China's Housing Funk Deepens As Manufacturing Falls Short
Portfolio Pulse from Michael Juliano
China's housing market continued to decline in May, with manufacturing also falling short of expectations. Despite better-than-expected retail sales, consumer spending remains below pre-pandemic levels. The People's Bank of China maintained a key interest rate for the 10th month to support the yuan. U.S.-traded China ETFs showed mixed performance.

June 17, 2024 | 3:23 pm
News sentiment analysis
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NEGATIVE IMPACT
Krane Shares CSI China Internet ETF (KWEB) slipped 0.03% amid disappointing housing and manufacturing data from China.
The decline in China's housing market and manufacturing sector negatively impacts investor sentiment towards Chinese internet companies, leading to a slight drop in KWEB.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
iShares China Large-Cap ETF (FXI) gained 0.63% as investors reacted to mixed economic data from China.
FXI's gain can be attributed to the positive retail sales data, which helped mitigate the negative impact of weak housing and manufacturing figures.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
iShares MSCI China ETF (MCHI) edged up 0.35% despite weak housing and manufacturing data, possibly due to better-than-expected retail sales.
MCHI saw a slight increase, likely due to the positive retail sales data, which offset concerns about the housing and manufacturing sectors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80