ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. Expect China’s Real Estate Woes to Continue
China Insights Channel
Share

Expect China’s Real Estate Woes to Continue

Karrie GordonApr 07, 2022
2022-04-07

Over two dozen Chinese real estate companies failed to meet the March 31 deadline to file their audited financial reports for the 2021 year, and for the companies that did file, the results reflected a year of challenges, reports the Wall Street Journal.

China Vanke Co, one of the giants in Chinese real estate, reported a 46% decline in net profits, the third time ever since the company went public in 1991; the chairman, Yu Liang, said it was a “wake-up call” and apologized to shareholders.

The shortcomings of Vanke, rooted in a model based on “aggressive investments with over-optimistic judgment of the market,” according to Yu, are reflective of the approaches and practices of the real estate market in China that led to Evergrande’s collapse and the subsequent turmoil.

Analysts believe that the growth the real estate industry has experienced has come to an end, with potentials for the market to worsen before it begins true recovery. Collectively, the 100 largest real estate developers had a 53% drop in sales in March compared to the same time last year and is the sharpest loss since last summer and the ninth month of losses in a row.

The COVID-19 outbreak that has impacted Shanghai, Shenzhen, and other major cities is expected to have heavy repercussions as well.

“In our view, the resurgence of Covid-19 will cripple the property market recovery given China’s zero-tolerance policy,” Shu Hui Woon, a credit analyst at Lucror Analytics, said.

Investing in Emerging Markets Ex-China

For investors who are looking for opportunities to diversify their portfolios through investment in emerging markets but either already have a separate, targeted China allocation or are looking to sidestep exposure to China, the KraneShares MSCI Emerging Markets ex-China Index ETF (KEMX C+) can be a good solution.

KEMX seeks to track the MSCI Emerging Markets ex-China Index, a free float-adjusted, market cap-weighted index that includes large- and mid-cap companies from emerging markets, excluding Chinese issuers. Securities contained are in the top 85% of their respective emerging markets.

To determine a security’s country, where it is incorporated and where it is listed are considered first. For securities that have a primary listing outside of the country it is incorporated in, any secondary listings, the geographic location of shareholders and operations, location of headquarters, its history, and which country investors associate with the issuer are all considered.

KEMX has an expense ratio of 0.23% with fee waivers that expire on August 1, 2022.

For more news, information, and strategy, visit the China Insights Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X