Opinions Bill Carrigan
iShares Xinhua China 25 ETFFXICOMMENTJul 06, 2015
Bill CarriganStock 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.
An ETF on the China situation? The 10 year chart shows a financial crisis peak in late 2007 with a low in late 2009. This was followed by a rebound bull followed by a long sideways period of congestion. It seems to be finally trying to break above the peaks in the congestion, so he thinks it is probably just getting underway. It looks interesting. The strong US$ may hurt the performance a bit. (See also ASHR-N)