Is Investing In China A Good Idea Right Now? 'It's Complicated,' Say Morgan Stanley Analysts
Portfolio Pulse from Natan Ponieman
Morgan Stanley analysts have issued a report on the Chinese market, stating that it's a complicated time to invest. China's economic growth is lagging behind expectations, and domestic demand has not convincingly recovered. However, holding a share of the Chinese market can be a good way to diversify a U.S.-heavy portfolio. The report also downgraded the MSCI China Index to Equal Weight. Despite the challenges, the analysts see potential for the Chinese economy. U.S.-listed ETFs focused on the Chinese market, including iShares MSCI China ETF (NASDAQ:MCHI), KraneShares CSI China Internet ETF (NYSE:KWEB), Xtrackers Harvest CSI 300 China A-Shares ETF (NYSE:ASHR), SPDR S&P China ETF (NYSE:GXC), and Invesco China Technology ETF (NYSE:CQQQ), are up.
August 04, 2023 | 2:09 pm
News sentiment analysis
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NEUTRAL IMPACT
The iShares MSCI China ETF (NASDAQ:MCHI) is up 2.7%. The fund has seen better days this year, being down 13% from its highest recent peak in late January.
The ETF is up, indicating a positive short-term impact. However, it's down from its highest recent peak, suggesting potential volatility.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Xtrackers Harvest CSI 300 China A-Shares ETF (NYSE:ASHR) is up 2.3%.
The ETF is up, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Invesco China Technology ETF (NYSE:CQQQ) is up 3.5%.
The ETF is up, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares MSCI Emerging Markets ETF (NYSE:EEM) is up over 19% since late October lows.
The ETF is up significantly since late October, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPDR S&P China ETF (NYSE:GXC) is up 2.5%.
The ETF is up, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
KraneShares CSI China Internet ETF (NYSE:KWEB) is up 4.3% on Thursday, recovering most of its losses from Wednesday's drop.
The ETF is up and has recovered most of its losses from the previous day, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80