The bad news for the Chinese economy continues to pile-up, as evidence is mounting that a robust growth rate will be hard to come by this year. While the manufacturing numbers were the first to signal this weakness, the recent export and import figures are the latest data points that are pointing towards Chinese economic problems.
In the February report, it was revealed that exports fell 18.1% in February (year-over-year) a sharp fall from the 10.6% increase in January. Meanwhile, imports jumped by 10.1% for the month, pushing China to a $23 billion trade deficit for the month.
This sluggish trade report, coupled with the weakness in the variety of other data points coming out of China lately, helped to push Chinese ETFs lower again to start the week. Below, we highlight some of the most impacted funds from this report, and their recent trading activity:
China ETFs in Focus
In the large cap sphere, the iShares FTSE China 25 Index Fund (FXI), the iShares MSCI China Index Fund (MCHI) and the SPDR S&P China ETF (GXC) all lost at least 1.3% on the session. Meanwhile the PowerShares Golden Dragon Halter USX China Portfolio (PGJ) was an even bigger loser, falling by about 2.9% on the day (read Forget FXI: Try These 3 China ETFs Instead).
The more locally-focused A-Shares market—with funds such as (ASHR) and (PEK)—were hit especially hard, falling by over 3% each on the session. And from a sector look, the EGShares China Infrastructure Fund (CHXX) was the biggest loser, slumping by roughly 1.8% to open up the week.
China ETF Trend
This poor trading continues the bearish trend for the China ETF market, as all of the aforementioned funds are down for the year-to-date time frame. In fact, the top China ETF, FXI, has actually lost more than 10% on the year, while the A-Shares funds are seeing losses approaching 15% as well, suggesting that the bearish momentum has been pretty heavy for this nation in the short term.