China country-specific exchange traded funds led the charge Monday as trade talks resumed with the United States.
On Monday, among the best performing non-leveraged ETFs, the Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS) increased 3.2%, KraneShares Bosera MSCI China A ETF (KBA) advanced 2.6% and Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) gained 2.6%.
White House senior counselor Kellyanne Conway on Monday expressed confidence in a possible deal, telling Fox News in an interview, “It looks that way, absolutely,” when asked if the two countries were closer to a trade deal, Reuters reports.
The U.S. is expected press China on longstanding demands that it reform how it treats American companies’ intellectual property as a key component in a trade deal in exchange for keeping tariffs low on Chinese imports.
The latest talks started off with working level discussions on Monday before high-level discussions later in the week. Sentiment eased after negotiations in Washington last month ended without a deal and the top U.S. negotiator announced more needed to be done.
“We, of course, hope, and the people of the world want to see, a good result,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a news briefing in Beijing.
The latest U.S.-China advances in trade talks come in ahead of a looming March 1 deadline set for signing a trade pact. If the two countries fail to come to an accord by then, the U.S. has warned that additional tariffs on Chinese imports will be executed.
“Markets are taking a wait-and-see approach today,” Randy Frederick, vice president of trading and derivatives for Charles Schwab, told Reuters. “Everyone would like to see a resolution on both trade and the government shutdown, but right now there aren’t many new signs of progress in either.”
The Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF (ASHS) was trading at $24.54 per share on Wednesday afternoon, up $0.24 (+0.99%). Year-to-date, ASHS has declined -29.56%, versus a 3.46% rise in the benchmark S&P 500 index during the same period.
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