China's Industrial Overcapacity Puts It In 'Doom Loop,' Western Markets Are At Risk: Analysis
Portfolio Pulse from Natan Ponieman
China's industrial overcapacity is causing a 'doom loop' of falling prices and potential job losses, threatening Western markets with cheaper Chinese products. U.S. Treasury Secretary Janet Yellen and the European Commission have expressed concerns, particularly in the green energy and electric vehicle sectors. Despite tariffs, China's exports to the U.S. and Europe have grown. ETFs like KWEB, MCHI, and FXI have seen declines in recent trading days.
August 07, 2024 | 9:36 pm
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NEGATIVE IMPACT
iShares China Large-Cap ETF (FXI) is down almost 3% in the last five trading days, driven by fears of China's industrial overcapacity and its effects on the global economy.
The ETF's decline is a result of investor concerns over China's industrial policies and their potential to disrupt global markets, leading to reduced confidence in Chinese large-cap stocks.
CONFIDENCE 88
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
KraneShares CSI China Internet ETF (KWEB) is down 2.1% in the last five trading days due to concerns over China's industrial overcapacity and its impact on global markets.
The ETF is directly impacted by the broader concerns over China's industrial policies and their effect on global markets, leading to a decline in investor confidence.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares MSCI China ETF (MCHI) recovered 0.6% on Wednesday but is down 1.7% in the last five trading days, reflecting market concerns over China's overproduction and its economic implications.
The ETF's performance is influenced by the negative sentiment surrounding China's industrial overcapacity and its potential impact on global markets.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70