China Adds More Stimulus: FXI in Second Position
The Shanghai Composite (SCTR) lost some ground today as the index is now 5.30% below its 50-day moving average. The FXI is in second place among the six ETFs tracked in the SCTRs with a score of 16.8. The FXI is in a position between the 50-day moving average and the 200-day moving average, showing the relative strength of the FXI compared to the global markets.
China has been adding more stimulus to its economy as it tries to navigate through the impact of the ongoing trade war with the United States. The Chinese economy has been experiencing a slowdown in growth, and policymakers are implementing various measures to boost economic activity. The stimulus measures include tax cuts, infrastructure spending, and monetary policy easing.
The FXI, which tracks Chinese large-cap companies, is benefiting from the stimulus measures as investors anticipate that the Chinese economy will stabilize and begin to grow at a faster pace. The FXI is currently trading at $42.91, up 0.93% from the previous close. The index has gained 11.89% year-to-date, outperforming the S&P 500 and the Dow Jones Industrial Average.
Investors who are bullish on the Chinese economy may consider adding the FXI to their portfolio as a way to gain exposure to the potential upside in Chinese equities. The FXI has a dividend yield of 2.35%, providing investors with some income while they wait for capital appreciation. The index is also relatively less volatile compared to other emerging market ETFs, making it a suitable choice for investors seeking stability.
In conclusion, China’s decision to add more stimulus to its economy is benefiting the FXI, which is in second position in the SCTRs. The index has shown strength relative to other markets and is well-placed to benefit from the recovery in the Chinese economy. Investors looking to capitalize on the potential growth in Chinese equities may find the FXI to be a suitable investment option.
