Hold off on this China ETF

Article Excerpt

ISHARES CHINA LARGE-CAP ETF $38.66 (New York symbol FXI; buy or sell through brokers) aims to track the Financial Times Stock Exchange (FTSE) China 50 Index. That portfolio is made up of 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 on October 5, 2004. Its MER is 0.73%. Chinese stocks have rebounded from last summer’s lows, but are still below their early 2015 highs. National leader Xi Jinping appears more focused on shoring up the Communist party and the Chinese stock market, rather than strengthening the economy. Meanwhile China still has strong long-term growth potential, but needs to get its economy back on track. iShares China Large-Cap ETF is a hold. hold…