iShares MSCI China ETF에 대한 매도 수량은 투자자에게 iShares MSCI China ETF의 주식 하락에 베팅하는 정도를 알려줍니다. 매도 수량 데이터는 2주마다 업데이트됩니다.

iShares MSCI China ETF (NASDAQ:MCHI), 공매도 수량 보고

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

Analyst Color

Asia

Macro Economic Events

Econ #s

Economics

ETFs

MCHI

중국이 거대한 경제 카드로서의 역할을 하고 있을지도 모른다. 이번 주 로이터가 인용한 소식통에 따르면, 중국 정책 입안자들은 미국이 중국 수입품에 60% 관세를 부과할 경우 경제적 충격을 상쇄하기 위해 2025년에 위안화를 대폭 약세로 조정하는 방안을 고려 중이다.

트럼프의 관세에 대항하기 위해 중국이 위안화 절하를 고려 중: 효과가 있을까?

News

Politics

Markets

BABA

BIDU

KWEB

XPEV

저명한 기술 투자자이자 팔란티어 테크놀로지스의 공동 설립자인 피터 틸(Peter Thiel)은 도널드 트럼프 대통령 당선인의 중국 제품에 대한 60% 관세 부과가 중국에 미칠 잠재적 영향에 대해 대담한 예측을 내놓았다. 

피터 틸, &#34;트럼프의 60%  관세는 중국에 매우 안 좋아&#34;: 어떤 종목 영향 받을까?

중국의 주요 기술 기업들인 알리바바 그룹 홀딩(NYSE:BABA), JD닷컴(NASDAQ:JD) 및 바이두(NASDAQ:BIDU) 등이 금요일 2% 이상 상승했다. 이는 중국의 GDP 수치가 예상보다 좋게 발표된 데 따른 것이다.

알리바바, JD닷컴 및 바이두 주식이 중국 GDP 성장과 소비자 지출 증가에 따라 상승

MARUICHI STEEL TUBE LTD by Maruichi Steel Tube Ltd.

Maruichi Steel Tube Ltd

China may be playing its <a href="https://www.benzinga.com/topic/china">biggest economic card yet. </a>
According to sources cited by Reuters this week, Chinese policymakers are considering allowing the yuan to weaken significantly in 2025 to counter the economic impact of a potential 60% tariff on Chinese imports by the United States. 
This move would mark a major shift in Beijing's currency strategy as the country grapples with mounting economic pressures.
But will it actually work? 
<h3 class="wp-block-heading">A Weaker Yuan: A Double-Edged Sword?</h3>
President-elect Donald Trump's proposed tariffs—10% on all imports and a massive 60% on Chinese goods—have prompted Beijing to consider devaluation as a buffer. A weaker yuan could theoretically make Chinese exports cheaper and offset the sting of U.S. tariffs.
Yet, Beijing is walking a tightrope. 
According to Lynn Song, an analyst at ING, the People's Bank of China is expected to &#8220;mount a strong defense&#8221; of the yuan. The central bank is acutely aware that if the renminbi falls too sharply, it could trigger even harsher retaliatory measures from Washington.
In response to the rumors, Financial News, a PBOC-affiliated publication, insisted the yuan remains on solid footing and predicted the currency could stabilize and strengthen by the end of the year.
<h3 class="wp-block-heading">China's Real Problem: A Balance Sheet Recession</h3>
Tariffs aren't China's only problem. 
The country is facing a multi-front economic battle, with a housing market that's imploding, a weak stock market, and slowing consumer activity.
"The gentle de-leveraging of the housing market that policymakers had in mind turned into a vicious balance sheet recession," said Alfonso Peccatiello, chief investing officer at Palinuro Capital and founder of The Macro Compass. 
"Trillions in wealth tied to real estate have been wiped out since 2021."
A balance sheet recession is brutal. In this scenario, consumers and businesses prioritize repairing their finances over spending or investing, rendering typical monetary policy tools like interest rate cuts or currency devaluation largely ineffective.
This type of economic slowdown recalls the eurozone debt crisis of 2011-2012, when fiscal austerity measures rendered monetary policy largely ineffective in stimulating the real economy.
<h3 class="wp-block-heading">Beijing's Response So Far</h3>
China&#8217;s policy response thus far has lacked courage, to say the least. 
Authorities have floated mentions of small-scale fiscal stimulus, though these efforts lack the size and scope to move the needle. 
The government has also set up mechanisms to deter investors from shorting Chinese stocks, aiming to stabilize markets. Additionally, the central bank has slashed interest rates aggressively to boost liquidity. 
Despite these interventions, the economy has failed to gain meaningful traction, leaving analysts and investors skeptical about Beijing's strategy.
The iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) – a key benchmark tracking Chinese equities – continues to remain nearly 50% below its record highs achieved in February 2021. 
<h3 class="wp-block-heading">Why a Weaker Yuan Won't Fix This</h3>
The idea of weakening the yuan might sound like a magic bullet, but economists aren't sold on the effectiveness of this strategy.
"In a balance sheet recession, consumers and corporates can&#8217;t be encouraged to spend more by cutting interest rates or weakening the currency," Peccatiello said. 
"They are bleeding, and they see their net worth declining due to continued weakness in the property market."
Simply put, a weaker currency won&#8217;t rebuild shattered wealth or restore confidence among Chinese households and businesses.
<h3 class="wp-block-heading">What's The Real Solution?</h3>
For Peccatiello, the solution for China may lie in implementing a large, targeted fiscal stimulus.
Rather than broad, unspecific measures, some suggest that the government could consider directing significant spending toward struggling corporations and consumers.
The question remains: Will Beijing take substantial steps toward fiscal stimulus?
Read now: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42468190/defense-stocks-face-headwinds-as-trumps-doge-targets-spending-cuts-goldman-sachs-downgrades-general-dynamics-to-sell">Defense Stocks Face Headwinds As Trump&#8217;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics</a></li>
</ul>
Photo: Shutterstock

China Eyes Yuan Devaluation To Counter Trump's Tariffs: Will It Work?

Texas Governor&nbsp;Greg Abbott (R-Texas) has directed state agencies to cease investments in China and divest existing ones. This decision, announced in a letter dated Nov. 21, highlights security and financial risks associated with Chinese investments, 
What Happened: Abbott&#8217;s directive argues that this aggression could elevate the financial risks tied to Chinese investments. The governor&#8217;s letter explicitly bans Texas investing entities from making new investments in China.
Moreover, Abbott has instructed these entities to divest from any current Chinese investments at the earliest feasible opportunity. 
&#8220;Texas will defend and safeguard itself and our public treasury from any potential threat, including those posed by the CCP,&#8221; the statement read.
See Also:&nbsp;<a href="https://www.benzinga.com/24/11/42103633/chinese-court-affirms-cryptocurrency-ownership-as-legal-as-bitcoin-breaks-97k?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Chinese Judge Cites &#8216;High-Pressure Crackdown&#8217; On Speculation In Judgment Declaring Crypto Ownership Legal As Bitcoin Moves Past $97K</a>
Why It Matters: The directive from Governor Abbott comes amid escalating U.S.-China tensions. Recently, the U.S. House of Representatives advanced two Republican bills aiming to reinstate the U.S. Justice Department's "China Initiative." This initiative seeks to <a href="https://www.benzinga.com/news/24/09/40831428/house-gop-advances-bills-to-reinstate-justice-departments-china-initiative-despite-white-house-disap">curb espionage activities</a> targeting U.S. intellectual property and academic institutions. The bills were part of the House Republican's &#8220;China Week,&#8221; which saw over two dozen China-related legislative measures passed.
President-elect Donald Trump has proposed to impose 60% tariff on Chinese goods. Chinese President Xi Jinping recently <a href="https://www.benzinga.com/24/11/42025284/xi-jinping-tells-joe-biden-china-is-ready-to-work-with-trump-as-tariff-threat-looms">expressed a willingness</a> to collaborate with the U.S. government, regardless of the administration in power. This statement was made during a meeting with President Joe Biden at the Asia-Pacific Economic Cooperation forum in Lima. 
Meanwhile, ETFs that allow investment into China have dropped during the past one month. As of Nov. 22nd, according to <a href="https://pro.benzinga.com">Benzinga Pro</a>, the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) has dropped by 5.97% while iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) fell by 5.13%. Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) fell by 5.41% and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) dropped by 5.54%.
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Wikimedia Commons

Government

Global

General

PowerShares Golden Dragon Halter USX China Portfolio

Texas Governor Mandates State Agencies To Divest From China: 'Will Defend And Safeguard Itself...From Any Potential Threat'

Major Chinese fund companies have&nbsp;announced a reduction in fees&nbsp;for a selection&nbsp;of equity exchange-traded funds (ETFs). This move intensifies the price war in the booming $400 billion ETF market.
What Happened: The fee cuts come a day after&nbsp;Wu Qing, China&#8217;s chief securities regulator, expressed support for index investment and fee reform in the fund industry. ETFs, which&nbsp;typically track an index and&nbsp;trade on exchanges, have seen significant growth this year as investors turn away from underperforming active fund managers, Reuters&nbsp;reported on Wednesday.
China Asset Management Co&nbsp;(ChinaAMC), leading the ETF market, announced it would reduce fees on&nbsp;eight ETF products, including the&nbsp;160 billion yuan China SSE 50 ETF. The management fee will drop to 0.15% from 0.5%, and the custodian fee to 0.05% from 0.1%.
See Also:&nbsp;<a href="https://www.benzinga.com/24/11/41862692/steve-madden-announces-plans-to-move-production-to-avoid-trump-tariffs-but-theres-a-catch?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Steve Madden Announces Plans To Move Production To Avoid Trump Tariffs, But There&#8217;s A Catch</a>
Other fund companies such as&nbsp;E Fund Management,&nbsp;Huatai-PineBridge Fund Management,&nbsp;Harvest Fund Management, and&nbsp;HuaAn Fund Management&nbsp;have made similar announcements. This trend is expected to attract more capital into the market, with net inflows into China&#8217;s onshore ETFs surpassing 900 billion yuan this year, according to BNP Paribas. 
Why It Matters: The fee reduction by major Chinese fund companies comes amid a backdrop of economic measures and market fluctuations. In October, investor sentiment was dampened when anticipated large-scale economic stimulus measures from Chinese authorities did not materialize. Despite <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41316058/chinese-stocks-etfs-struggle-as-multi-trillion-yuan-stimulus-hopes-fall-short-yet-m">signals of increased fiscal support,</a> the absence of a substantial economic package left traders underwhelmed.
Furthermore, China&#8217;s decision to cut interest rates in late October led to a decline in <a href="https://www.benzinga.com/news/24/10/41426987/us-listed-chinese-etfs-drop-after-beijing-cuts-interest-rates">several China-focused ETFs</a> in the U.S. This move, aimed at stimulating economic growth, instead raised concerns among investors about its broader implications.
Meanwhile, U.S.-listed Chinese ETFs have been providing American investors exposure to Chinese equities, bonds, or a combination of both, while being traded on U.S. stock exchanges. These ETFs are a convenient way for investors to gain diversified exposure to China&#8217;s economic growth without the complexities of directly investing in foreign markets. According to <a href="http://pro.benzinga.com">Benzinga Pro</a>, KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>), iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>), Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>), and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) are some of the popular names on the list.
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Chinese Fund Giants Slash ETF Fees Amid Intense Market Competition

Renowned tech investor and Palantir Technologies&#8217; co-founder&nbsp;Peter Thiel&nbsp;has made a daring prediction about the potential impact of President-elect Donald Trump&#8217;s <a href="https://www.benzinga.com/trading-ideas/movers/24/11/41902202/trumps-china-hawks-rumored-for-top-roles-yuan-hits-3-month-low">60% tariff on Chinese goods</a>.
What Happened: On Thursday, during an interview with The Free Press, Thiel suggested that such a tariff would be &#8220;very, very bad&#8221; for <a href="https://www.benzinga.com/general/social-media/24/11/41912771/trump-presidency-magnificent-7-stock-impact-benzinga-readers-pick-tech-titan-at-most-risk-following-2024-election">Chinese companies</a> and China as a whole.
However, he believes the impact on American consumers would be &#8220;mildly negative&#8221; as manufacturing would likely shift away from China.
According to Thiel, shifting manufacturing from China to Vietnam would significantly harm China, and have only a minor impact on American consumers. From a geopolitical perspective, he argued, this move would align closely with American strategic interests.
See Also:&nbsp;<a href="https://www.benzinga.com/etfs/24/11/42018463/trumps-post-election-rally-fades-dollar-surges-to-over-1-year-highs-powell-puts-december-interest-rate-cut-into-question-this-week-in-the-market?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s Post-Election Rally Fades, Dollar Surges To Over 1-Year Highs, Powell Puts December Interest Rate Cut Into Question: This Week In The Market</a>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
<div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Peter Thiel on the Triumph of the Counter-Elites" width="500" height="281" src="https://www.youtube.com/embed/wwJV_NuN43Y?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div>
</figure>
Why It Matters: Earlier this year, Chinese stocks <a href="https://www.benzinga.com/markets/asia/24/05/38782459/china-focused-etfs-have-become-political-footballs-in-us-as-investor-apprehension-leads-to-large-sca#google_vignette">experienced a notable rally</a>, pushing the SSE Composite Index in Shanghai to its highest point since September 2023.
However, Trump's proposed tariffs, which could reach as high as 60% on Chinese goods, along with additional import hikes on other nations, could disrupt these investments.
A day after Trump won, China-linked ETFs witnessed a sharp fall after rallying for nearly two months.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>China-linked ETFs</td>
<td>Share Price Drop On Nov. 6, 2024</td>
</tr>
<tr>
<td>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>)</td>
<td>2.01%</td>
</tr>
<tr>
<td>iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>)</td>
<td>2.70%</td>
</tr>
<tr>
<td>iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>)</td>
<td>2.94%</td>
</tr>
</tbody>
</table>
</figure>
U.S.-listed Chinese stocks such as Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), NIO Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), and XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) also <a href="https://www.benzinga.com/government/24/11/41773691/us-listed-chinese-stocks-like-alibaba-jd-nio-fall-after-trumps-win-whats-going-on">saw a decline in trading</a> following Trump&#8217;s win.
The imposition of such tariffs could strain China's economic growth, negatively impacting the performance of <a href="https://www.benzinga.com/general/social-media/24/11/41912771/trump-presidency-magnificent-7-stock-impact-benzinga-readers-pick-tech-titan-at-most-risk-following-2024-election">China-focused ETFs</a>, particularly those tied to the tech sector and large-cap companies, making them less attractive to investors.
Despite the immediate economic challenges that such a tariff would pose, some experts believe that China may view Trump's return to the White House as <a href="https://www.benzinga.com/news/global/24/11/41870809/china-may-benefit-from-trumps-return-to-white-house-despite-his-tariff-plans-says-expert-short-term-pain-but-potentially-long-term-strategic-gain">an opportunity for strategic advantage</a>.
Earlier this week, Chinese President Xi Jinping also expressed China's willingness to <a href="https://www.benzinga.com/24/11/42025284/xi-jinping-tells-joe-biden-china-is-ready-to-work-with-trump-as-tariff-threat-looms">collaborate with the U.S. government</a>, regardless of the administration in power.
Image via Wikimedia
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.

Peter Thiel Says Trump's 60% China Tariff Would Be 'Very, Very Bad' For Beijing, Here's What's At Stake

Emerging market stocks have dropped to levels last seen in mid-September, with the downturn exacerbated by Donald Trump's victory and a Republican sweep<a href="https://www.benzinga.com/topic/donald-trump"> of the U.S. Congress.</a>
The iShares MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EEM#NYSE">EEM</a>) has slumped 7% over the past month, with the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) and the iShares Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) underperforming — down 10.1% and 7.8%, respectively.
Trump&#8217;s win and full Republican control of Washington, D.C. raise critical questions for emerging markets (EM). What does a more protectionist U.S. policy and potential fiscal loosening mean for emerging economies, currencies and credit conditions?
<h1 class="wp-block-heading">Why Are Emerging Markets Falling?</h1>
Trump's election has sparked concerns over possible shifts in U.S. fiscal and trade policies that could have a ripple effect on global markets. 
&#8220;The prospects of looser fiscal policy and more trade protectionism have increased short- and long-term U.S. interest rates, putting upward pressure on borrowing costs in EMs,&#8221; according to Elijah Oliveros-Rosen, chief emerging markets economist at S&amp;P Global Ratings.
Higher U.S. interest rates tend to strengthen the dollar, making it more expensive for emerging markets to service dollar-denominated debt. This tighter financial environment has already started affecting emerging market currencies, which have weakened across the board against the dollar.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/14120359/image-159-1024x503.png" alt="" class="wp-image-648524" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/14120359/image-159-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/14120359/image-159-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/14120359/image-159-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/14120359/image-159-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/14120359/image-159.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h1 class="wp-block-heading">EM Currency Depreciation: A Major Concern</h1>
Following Trump's win, most EM currencies — especially in Central and Eastern Europe and Latin America — have depreciated significantly against the U.S. dollar.
Investors worry the Federal Reserve may delay rate cuts in response to Trump&#8217;s policies, which could include new tariffs or stricter immigration rules. A stronger dollar and potential trade barriers pose serious risks for EM economies reliant on exports and foreign investment.
The Mexican peso, in particular, has been hit hard by Trump's election, as uncertainty over trade and immigration policies toward Mexico has made investors skittish. 
Private fixed investment in Mexico, which has been strong over the last two years due to nearshoring, could lose momentum until there's more clarity on U.S. policy.
&#8220;During the Trump 2016-2020 administration (excluding the pandemic), private fixed investment in Mexico declined 4.5%,&#8221; S&amp;P Global wrote in a report. 
<h1 class="wp-block-heading">Tightening Financial Conditions For EM</h1>
The rise in U.S. interest rates is tightening financial conditions for EMs, which rely heavily on affordable credit to finance growth. 
With borrowing costs rising, fiscal vulnerabilities in these markets could become more pronounced, potentially limiting governments' ability to stimulate their economies.
"Volatility in emerging market assets is expected to remain elevated for some time due to uncertainties surrounding U.S. policy details including trade, fiscal, and regulatory environment," said Oliveros-Rosen. 
Investors are likely to remain on edge until the new administration clarifies its approach, particularly toward trade.
<h1 class="wp-block-heading">Impact On Credit Ratings, Market Activity</h1>
The tightening financial environment is already impacting EM credit ratings.
 While the number of issuers rated ‘CCC+' and below has decreased slightly, indicating some deleveraging, many EM companies are still struggling with high debt levels. Riskier credits have been able to refinance for the first time since November 2021, but this could come at the cost of reduced capital expenditures in 2025-2026.
Corporate bond spreads in EMs remain tight, supporting robust market activity for speculative-grade issuers. With two months left in 2024, all EM regions — except for Asia — have already surpassed their average bond issuance volumes from the last seven years. Both benchmark and corporate yields have edged up amid the uncertainty, reflecting a more cautious investor sentiment.
<h1 class="wp-block-heading">Long-Term Outlook: Headwinds, Opportunities</h1>
Looking ahead, EMs face a mixed outlook. In the near term, "volatility in emerging market assets is expected to remain elevated for some time due to uncertainties surrounding U.S. policy details including, trade, fiscal, and regulatory environment,&#8221; S&amp;P Global wrote. 
Yet, demographics, technology, and the global energy transition could provide structural growth tailwinds over the next decade, potentially offsetting some of the risks posed by a protectionist U.S. stance. 
Supply-chain shifts and nearshoring trends, particularly in regions like Latin America, may also help some EMs attract investment.
As Oliveros-Rosen stated, "The specific policies announced by the next U.S. administration could either further amplify or reverse the recent tightening in financial conditions, with implications for EM growth and credit conditions."
In other words, the ball is in Washington's court. Whether EMs face a full-blown crisis or simply a period of adjustment will depend largely on Trump's policy choices in 2025.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41955977/trump-ignites-investor-optimism-for-growth-small-caps-us-dollar-bank-of-america-survey">Trump Ignites Investor Optimism For Growth, Small Caps, US Dollar: Bank Of America Survey</a></li>
</ul>
Photo: Shutterstock

Equities

Emerging Markets

Emerging Market ETFs

Trump's Red Wave Pushes Emerging Market Stocks To 2-Month Lows: Volatility 'Expected To Remain Elevated'

China&#8217;s recent decision to cut interest rates has led to a decline in several China-focused exchange-traded funds (ETFs). The move, aimed at stimulating economic growth, has instead sparked concerns among investors about its broader implications.
What Happened: Several China-focused ETFs experienced declines following the country&#8217;s interest rate reduction. According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) fell by 2.30% on Monday pre-market. The iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) saw a decrease of 1.74%, while the Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) dropped by 0.85%. iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) also dropped by 1.56%.
See Also: <a href="https://www.benzinga.com/news/24/10/41415419/kevin-oleary-calls-for-400-tariffs-on-china-but-his-shark-tank-co-star-and-friend-mark-cuban-fires-b?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Kevin O&#8217;Leary Calls for 400% Tariffs On China, But His &#8216;Shark Tank&#8217; Co-Star And Friend Mark Cuban Fires Back With Business Concerns</a>
These declines come amid China&#8217;s decision to cut interest rates, a move that typically aims to stimulate economic growth. However, the immediate impact on these ETFs suggests investor concerns about the broader implications of such monetary policy adjustments.
Why It Matters: The rate cuts come at a time when investor sentiment towards Chinese markets is already fragile. Hopes for a<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41316058/chinese-stocks-etfs-struggle-as-multi-trillion-yuan-stimulus-hopes-fall-short-yet-m"> multi-trillion-yuan stimulus</a> package were dashed when Chinese authorities failed to deliver the anticipated measures. This lack of concrete fiscal support has left traders underwhelmed, despite signals of increased fiscal support.
Further compounding the issue, U.S.-listed Chinese stock<a href="https://www.benzinga.com/news/24/10/41424736/alibaba-nio-baidu-stocks-decline-amid-chinas-rate-cuts-whats-going-on">s also experienced a downturn</a> as Beijing implemented a reduction in its primary lending rates. Major companies such as Alibaba Group Holding Ltd , Baidu, Inc. , and NIO Inc. saw significant declines. This indicates a broader market reaction to China&#8217;s monetary policy adjustments, affecting both domestic and international investors.
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<li><a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41385450/this-chinese-ev-makers-stock-is-about-to-make-a-golden-cross?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">NIO: Chinese EV Maker Stock About To Make Golden Cross</a></li>
</ul>
Disclaimer: 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.
Image via Shutterstock

Pre-Market Outlook

US-Listed Chinese ETFs Drop After Beijing Cuts Interest Rates

Chinese tech giants Alibaba Group Holding Ltd &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), JD.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) all gained early Friday, driven by stronger-than-expected <a href="https://www.benzinga.com/news/24/10/41399129/why-us-listed-china-etfs-are-gaining-up-to-6-in-fridays-premarket">GDP figures from China.</a>
The upbeat economic data has invigorated market sentiment, pushing U.S.-listed Chinese stocks higher and contributing to a rally in China-based exchange-traded funds (ETFs).
Additionally, per a Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-10-18/china-s-further-slowdown-highlights-urgency-for-more-stimulus">report </a>early Friday, markets also found unexpected optimism in the People's Bank of China (PBOC). A speech from Governor Pan Gongsheng, along with the announcement of a support program for share buybacks, lifted market sentiment.
The National Bureau of Statistics expressed confidence that there is "large room" for further policy action this year, with a "very likely" chance of economic recovery, <a href="https://www.bloomberg.com/news/live-blog/2024-10-18/china-gdp-key-economic-indicators?sref=TBDibEcD">according </a>to Bloomberg. The bureau also noted that the external environment is &#8220;increasingly complex and grim&#8221; and the economy's foundation for a rebound needs to be further solidified. 
What Happened With GDP Data: China&#8217;s GDP expanded by 4.6% year-over-year in the third quarter, beating a Reuters poll forecast of 4.5%. Although the growth was marginally below the previous quarter's figure of 4.7%, it reassured investors that the world&#8217;s second-largest economy remains resilient despite recent challenges.
Alongside the GDP data, other indicators such as a 5.4% rise in industrial output and a 3.2% increase in retail sales further solidified optimism during Friday&#8217;s session.
Read Also: <a href="https://www.benzinga.com/markets/asia/24/10/41324527/as-chinas-stimulus-hype-wanes-beijing-reportedly-weighs-850b-special-treasury-bonds-to-stimulate-eco?itm_source=parsely-api">As China&#8217;s Stimulus Hype Wanes, Beijing Reportedly Weighs $850B Special Treasury Bonds To Stimulate Economy And Tackle Local Debt</a>
U.S.-listed ETFs tracking Chinese companies saw a sharp rise on the news. The KraneShares CSI China Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NASDAQ">KWEB</a>), a fund heavily exposed to major Chinese tech firms, gained 4.5% early Friday. The iShares China Large-Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NASDAQ">FXI</a>) and iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) also gained 4% each as investors looked to capitalize on the promising data.
Why This Matters For Alibaba: Alibaba, one of China's leading e-commerce platforms, is particularly sensitive to retail sales growth, making the better-than-expected retail data a boon for its stock. The company, which operates across multiple segments including online retail, cloud computing and digital media, stands to benefit from renewed consumer spending. 
With retail sales up by 3.2% in September, Alibaba is poised to capitalize on increased consumer activity and potentially stronger demand during the upcoming holiday shopping season.
Why This Matters For JD.com: JD.com, another key player in the Chinese e-commerce space, also experienced a boost from the positive GDP data. The company, known for its robust logistics network and dominance in online retail, is similarly tied to retail sales figures.
The industrial output increase of 5.4% was particularly relevant for JD, as its business relies on a smooth and efficient supply chain to meet growing demand.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41402089/goldman-sachs-highlights-20-top-short-squeeze-opportunities-for-q3-earnings-season">Goldman Sachs Highlights 20 Top Short-Squeeze Opportunities For Q3 Earnings Season</a>
Why This Matters For Baidu: Baidu, China's most popular search engine and AI company, also saw its shares jump as part of the broader rally in Chinese tech stocks. Baidu has been expanding its reach into artificial intelligence and autonomous driving, areas that could benefit from China&#8217;s overall economic growth. 
As industrial activity rises, Baidu&#8217;s AI-driven enterprise services, cloud computing and autonomous driving ventures are expected to see increased demand. Moreover, improvements in consumer spending could boost Baidu's core advertising business, which is highly reliant on the health of the broader economy.
The Bigger Picture: China&#8217;s positive economic data arrives at a crucial time. Global markets have been increasingly concerned about the country's growth prospects amid a slowing property market and ongoing geopolitical tensions.
While concerns over declining house prices remain – with a sharper 5.8% drop year-over-year in September – the broader economy appears to be gaining strength. Investors interpret this data as a sign that <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41032804/chinas-stimulus-sparks-optimism-3-large-cap-stocks-with-analyst-buy-ratings" target="_blank" rel="noopener">China's targeted stimulus measures and government interventions</a> may stabilize the economy.
With Beijing reportedly considering further fiscal measures, including an <a href="https://www.benzinga.com/markets/asia/24/10/41324527/as-chinas-stimulus-hype-wanes-beijing-reportedly-weighs-850b-special-treasury-bonds-to-stimulate-eco?itm_source=parsely-api">$850 billion special treasury bond</a> to stimulate the economy and tackle local debt, the stage may be set for continued momentum in China's stock market.
Read Now:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41314387/most-widely-hated-bull-market-reaches-2-year-milestone-top-20-s-p-500-stocks-drivin" target="_blank" rel="noreferrer noopener">‘Most Widely Hated' Bull Market Reaches 2-Year Milestone: Top 20 S&amp;P 500 Stocks Driving The Rally</a></li>
</ul>
Photo: Shutterstock

Alibaba, JD.com, Baidu Stocks Climb On Strong China GDP Growth, Rising Consumer Spending

China&#8217;s stronger-than-expected GDP figures for the third quarter have led to a notable surge in U.S.-listed China-based ETFs during pre-market trading. This economic data has provided a boost to several key ETFs.
What Happened: China-based U.S.-listed ETFs experienced a significant uptick in pre-market trading following the release of robust<a href="https://www.benzinga.com/markets/asia/24/10/41398004/why-are-alibaba-nio-jd-com-and-other-us-listed-chinese-stocks-surging-today"> GDP figures from China.</a> According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) rose by 6.06%, while the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) increased by 4.93%. The iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) also climbed 5.15%.
China&#8217;s GDP grew by <a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb">4.6% year-over-year </a>in the third quarter, surpassing the 4.7% prediction of Reuters poll. However, this growth was slightly below the 4.7% recorded in the previous quarter, marking the slowest pace since mid-last year and moving further from Beijing&#8217;s 5% annual target.
See Also: <a href="https://www.benzinga.com/markets/asia/24/10/41324527/as-chinas-stimulus-hype-wanes-beijing-reportedly-weighs-850b-special-treasury-bonds-to-stimulate-eco?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">As China&#8217;s Stimulus Hype Wanes, Beijing Reportedly Weighs $850B Special Treasury Bonds To Stimulate Economy And Tackle Local Debt</a>
Retail sales in September increased by 3.2% year-on-year, exceeding forecasts, while industrial output rose by 5.4%, also beating expectations. Despite these positive indicators, house prices fell by 5.8% year-over-year in September, a larger decline compared to August&#8217;s 5.3% drop. Meanwhile, the CSI 300 index in Mainland China surged 3.62% to close at 3,925.23, after reaching an intraday high of 5.5%.
Read Next: 
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41320277/oil-prices-drop-2-as-opec-cuts-forecast-irans-output-rises-analyst-says-netanyahu-m?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Oil Prices Drop 2% As OPEC Cuts Forecast, Iran&#8217;s Output Rises: Analyst Says Netanyahu May Doubt US Commitment To &#8216;Restricting Iranian Exports&#8217;</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Why US-Listed China ETFs Are Gaining Up To 6% In Friday's Premarket

China is reportedly considering issuing 6 trillion yuan, approximately $850 billion, in ultra-long special treasury bonds over the next three years. This potential move aims to bolster the nation&#8217;s slowing economy through fiscal stimulus.
What Happened: Sources indicate that the funds from these bonds will be partially used to help local governments manage their hidden debts. This speculation follows the Ministry of Finance&#8217;s announcement to address local government debt pressures, although specific figures were not disclosed during a recent press briefing, according to a <a href="https://www.caixinglobal.com/2024-10-14/exclusive-china-may-issue-6-trillion-yuan-in-treasury-bonds-to-buttress-economy-102245341.html">report</a> by Caixin Global on Tuesday.
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41322578/teslas-chinese-rivals-move-to-calm-fears-of-an-european-invasion-that-threatens-legacy-players-n?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla&#8217;s Chinese Rivals Move To Calm Fears Of An European &#8216;Invasion&#8217; That Threatens Legacy Players: &#8216;Not Going To Overthrow Anybody Who&#8217;s Developed Over 100 Years&#8217;</a>
Xing Zhaopeng, a senior China strategist at ANZ, shared with Reuters that this development aligns with expectations. He stated, &#8220;For next year, we still think a growth target of around 5% is likely to be maintained. So, for a 5% growth rate, that should be enough.&#8221;
Why It Matters: The anticipation of China&#8217;s fiscal stimulus has been a significant factor influencing investor sentiment. Recently, <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41316058/chinese-stocks-etfs-struggle-as-multi-trillion-yuan-stimulus-hopes-fall-short-yet-m">U.S.-listed Chinese stocks</a> experienced a downturn as investors were left underwhelmed by a high-level briefing from Chinese authorities that did not meet expectations for substantial economic measures. Despite hints of increased fiscal support, the absence of a large-scale package has left traders disappointed.
Stocks such as Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), and JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) have seen declines of 6% to over 8% in the past five days. Similarly, Chinese electric vehicle stocks like NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) and XPeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) <a href="https://www.benzinga.com/government/24/10/41312039/whats-going-on-with-us-listed-chinese-stocks-alibaba-baidu-nio-xpeng-on-monday">have also traded lower</a>, with other EV stocks, including Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), losing over 3% to 11% in the same period.
Price Action: According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, at the time of writing on Tuesday during the after-hours, Invesco Golden Dragon China (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) was showed a 2.13% decline while iShares MSCI China Multisector Tech ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCHI#NASDAQ">TCHI</a>) was up by 4.28%, Meanwhile, iShares China Large Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) was up by 0.27%, while iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) was down by 0.35%.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">China Was Tipping Into A Japan-Style &#8216;Lost Decade&#8217; Of Deflation And Stagnation Before Late-September Stim</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

TCHI

As China's Stimulus Hype Wanes, Beijing Reportedly Weighs $850B Special Treasury Bonds To Stimulate Economy And Tackle Local Debt

Both the S&amp;P 500 and the Dow Jones Industrial Average extended their record highs on Monday, reflecting continued bullish sentiment as investors anticipate key <a href="https://www.benzinga.com/earnings">corporate earnings reports </a>later this week.
The S&amp;P 500 surged past 5,850 points during midday trading in New York, while the Dow Jones broke above the 43,000 mark for the first time. Wall Street celebrated the two-year anniversary of <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41314387/most-widely-hated-bull-market-reaches-2-year-milestone-top-20-s-p-500-stocks-drivin">the bull market&#8217;s start.</a>
However, the Nasdaq 100 is still lagging. It gained 0.7% on the day but remains about 1% below its all-time high set on July 10.
Small-cap stocks also advanced, with the Russell 2000 climbing 0.6%. Among sectors, utilities and technology led the gains, while semiconductors and homebuilders were the top-performing industries.
Despite no major economic data releases, U.S. Treasury yields edged higher, with the 10-year yield reaching 4.13%, its highest level since late July. The U.S. dollar also rose by 0.3%.
Commodities were the weakest asset class, weighed down by uncertainty over China&#8217;s stimulus measures. Gold, silver, and copper fell 0.4%, 1.2%, and 2%, respectively. Crude oil prices dropped 2.3% as OPEC&#8217;s weakening demand outlook dampened sentiment.
Chinese equities, tracked by the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), declined 1.1%.
In the crypto space, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) stood out as the best performer, rallying 4.5% to surpass $65,000. Other cryptocurrencies and crypto-linked stocks followed its lead.
<h3 class="wp-block-heading">Monday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,857.62</td>
<td>0.7%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,409.65</td>
<td>0.7%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,245.80</td>
<td>0.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,027.29</td>
<td>0.4%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101124&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;rose 0.7% to $583.72.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.4% to $430.59.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 0.8% to $497.15.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.6% to $222.52.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 1.2%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XKE#NYSE">XKE</a>) lagged, down 0.3%.</li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) surged more than 5% after BNP Paribas initiated coverage with an Outperform rating and a $231 price target.</li>
<li>Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) rallied 3.7%, after soaring 5.6% Friday, after Bank of America Securities raised the price target on the stock from $70 to $75. </li>
<li>SoFi Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) soared over 9% following the announcement of a major agreement with Fortress Investment Group LLC for its loan-platform business.</li>
<li>Upstart Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPST#NASDAQ">UPST</a>) jumped over 4% after Wedbush upgraded the stock to Neutral, boosting its price target from $10 to $45.</li>
<li>Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), CleanSpark Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>) and MARA Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) rallied 7.7%, 7.3% and 5.4%, respectively, on the heels of Bitcoin&#8217;s rally. </li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/markets/24/10/41302909/18-stocks-to-buy-7-to-sell-this-earnings-season-goldman-sachs-calls-it-the-year-of-the-stock-picker">18 Stocks To Buy, 7 To Sell This Earnings Season: Goldman Sachs Calls It &#8216;The Year Of The Stock Picker&#8217;</a></li>
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Image created using artificial intelligence via Midjourney.

Large Cap

Mid Cap

Broad U.S. Equity ETFs

Small Cap

Tech

$BTC

CLSK

COIN

SPDR Dow Jones Industrial Average ETF Trust

MARA

SOFI

UPST

Select Sector SPDR-Consumer Discretionary

S&P 500 Extends Record Highs, Dow Breaks 43,000 Ahead Of Pivotal Earnings Week, Bitcoin's Rally Lifts Crypto Stocks: What's Driving Markets Monday?

The market&#39;s price action and attention are making a new shift this quarter. For most of 2024, everyone wanted to find the next best thing in the United States technology sector, as the semiconductor industry saw massive rallies in shares of NVIDIA Co. However, it seems that the industry has run its course, and investors are now left to find the next hot trend, which came up in an unlikely place worldwide.
Asia&#39;s powerhouse, China, has recently sparked a new stock market rally after cutting interest rates by 50 basis points and injecting a few billion in capital into the economy to support its faltering financial markets. Some of the nation&#39;s biggest companies saw their stocks break out into multi-year highs, from valuations that were undeniably low to attract some of the United States&#39; best investors and fund managers.
These stock picks include names like Alibaba Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), which is the fit choice amongst many investors today looking to get exposure to China. Then, there is Baidu Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>), serving as a companion to the technology sector. For those investors who don&#39;t feel comfortable&nbsp;investing in individual stocks, the&nbsp;iShares MSCI China ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mchi#NASDAQ">MCHI</a>) can&nbsp;diversify their capital across different industries and companies.
<h2>For Investors Who Missed the First Rally, China&#39;s Markets Are Offering a Second Chance</h2>
Even after having the best days in over two years and bringing these stocks to new valuations, reality fell short of bullish expectations to justify keeping the rally going for these stocks. At least, this is what the media headlines are blaming the recent retracement on, ignoring the fact that there might have been a lot of old business &quot;stuck&quot; on these stocks waiting to get out.
When investors realize that stocks like Alibaba and others in the iShares China ETF spent just over two years trading in a near-flat channel, it&#39;s easier to imagine many premature bulls holding onto their positions and waiting for the first big rally to start unloading some of their inventory.
That might be what&#39;s actually happening at the moment, and that&#39;s why investors should not take the current sell-off lightly or as anything short of an opportunity to get in before the sentiment continues. Surely, some investors who recently bought these stocks before the rally may be obligated to trim down their positions for weighing purposes, but that doesn&#39;t mean they&#39;re suddenly bears.
Investors like Michael Burry and David Tepper recently chose to make Alibaba their largest position. Institutional players like these two have to decrease the weight of a stock if its position becomes too big compared to the rest of its holdings. This, combined with old stuck bulls getting out, might have caused the sell-offs.
However, Wall Street analysts recognize these stocks for their double-digit upside potential and high-quality business models. China&#39;s economy is just starting to come off its bottoming cycle, so it would seem that only clear skies lie ahead for this nation and the Asian region.
<h2>Worst Day in the Market? A Golden Opportunity for Value Investors</h2>
After suffering a 10.8% decline in a single day, the iShares China ETF just posted its worst day in history this week. However, that doesn&#39;t have to mean everyone should get out; in fact, just the opposite might be true.
The same goes for Alibaba and Baidu, as these two stocks fell by 6.7% and 7.4%, respectively, in a single day.
Compared to today&#39;s prices, investors can see that current Wall Street valuations and projections would place an attractive value proposition for these companies in the next 12 months; here&#39;s what these analysts have to say.
<h2>Alibaba&#39;s Recovery Still Intact</h2>
While the consensus price target for Alibaba stock is now set at $111.1 a share, a few analysts felt bold enough to stand out from the pack. Leading the way were those at Macquarie, upgrading Alibaba stock to an &quot;Outperform&quot; rating, a new view that was coupled with a $145 a share price target for the company.
To prove these analysts right, the stock would need to rally by as much as 32.2% from where it has gotten to today. More than that, Alibaba&#39;s management has approved a stock buyback program of up to $25 billion for this year, representing roughly 10% of the company&#39;s market capitalization today.
<h2>Baidu&#39;s Value Proposition Seems Best</h2>
What better way to play the world&#39;s fastest-growing middle class than by having access to consumer and user data on a daily basis, as well as being able to monetize such data to other businesses that might find it useful. Investors can think of Baidu as America&#39;s Alphabet Inc., only with a few more years of high growth.
Wall Street&#39;s consensus price target of $132.1 a share calls for a net upside of as much as 24.6% from where it trades today, especially after the recent sell-off. More than that, Baidu is one of Michael Burry&#39;s top five holdings in his fund, and if he&#39;s known for anything, it is for being right on his big bets.
Based on the noncyclical nature of Baidu&#39;s business, unlike Alibaba&#39;s dependence on consumer discretionary trends, it is the best path to a recovery stemming from its value proposition to investors today.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/this-major-sell-off-in-chinese-stocks-could-be-your-buy-signal/">This Major Sell-Off in Chinese Stocks Could Be Your Buy Signal</a>&quot; first appeared on MarketBeat.

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This Major Sell-Off in Chinese Stocks Could Be Your Buy Signal

U.S.-listed Chinese stocks faced a <a href="https://www.benzinga.com/topic/china">sluggish start to the week</a>. 
Investor sentiment faltered following a high-level briefing from Chinese authorities that lacked the concrete stimulus measures many had anticipated. 
Despite signals of increased fiscal support, the absence of a large-scale economic package left traders underwhelmed.
<h3 class="wp-block-heading">Weekend Briefing Misses Expectations</h3>
To stabilize the economy, the Chinese Ministry of Finance (MoF) hinted at a press conference on Oct. 12 that it may raise the government debt ceiling, support local governments, address issues in the property market, and bolster major banks.
However, the MoF stopped short of announcing the multi-trillion-yuan stimulus package that markets had hoped for. 
The lack of details on measures to boost consumer demand and spark a stronger economic recovery weighed heavily on investor sentiment. 
<h3 class="wp-block-heading">Key Announcements</h3>
<ul>
<li>The MoF indicated that $300 billion (RMB2.3 trillion) in local government special bond funds would be used in Q4, suggesting a more aggressive fiscal push toward the end of the year.</li>
<li>The National Development and Reform Commission (NDRC) announced plans to pre-approve RMB200 billion worth of projects for 2024 by the end of October, intending to start construction by year-end.</li>
</ul>
<h3 class="wp-block-heading">Analyst Reactions</h3>
Helen Qiao, Asian economist at Bank of America, emphasized that the market had been eagerly awaiting more specific details about the upcoming fiscal stimulus.
"Markets have been keen to know the size, timing, and composition of any potential fiscal package," she said in a note.
&#8220;While the Oct. 12 announcement appears to lack details, in our view, it does not rule out a decent-sized fiscal package to be rolled out in the coming weeks,&#8221; Qiao added.
Qiao also indicated that while more measures to boost consumption &#8216;are still on the table,&#8217; though they are not expected until 2025. 
&#8220;As we have cautioned earlier, the MoF is not in the capacity of announcing any budget revisions before receiving greenlights from the NPC.&#8221;
Hui Shan, an economist at Goldman Sachs, saw the briefing as a sign that China is refocusing its economic policy towards growth.
&#8220;Although the much-anticipated Ministry of Finance (MoF) press conference on October 12 did not spell out great details on the upcoming fiscal stimulus package, officials provided strong forward guidance on increased fiscal support,&#8221; Shan said.
She further highlighted a shift in policy focus: &#8220;The Chinese government has clearly made a turn on cyclical policy management and increased its focus on growth.&#8221;
As a result of this shift, Goldman Sachs revised its fourth-quarter growth forecast, raising it from 5.5% to 7.5% on a quarter-over-quarter basis. The firm also increased its 2024 GDP forecast from 4.7% to 4.9%, and raised its 2025 GDP forecast from 4.3% to 4.7%. 
<h2 class="wp-block-heading">Mixed Performances For Chinese Stocks</h2>
Following the announcement, U.S.-listed Chinese stocks experienced a mixed response. Several key names suffered losses as disappointment over the lack of immediate stimulus took hold.
<ul>
<li>Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) slipped 0.6%.</li>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) fell 2.8%.</li>
<li>Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) dropped 3.9%.</li>
</ul>
However, not all stocks saw declines:
<ul>
<li>JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) bucked the trend, rising 2.3%.</li>
<li>KE Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BEKE#NASDAQ">BEKE</a>), a real estate broker, surged over 5% on optimism about future property market support.</li>
</ul>
<h3 class="wp-block-heading">Chinese ETFs also reacted, largely trending downward:</h3>
<ul>
<li>iShares China Large Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) stayed flat.</li>
<li>iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) dipped 0.3%.</li>
<li>KraneShares CSI Internet China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) fell 0.9%.</li>
<li>Invesco Golden Dragon China (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) declined 0.7%.</li>
<li>First Trust China AlphaDEX Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCA#NASDAQ">FCA</a>) dropped 0.5%.</li>
<li>iShares China Multisector Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TCHI#NYSE">TCHI</a>) slid 1.2%.</li>
<li>Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>) edged down 0.2%.</li>
</ul>
Read now:
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<li><a href="https://www.benzinga.com/government/24/10/41312039/whats-going-on-with-us-listed-chinese-stocks-alibaba-baidu-nio-xpeng-on-monday">What&#8217;s Going On With US Listed Chinese Stocks Alibaba, Baidu, Nio, XPeng on Monday?</a></li>
</ul>
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Chinese Stocks, ETFs Struggle As Multi-Trillion-Yuan Stimulus Hopes Fall Short, Yet More Measures 'Are Still On The Table'

China&#39;s economy has struggled in recent months amid a depressed level of consumer confidence and a devastating housing bust coupled with weak credit demand. Late in September&mdash;just after the U.S. Federal Reserve announced its first federal funds rate cut in several years&mdash;the People&#39;s Bank of China unveiled a three-part monetary stimulus program to reduce reserve requirement ratios (the amount of cash banks are required to keep on hand), mortgage rates and down payment requirements, and more.
Some economists view monetary easing of this kind as limited in its potential impact during an economic downturn. Still, the immediate response of Chinese markets to the announcement has been a flurry of activity and a significant rally. The CSI 300, an index representing 300 of the largest publicly traded, Chinese-listed companies, is up by nearly 24% in the last month. Following the stimulus reveal, it had its&nbsp;single best day in nearly two decades.
A dip in Hong Kong stocks late in September prompted investors to speculate about how long the rally would continue. Indeed, consensus seems to be growing that a sharp reversal may be in store at some point if the stimulus measures are deemed to be ineffective overall. Still, there are several companies investors may wish to focus on during the boom.
<h2>NIO: Jolt for EV Maker</h2>
The Chinese government&#39;s stimulus package has helped to propel EV maker NIO Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nio#NYSE">NIO</a>) upward by more than 55% in the last month, though the stock remains down more than a quarter overall in the last year.
Besides the boost tied with the broader Chinese equities space, NIO has experienced added momentum thanks to its late-September announcement of a RMB3.3 billion investment in its NIO China subsidiary from external investors, alongside a commitment of an additional RMB10 billion that NIO itself will make.
Still, investors should exercise caution when it comes to NIO shares. Despite surging in recent weeks, the company faces stiff competition domestically and unfavorable tariffs in other parts of the world that are likely to limit its ability to undercut the Model Y from competitor Tesla Inc.&nbsp;with its new affordable ONVO L60 offering.
<h2>TME: Earnings and Cash Flow Growth</h2>
Tencent Music Entertainment Group (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tme#NYSE">TME</a>), the online music and entertainment streaming platform provider, has massive earnings growth potential. Analysts project 27.4% earnings growth this year, far ahead of the wider industry.&nbsp;The company already posted a 33.1% year-over-year improvement in net profit&nbsp;in the latest quarter, driven by an increase in online music subscribers and improved retention rates.
Tencent has coupled this rapid bottom-line growth with steady improvement in cash flow as well, allowing the company to sustainably expand its operations. If China&#39;s stimulus program is effective at boosting consumer spending, Tencent is likely to be a major recipient.
<h2>MCHI: Broad Market Coverage and Attractive Liquidity</h2>
Investors looking to lean toward Chinese equities more broadly and without focusing on a single firm may look to the iShares MSCI China ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mchi#NASDAQ">MCHI</a>). This fund provides wide exposure to nearly 600 large-cap Chinese firms.
While it is not the cheapest broad-based China-focused ETF based on expense ratio, it provides superior liquidity and a strong asset base relative to some of its less-expensive competitors.
MCHI is up by more than a third in the last year, sharply outpacing the CSI 300 during that same period.
<h2>Impact of Additional Stimulus Measures</h2>
China&#39;s government spending is currently below budget&nbsp;due to minimal capital investment projects and a lack of government revenue. In response, the government is&nbsp;reportedly considering issuing about $284 billion in special sovereign bonds in the coming weeks. This would likely further boost the Chinese economy, particularly in&nbsp;household consumption and at the local government level.
In the meantime, China&#39;s economy is not out of trouble just yet. Investors should be cautious about the rapid uptick in many Chinese equities and keep in mind that the rally may be short-lived. Still, some individual companies&mdash;and even the broader Chinese market&mdash;may still offer room for growth. Indeed, some non-Chinese companies also stand to benefit from a continued rally thanks to this stimulus package.
The article &quot;<a href="https://www.marketbeat.com/stock-ideas/key-stocks-to-ride-chinas-stimulus-driven-growth/">3 Key Stocks to Ride China&#39;s Stimulus-Driven Growth</a>&quot; first appeared on MarketBeat.

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3 Key Stocks to Ride China's Stimulus-Driven Growth

The Chinese market, which reopened on Tuesday after a weeklong public holiday, was pressured on Wednesday as domestic traders did not get the additional stimulus they had factored in. Come Thursday, things took a turn for the better as the People&#8217;s Bank of China announced measures to boost the stability of the domestic equity market.
What Happened: In a statement released on its website, the PBoC said it has decided to establish the &#8220;Securities, Funds and Insurance Companies Swap Facility,&#8221; or SFISF, to support qualified securities, funds and insurance companies to exchange bonds, stock exchange-traded funds and CSI 300 constituent stocks and other assets for high-grade liquid assets such as Treasury bonds and central bank bills from the central bank. 
The scale of operation during the first phase is 500 billion yuan ($70.7 billion) and this could be expanded further depending on the situation, the central bank said. Applications from qualified securities, funds and insurance companies will be accepted with immediate effect, it said.
The central bank clarified that the new measure is in order to implement the requirements of the Third Plenary Session of the 20th CPC Central Committee regarding &#8220;establishing a long-term mechanism to enhance the inherent stability of the capital market&#8221; and promote the healthy and stable development of the capital market.&#8221;
See Also: <a href="https://www.benzinga.com/money/best-chinese-stocks">Best Chinese Stocks</a>
Thursday&#8217;s announcement comes on top of the liquidity-boosting measures the central bank announced in late September regarding cutting the reserve requirement ratio, which is the amount of cash banks must hold as reserves, by 50 basis points freeing up about 1 trillion yuan for new lending.
The central bank hinted at the possibility of reducing it by a further 0.25-0.50% points. It also said it would lower the seven-day repo rate by 0.2 points, the interest rate on a medium-term lending facility by about 30 basis points and loan prime rates by 20-25 basis points.
Market Reacts: The Shanghai Composite Index &#8211; the key market gauge of mainland China, rallied strongly following the fresh stimulus. After opening at 3,277.69, modestly higher than the previous close of 3,258.86, the index gave back its gains in early trading and moved below the unchanged line.
Following PBoC&#8217;s announcement, the index recovered. At last check, it traded 2.92% higher at 3,353.91.
Hong Kong&#8217;s Hang Seng Index also rallied over 4%.
US-listed Stocks Rip Higher: U.S.-listed Chinese stocks listed in Hong Kong reflected the buoyancy and were sharply higher by mid-day on Thursday. Among the gainers are:
<ul>
<li>Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) gained 4.28%.</li>
<li>XPeng, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) jumped 9.50%.</li>
<li>Li Auto, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) rose 5.96%.</li>
<li>Nio, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) added 6%.</li>
<li>JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) climbed 5.63%.</li>
<li>Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) moved up 1.98%.</li>
<li>Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) moved up 2.47%.</li>
</ul>
The iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) ended Wednesday&#8217;s session down 2.36% at $51.97, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb">China Was Tipping Into A Japan-Style &#8216;Lost Decade&#8217; Of Deflation And Stagnation Before Late-September Stimulus Announcements, Says Legal Expert</a></li>
</ul>
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Alibaba, JD.com, XPeng Soar In Hong Kong As PBOC's Fresh Stimulus To Boost Stock Market Sends Chinese Main Stock Market Gauge Up By 3%

China stocks are moving lower on Wednesday as investors moderate expectations for a swift Chinese economic recovery <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">bolstered by stimulus measures</a>. 
What To Know: China markets had been on a tear in recent weeks after China introduced its most aggressive stimulus measures since the pandemic and vowed to deploy "necessary fiscal spending" to meet its economic growth target of 5%.
The rally was buoyed further after measures were announced to allow for the refinancing of mortgages, giving home buyers immediate benefits from lower interest rates, as China attempts to revive an economy that has battled deflationary pressures and growth headwinds due to property declines and wavering consumer confidence.
Following a week-long holiday break, mainland Chinese stocks popped as they resumed trading on Tuesday before the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">stimulus-backed rally fizzled</a> and stocks finished the day sharply lower. Weakness has continued into Wednesday after a meeting of China&#8217;s National Development and Reform Commission offered no significant stimulus details, per Reuters. 
Economic planner chairman Zheng Shanjie reportedly told reporters that China remains &#8220;fully confident&#8221; it will reach its economic targets and will pull forward funds from next year&#8217;s budget to invest and support local governments.
Rong Ren, portfolio manager of Eastspring Investments in Singapore believes Zheng&#8217;s comments fell short of expectations. 
&#8220;Markets were hoping to obtain some guidance on the size of fiscal stimulus,&#8221; the portfolio manager said. &#8220;It is likely we see markets consolidating and digesting what has already been announced, which arguably is meaningful, but not quite enough to satiate lofty expectations.&#8221;
Check This Out: <a href="https://www.benzinga.com/markets/equities/24/10/41246126/ray-dalio-issues-stark-warning-as-investors-get-optimistic-about-china-again-theres-something-bi">Ray Dalio Issues Stark Warning As Investors Get Optimistic About China Again: &#8216;There&#8217;s Something Big Going On&#8230;&#8217;</a>
Hong Kong&#8217;s Hang Seng fell 1.38%, the Shanghai Composite dove 6.62% and the blue-chip CSI300 plunged 7.39% on Wednesday. The IShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) was down 2.33% and the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) was down 1.06%. 
U.S.-listed Chinese stocks were also facing selling pressure at the time of writing. Alibaba Group Holding Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) shares were down 1.86% at $107.63, Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) shares were down 1.87% at $104.10, JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) shares were down 2.22% at $42.58 and PDD Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) shares were down 2.46% at $141.26. 
Some China-based EV names were also seeing weakness including NIO Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>), which was down 1.74% at $6.13, and Li Auto Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>), which was down 3.28% at $27.13 at last check.
Reuters reported that investor attention is now shifting to a news conference scheduled for Saturday with China&#8217;s finance ministry. The conference is expected to focus on fiscal stimulus to boost the economy. 
Read Next: 
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<li><a href="https://www.benzinga.com/markets/asia/24/10/41223469/china-rallies-to-2-year-high-europe-slips-dollar-softens-global-markets-today-while-us-slept">China Rallies To 2-Year High, Europe Slips, Dollar Softens &#8211; Global Markets Today While US Slept</a></li>
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Photo: Shutterstock.

Movers

China Stock Rally Loses Steam As Investor Optimism Subsides: 'Not Quite Enough To Satiate Lofty Expectations'

Renowned investor Ray Dalio, founder of Bridgewater Associates, has raised concerns about the complexities of investing in China amid the <a href="https://www.benzinga.com/markets/asia/24/10/41207547/dont-bet-on-chinas-economic-stimulus-yet-as-yuan-faces-volatility-amid-us-election-jobs-data-analyst">country&#8217;s shifting economic policies</a>.
What Happened: Speaking at the Greenwich Economic Forum, Dalio highlighted the challenges posed by Beijing&#8217;s changing stance on capitalism, which has led to significant structural changes in the Chinese economy, <a href="https://www.cnbc.com/2024/10/08/ray-dalio-china-investing-is-tricky-as-beijing-turns-less-favorable-to-capitalism.html">reported</a> CNBC.
"There's something big going on that they had a debt crisis and they also had a capitalism crisis. Are they … favorable to capitalism as we knew it before? I do not believe they are in the same way," Dalio said. 
Dalio pointed out that the Chinese government aims to maintain strict control over the economy, which has impacted investor sentiment. 
The recent enthusiasm for Chinese investments was <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">tempered when officials did not announce specific stimulus</a> measures.
Despite expectations for economic revival through policy actions like interest rate cuts, the Chinese markets have seen reduced momentum. The CSI 300 index, which had previously surged over 10%, saw its gains <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">shrink to 5% on Tuesday</a>.
Dalio advised investors to avoid focusing on daily market fluctuations. Meanwhile, hedge funds have been increasing their investments in Chinese stocks, anticipating further stimulus. David Tepper of Appaloosa Management expressed optimism, stating he is heavily investing in China due to recent government support. 
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41220350/tesla-traders-wild-bet-on-elon-musks-company-ends-in-a-306m-lawsuit-spiral?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Trader&#8217;s Wild Bet On Elon Musk&#8217;s Company Ends In A $306M Lawsuit Spiral</a>
Why It Matters: China&#8217;s economic landscape has been marked by volatility and rapid changes in recent months. A <a href="https://www.benzinga.com/markets/asia/24/10/41213691/fast-and-furious-rally-pushes-chinese-stocks-to-double-s-p-500-performance-year-to-date">dramatic rally</a> in Chinese equities occurred in early October, driven by aggressive monetary easing policies and government commitments to stabilize the property sector. 
This surge saw the MSCI China Index tracked by the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) outperform other major global markets, doubling the year-to-date gains of the S&amp;P 500,&nbsp;as tracked by the&nbsp;SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
However, this optimism was short-lived, as Chinese stocks experienced a <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">sharp selloff</a> on Wednesday, with the Hang Seng Index continuing a volatile trend across Asia-Pacific markets. The Hang Seng Index in Hong Kong dropped 1.39% to 20,635.11, following Tuesday's devastating 9.41% plunge — its worst single-day loss since the 2008 financial crisis.
Tech giants faced significant losses <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">during the downturn on Wednesday</a>, with JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) plummeting 7.52% on the Hong Kong stock exchange. Alibaba Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) followed with a decline of 2.75%, while Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) lost 1.65% on HKEX. Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) also experienced a downturn, declining by 1.32%.
Dalio&#8217;s insights come at a time when investors like Michael Burry have made <a href="https://www.benzinga.com/markets/asia/24/08/40386342/big-short-fame-michael-burry-bets-big-on-china-reveals-alibaba-as-top-holding-jd-com-and-baidu-also">significant bets on Chinese stocks</a>, as seen in his hedge fund&#8217;s latest portfolio shift. The evolving economic strategies in China, including potential &#8220;beautiful deleveraging,&#8221; as Dalio previously noted, continue to shape <a href="https://www.benzinga.com/markets/asia/24/10/41157439/ray-dalio-sees-potential-for-beautiful-deleveraging-in-xi-jinpings-economic-strategy-for-china">the investment landscape</a>.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/10/41201263/meta-stock-returns-pale-next-to-peter-thiels-secretive-data-company-even-as-mark-zuckerberg-comp?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Meta Stock Returns Pale Next To Peter Thiel&#8217;s Secretive Data Company Even As Mark Zuckerberg Company&#8217;s AI Advancements Generate Excitement</a></li>
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Image via Wikimedia Commons
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 GROUP HOLDING LTD by Alibaba Group Holding Limited

BABAF

Ray Dalio Issues Stark Warning As Investors Get Optimistic About China Again: 'There's Something Big Going On...'

After weeks of soaring performance that positioned Chinese stocks among the best global performers year-to-date, a sharp selloff swept across Chinese markets overnight, with the Hang Seng Index in Hong Kong plummeting more <a href="https://www.benzinga.com/markets/asia/24/10/41213691/fast-and-furious-rally-pushes-chinese-stocks-to-double-s-p-500-performance-year-to-date">than 9% on Tuesday. </a>
The massive drop marks the index&#8217;s worst single-day loss since October 2008, during the height of the global financial crisis.
In mainland China, the Shanghai Composite Index also faced intense volatility but managed to close 4.6% higher after fluctuating wildly throughout the day, following a holiday week. 
Investors, previously riding the rally, rushed to lock in profits, dampened by disappointment over the lack of aggressive fiscal stimulus announcements from Chinese officials.
<h3 class="wp-block-heading">Lack of Bold Stimulus Disappoints Investors</h3>
The sharp downturn was driven by growing disillusionment with Beijing&#8217;s latest policy measures, or rather, the absence of any major new stimulus. 
Hopes had been high that the National Development and Reform Commission (NDRC) would unveil bold fiscal support to bolster the economy, but no such plans materialized.
Zheng Shanjie, chairman of the NDRC, addressed the nation in a media briefing, reiterating that China is on track to achieve its 5% GDP growth target for the year.
However, while acknowledging the economy's challenges in the face of a &#8220;more complex and extreme&#8221; global environment, the only concrete measures announced were a front-loaded 100 billion yuan ($14.1 billion) budget from 2025 and another 100 billion yuan for construction projects. Investors had expected far more robust action, including trillions in new bond issuances and initiatives to stimulate consumption.
The muted response from Beijing rattled the markets. 
&#8220;While Chinese officials discussed hitting growth targets, they didn't address further stimulus measures. The markets want their lifeline!&#8221; wrote macroeconomist Ayesha Tariq, summarizing the frustration.
Goldman Sachs analyst Lisheng Wang highlighted that some investors had been expecting concrete stimulus measures ahead of the NDRC press conference, so the lack of any major announcements came as a letdown. 
&#8220;We believe any large stimulus package would require joint efforts from key ministries and significant fiscal resources,&#8221; Wang wrote, adding that major measures—such as a central government special bond issuance—could still be announced later in the year.
Goldman Sachs anticipates that China may approve an additional 1-2 trillion yuan in ultra-long-term government bonds by year-end to support debt swaps and maintain a fiscal easing stance in 2025.
Despite the initial disappointment, Goldman Sachs remains optimistic that further steps to boost domestic demand, stabilize inflation, and rebuild market confidence are still on the horizon.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/10/41222716/as-florida-prepares-for-one-of-deadliest-hurricanes-here-are-some-potential-stock-winners-and-lo">As Florida Prepares For One Of Deadliest Hurricanes, Here Are Some Potential Stock Winners And Losers From Milton Threat</a>
<h2 class="wp-block-heading">Market Reactions: Offshore Chinese Equities Tumble</h2>
Chinese stocks trading in offshore markets, such as those in Hong Kong and New York, were the hardest hit. 
These stocks are heavily owned by foreign investors, making them more sensitive to shifts in risk sentiment. The combination of profit-taking after weeks of gains and the lack of immediate fiscal stimulus sent these shares plummeting.
Shares of Chinese tech giants listed in Hong Kong—such as Tencent Holdings, Xiaomi, and electric vehicle maker BYD—fell more than 8%. Heavily indebted property developer Country Garden Services Holdings plummeted by 15%.
The selloff extended to U.S.-listed Chinese stocks during premarket trading on Tuesday, where major names tumbled sharply:
<ul>
<li>Tencent Music Entertainment Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TME#NYSE">TME</a>) -10.4%</li>
<li>Li Auto Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) -9.7%</li>
<li>XPeng Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) -8.6%</li>
<li>PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) -8.4%</li>
<li>NIO Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) -7.6%</li>
<li>JD.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) -7.6%</li>
<li>Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) -7.4%</li>
<li>NetEase Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTES#NASDAQ">NTES</a>) -6.3%</li>
<li>Alibaba Group Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) -5.6%</li>
</ul>
Exchange-traded funds tracking Chinese equities also took a major hit:
<ul>
<li>iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>) -10%</li>
<li>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) -9.7%</li>
<li>iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) -8.3%</li>
</ul>
<h3 class="wp-block-heading">What Comes Next?</h3>
With investors eagerly awaiting further developments, the next few weeks will be critical for China&#8217;s stock markets. Analysts are watching closely for announcements from ad-hoc government meetings and the upcoming National People&#8217;s Congress standing committee session, where more concrete fiscal actions could be unveiled.
Another major global event impacting China markets will be the U.S. presidential election on Nov. 5.
Looking further ahead, early to mid-December will see another Politburo meeting, specifically on economic policies, followed by the Central Economic Work Conference in mid to late December, where China&#8217;s broader economic strategy for the next year could be laid out.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41218388/november-fed-rate-cut-in-jeopardy-12-reasons-veteran-trader-expects-a-hold-as-stron">November Fed Rate Cut In Jeopardy: 12 Reasons Veteran Trader Expects A Hold As Strong Data, Rising Oil Prices Shuffle The Deck</a></li>
</ul>
Photo: Shutterstock

NTES

Chinese Stocks Plunge As Stimulus Hopes Fade: Hong Kong Posts Worst Daily Decline Since October 2008

The much-anticipated announcement of plans to stimulate China&#8217;s flagging economy failed to meet investor expectations, causing a short-lived stock market rally.
What Happened: After the Golden Week holiday, shares surged by over 10% as trading resumed. However, the excitement was fleeting. The Shanghai Composite Index in mainland China ended the day 4.6% higher, while the Hang Seng in Hong Kong fell by 9.4% after a press conference by China&#8217;s economic planners, as per a <a href="https://www.benzinga.com/markets/asia/24/10/41213691/fast-and-furious-rally-pushes-chinese-stocks-to-double-s-p-500-performance-year-to-date">report</a> by the BBC on Tuesday.
Investors were left seeking more specifics on how the government plans to stimulate economic growth. 
This comes after investors poured $5.2 billion in new assets last week following Beijing&#8217;s announcement of stimulus measures, Reuters reported on Tuesday
Data from Morningstar reveals that the $5.2 billion inflow for the week ending Oct. 4 contrasts sharply with an average weekly outflow of $83 million in 2024. This also marked the largest one-day rally in Chinese stocks since 2008.
Funds like Blackrock&#8217;s iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) and KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) saw significant inflows. However, as per <a href="https://pro.benzinga.com">Benzinga Pro</a>, on Tuesday during the pre-market hours, FXI was trading 8.37% lower while KWEB was down by 10.14%.
Similarly, iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) was down by 10.59% while Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>) was 9.26% down. 
See Also: <a href="https://www.benzinga.com/news/24/10/41130855/whats-going-on-with-futu-holdings-stock?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">What&#8217;s Going On With Futu Holdings&#8217; Stock?</a>
Why It Matters: The recent surge in Chinese stocks has been described as a &#8220;fast and furious rally,&#8221; with the <a href="https://www.benzinga.com/markets/asia/24/10/41213691/fast-and-furious-rally-pushes-chinese-stocks-to-double-s-p-500-performance-year-to-date">MSCI China Index</a> climbing over 35% between Sep. 24 and Oct. 7. This rally has outpaced other major global markets and more than doubled the year-to-date gains of the S&amp;P 500. The rise has been fueled by aggressive monetary easing policies and renewed government efforts to stabilize the property sector.
However, the Chinese government&#8217;s recent announcement of a 200 billion yuan ($28 billion) stimulus aimed at <a href="https://www.benzinga.com/markets/asia/24/10/41223117/alibaba-tencent-jd-com-and-baidu-slide-over-8-as-chinas-28b-stimulus-boost-misses-the-mark">local investment projects</a> fell short of market expectations, leading to a sharp sell-off in major tech stocks. Despite this, officials remain confident in achieving economic and social development goals, as stated by Zheng Shanjie, chairman of the National Development and Reform Commission.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/10/41200026/chinese-hackers-breach-at-t-verizon-networks-in-major-wiretap-data-theft-putting-us-national-securit?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Chinese Hackers Breach AT&amp;T, Verizon Networks In Major Wiretap Data Theft Putting US National Security At Risk: Report</a></li>
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Disclaimer: 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.
Photo via Shutterstock.

Chinese ETFs Fizzle During Pre-Market Despite US Investors Pouring $5.2B Last Week: Here's What Happened

Chinese equities have staged a dramatic comeback in the past few weeks on the back of policy stimulus, with the MSCI China Index, tracked by the iShares MSCI China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NYSE">MCHI</a>), surging over 35% <a href="https://www.benzinga.com/topic/china">between Sept. 24 and Oct. 7. </a>
This &#8220;fast and furious&#8221; rally, as described by Bank of America analysts Winnie Wu and Willie Chan, outpaced the performance of other major markets globally and more than doubled the year-to-date gains of the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
The rally has been driven by a series of aggressive monetary easing policies unveiled by Chinese authorities, alongside renewed government commitments to stabilize the country&#8217;s troubled property sector.
<h1 class="wp-block-heading">Year-To-Date Performance: MSCI China Doubles S&amp;P 500</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="455" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1024x455.png" alt="" class="wp-image-583894" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1024x455.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-768x342.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41-1536x683.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07123344/image-41.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Chart:<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100724&amp;t=be2bearmibe3na1"> Benzinga Pro</a></figcaption></figure>
<h1 class="wp-block-heading">A $2 Trillion Market Surge</h1>
From Sept. 23 to 30, the MSCI China Index added nearly $2 trillion in market capitalization. Some of the largest beneficiaries were blue-chip companies like Kweichow Moutai, which jumped 39% (adding $88 billion in market cap), Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), which climbed 15% (adding $70 billion) and Alibaba Group Holding Ltd. &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), which surged 27%, increasing its market value by $58 billion.
This rapid market appreciation reflects growing optimism among investors that China's policymakers are taking serious steps to address the country's economic challenges, including deflationary pressures, a property market downturn and mounting local government debt.
<h1 class="wp-block-heading">Key Stimulus Measures Fuel The Rally</h1>
The rally was sparked by a series of unexpected policy announcements starting on Sept. 23. That day, the People's Bank of China (PBoC) surprised markets by cutting its 14-day reverse repurchase rate by 10 basis points to 1.85%, injecting approximately $10.6 billion (74.5 billion yuan) into the banking system.
The following day, the PBoC Governor Pan Gongsheng announced a more substantial measure: the central bank would cut the reserve requirement ratio by 50 basis points, injecting about $142.5 billion (one trillion yuan) into the financial system. In addition, the seven-day repo rate was reduced by 20 basis points, and the central bank pledged to lower benchmark loan prime rates and existing mortgage rates by around 50 basis points, potentially reducing household interest payments by about $21 billion (150 billion yuan).
Further easing came on Sept. 25, when the PBoC lowered its one-year medium-term lending facility (MLF) rate by 30 basis points, followed by fiscal pledges to inject capital into state-owned banks. 
Last but not least, the PBoC ordered commercial banks to reduce interest rates on existing mortgages, with rates no less than 30 basis points below the Loan Prime Rate before Oct. 31.
<h1 class="wp-block-heading">Chinese Equity ETFs Post Massive Gains</h1>
These moves have propelled Chinese equity ETFs to outperform the S&amp;P 500 and other global benchmarks by a significant margin. From Sept. 24 to Oct. 7, several China-focused ETFs posted eye-whopping gains:
<ul>
<li>Invesco China Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CQQQ#NYSE">CQQQ</a>): +52%</li>
<li>iShares MSCI China A ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNYA#NYSE">CNYA</a>): +48%</li>
<li>XTrackers Harvest CSI 300 China A-Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASHR#NYSE">ASHR</a>): +47%</li>
<li>WisdomTree China ex-State-Owned Enterprises Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CXSE#NASDAQ">CXSE</a>): +43%</li>
<li>KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>): +40%</li>
<li>SPDR S&amp;P China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXC#NYSE">GXC</a>): +38%</li>
<li>Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>): +36%</li>
<li>iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>): +32%</li>
</ul>
<h1 class="wp-block-heading">Caution Ahead: Potential for Pullbacks</h1>
While the rally has been robust, analysts at Bank of America advise caution.
&#8220;More fiscal stimulus&nbsp;to stabilize the property market&nbsp;and&nbsp;restructure local government debts,&nbsp;and structural reforms&nbsp;to address&nbsp;the&nbsp;over-capacity/deflation&nbsp;issues&nbsp;are&nbsp;needed to turn&nbsp;around the economy,&#8221; they wrote.
In their report, analysts warn the current &#8220;buy everything&#8221; stage may soon end, particularly if no further positive catalysts materialize.
High-beta consumer, property and broker stocks, which have rallied sharply, could be the first to experience profit-taking. However, the analysts suggest long-term investors could view any potential pullbacks as buying opportunities, particularly in sectors like large-cap internet stocks and high-yield state-owned enterprises (SOEs), which they consider less volatile.
For the fourth quarter of 2024, Bank of America remains constructive on several sectors, including internet (media, online retail), insurance, and health care, particularly in life sciences and biotech, which delivered strong performance in the third quarter.
They are cautious about brokerage stocks after the strong rally and have downgraded utilities (gas, water) due to earnings downgrades and unattractive valuations. Additionally, they remain bearish on the property, auto, construction materials and chemicals sectors, as they believe a fundamental recovery in these areas will take more time.
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Photo: Shutterstock

ASHR

CNYA

CQQQ

CXSE

'Fast And Furious Rally' Pushes Chinese Stocks To Double S&P 500 Performance Year To Date

Benzinga examined the prospects for<a href="http://www.benzinga.com/trading-ideas"> many investors&#8217; favorite stocks</a> over the last week — here&#8217;s a look at some of our top stories.
Stocks rocketed higher on Friday as fresh data revealed nonfarm payrolls surged by 254,000 in September. The unemployment rate slipped to 4.1%, defying projections that it would hold steady at 4.2%.
The S&amp;P 500 climbed 0.22% for the week, while the Dow eked out a 0.09% gain. The Nasdaq, despite entering Friday with losses exceeding 1%, managed a 0.1% weekly rise, marking a notable turnaround.
Crude oil prices jumped again on Friday, capping off a nearly 9% weekly gain. The surge came amid heightened tensions in the Middle East, following Iran's missile attack on Israel.
Chinese tech stocks, represented by the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>), enjoyed another week of strong gains, driven by growing enthusiasm <a href="https://www.benzinga.com/markets/asia/24/10/41192510/labor-market-surprises-with-strength-energy-stocks-rally-on-israel-iran-tensions-chinese-tech-giants">for domestic stimulus efforts.</a>
Benzinga provides daily reports on the stocks most popular with investors. Here are a few of this past week&#8217;s most bullish and bearish posts that are worth another look.
<h3 class="wp-block-heading">The Bulls</h3>
<a href="https://www.benzinga.com/news/24/10/41156900/nvidia-ceo-jensen-huang-says-demand-for-next-gen-blackwell-gpu-platform-insane-everyone-wants-to-hav">&#8220;Nvidia CEO Jensen Huang Says Demand For Next-Gen Blackwell GPU Platform Insane: &#8216;Everyone Wants To Have The Most, And Everyone Wants To Be First,'&#8221;</a> by <a href="https://www.benzinga.com/author/ananya-gairola">Ananya Gairola</a>, reports that Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang highlighted the overwhelming demand for the new Blackwell GPU platform, confirming it is in full production and expected to drive significant revenue growth despite investor concerns over delays.
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41136347/is-dogecoins-bullish-momentum-over-after-18-retreat-from-recent-highs-not-yet-say-a">&#8220;Is Dogecoin&#8217;s Bullish Momentum Over After 18% Retreat From Recent Highs? Not Yet, Say Analysts,&#8221;</a> by <a href="https://www.benzinga.com/author/aniket-verma">Aniket Verma</a>, highlights that despite Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) experiencing an 18% drop, analysts like Santiment and Ali Martinez believe its bullish potential remains strong, citing increased whale activity and technical signals of further upside.
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41100053/apples-iphone-16-pro-demand-correction-in-sight-analyst-highlights-delivery-trends-">&#8220;Apple&#8217;s iPhone 16 Pro Demand Correction In Sight: Analyst Highlights Delivery Trends Across Global Markets,&#8221;</a> by <a href="https://www.benzinga.com/author/anusuya-lahiri-0">Anusuya Lahiri</a>, reports that a JPMorgan analyst sees stabilizing delivery times for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) iPhone 16 Pro models, indicating a demand correction ahead, as lead times for base models moderate across key markets like the U.S., China, and Europe.
For additional bullish calls of the past week, check out the following:
<a href="https://www.benzinga.com/general/entertainment/24/10/41162458/amazon-ceo-andy-jassy-said-prime-video-will-have-meaningfully-fewer-ads-than-rivals-2-month">Amazon CEO Andy Jassy Said Prime Video Will Have &#8216;Meaningfully Fewer Ads&#8217; Than Rivals. 2 Months Later, Streaming Giant Is Reportedly Set To Get More Ads</a>
<a href="https://www.benzinga.com/trading-ideas/technicals/24/09/41096549/cisco-set-for-technical-breakout-as-golden-cross-signals-strength-analyst-predicts-stock">Cisco Set For Technical Breakout As Golden Cross Signals Strength: Analyst Predicts Stock Will &#8216;Quietly&#8217; Climb Higher</a>
<a href="https://www.benzinga.com/markets/equities/24/10/41135042/reliable-tesla-number-cruncher-forecasts-biggest-delivery-beat-in-3-years-fund-manager-says-this">Reliable Tesla Number Cruncher Forecasts Biggest Delivery Beat In 3 Years: Fund Manager Says This Could Change The Stock&#8217;s Narrative</a>
The Bears
<a href="https://www.benzinga.com/general/social-media/24/10/41189534/spirit-airlines-bankruptcy-chatter-has-critics-blaming-biden-heres-what-history-shows-about-">&#8220;Spirit Airlines Bankruptcy Chatter Has Critics Blaming Biden: Here&#8217;s What History Shows About Carrier Mergers,&#8221;</a> by <a href="https://www.benzinga.com/author/anthony-noto-0">Anthony Noto</a>, explores how Spirit Airlines, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAVE#NYSE">SAVE</a>) is in bankruptcy talks, with critics blaming the blocked JetBlue merger, while history shows that mergers in the airline industry often lead to job losses regardless of financial struggles.
<a href="https://www.benzinga.com/government/24/10/41140319/humana-faces-sharp-decline-in-medicare-star-ratings-for-2025-braces-for-2026-revenue-hit">&#8220;Humana Faces Sharp Decline In Medicare Star Ratings For 2025, Braces For 2026 Revenue Hit,&#8221;</a> by <a href="https://www.benzinga.com/author/vandana-singh">Vandana Singh</a>, reports that Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>) is anticipating a major drop in Medicare Advantage Star Ratings, with only 25% of members enrolled in plans rated four stars or above, which could lead to significant revenue losses in 2026.
<a href="https://www.benzinga.com/markets/equities/24/09/41086177/amazon-ceo-andy-jassy-faces-employee-revolt-over-full-time-return-to-office-mandate-73-consider-">&#8220;Amazon CEO Andy Jassy Faces Employee Revolt Over Full-Time Return To Office Mandate, 73% Consider Quitting: Survey,&#8221;</a> by <a href="https://www.benzinga.com/author/kaustubh-bagalkote">Kaustubh Bagalkot</a>, reports that Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) CEO Andy Jassy is facing internal backlash as 73% of surveyed employees consider leaving due to a new full-time return-to-office policy starting in 2025, sparking concerns over morale and retention.
For more bearish takes, be sure to see these posts:
<a href="https://www.benzinga.com/markets/asia/24/10/41141152/cramer-says-hot-money-flowing-from-nvidia-apple-into-china-focus-on-alibaba-if-you-must">Cramer Says &#8216;Hot Money&#8217; Flowing From Nvidia, Apple Into China, Focus On Alibaba &#8216;If You Must&#8217;</a>
<a href="https://www.benzinga.com/markets/asia/24/09/41084907/japans-nikkei-plummets-over-2-000-points-amid-change-of-guard-while-chinese-market-extends-stimulus">Japan&#8217;s Nikkei Plummets Over 2,000 Points Amid Change Of Guard, While Chinese Market Extends Stimulus-Driven Run: What&#8217;s Driving Sentiment In Asia</a>
<a href="https://www.benzinga.com/news/24/10/41114769/boeing-dips-in-pre-market-as-struggling-plane-maker-considers-raising-10b-through-stock-sale-amid-st">Boeing Dips In Pre-Market As Struggling Plane Maker Considers Raising $10B Through Stock Sale Amid Strike</a>
Keep up with all the latest breaking news and trading ideas by following<a href="https://twitter.com/Benzinga"> Benzinga</a><a href="http://twitter.com/Benzinga"> on Twitter</a>.
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