
TSE:ZCH
This summary was created by AI, based on 2 opinions in the last 12 months.
BMO CHINA EQUITY INDEX ETF (ZCH-T) has garnered attention from experts, with both indicating it as a strong investment choice. The ETF has shown resilience since its lows in April, managing to trade in a relatively narrow band between $20 and $24 recently. The positive performance in China is noted, suggesting a favorable economic environment for growth. Moreover, following a significant global market selloff in March, the ETF has been on an upward trajectory, reflecting a broad-based recovery in the global markets. Experts express optimism towards its potential for further gains, particularly in a revitalized market atmosphere.
Modi is now allowing Apple to do business there. India's had problems with bureaucracy, and if he makes it easier for foreign companies to come in and raise capital, it could be great. It depends on how the trade talks will go in terms of China. China has many geopolitical issues.
He has been underweight on China for the last year or so. It has underperformed dramatically over the last 6 months. It is starting to get more interesting to him now. He gets it through a US EFF. China is going to have a challenge holding a 7% growth rate. It should slow to 4-5% over the next couple of years. He thinks ZCH-T will fall another 10%.
This ETF will hold nothing but ADRs. The accounting standards on ADRs fit international standards, so you are not going to get zinged by some obscure Chinese accounting methodology on some company. Chart shows it had formed a base in 2012-2013 and broke out upwards and then based again and is now starting to break out. Has a decent pattern. Overall, this looks okay.
If you look at it, it is interesting because it is composed of ADRs from the US. Nothing is purchased in China. ADRs are subject to international accounting standards. Some big Chinese companies are in there. There is a lot to be said for this one. He previously recommended the Chinese consumer ETF and it has done well.