American investors are riding the dragon
Traders in the US aren’t standing idly by while Chinese stocks go parabolic. On the contrary, they’re hitching their wagons to the stimulus-fueled rally by rushing into the four biggest US ETFs that offer exposure to Chinese equities.
The KraneShares CSI China Internet Fund (ticker KWEB), Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR), iShares China Large-Cap ETF (FXI), and iShares MSCI China ETF (MCHI) each received weekly inflows in excess of $150 million for the first time on record.
The nearly $1.5 billion in cumulative inflows to these vehicles is the second-largest on record, surpassed only by the second week of January 2022. That rush into Chinese stocks also coincided with a sharp rally off low levels – though not as strong as the current vintage.
This positive week erased about half of the outflows these products have seen so far in 2024.
“The global reaction to the China stimulus blitz last week will stay ever present even if their golden week holiday starts tomorrow and we won't see domestic markets open over the period,” writes Deutsche Bank strategist Jim Reid.
This positive week erased about half of the outflows these products have seen so far in 2024.
“The global reaction to the China stimulus blitz last week will stay ever present even if their golden week holiday starts tomorrow and we won't see domestic markets open over the period,” writes Deutsche Bank strategist Jim Reid.
