
TSE:ZCH
This summary was created by AI, based on 2 opinions in the last 12 months.
The BMO China Equity Index ETF (ZCH-T) has been a solid performer since its low in April, with recent movements settling between the $20 and $24 range. Two different expert reviews highlight its status as a top pick for March 2024, emphasizing positive gains of 12% and 22%, respectively, within a short timeframe. The recent sell-off in global markets during March did not significantly hinder its progress; instead, the ETF has shown resilience by steadily working its way higher. Experts note that China’s market performance has remained strong, contributing favorably to the ETF's valuation. Overall, the ETF seems to be tracking a broad-based global advance, indicating a positive outlook amidst fluctuating market conditions.
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.