
Yao&#8217;s previous bearish call in 2022, which included downgrading 28 firms like Tencent and Alibaba Group Holding Ltd., had a significant impact on investor sentiment. 
See Also: <a href="https://www.benzinga.com/news/24/06/39351335/us-ally-slams-chinas-claims-of-vessel-collision-as-deceptive-and-misleading-amid-rising-south-china?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">US Ally Slams China&#8217;s Claims Of Vessel Collision As &#8216;Deceptive And Misleading&#8217; Amid Rising South China Sea Tensions</a>
Despite lifting some ratings shortly after, the term &#8220;uninvestable&#8221; became closely linked with his analysis. Now, with a more optimistic outlook, Yao believes that sustained earnings growth could reward investors in the long run.
"If the sector is able to grow their earnings at, let's say, teens or even twenties, over the long run, I think people should reward those corporates for the earnings sustainability," Yao said.
Investors can benefit from China&#8217;s growth by diversifying their portfolios with ETFs that offer exposure to the country&#8217;s development. ETFs such as KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) provide diversified access to China&#8217;s expanding internet sector and large-cap companies, presenting attractive investment opportunities.
Why It Matters: The shift in Yao&#8217;s outlook comes at a time when Nasdaq is <a href="https://www.benzinga.com/markets/equities/24/06/39404653/nasdaq-intensifies-scrutiny-on-small-chinese-and-hong-kong-ipos-following-2022s-extreme-volatili">intensifying scrutiny on small Chinese and Hong Kong IPOs</a> to prevent the volatility experienced in 2022. This increased oversight aims to ensure the stability of these listings, which could impact investor confidence in the broader Chinese tech sector.
Additionally, JPMorgan Asia Pacific CEO Sjoerd Leenart <a href="https://www.benzinga.com/markets/asia/24/05/38980045/you-cant-ignore-says-jpmorgan-apac-ceo-highlighting-beijings-significance-in-global-economy-you-have">recently underscored China&#8217;s critical role</a> in the global economy, highlighting that the country accounts for 19% of global GDP and 48% of Asia&#8217;s GDP. This reinforces the importance of China&#8217;s economic performance on a global scale.
Moreover, the <a href="https://www.benzinga.com/markets/asia/24/06/39399137/china-to-reform-shanghais-nasdaq-style-star-market-to-align-more-with-xi-jinpings-new-productive-for">China Securities Regulatory Commission</a> has introduced reforms to Shanghai&#8217;s Nasdaq-style Star Market to align with President Xi Jinping&#8216;s &#8220;new productive force&#8221; initiative. These measures aim to enhance the quality of listed companies and promote technological innovation, which could further bolster the tech sector.
A report from the Centre for Economics and Business Research projects that China could become <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/36930207/china-could-leapfrog-us-as-top-economy-by-2037-but-another-asian-powerhouse-could-r">the world&#8217;s top economy</a> by gross domestic product, or GDP, by 2037. This potential growth underscores the long-term significance of China&#8217;s tech sector in the global market.
Read Next: <a href="https://www.benzinga.com/markets/asia/24/06/39362931/why-alibaba-stock-could-rally-golden-cross-in-sight?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Why Alibaba Stock Could Rally: Golden Cross In Sight</a>
Photo courtesy: Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

JPMorgan Analyst Turns Bullish On Chinese Tech Stocks Amid Improving Economic Signs, Sees Up To 25% Surge: 'China Macro Stabilization' The Key

Pan Gongsheng, governor of the Chinese central bank, People&#8217;s Bank of China, dismissed the idea that its bond trading is a form of massive monetary easing.
What Happened: Gongsheng clarified that the bond trading would be a liquidity management tool involving both buying and selling, the Wall Street Journal <a href="https://www.wsj.com/economy/central-banking/bond-trading-by-chinas-pboc-wouldnt-be-quantitative-easing-gov-says-01bee8f1?mod=latest_headlines">reported</a> on Wednesday. The PBOC and the finance ministry are exploring ways to incorporate treasury bond trading into their policy toolkit.
He emphasized that this practice would not be equivalent to quantitative easing, a strategy where monetary authorities acquire assets like government bonds to reduce yields after exhausting traditional policy tools.
The PBOC&#8217;s bond trading will be a gradual process, and the issuance pace, maturity structure, and custody mechanism for China&#8217;s treasury bonds will also need to be optimized, Gongsheng added.
Speculation about the PBOC&#8217;s bond trading activities has been fueled by a speech from President Xi Jinping in October. The PBOC has generally avoided direct trading of government bonds in secondary markets, opting instead for liquidity injections through various lending facilities.
Economists note that while there is still room to reduce reserve requirements, the scope has narrowed, making bond trading a more frequent necessity for the PBOC.
ETFs offer investors a convenient and diversified way to tap into China's growth potential, providing exposure to key sectors and market segments.
Some notable China ETFs to watch include KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), KraneShares Bosera MSCI China A 50 Connect Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBA#NYSE">KBA</a>), iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>).
See Also: <a href="https://www.benzinga.com/markets/equities/24/05/39113219/nio-power-secures-207m-investment-bolstering-chinas-charging-infrastructure-expansion?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nio Power Secures $207M Investment, Bolstering China&#8217;s Charging Infrastructure Expansion</a>
Why It Matters: The PBOC&#8217;s bond trading strategy comes at a time of significant economic uncertainty in China. On Monday, the PBOC decided to keep its <a href="https://www.benzinga.com/markets/asia/24/06/39349591/china-keeps-interest-rates-unchanged-amid-economic-uncertainty-to-stabilize-the-yuan-and-manage-liqu">key interest rate</a> unchanged for the tenth consecutive month to stabilize the yuan and manage liquidity. This decision aligns with the forecast in a Bloomberg survey and reflects the central bank&#8217;s cautious approach amid economic challenges.
Additionally, <a href="https://www.benzinga.com/markets/asia/24/06/39360535/chinas-housing-funk-deepens-as-manufacturing-falls-short">China&#8217;s housing market</a> has been struggling, with manufacturing also falling short of expectations, deepening economic concerns.
Earlier in the month, Chinese property stocks tumbled into a bear market <a href="https://www.benzinga.com/news/global/24/06/39217213/china-property-stocks-tumble-into-bear-market-despite-government-efforts-to-stabilize-sector">despite government efforts</a> to stabilize the sector. This highlights the ongoing challenges faced by the Chinese economy.
In February, China experienced a <a href="https://www.benzinga.com/startups/24/02/37200380/chinese-president-xi-jinping-grappling-with-7-trillion-downturn-as-countrys-debt-levels-soar-real-es">stock market downturn of $7 trillion.</a> This occurred amid soaring debt levels and significant market pullbacks from their 2021 peaks.
Photo courtesy: Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Bonds

Economics

Chinese Central Bank Governor Dismisses Bond Trading As Monetary Easing Tool, Economists Note It Is A More Frequent Necessity

China&#8217;s housing market continued to decline in May as manufacturing <a href="https://www.benzinga.com/markets/asia/24/01/36450606/china-housing-shock-property-shares-under-renewed-pressure-after-weak-data">disappointed expectations.</a>
The real estate sector saw declines in investment and home prices, while industrial output gained 5.6% in May, according to the National Bureau of Statistics, the latter slowing from April and missing Bloomberg projections.
Retail sales did better than expected, but China&#8217;s consumers are still reluctant to return to pre-pandemic spending habits, Bloomberg reported.
This lackluster scenario may prompt Beijing to spur consumer demand in an effort to meet 5% growth targets, possibly through increased government spending and central-bank efforts to put a floor under housing markets and boost lending.
The People's Bank of China on Monday maintained a key interest rate at the same level for the 10th straight month as it tries to support the yuan, which is getting squeezed by the Federal Reserve&#8217;s intent to keep rates elevated for some time, <a href="https://www.bloomberg.com/news/articles/2024-06-17/china-industrial-output-cools-retail-spending-exceeds-forecasts?srnd=homepage-americas&amp;sref=TBDibEcD">according</a> to Bloomberg.
Also read: <a href="https://www.benzinga.com/news/global/24/06/39217213/china-property-stocks-tumble-into-bear-market-despite-government-efforts-to-stabilize-sector">China Property Stocks Tumble Into Bear Market Despite Government Efforts To Stabilize Sector</a>
China&#8217;s retail sales picked up at 3.7% in May to accelerate for the first time since November, but that is far below the typical monthly forward pace of 8% before the pandemic.
In late May, China relaxed mortgage rules and urged local governments to purchase unsold homes as declining housing demand and a weakening foreign trade environment hurt business confidence, prompting companies to consider moving production overseas.
U.S.-traded China exchange-traded funds remained relatively flat at the time of publication Monday.
Krane Shares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) slipped 0.03%, while iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) edged up 0.35% and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) gained 0.63%.
Read now: <a href="https://www.benzinga.com/markets/asia/24/02/37219435/chinese-stocks-decline-despite-aggressive-banking-move-to-revitalize-troubled-property-sector">Chinese Stocks Decline Despite Aggressive Banking Move To Revitalize Troubled Property Sector</a>
Photo: Shutterstock

China's Housing Funk Deepens As Manufacturing Falls Short

In a bid to stabilize the yuan and manage liquidity, the People&#8217;s Bank of China has decided to keep its key interest rate unchanged for the tenth consecutive month.
What Happened: The PBOC has maintained the one-year policy loan rate, also known as the medium-term lending facility rate, at 2.5% for the tenth month in a row on Monday, <a href="https://www.bloomberg.com/news/articles/2024-06-17/china-leaves-key-rate-unchanged-on-currency-pressure-liquidity">reported</a> Bloomberg. 
This decision aligns with the forecast in a Bloomberg survey. The bank also withdrew a net 55 billion yuan ($7.6 billion) from the banking system to prevent excessive liquidity.
Despite a fragile recovery in the world&#8217;s second-largest economy, the PBOC has chosen to prioritize currency stability over reducing borrowing costs. This cautious approach may dampen market expectations for monetary easing, which have kept local bond yields near a two-decade low.
Despite growing calls for a rate cut, the PBOC has refrained from implementing one, aiming to maintain the yuan as a strong currency. The recent weakening of the onshore yuan, attributed to a significant U.S.-China rate gap, has not prompted the PBOC to alter its stance, according to the report.
See Also: <a href="https://www.benzinga.com/news/24/06/39326723/chinas-top-memory-chip-maker-ymtc-defies-us-trade-restrictions-sees-soaring-demand-on-the-back-of-go?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">China&#8217;s Top Memory Chip Maker YMTC Defies US Trade Restrictions, Sees Soaring Demand On The Back Of Government Projects: Report</a>
Why It Matters: Market liquidity, coupled with cheaper borrowing costs for popular debt instruments, has also influenced the PBOC&#8217;s decision. The rate on one-year AAA-rated negotiable certificates of deposits has dropped to approximately 2%, compared to the MLF&#8217;s 2.5%. 
This has led to an influx of cash into the financial system from savings to wealth management products and other higher-yielding assets.
China&#8217;s economy has experienced a mixed recovery, with higher-than-anticipated exports in May and lower-than-expected inflation. However, official surveys indicate a surprising contraction in factory activity last month, and the long-standing <a href="https://www.benzinga.com/news/global/24/06/39217213/china-property-stocks-tumble-into-bear-market-despite-government-efforts-to-stabilize-sector">property slump continues</a> despite increased government bond sales to boost infrastructure spending.
The decision by the PBOC to maintain its key rate comes at a time when China is under increasing international scrutiny. The country&#8217;s industrial capacity and its support for Russia&#8217;s war efforts were key topics at the recent <a href="https://www.benzinga.com/news/24/06/39329281/g7-summit-wraps-up-china-takes-center-stage-pope-francis-makes-historic-visit">G7 summit in Italy</a>, with Western governments expressing concerns about China&#8217;s policies. 
ETFs provide investors with a convenient and diversified approach to capitalize on China&#8217;s growth potential, offering exposure to key sectors and market segments. Notable China ETFs to watch include KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), KraneShares Bosera MSCI China A 50 Connect Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBA#NYSE">KBA</a>), iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>).
Read Next: <a href="https://www.benzinga.com/government/24/06/39319275/no-income-tax-yes-to-high-import-tariffs-trump-floats-idea-to-ceos-gop-lawmakers?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">No Income Tax, Yes To High Import Tariffs? Trump Floats Idea To CEOs, GOP Lawmakers</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

$BTC

China Keeps Interest Rates Unchanged Amid Economic Uncertainty To Stabilize The Yuan And Manage Liquidity

Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) is prioritizing long-term growth over near-term profits. However, analysts are warning that the e-commerce giant&#8217;s efforts might be hampered by fierce competition.
What Happened: Alibaba&#8217;s market dominance has been significantly eroded due to increasing competition and a lack of focus on technological and pricing strategies, <a href="https://www.wsj.com/tech/alibabas-new-e-commerce-strategy-faces-tough-competition-243356a6?mod=latest_headlines">reported</a> The Wall Street Journal on Tuesday.
Despite early signs of success, analysts are concerned that the competition could prevent Alibaba from regaining its former market dominance, according to the report. The company&#8217;s market share has fallen from an impressive 83% when it went public in 2014 to 39.5% currently, as per data from market researcher Insider Intelligence.
Alibaba&#8217;s Chairman, Joe Tsai, admitted that the company&#8217;s tepid approach to enhancing technology and pricing strategies had contributed to its loss of market share. The company is now focused on competitive pricing and technology upgrades to improve user interface. 
&#8220;To some extent, we shot ourselves in the foot by not truly focusing on creating value for users,"&nbsp;Tsai said in an interview with&nbsp;Nicolai Tangen, chief executive of Norges Bank Investment Management.
See Also: <a href="https://www.benzinga.com/news/24/06/39237023/gamestop-stock-falls-39-after-roaring-kitty-livestream-disappoints-he-had-3yrs-to-prepare-hard-to-th?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">GameStop Stock Falls 39% After Roaring Kitty Livestream Disappoints: &#8216;He Had 3 Years To Prepare,&#8217; &#8216;Hard T</a>
However, analysts at Nomura, Jialong Shi and Rachel Guo, have revised some of their earnings estimates for the company, warning that the new strategy may put profitability under pressure.
"Investors may remain doubtful about its (Alibaba's) ability to deliver a turnaround of its China e-commerce business after having lost significant market share in the past few years," analysts Shi and Guo said.
Despite the challenges, some of Alibaba&#8217;s growth initiatives are showing early signs of progress. In the fourth quarter, revenue from Alibaba&#8217;s China e-commerce unit, Taobao &amp; Tmall Group, increased by 4%, compared to 2% growth in the previous quarter.
"Basically, we are back in growth. That's a very important message,"&nbsp;said Toby Xu, Alibaba's CFO, after the company released earnings in May.
Investors can capitalize on China's developments by diversifying their portfolios with ETFs that provide exposure to the country's growth trajectory. ETFs like&nbsp;KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), iShares MSCI China ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and&nbsp;iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) offer diversified exposure to China&#8217;s booming internet sector and large-cap companies, presenting compelling investment opportunities.
Why It Matters: Alibaba&#8217;s new e-commerce strategy comes at a time when the company is making significant strides in other areas. For instance, the company recently <a href="https://www.benzinga.com/markets/asia/24/06/39233412/alibabas-new-ai-model-receives-positive-market-outlook-retail-investors-in-china-take-note">launched a new AI model</a>, Qwen 2, which received a positive market outlook. This development could potentially help Alibaba in its efforts to enhance user experience and stay competitive in the e-commerce market.
Moreover, Alibaba&#8217;s new e-commerce strategy aligns with its projected $60 billion GMV for 2024. This projection, announced in early June, is part of the company&#8217;s plan to achieve <a href="https://www.benzinga.com/news/24/06/39228656/alibaba-projects-60b-gmv-for-2024-plans-new-business-model-breakthroughs">new business model breakthroughs</a> and revitalize its B2B platform Alibaba.com.
Meanwhile, Alibaba&#8217;s competitors, such as Pinduoduo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) and JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), are also making significant strides in the e-commerce market. Pinduoduo&#8217;s first-quarter revenue more than doubled to 86.8 billion yuan ($11.98 billion), accounting for around 40% of Alibaba&#8217;s group revenue, according to the report.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39241180/trump-could-face-life-incarceration-if-defeated-in-2024-election-former-federal-prosecutor-warns?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Could Face Life Incarceration If Defeated In 2024 Election, Former Federal Prosecutor Warns: &#8216;He Has An Appreciable Chance Of Dying In Prison&#8217;</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Alibaba's New E-Commerce Strategy Prioritizes Growth Over Profitability: 'To Some Extent, We Shot Ourselves In The Foot,' Analyst Warns

Chinese electric vehicle startup&nbsp;NIO, Inc&nbsp;(NYSE:&nbsp;NIO) reported fiscal first-quarter 2024 revenue of 9.91 billion yuan ($1.37 billion), down by 7.2% year-over-year and down by 42.1% from the previous quarter. Analysts, on average, estimated revenue of <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39200936/nio-inc-reports-unaudited-first-quarter-2024-financial-results" rel="noreferrer noopener">$1.48 billion&nbsp;for the quarter</a>.
Excluding share-based compensation expenses, the company reported an adjusted loss per share/ADS of (2.39) yuan or ($0.33) compared to (2.51) yuan in the year-ago quarter and (2.81) yuan in the fourth quarter of 2023. Analysts had called for a&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">loss of $(0.31) per share</a>. The stock price declined after the print.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39142524/whats-going-on-with-chinese-ev-stocks-nio-xpeng-li-auto-monday" rel="noreferrer noopener">Nio, XPeng, and Li Auto See Major Sales Growth in May, Attracting Investor Interest</a>
Vehicle deliveries were 30,053 in the quarter, down by 3.2% Y/Y and down by 39.9% Q/Q. Consequently, vehicle revenue were down by 9.1% Y/Y and down by 45.7% Q/Q.
Nio delivered 15,620 vehicles in April 2024 and 20,544 vehicles in May 2024. As of May-end, the cumulative number of NIO vehicle deliveries reached 515,811.
Gross margin for the quarter expanded to 4.9%, up from the year ago's 1.5% and down from the previous quarter's 7.5%, as vehicle margin expanded from 5.1% a year ago to 9.2%.&nbsp;
Cash and cash equivalents, restricted cash, short-term investment, and long-term time deposits were 45.3 billion yuan ($6.3 billion) as of March 31, 2024.
NIO's Forward Outlook: The company guided deliveries of 54,000 – 56,000 units for the second quarter, or 129.6% – 138.1% Y/Y.&nbsp;
The company expects <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">second quarter revenue</a> of $2.297 billion – $2.373 billion, representing 89.1% – 95.3% Y/Y growth.
Nio stock lost over 33% in the last 12 months. Investors can gain exposure to NIO via&nbsp;iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEMG#NYSE">IEMG</a>) and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>).
Price Action:&nbsp;NIO shares traded lower by 5.88% at $4.96 premarket at the last check Thursday.
Also Read: <a href="https://www.benzinga.com/markets/asia/24/06/39183869/nio-byd-receive-beijings-approval-for-autonomous-driving-tests-amid-teslas-fsd-launch-aspirations-in" target="_blank" rel="noreferrer noopener">NIO, BYD Receive Beijing&#8217;s Approval For Autonomous Driving Tests Amid Tesla&#8217;s FSD Launch Aspirations In China</a>
Photo by Sundry Photography on Shutterstock

Earnings

Guidance

Movers

IEMG

EV Maker Nio's Q1 Deliveries Fall 40% From Q4, Stock Slides

Chinese technology stocks are facing a significant downturn, nearing a technical correction due to profit-taking and geopolitical uncertainties.
What Happened: The Hang Seng Tech Index, which tracks Chinese tech stocks listed in Hong Kong, fell by as much as 0.9% on Friday. This decline has pushed the index down more than 10% from its May 20 high, indicating a technical correction, <a href="https://www.bloomberg.com/news/articles/2024-05-31/chinese-technology-stocks-tumble-toward-technical-correction">according</a> to Bloomberg.
Major contributors to the decline include Meituan. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MPNGF#OTC">MPNGF</a>) and Lenovo Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LNVGF#OTC">LNVGF</a>) The sector had previously seen a rally in April, driven by optimism in earnings.
However, recent price cuts to AI services by Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) have raised concerns about profitability. Additionally, ongoing trade tensions with the Group of Seven nations and profit-taking activities have further pressured the sector.
See Also: <a href="https://www.benzinga.com/news/24/05/39033912/amid-china-threat-taiwan-faces-internal-crisis-as-thousands-protest-in-taipei-over-controversial-leg?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amid China Threat, Taiwan Faces Internal Crisis As Thousands Protest In Taipei Over Controversial Legislative Push</a>
Despite these challenges, Chinese tech companies have been actively repurchasing shares this year, using funds from convertible bond issuances or their own resources.
Why It Matters: The decline in Chinese tech stocks is not occurring in isolation. Multiple geopolitical factors are contributing to this downturn. On Friday, China tightened export controls on aviation and aerospace equipment, citing national security concerns. This move came amid <a href="https://www.benzinga.com/news/24/05/39104542/china-cites-national-security-as-it-tightens-export-controls-on-aviation-and-aerospace-equipment-ami">ongoing restrictions from the U.S.</a> on Chinese technology firms.
Earlier in the week, analysts highlighted election risks and potential tariffs impacting companies like PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) and Alibaba Group. These geopolitical issues have led many to assign <a href="https://www.benzinga.com/markets/equities/24/05/39033729/election-risks-and-potential-tariffs-among-other-geo-political-issues-impacting-temus-parent-pdd">zero or even negative</a> value to these companies.
Additionally, China has been ramping up its efforts to bolster its semiconductor industry. On Monday, the country launched a $47.5 billion state fund to support its semiconductor sector amid the <a href="https://www.benzinga.com/markets/asia/24/05/39025251/china-launches-47-5b-state-fund-to-bolster-semiconductor-industry-amid-global-chip-war">global chip war</a>. This move aims to reduce reliance on foreign technology, particularly from the U.S. and its allies.
Moreover, China is setting up its largest semiconductor fund to nurture <a href="https://www.benzinga.com/markets/asia/24/05/39029234/china-a-lost-market-for-nvidia-amd-the-asian-superpower-reportedly-sets-up-biggest-semiconductor-fun">advanced chipmaking capabilities</a>, potentially making the market less accessible for U.S. companies like Nvidia and Advanced Micro Devices.
Investors can capitalize on China&#8217;s developments by diversifying their portfolios with ETFs that provide exposure to the country&#8217;s growth trajectory. ETFs like KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) offer diversified exposure to China's booming internet sector and large-cap companies, presenting compelling investment opportunities.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/39036624/whats-draining-tesla-stock-premarket-today?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">What&#8217;s Draining Tesla Stock Premarket Today?</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Alibaba, Tencent Price Cuts Put Chill On China Tech: Profit Squeeze, Trade Tensions Push Stocks Near Correction Zone

While Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) may be among those U.S. chipmakers losing sleep over <a href="https://www.benzinga.com/markets/asia/23/10/35507290/nvidia-on-verge-of-losing-5b-china-revenue-in-2024-as-us-stricter-export-ban-returns-to-haunt-the-ai">contraction in China revenue, </a>a new report said on Monday that China could be looking to beef up its domestic semiconductor industry.
What Happened: China set up its largest-ever semiconductor investment fund with Big Fund III, having collected 344 billion yuan (about $48 billion), a Bloomberg report <a href="https://www.bloomberg.com/news/articles/2024-05-27/china-creates-47-5-billion-chip-fund-to-fuel-self-resilience">said. </a>The financing came from the Chinese central government and various state-owned banks and enterprises, the report said citing Tianyancha, an online platform that aggregates official company registration information.
The fund was reportedly incorporated on May 24 in a bid to sidestep the U.S. government&#8217;s China chip ban and nurture its own semiconductor industry. The U.S. has also been influencing its allies, including the Netherlands, Germany, South Korea and Japan, to tow in line with its restrictive policy toward China.
China's Ministry of Finance is the largest shareholder in the fund, with investment firms owned by local governments in Shenzhen and Beijing also making sizeable contributions, the report said. The Shenzhen government has already been supporting chipmakers in the Guangdong province to supply semiconductor components to Huawei, which has been stymied by the U.S. ban, it added.
The national chip fund was set up a decade ago with 100 billion yuan in investible capital and the size of the fund was more than doubled with the Big Fund II in 2019 amid the standoff between the U.S. and China when Donald Trump was president.
China has long pursued indigenization of industrial production and rolled out a program named &#8220;Made in China 2025,&#8221; in 2015 that envisages development in domestic biotech, electric vehicles and semiconductor industries.
See Also: <a href="https://www.benzinga.com/money/best-semiconductor-stocks">Best Semiconductor Stocks</a>
Nvidia, AMD At Disadvantage? The Huawei 5G-enabled smartphone unveiled in August 2023 had a processor made by China&#8217;s SMIC, Bloomberg said, citing teardown of the phone by TechInsights. This has cast doubts regarding the viability of the U.S. plan to curb China&#8217;s prowess by restricting imports to the country by Nvidia, which manufactures high-performance AI accelerators used to train AI models, and chip equipment made by ASML Holdings NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>).
The report said the U.S. ban forced China to increase investments in less-advanced chipmaking capabilities, with these chips referred to as legacy chips. China is now looking to build a network of chip companies around Huawei for technological breakthroughs in advanced chip development and manufacturing, it added.
&#8220;The newly created Big Fund III may provide funding for those projects,&#8221; the report said.
A Reuters report said last week that H20, the most-advanced AI chip Nvidia produced exclusively for China to sidestep the U.S. ban, got off to a weak start due to a supply glut.<a href="https://www.benzinga.com/markets/asia/24/05/38998354/nvidia-preparing-for-the-worst-as-the-chipmaker-reportedly-cuts-prices-of-its-flagship-ai-chips-in-c"> The U.S. company&#8217;s chips were priced at a discount of about 10% </a>to Huawei&#8217;s Ascend 910B in some markets, it said.
The iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) ended Friday&#8217;s session down 0.18% to $44.97 and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) jumped 1.98% to $238.56, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next: <a href="https://www.benzinga.com/markets/asia/24/05/39026678/china-slams-us-and-other-g7-countries-for-hyping-up-trade-overcapacity-attempts-to-set-obstacles-and">China Slams US And Other G7 Countries For Hyping Up Trade Overcapacity: &#8216;Attempts To Set Obstacles And Limitations&#8217;</a>
Photo: <a href="https://www.shutterstock.com/g/Nazrul+Iznan">Nazrul Iznan</a> via Shutterstock

Government

Regulations

Financing

AMAT

ASML

NVDA

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

China A Lost Market For Nvidia, AMD? The Asian Superpower Reportedly Sets Up Biggest Semiconductor Fund To Nurture Advanced Chipmaking

JPMorgan has expressed optimism about the future of China&#8217;s stock market and real estate sector, despite recent challenges.
What Happened: Wendy Liu, Chief Asia and China Equity Strategist at JPMorgan, has a positive outlook on China&#8217;s stock market, <a href="https://www.cnbc.com/2024/05/24/jpmorgan-is-positive-on-china-stocks-and-constructive-on-its-property-sector-.html">reported</a> CNBC. 
Liu, speaking at the JPMorgan Global China summit, anticipates a pause in the recent stock rally but is confident that earnings will improve in 2024 compared to 2023.
She also noted that the Chinese stock market is still one of the cheapest in the Asia Pacific region, despite its underperformance in recent years. 
The CSI300 equity benchmark hit an eight-month high on Monday and is up 4.97% so far this year at 3,601.48. Liu expects the index to reach 3,900 by the end of the year.
Regarding the real estate sector, Liu described it as being at an &#8220;inflection point&#8221; and stated that JPMorgan is &#8220;constructive&#8221; on the sector. Last week, Chinese authorities pledged new support for state-owned enterprises to enable them to buy unsold apartments.
See Also: <a href="https://www.benzinga.com/markets/asia/24/05/38928610/china-strikes-back-at-bidens-tariffs-with-new-investigation-into-plastics-imports-6-stocks-caught-in?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">China Strikes Back At Biden&#8217;s Tariffs With New Investigation Into Plastics Imports: 6 Stocks Caught In Crossfire</a>
Why It Matters: JPMorgan&#8217;s positive outlook on China&#8217;s financial markets comes at a crucial time when the country is facing various economic challenges.
Despite the ongoing <a href="https://www.benzinga.com/markets/asia/24/05/38928610/china-strikes-back-at-bidens-tariffs-with-new-investigation-into-plastics-imports-6-stocks-caught-in">trade tensions with the U.S.</a>, China is making significant strides in its tech and semiconductor industries. 
Amid these developments, JPMorgan&#8217;s positive assessment of China&#8217;s financial markets signals a potential turnaround for the country&#8217;s economy, bolstered by <a href="https://www.benzinga.com/markets/asia/24/05/38980045/you-cant-ignore-says-jpmorgan-apac-ceo-highlighting-beijings-significance-in-global-economy-you-have">Beijing&#8217;s growing significance</a> in the global economy.
Amid these developments,&nbsp;Goldman Sachs&nbsp;has raised its&nbsp;<a href="https://www.benzinga.com/markets/asia/24/05/38941394/goldman-sachs-raises-forecast-for-chinese-market-stock-ideas-to-bet-on-recovery-momentum" target="_blank" rel="noreferrer noopener">forecast for the Chinese market</a>, offering stock ideas to bet on recovery momentum.
The MSCI China Index, as tracked by the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), has risen 31% from its lows in late January and 19% in the past month, outperforming most developed and emerging market equity indices.
Read Next: <a href="https://www.benzinga.com/markets/asia/24/05/38956760/tesla-killer-lands-in-europe-byds-seagull-ev-poised-to-disrupt-with-sub-21k-price-tag-even-after-tou?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Killer Lands In Europe: BYD&#8217;s Seagull EV Poised To Disrupt With Sub-$21K Price Tag Even After Tough Tariffs</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

JPMorgan Bullish On China Stocks, Property Sector Despite Recent Struggles

In a bid to fund share repurchases, Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) has announced a $4.5 billion convertible bond issue. This move comes amid increasing competition and a sluggish Chinese economic recovery.
What Happened: Alibaba plans to issue convertible senior notes maturing in seven years with a coupon of 0.5%, <a href="https://www.wsj.com/business/alibaba-to-raise-4-5-billion-through-convertible-bonds-to-fund-buybacks-33d25654?mod=latest_headlines">reported</a> The Wall Street Journal. The deal size could reach $5.0 billion if the option to purchase additional notes is exercised in full.
The notes can be exchanged for shares at an initial conversion price of about $105.04 per American depositary share, a 30% premium over Thursday&#8217;s closing price of $80.80. Alibaba plans to repurchase about 14.8 million ADS.
Fitch Ratings has assigned an A+ rating to the notes, expecting Alibaba to spend $11 billion to $13 billion on share buybacks over the next few fiscal years.
See Also: <a href="https://www.benzinga.com/markets/asia/24/05/38941394/goldman-sachs-raises-forecast-for-chinese-market-stock-ideas-to-bet-on-recovery-momentum?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Goldman Sachs Raises Forecast For Chinese Market: Stock Ideas To Bet On Recovery Momentum</a>
Alibaba&#8217;s buyback pace has accelerated as it faces mounting e-commerce competition and a sluggish Chinese economic recovery from the pandemic. The company spent a record $4.8 billion buying back its shares in the first three months of 2024 when it touched multiyear lows.
Why It Matters: Alibaba&#8217;s decision to raise funds for share buybacks comes at a time when the company is facing intense competition in the e-commerce sector. Its rival, JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), also recently raised $2.0 billion through a five-year convertible bond for share repurchases. This move by Alibaba is indicative of <a href="https://www.benzinga.com/news/24/05/38992771/alibaba-rival-pdd-has-major-upside-with-new-market-openings-and-rising-adoption-analysts">the fierce competition</a> in the Chinese e-commerce market.
Despite the challenges, Alibaba&#8217;s rival Pinduoduo Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) has been <a href="https://www.benzinga.com/news/earnings/24/05/38964624/alibaba-rival-pdds-explosive-growth-continues-revenue-more-than-doubles">experiencing explosive growth</a>, with its revenue more than doubling. This growth has led to analysts predicting a major upside for Pinduoduo with new market openings and rising adoption.
On the other hand, Alibaba has been strengthening <a href="https://www.benzinga.com/markets/equities/24/05/38967742/louis-vuitton-and-alibaba-strengthen-ties-to-boost-ai-powered-luxury-retail">ties with luxury brand</a> Louis Vuitton to boost AI-powered luxury retail, indicating its commitment to innovation and growth despite the economic challenges.
Amid these developments, Goldman Sachs has raised its <a href="https://www.benzinga.com/markets/asia/24/05/38941394/goldman-sachs-raises-forecast-for-chinese-market-stock-ideas-to-bet-on-recovery-momentum">forecast for the Chinese market</a>, offering stock ideas to bet on recovery momentum. 
The MSCI China Index, as tracked by the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), has risen 31% from its lows in late January and 19% in the past month, outperforming most developed and emerging market equity indices.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38944384/3-stocks-to-watch-as-copper-surges-to-record-highs-something-is-cooking-in-china?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">3 Stocks To Watch As Copper Surges To Record Highs: &#8216;Something Is Cooking In China&#8217;</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Alibaba To Raise $4.5B Through Convertible Bonds For Share Buybacks Amid Fierce Competition, Slow Recovery

Goldman Sachs has adopted a more optimistic stance on Chinese equities, increasing price targets on domestic indexes and launching a 40-stock China Recovery Portfolio.
Kinger Lau, CFA, and his team at Goldman Sachs see a &#8220;tail-risk compression trade&#8221; in progress, following a substantial rally in Chinese stocks.
The MSCI China Index, as tracked by the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), has risen 31% from its lows in late January and 19% in the past month, outperforming most developed and emerging market equity indices. 
According to Goldman Sachs&#8217; historical analysis, there&#8217;s a 60% probability that Chinese stocks will continue to rise after entering a technical bull market, with potential maximum returns averaging 35% over the next six months.
Chart: Chinese Stocks Sharply Rebounded Recently
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/21084644/image-87-1024x495.png" alt="" class="wp-image-347766" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/21084644/image-87-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/21084644/image-87-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/21084644/image-87-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/21084644/image-87-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/21084644/image-87.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">China At An Inflection Point?</h3>
Recent weeks have seen a reduction in property-related risks, and Goldman Sachs noted that China&#8217;s macroeconomic performance has exceeded expectations. The first quarter real GDP growth was 5.3%. 
On the policy front, the Chinese government has introduced several measures to stimulate the property sector, including lowering the minimum down payment ratios by 5 percentage points to 15% for first homes and 25% for second homes, which are the lowest levels on record.
Additionally, the government has removed the minimum mortgage rate floors and has also set up a RMB 300 billion (USD 41 billion) relending facility, which, combined with commercial bank lending, could reach RMB 500 billion. This initiative aims to support local governments in purchasing unsold housing stock for conversion into social housing.
Read also: <a href="https://www.benzinga.com/markets/asia/24/05/38895805/china-goes-all-in-as-beijing-vows-to-buy-unsold-properties-chinese-stocks-rally-copper-hits-all-time">China Goes All In As Beijing Vows To Buy Unsold Properties: Chinese Stocks Rally, Copper Hits All-Time Highs</a>
<h3 class="wp-block-heading">Market Dynamics and Investor Sentiment</h3>
Recently, a &#8216;FOMO&#8217; (fear of missing out) effect has driven the market. 
&#8220;The combination of decade-low allocations to China from both hedge- and long-only mandates and the rapid pace of recovery has caught investors off guard.&#8221; 
This has created performance pressures, prompting investors to close underweight positions or increase their exposure to Chinese stocks, thereby fueling the market&#8217;s upward trend.
However, discussions with global investors reveal concerns about potential disappointments in domestic policies, particularly those related to housing, and the risk of escalating U.S.-China tensions as the U.S. election approaches.
Goldman Sachs analysts pointed out that Chinese equities have become less reactive to bilateral tensions compared to a few years ago. This decreased sensitivity is due to a better understanding and pricing of these risks, which helps explain the strong market momentum despite new tariffs imposed by the Biden administration last week.
&#8220;Our Bull, Base, and Bear cases project 25%, 8%, and -13% potential upside respectively for MSCI China in the next 12 months,&#8221; indicating a favorable risk/reward ratio even if U.S.-China relations were to worsen.
Goldman Sachs has developed a diversified portfolio consisting of 40 Chinese stocks across various sectors and themes. Prominent stocks in this portfolio include Tencent Holding Ltd. (OTCPK: TCEHY), Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Meituan (OTCPK: MPNGY), BYD Co. Ltd (OTCPK: BYDDY), Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), and Trip.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>). 
Read now: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/05/38938354/exclusive-investing-in-ai-diversify-beyond-the-likes-of-nvidia-says-wisdomtrees-cio">EXCLUSIVE: Investing In AI? Diversify &#8216;Beyond The Likes Of NVIDIA&#8217; Says WisdomTree&#8217;s CIO</a>
Image generated using artificial intelligence via Midjourney.

Large Cap

Macro Economic Events

Mid Cap

Broad U.S. Equity ETFs

Econ #s

BYDDY

MPNGY

TCOM

Goldman Sachs Raises Forecast For Chinese Market: Stock Ideas To Bet On Recovery Momentum

In April, China&#8217;s retail sales growth decelerated while industrial activity remained robust, according to <a href="https://www.stats.gov.cn/english/PressRelease/202405/t20240517_1955749.html">data</a> released on Friday by the National Bureau of Statistics.
What Happened: Retail sales in April increased by 2.3% year-over-year, falling short of the 3.8% forecasted by a Reuters poll. This growth was also slower than the 3.1% reported in March.
On the other hand, industrial production surged by 6.7% in April, surpassing the anticipated 5.5% growth and marking a significant increase from the 4.5% in March.
Fixed asset investment for the first four months of the year rose by 4.2%, lower than the expected 4.6% increase. Real estate investment, however, saw a steeper decline, down by 9.8% year-on-year for the first four months of 2024.
Despite the overall slowdown, retail sales grew by 6.8% year-on-year during a recent holiday period from Apr. 29 to May 3, according to China&#8217;s Ministry of Commerce.
Alibaba Group Holding Limited is trading at HK$ 85.15 on the Hong Kong Stock Exchange, marking a 6.84% increase. JD.com, Inc. is trading at HK$ 132.90, with a slight rise of 0.38%. Additionally, PDD Holdings Inc. is trading at HK$ 143.38, also up by 0.36% after the data release.
Meanwhile, key China-focused ETFs such as KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), KraneShares Bosera MSCI China A 50 Connect Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBA#NYSE">KBA</a>), iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) have outperformed <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38738819/the-dragon-awakens-kraneshares-cio-names-5-reasons-to-invest-in-chinas-stock-market">major U.S.-equity ETFs</a>, signaling a potential shift in the market landscape.
See Also: <a href="https://www.benzinga.com/markets/equities/24/05/38809034/china-urges-tech-giants-to-shift-away-from-nvidia-and-other-foreign-chip-makers-boost-domestic-a?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">China Urges Tech Giants To Shift Away From Nvidia And Other Foreign Chip Makers, Boost Domestic AI Chip Purchases: Report</a>
Why It Matters: The recent data release indicates a mixed picture for China&#8217;s economic growth. The slowdown in retail sales growth could be attributed to the cooling real estate market and the impact of the May 1 Labor Day holiday.
Despite these challenges, China&#8217;s economy is showing resilience. The country&#8217;s official GDP grew by 5.3% in the first quarter of 2024, surpassing expectations. This growth was attributed to the stabilization of <a href="https://www.benzinga.com/markets/asia/24/04/38135895/chinas-economy-expected-to-surge-5-3-this-year-fueled-by-property-sector-stabilization-and-regional">the property sector</a> and improving external demand, as forecasted by the ASEAN+3 Macroeconomic Research Office.
Despite the economic growth, Chinese exporters are facing a host of challenges, including a <a href="https://www.benzinga.com/news/24/04/38291189/chinese-exporters-grapple-with-challenges-despite-chinas-economic-growth-were-selling-electrical-app">decline in exports</a> in dollar terms and a drop in producer prices.
Amid these challenges, JPMorgan&#8217;s Jamie Dimon has urged for <a href="https://www.benzinga.com/news/24/05/38838705/jpmorgans-jamie-dimon-urges-full-engagement-with-china-amid-bidens-new-tariffs-but-says-america-has">full engagement with China</a>, emphasizing the need for a nuanced approach to the country.
Read Next: <a href="https://www.benzinga.com/general/hedge-funds/24/05/38881300/david-tepper-bullish-on-china-alibaba-now-no-1-holding-trimmed-stakes-in-nvidia-microsoft-ama?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">David Tepper Bullish On China: Alibaba Now No. 1 Holding, Trimmed Stakes In Nvidia, Microsoft, Amazon, Meta, Google</a>
Image Via Shutterstock
This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.

Retail Sales

Warning For Chinese Economy? Shoppers Fail To Keep Pace With Factory Output

The year 2024 has reportedly seen a record number of U.S.-listed China-focused exchange-traded funds (ETFs) closing down, marking an all-time high since the inception of these funds. This trend reflects growing investor concerns about the world&#8217;s second-largest economy.
What Happened: According to data from Morningstar Direct, 13 U.S.-listed China ETFs have ceased operations in the first quarter of 2024 alone, the Financial Times<a href="https://www.ft.com/content/2f988ec0-d2b8-4eb0-8cec-71f25a4aa40b"> reported</a> on Monday. 
This surge in closures significantly surpasses the previous annual record of five closures in 2020 and 2023. Despite the global popularity of ETFs, which have seen 58 consecutive months of net inflows, leading to a record $12.7 trillion in assets by the end of March, ETFs focused on environmental, social and governance (ESG) factors are also witnessing record closures in the U.S. and globally.
Bryan Armour, director of passive strategies research, North America at Morningstar, links these closures to political pressures, stating that both China-focused and ESG ETFs have become &#8220;political footballs.&#8221;
See Also: <a href="https://www.benzinga.com/news/earnings/earnings-beats/24/05/38770095/stocks-surge-on-healthy-earnings-season-rising-jobless-claims-this-week-in-the-marke?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Stocks Surge On Healthy Earnings Season, Rising Jobless Claims: This Week In The Markets</a>
Furthermore, the rate of new ETF launches has significantly dropped. Only 33 China ETFs were introduced in the first quarter of 2024, a drastic decline compared to the 160 launched during 2023 and a record 291 during the peak in 2021. Similarly, the 18 ESG launches in the first quarter are a sharp slowdown from last year's 151 and 2021's peak of 313, as per Morningstar data.
Despite these closures, global ETF assets have increased. ESG ETFs worldwide now hold a record $542 billion of assets, driven by rising demand in Europe. Similarly, China-focused ETFs now hold $364 billion, up from $320 billion at the start of the year.
Why It Matters: Earlier this year, <a href="https://www.benzinga.com/markets/asia/24/05/38706682/chinese-stocks-surge-as-investors-bet-on-economic-turnaround-7-etfs-to-watch">Chinese stocks saw a significant rally,</a> with the SSE Composite Index reaching its highest level since September, indicating a potential economic turnaround. This was largely due to the country&#8217;s economic recovery following the bursting of a real estate bubble. 
Moreover, key ETFs such as KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), KraneShares Bosera MSCI China A 50 Connect Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBA#NYSE">KBA</a>), iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38738819/the-dragon-awakens-kraneshares-cio-names-5-reasons-to-invest-in-chinas-stock-market">outperformed major U.S.-equity ETFs</a>, signaling a potential shift in the market landscape.
Despite the closures, the potential for growth in China&#8217;s internet and technology industries remains promising, as stated by Henry Greene, Investment Strategist at KraneShares, in an exclusive interview with <a href="https://www.benzinga.com/markets/asia/24/04/38097022/exclusive-chinas-stock-market-has-bottomed-indicating-a-potentially-rare-opportunity-says-investment">Benzinga</a>. This indicates the complex dynamics at play in the Chinese market.
Read Next: <a href="https://www.benzinga.com/news/24/05/38757323/philippines-national-security-adviser-demands-chinese-diplomats-expulsion-amid-south-china-sea-confl?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Philippines National Security Adviser Demands Chinese Diplomats&#8217; Expulsion Amid South China Sea Conflict</a>
Image via Shutterstock
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

Politics

China-Focused ETFs Have Become 'Political Footballs' In US As Investor Apprehension Leads To Large Scale Shutdown

China's stock market has been a hot topic in 2024, and for good reason. After a rough start, marked by a sharp decline in January due to derivative-related issues, Chinese stocks have staged <a href="https://www.benzinga.com/topic/china">an impressive comeback</a>.
<h1 class="wp-block-heading">China ETFs Outperform U.S.</h1>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="629" height="452" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110943/Screenshot-2024-05-09-at-8.39.25-PM.png" alt="" class="wp-image-330885" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110943/Screenshot-2024-05-09-at-8.39.25-PM.png 629w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110943/Screenshot-2024-05-09-at-8.39.25-PM-300x216.png 300w" sizes="(max-width: 629px) 100vw, 629px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
Key ETFs such as KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), KraneShares Bosera MSCI China A 50 Connect Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBA#NYSE">KBA</a>), iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) have outperformed major U.S.-equity ETFs, such as the S&amp;P 500 index-tracking SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), since February, signaling a potential shift in the market landscape.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="629" height="452" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111254/Screenshot-2024-05-09-at-8.42.37-PM.png" alt="" class="wp-image-330893" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111254/Screenshot-2024-05-09-at-8.42.37-PM.png 629w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111254/Screenshot-2024-05-09-at-8.42.37-PM-300x216.png 300w" sizes="(max-width: 629px) 100vw, 629px" /></figure>
<a href="https://pro.benzinga.com/dashboard" target="_blank" rel="noreferrer noopener">Chart: Benzinga Pro</a>
Also Read: <a href="https://www.benzinga.com/markets/asia/23/04/31846112/chinas-strong-q1-economic-rebound-sparks-optimism-for-apple-tesla-and-these-companies">China&#8217;s Strong Q1 Economic Rebound Sparks Optimism for Apple, Tesla And These Companies</a>
<h1 class="wp-block-heading">KraneShares&#8217; CIO Gives 5 Reasons To Invest</h1>
In a recent post, Brendan Ahern, chief investment officer at KraneShares, <a href="https://kraneshares.com/5-reasons-chinas-recent-stock-market-rally-is-fundamentally-different/#">highlighted</a> five key catalysts driving the current China market rebound.
<ol>
<li>Government Support as a Catalyst: One of the fundamental differences in this rally is the proactive stance of the Chinese government in stabilizing the market. State-linked entities like Central Huijin Investments have openly announced purchases of mainland-listed ETFs and increased holdings in mainland bank stocks. This level of transparency and support can instill confidence in investors and provide a strong foundation for the market to grow. </li>
<li>Global Investors' Changing Sentiments: Global investors are starting to reallocate their investments back into Chinese equities. Earlier in the year, many investors were cautious due to trade tensions and regulatory uncertainties. However, with signs of easing tensions and supportive policies, there is a growing interest in Chinese stocks. This shift in sentiment could lead to increased capital inflows into Chinese markets, driving up stock prices. </li>
<li>Policy Reforms and Market Improvements: The Chinese government has issued &#8220;<a href="https://kraneshares.com/5-reasons-chinas-recent-stock-market-rally-is-fundamentally-different/#">9 Key Points</a>&#8221; to improve the country&#8217;s capital markets, focusing on controlling IPO supply, encouraging dividends, and enhancing corporate governance. These reforms are aimed at creating a more transparent and investor-friendly market environment, which could attract more investors, both domestic and international. </li>
<li>Economic Recovery and Consumer Confidence: China&#8217;s economy is showing signs of recovery, with <a href="http://China's Strong Q1 Economic Rebound Sparks Optimism for Apple, Tesla And These Companies">GDP exceeding expectations</a> in the first quarter of 2024. Consumer confidence is also on the rise, with increased spending on services like dining and travel. This uptick in economic activity could translate into higher corporate earnings and stock prices, making it an opportune time for investors to enter the market. </li>
<li>Attractive Valuations and Buyback Opportunities: Despite the recent rally, valuations in certain sectors of the Chinese market remain attractive. Many companies are taking advantage of this by <a href="https://www.benzinga.com/news/24/04/38065328/alibabas-bold-actions-4-8b-stock-repurchase-and-revolutionary-one-hour-global-delivery-plan">buying back their stock</a>, particularly in the internet sector. This not only demonstrates confidence in their own businesses but also reduces the supply of shares in the market, potentially driving up prices.</li>
</ol>
These, according to Ahern, are compelling reasons why this resurgence in Chinese equities could offer lucrative opportunities for investors.
The recent resurgence in China's stock market presents an exciting opportunity for investors. With government support, changing investor sentiments, policy reforms, economic recovery and attractive valuations, Chinese equities could be poised for further growth.
Investors looking to capitalize on this trend should consider adding exposure to Chinese stocks in their portfolios, particularly through ETFs KWEB, FXI, MCHI and KBA, which offer diversified exposure to the Chinese market.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37028937/is-chinas-stock-market-poised-for-a-turnaround-analyst-points-to-3-promising-signs-">Is China&#8217;s Stock Market Poised For A Turnaround? Analyst Points To 3 Promising Signs Amid Policy Shifts</a>
Photo: Chonrawit Boonprakob via Shutterstock

Analyst Color

Long Ideas

Emerging Market ETFs

Opinion

Analyst Ratings

Trading Ideas

The Dragon Awakens: KraneShares CIO Names 5 Reasons To Invest In China's Stock Market Rebound

Once haunted by a domestic real estate collapse reminiscent of a Lehman-like crisis, Chinese stocks witnessed a significant rally in the first part of the year, reviving investor bets on the beginning of a more <a href="https://www.benzinga.com/topic/china">serious and robust recovery</a>.
On Tuesday (May 7), the SSE Composite Index, which includes all stocks listed on the Shanghai Stock Exchange, reached its highest level since September 2023, showcasing a rally of about 19% from the lows in 2024.
The revival in Chinese stocks can be attributed to a confluence of factors. Key among these is the country&#8217;s economic recovery, which has gathered pace after years of turbulence following the bursting of a real estate bubble.
China's economy expanded by 5.3% in the first quarter year-over-year. This growth rate not only outpaced the previous quarter&#8217;s 5.2% but also exceeded the 5% growth expected by analysts.
Surveys on private sector economic activity showed signs of strength in April 2024, with the Caixin Services PMI marking the highest level since May 2023 and the manufacturing PMI also notching expansionary conditions.
Additionally, technical factors such as the massive exit of foreign investors, which put an end to fear-driven selling, have played a crucial role.
<h1 class="wp-block-heading">Chart: Chinese Stocks Have Rebounded 19% Off 2024 Lows – More To Come? </h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/08111237/image-46-1024x495.png" alt="" class="wp-image-328659" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/08111237/image-46-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/08111237/image-46-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/08111237/image-46-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/08111237/image-46-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/08111237/image-46.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h1 class="wp-block-heading">Are Investors Overestimating China&#8217;s Market Recovery? Stock Surge vs. Earnings Reality</h1>
There is a risk investors are moving too early in betting on a Chinese recovery as the earnings season thus far as mostly disappointed expectations. 
As Bank of America&#8217;s strategist Willie Chan reported recently, 77% of Chinese A-shares stocks revised down 2024 earnings, with all sectors witnessing net downward revisions.&nbsp;
&#8220;We&nbsp;believe&nbsp;a&nbsp;fundamental turnaround&nbsp;in&nbsp;economy and&nbsp;earnings would take time,&#8221; Chan stated. 
&#8220;The&nbsp;MSCI China&nbsp;lowered&nbsp;2024E earnings growth from 15.8% YoY in Jan-24&nbsp;to&nbsp;12.1% YoY in&nbsp;Apr-24.&nbsp;&nbsp;We are concerned the market will need to further revise down 2024&nbsp;earnings,&#8221; he added.&nbsp;
The expert noted that while recent macroeconomic data indicated emerging signs of improvement, the first quarter results were still a reflection of the difficult operating environment.
<h1 class="wp-block-heading">A Look at ETFs Tracking China&#8217;s Economic Rebound</h1>
Several (non-levered) exchange-traded funds are available for U.S.-based investors in get exposure to China&#8217;s ongoing economic rebound, each with its unique portfolio and strategy. Here's how they stand:
KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>)
<ul>
<li>AUM: $6.00 Billion</li>
<li>Number of Holdings: 34</li>
<li>Top Holdings: Tencent Holdings ADR (OTCPK: TCEHY); Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>); PDD Holdings Inc. &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>)</li>
<li>Benchmark: CSI Overseas China Internet Index</li>
<li>Net Expenses: 0.70%</li>
<li>Year-to-date Return: 9.52%</li>
<li>Distance From All-Time High: 220%</li>
</ul>
iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>)
<ul>
<li>AUM: $5.24 Billion</li>
<li>Number of Holdings: 671</li>
<li>Top Holdings: Tencent; Alibaba; PDD</li>
<li>Benchmark: MSCI China Index</li>
<li>Net Expenses: 0.58%</li>
<li>Year-to-date Return: 7.85%</li>
<li>Distance From All-Time High: 108%</li>
</ul>
iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>)
<ul>
<li>AUM: $4.84 Billion</li>
<li>Number of Holdings: 58</li>
<li>Top Holdings: Tencent; Meituan ADR (OTCPK: MPNGY), Alibaba</li>
<li>Benchmark: FTSE China 50 Index</li>
<li>Net Expenses: 0.74%</li>
<li>Year-to-date Return: 11.53%</li>
<li>Distance From All-Time High: 90%</li>
</ul>
SPDR S&amp;P China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXC#NYSE">GXC</a>)
<ul>
<li>AUM: $482.09 Million</li>
<li>Number of Holdings: 1,182</li>
<li>Top Holdings: Tencent; Alibaba; PDD</li>
<li>Benchmark: S&amp;P China BMI Index</li>
<li>Net Expenses: 0.59%</li>
<li>Year-to-date Return: 5.49%</li>
<li>Distance From All-Time High: 101%</li>
</ul>
iShares MSCI China A ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNYA#NYSE">CNYA</a>)
<ul>
<li>AUM: $294.50 Million</li>
<li>Number of Holdings: 526</li>
<li>Top Holdings: Kweichow Moutai Co., Ltd.; Contemporary Amperex Technology Co., Ltd.</li>
<li>Benchmark: MSCI China A Inclusion Index</li>
<li>Net Expenses: 0.60%</li>
<li>Year-to-date Return: 4.15%</li>
<li>Distance From All-Time High: 70%</li>
</ul>
Invesco Golden Dragon China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NYSE">PGJ</a>)
<ul>
<li>AUM: $158.22 Million</li>
<li>Number of Holdings: 61</li>
<li>Top Holdings: Trip.com Group Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCOM#NASDAQ">TCOM</a>), Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>)</li>
<li>Benchmark: NASDAQ Golden Dragon China Index</li>
<li>Net Expenses: 0.70%</li>
<li>Year-to-date Return: 0.69%</li>
<li>Distance From All-Time High: 216%</li>
</ul>
Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>)
<ul>
<li>AUM: $111.49 Million</li>
<li>Number of Holdings: 962</li>
<li>Top Holdings: Tencent; Alibaba; PDD</li>
<li>Benchmark: FTSE China Capped Index</li>
<li>Net Expenses: 0.19%</li>
<li>Year-to-date Return: 7.66%</li>
<li>Distance From All-Time High: 106%</li>
</ul>
Read Now: <a href="https://www.benzinga.com/markets/asia/24/05/38682654/biden-administration-tightens-grip-on-chinas-huawei-revokes-key-export-licenses-from-us-chipmakers">Biden Administration Tightens Grip On China&#8217;s Huawei, Revokes Key Export Licenses From US Chipmakers</a>
Photo: Shutterstock

Specialty ETFs

CNYA

FLCH

PowerShares Golden Dragon Halter USX China Portfolio

Chinese Stocks Surge As Investors Bet On Economic Turnaround: 7 ETFs To Watch

Recent deals from Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) are expected to bolster <a href="https://www.benzinga.com/topic/china">China&#8217;s tech market</a>.
What Happened: Elon Musk-led Tesla is partnering with Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) to introduce <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38519395/goldman-sachs-tempers-investor-excitement-on-tesla-self-driving-not-yet-an-eyes-off">driver assistance features in China</a>.
Apple, under the helm of CEO Tim Cook, <a href="https://www.benzinga.com/government/24/04/38460042/apple-strengthens-supply-chain-in-china-while-growing-presence-in-southeast-asia-and-india">is expanding its production</a> footprint in Southeast Asia and India, striking a delicate balance between political pressures and business expansion.
"There's only two companies able to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38491219/apple-and-tesla-only-two-companies-able-to-thread-the-needle-in-terms-of-china-us-s">thread the needle</a> in terms of China-US. It's Cook in Cupertino, and Musk and Tesla,&#8221; said Wedbush&#8217;s Dan Ives in the backdrop of Cook and Musk&#8217;s recent China visits.
Related: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/04/38506689/teslas-fsd-nod-win-seen-as-move-to-smooth-over-chinese-evs-entry-into-the-us-market-says">Tesla&#8217;s FSD Nod Win Seen As Move To &#8216;Smooth Over Chinese EV&#8217;s Entry Into The US Market&#8217; Says Redditor</a>
The Baidu agreement underscores Tesla&#8217;s commitment to the country&#8217;s burgeoning electric vehicle market And Apple increased its number of China-based suppliers and manufacturing sites in 2023, thereby reducing its reliance on suppliers from Taiwan, Japan, and South Korea. 
<h3 class="wp-block-heading">Analysts Optimistic About China</h3>
Analysts remain optimistic about China&#8217;s growth prospects, with UBS and Goldman Sachs upgrading China stocks and predicting significant upside potential. 
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38388793/ubs-upgrades-china-stocks-amid-valuation-collapse-what-investors-need-to-know">UBS Upgrades China Stocks Amid &#8216;Valuation Collapse&#8217;: What Investors Need to Know</a>
UBS&#8217; Sunil Tirumalai highlighted resilient earnings and positive interventions from state-related funds as reasons for optimism. According to Tirumalai, the underperformance of China stocks can be attributed solely to a "valuation collapse.&#8221;
Goldman Sachs&#8217; Kinger Lau emphasized the potential upside for Chinese stocks if reform policies can be successfully implemented by the CSRC. 
&#8220;A-shares could rise ~20% if they could narrow the gaps with international averages along these dimensions, and could re-rate as much as 40% if they catch up with global leaders in our blue-sky scenario,&#8221; he said.
The Asian Development Bank (ADB) also positions China as a key growth engine despite a slight slowdown, highlighting its dominant role in global growth.
Read: <a href="https://www.benzinga.com/markets/asia/24/04/38205458/china-accounts-for-nearly-half-of-asia-pacific-gdp-while-india-is-a-bright-spot-economist-says-key-e">China Accounts For &#8216;Nearly Half Of Asia-Pacific GDP&#8217; While India Is A &#8216;Bright Spot,&#8217; Economist Says: Key ETFs To Watch</a>
<h3 class="wp-block-heading">How To Capitalize On The China Stock Market Bottom</h3>
Investors can capitalize on these developments by diversifying their portfolios with ETFs that offer exposure to China&#8217;s growth trajectory. 
ETFs like KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), and the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) provide diversified exposure to China&#8217;s booming internet sector and large-cap companies, presenting compelling investment opportunities.
China&#8217;s tech market presents a promising landscape for investors, with strategic moves by companies like Apple and Tesla, along with bullish analyst sentiments, indicating a potential resurgence in the region. 
Henry Greene, Chief Investment Strategist at KraneShares, pointed out in a recent exclusive interview with Benzinga, that &#8220;China&#8217;s stock market has bottomed&#8221;, suggesting a rare opportunity for investors to capitalize on the market&#8217;s potential.
Read Next: <a href="https://www.benzinga.com/markets/asia/24/04/38097022/exclusive-chinas-stock-market-has-bottomed-indicating-a-potentially-rare-opportunity-says-investment?utm_source=InvestingUK&amp;utm_campaign=partner_feed&amp;utm_medium=partner_feed&amp;utm_content=TopStories">EXCLUSIVE &#8211; &#8216;China&#8217;s Stock Market Has Bottomed, Indicating A Potentially Rare Opportunity,&#8217; Says Investment Strategist</a>

AAPL

TSLA

China Stock Ideas For Tech Resurgence: Tesla, Apple Make Strategic Moves; Goldman Sachs Projects 40% Upside Potential

In a surprising turn of events, UBS Group AG has made a rare upgrade call, lifting its recommendation on a key <a href="https://www.benzinga.com/topic/china">Chinese stock index to Overweight</a>.
As of 2 p.m. ET, Chinese equity tracking ETFs such as the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) was trading up 1.52%, KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) was up 2.86%, and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) was up 1.26%.
Stocks of Chinese companies also shared in the optimism with Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#OTC">BABAF</a>) was up 2.65%, PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) up 2.87%, Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) up 3.51%, Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) up 0.24%, XPeng (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) up 2.29%, NIO &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) up 2.50%, and JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) up 2.06%.
<h1 class="wp-block-heading">UBS Analyst Upgrades China To Overweight</h1>
This move comes amidst a backdrop of lingering concerns over China&#8217;s property sector and broader macroeconomic worries. However, Sunil Tirumalai, UBS' institutional research Global Emerging Markets equity strategist, pointed to resilient earnings as a beacon of hope in an otherwise turbulent market.
Among the tailwinds highlighted by UBS that support the bullish outlook for Chinese stocks were:
<ol>
<li>Interventions from state-related funds.</li>
<li>Positive surprises in dividends and buybacks from local firms.</li>
</ol>
UBS has issued a downgrade for Taiwan and South Korea markets to Neutral, citing high premiums in the tech sector, <a href="https://www.bnnbloomberg.ca/ubs-upgrades-china-stocks-to-overweight-cuts-taiwan-and-korea-1.2062407">reported</a> BNN Bloomberg. This reflects a broader shift among investors away from frothy valuations in favor of more stable growth opportunities.
<h1 class="wp-block-heading">Underperformance Attributable To &#8220;Valuation Collapse&#8221;</h1>
According to Tirumalai, the underperformance of China stocks can be attributed solely to a &#8220;valuation collapse,&#8221; <a href="https://www.cnbctv18.com/market/ubs-upgrades-china-stocks-to-overweight-cuts-taiwan-and-korea-19400535.htm">reported</a> CNBC. He emphasized that the largest stocks in the China index have maintained strong earnings and fundamentals, providing a solid foundation for future growth.
To this end, KraneShares&#8217; CIO Brendan Ahern, noted his team&#8217;s perspective on China and emerging markets fundamentals differs from conventional views. 
The company believes sector dysfunction in emerging markets and China indices is driving underperformance, particularly due to the large weight of value sectors. Conventional index construction methods, while useful for financial analysis, pose challenges for forecasting. 
Stocks with higher P/E ratios have a disproportionately lower weight in earnings per share (EPS), leading to forecasting difficulties. As a result, movements in higher P/E stocks dominate index performance, while EPS is influenced more by lower P/E stocks.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1019" height="307" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/23142849/image003.png" alt="" class="wp-image-305103" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/23142849/image003.png 1019w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/23142849/image003-300x90.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/23142849/image003-768x231.png 768w" sizes="(max-width: 1019px) 100vw, 1019px" /></figure>
<h1 class="wp-block-heading">China&#8217;s Stock Market: A Potentially Rare Opportunity</h1>
In a recent exclusive interview with Benzinga, Henry Greene, investment strategist at KraneShares pointed out, &#8220;China&#8217;s stock market has bottomed, indicating a potentially rare opportunity.&#8221;
We covered his insights here: <a href="https://www.benzinga.com/markets/asia/24/04/38097022/exclusive-chinas-stock-market-has-bottomed-indicating-a-potentially-rare-opportunity-says-investment">EXCLUSIVE: &#8216;China&#8217;s Stock Market Has Bottomed, Indicating A Potentially Rare Opportunity,&#8217; Says Investment Strategist</a>
Later, in another exclusive, with Benzinga, Ahern shared &#8220;the long-term trend of China investing heavily in developing its domestic chip capabilities and reducing reliance on foreign suppliers.&#8221;
The upgrade appeared to fall in line with KraneShares philosophy and outlook toward Chinese equity.
Despite concerns over geopolitical tensions and regulatory uncertainties, Chinese equities have shown signs of resilience, with both the MSCI China Index and the Hang Seng Index posting double-digit gains in recent months.
While risks remain, including heightened geopolitical noise, UBS&#8217;s upgrade underscored a growing sense of confidence in China&#8217;s economic recovery. 
As investors navigate these uncertain times, UBS&#8217;s bold call serves as a reminder of the potential opportunities ahead in the Chinese market.
Read Next: <a href="https://www.benzinga.com/markets/asia/24/04/38317570/exclusive-kraneshares-cio-talks-intel-and-amd-as-china-seeks-semiconductor-self-sufficiency">EXCLUSIVE: KraneShares CIO Talks Intel And AMD, As China Seeks Semiconductor Self-Sufficiency</a>
Photo: Shutterstock

ALIBABA GROUP HOLDING LTD by Alibaba Group Holding Limited

BABAF

XPEV

UBS Upgrades China Stocks Amid 'Valuation Collapse': What Investors Need to Know

As China reports a surge in its economy, exporters at the Canton Fair are confronting a complex array of challenges that could impact global trade dynamics.
What Happened: Amid China&#8217;s faster-than-expected economic growth, Chinese exporters at the Canton Fair are grappling with a host of challenges, Reuters reported on Wednesday.
Despite a 5.3% growth in China&#8217;s economy in Q1, March saw a significant decline in exports in dollar terms, even as volumes grew. This is coupled with a drop in producer prices that has persisted for over a year and a half, dampening optimism for a steady recovery post-pandemic.
&#8220;We&#8217;re selling electrical appliances as cheap as cabbage,&#8221; the owner of a Chinese television factory said.
&#8220;If it continues for another year or two, we&#8217;ll have to change careers.&#8221;
Exporters are currently facing increased economic and political tensions with the United States, a global trade slowdown due to the Ukraine conflict, and a deepening crisis in the Middle East. The manufacturing sector&#8217;s struggle with overcapacity adds to the woes.
There was a silver lining with a 20% increase in foreign buyers at the fair compared to October. However, some participants noted slower businesses, particularly those reliant on European and North American markets, like a Jiangsu-based outdoor heater manufacturer.
See Also: <a href="https://www.benzinga.com/news/24/04/38267872/us-envoy-calls-on-russia-and-china-to-stop-rewarding-kim-jong-uns-bad-behavior-hiding-the-truth-does?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">US Envoy Calls On Russia And China To Stop &#8216;Rewarding&#8217; Kim Jong Un&#8217;s &#8216;Bad Behavior:&#8217; &#8216;Hiding The Truth Does Not Change It&#8217;</a>
Further trade tensions are a concern, especially with former U.S. President Donald Trump threatening substantial tariffs on Chinese goods if he wins the upcoming election against Joe Biden. Complaints from U.S. and European officials about China&#8217;s manufacturing strategy are also causing unease.
Nevertheless, some high-tech manufacturers remain positive, citing strong government support, including tax rebates and funding for equipment upgrades.
Why It Matters: The ASEAN+3 Macroeconomic Research Office (AMRO) had <a href="https://www.benzinga.com/markets/asia/24/04/38135895/chinas-economy-expected-to-surge-5-3-this-year-fueled-by-property-sector-stabilization-and-regional">previously forecasted a 5.3% expansion</a> in China&#8217;s economy, driven by a stabilizing property sector and improved external demand. 
However, Fitch Ratings recently revised <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38179912/fitch-revises-chinas-credit-outlook-to-negative-amid-economic-challenges">China&#8217;s credit outlook to negative</a>, reflecting concerns over the nation&#8217;s fiscal health amid economic uncertainties.
The Biden administration has <a href="https://www.benzinga.com/news/24/04/38219940/biden-beats-trumps-record-blacklists-more-chinese-entities-than-ex-president">blacklisted a record number of Chinese companies</a>, exacerbating economic tensions. This action, coupled with Trump&#8217;s tariff threats,<a href="https://www.benzinga.com/news/24/04/38136283/donald-trumps-china-tariff-push-could-slow-down-economy-and-fuel-inflation-goldman-sachs-cautions"> could potentially slow down </a>the U.S. economy and fuel inflation, as cautioned by Goldman Sachs.
According to<a href="http://pro.benzinga.com"> Benzinga Pro</a>, iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) closed at $39.16, a dip of 1.02% from its previous close.
Read Next: <a href="https://www.benzinga.com/news/24/04/38264914/microsoft-invests-1-5b-in-uaes-top-ai-firm-g42-secures-board-seat?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Microsoft Invests $1.5B In UAE&#8217;s Top AI Firm G42, Secures Board Seat</a>
Image via Shutterstock
<div style="font-family: 'Lato', sans-serif">
<div>
<hr style="border: 0;height: 5px;background: #225aa9" />
<div style="background-color: #f5f5f5;background-position: center;background-size: cover;justify-content: center"></div>

 Engineered by Benzinga Neuro, Edited by 
 <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Pooja Rajkumari</a> 
 
 
<hr style="border: 0;height: 1px;background: #225aa9" />

 The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. 
 <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noopener" style="color: #225aa9;text-decoration: none">Learn more.</a>
 
<hr style="border: 0;height: 5px;background: #225aa9" />
 </div>
</div>

iShares MSCI China ETF

뉴스

에 대한 최신 뉴스 iShares MSCI China ETF (NASDAQ:MCHI)

월요일, 6월 17, 2024

금요일, 5월 31, 2024

뉴스

파트너 / 기고자

벤징가 글로벌