China ETFs Fall As Economy Shows Signs Of Contraction For The Second Consecutive Month
Portfolio Pulse from Natan Ponieman
China's manufacturing activity contracted for the second consecutive month in May, with the manufacturing PMI dropping to its lowest point since January. This has led to a decline in China ETFs, including iShares MSCI China ETF (MCHI), KraneShares CSI China Internet ETF (KWEB), and SPDR S&P China ETF (GXC). Analysts at Nomura expect the manufacturing PMI to remain in contraction during June.
May 31, 2023 | 7:39 pm
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NEGATIVE IMPACT
SPDR S&P China ETF (GXC) lost 0.7% on Wednesday and 4.7% in the last five days due to China's manufacturing contraction.
China's manufacturing contraction has led to a decline in the value of GXC. As the manufacturing PMI is expected to remain in contraction during June, it is likely that the ETF will continue to be negatively impacted in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
KraneShares CSI China Internet ETF (KWEB) dropped 1.2% on Wednesday and 4.7% in the last five days due to China's manufacturing contraction.
China's manufacturing contraction has led to a decline in the value of KWEB. As the manufacturing PMI is expected to remain in contraction during June, it is likely that the ETF will continue to be negatively impacted in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
iShares MSCI China ETF (MCHI) lost 0.7% of its value on Wednesday and 4.3% in the last five days due to China's manufacturing contraction.
China's manufacturing contraction has led to a decline in the value of MCHI. As the manufacturing PMI is expected to remain in contraction during June, it is likely that the ETF will continue to be negatively impacted in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100