Industry Updates

China sets for further rallies following delay on US tariffs

George Geddes

a pagoda in a field of plants

China has been setting the pace for emerging markets so far this year and it could continue to rally for the coming weeks. Last week saw significant

inflows in to emerging market ETFs,

with Pakistan, South Korea and China being the stand out stars.

Late last year, EY labelled China as the ETF gamechanger as the market is expected to reach $100bn in assets in the next five years.

China continues to grow in confidence following the trade war between the US and China seemingly coming to its conclusion. President Trump has stated the country has delayed its tariff hike for the two countries to agree on a trade deal.

China ETFs were among the best performers over the last week, which adds to their significant returns for the year to date.

chart, line chart

Source: JustETF

The HSBC MSCI China A Inclusion UCITS ETF (HMCT) and the iShares MSCI China A UCITS ETF (IASH) saw returns of 4.98% and 4.56%, respectively, over the last week. This ballooned HMCT's YTD returns to 16.78% and IASH's to 17.32%.

The iShares China Large Cap UCITS ETF (FXC), with £520m in assets, produced a respectable 3.18% in returns over the last week. HMCT and IASH differ to FXC by tracking the MSCI China A index which is comprised with large to mid-cap companies whereas the FXC is solely comprised of large Cap stocks.

ETFAUM1 W Returns1 M ReturnsYTD ReturnsHSBC MSCI China A Inclusion UCITS ETF1294.98%12.80%16.78%iShares MSCI China A UCITS ETF2894.56%12.45%17.32%iShares China Large Cap UCITS ETF5203.18%7.78%10.48%Xtrackers FTSE China 50 UCITS ETF 1C1212.80%7.34%10.69%WisdomTree S&P China 500 ETF USD182.57%9.10%13.63%Xtrackers MSCI China Index UCITS ETF 1C7552.56%8.18%12.94%HSBC MSCI China UCITS ETF USD2962.13%7.80%12.61%Lyxor China Enterprise (HSCEI) UCITS ETF C-EUR4471.01%5.09%8.47%


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