ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • 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 Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Global Diversification Channel
  2. China ETFs Are Gaining Momentum
Global Diversification Channel
Share

China ETFs Are Gaining Momentum

Max ChenJul 01, 2022
2022-07-01

China country-specific exchange traded funds are having a great run, with Chinese equities enjoying their best monthly gain in almost two years, as investors turned back into the emerging Asian economy, following the COVID-lockdown economic shock and regulatory crackdowns.

Over the past month, the VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT C) increased 22.5%, the KraneShares Bosera MSCI China A Share ETF (KBA A-) rose 15.7%, and the Xtrackers CSI 300 China A-Shares ETF (ASHR B+) increased 13.3%

The CSI 300 index of Shanghai- and Shenzhen-listed stocks jumped over 8% in June, putting the benchmark on pace for its best one-month run since July 2020 when global investors turned to China after the country exited its first COVID-19 lockdowns while the rest of the world was shutting down, the Financial Times reported.

Chinese shares also found support after Beijing reduced quarantine requirements for international arrivals from two weeks to one, marking the first significant reduction to travel restrictions since authorities wrestled control over outbreaks in major cities Shanghai and Beijing.

“As a signal about the balance between zero-COVID and economic growth, you can see there’s a little more concern [in Beijing]about the economy,” Frank Benzimra, head of Asia equity strategy at Société Générale, told the Financial Times of the government’s move to ease quarantine restrictions.

Furthermore, global investors were attracted to China’s more accommodative monetary policies at a time when global central banks were tightening monetary policies to combat rising inflation levels, which could trigger an economic recession.

Nevertheless, some still warned of China’s zero-tolerance COVID-19 policy. For instance, analysts at Goldman Sachs warned that China’s zero-COVID policy was “unlikely to fundamentally change in the near term”.

Regulators have also signaled that they will ease back on crackdowns, especially on the country’s tech sector which has been reeling in the wake of unprecedented regulatory scrutiny.

Louis Tse, managing director at Hong Kong-based brokerage Wealthy Securities, argued that Chinese tech groups had been “very much sold down before the buying came in from the north”.

For more news, information, and strategy, visit the Global Diversification Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

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