China takes long-term view

Article Excerpt

ISHARES CHINA LARGE-CAP ETF $39.96 (New York symbol FXI; buy or sell through brokers) holds the 50 largest, most-liquid Chinese stocks. The ETF’s top holdings include Tencent Holdings, China Mobile, China Construction Bank, Bank of China, Ping An Insurance, and China Petroleum and Chemical Corp. The fund began trading in October 2004. Its MER is 0.74%. China’s economy grew 6.9% in the first quarter of 2017. That was better than the consensus estimate for 6.7%. However, the government continues to aim for a transition to an economy fuelled by domestic consumption, rather than one largely dependent on exports. That could slow overall growth in the near term. As well, the government is taking measures to rein in high business and consumer borrowing. That could slow housing markets and consumer spending. Meanwhile, China has strong growth potential, but needs to get its economy back on track. iShares China Large-Cap ETF is a hold. hold…