Hold the top Chinese stocks

Article Excerpt

ISHARES CHINA LARGE-CAP ETF $46.75 (New York symbol FXI; buy or sell through brokers) tracks the 50 largest, most-liquid Chinese stocks. The ETF started up October 4, 2004, and has an MER of 0.74%. It yields 2.3%. Top holdings for the $4.5 billion fund are China Construction Bank, 9.1%; Industrial & Commercial Bank, 8.6%; Tencent Holdings, 8.3%; Ping An Insurance, 5.6%; China Mobile, 5.7%; Bank of China, 4.6%; CNOOC, 4.3%; China Petroleum and Chemical, 4.3%; China Life, 3.5%; and China Merchants Bank, 2.7%. China still has strong growth potential, and the economy appears to be rebounding. However, the government will need to maintain policies meant to cut high levels of consumer and business borrowing. China also continues to tightening environmental regulations. These measures could slow its near-term growth. Meanwhile, any possible trade wars with the U.S. could also hold back the economy. iShares China Large-Cap ETF is a hold. hold…