Opinions Don Vialoux
iShares Xinhua China 25 ETFFXITOP PICKFeb 12, 2014
Stock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Richard Croft
Tyler Mordy
Stan WongOf all his holdings, this one is the most contentious. Clients are deeply skeptical about China. Yes, there is debt, yes it is a Communist country, but look closer and see that China is moving in the right direction. Holds Chinese companies (60% of them banks) in Hong Kong. Since early 2016, Chinese banks are among the best-performing assets classes in the world. Doesn't see Chinese banks imploding.
Tyler Mordy
His weighting in China is reasonably low. For the next 12-24 months, there is going to be a lot of back-and-forth between the US and China. It probably doesn’t put China in the best position from a negotiation point of view, given that they have such a large trade surplus with the US. He would be a little wary, but the China economy looks very strong right now. He would have a look at Tencent (TCEHY-5) instead, which he owns.
Heavily skewed towards financials. Chose this because it has good liquidity. Historically, just prior to the Chinese new year, the Chinese market tends to bottom. Then after the Chinese new year is over, government officials come along and doing nifty things to help the economy. This is happening again. Earlier this week, the Shanghai index broke above a gorgeous little base building pattern and has now established an upward trend. This trait has worked 15 of the last 20 periods with a return of 9%. This runs from the beginning of January right through until the end of April of each year.