Wait and see with China

Article Excerpt

ISHARES CHINA LARGE-CAP ETF, $46.96, is a hold for safety-conscious investors. The ETF (New York symbol FXI; buy or sell through brokers) tracks the 50 largest, most-liquid Chinese stocks. Investors are charged a high 0.74% MER. The units yield 2.4%. Top holdings for the $3.4 billion fund are Meituan Dianping (group buying/food delivery), 10.3%; Tencent (Internet), 9.9%; China Construction Bank, 8.7%; Alibaba (e-commerce), 6.4%; Ping An Insurance, 4.6%; Industrial & Commercial Bank, 4.5%; Wuxi Biologics, 3.9%; and Xiaomi (smartphones), 3.8%. China now appears to have COVID-19 increasingly under control, and has steadily reopened its economy. However, activity will likely remain at lower levels than usual for some time. That’s mostly because ongoing virus concerns, especially outside China, could undermine the recovery. This will likely hold back exports, the overall economy and stock prices, at least in the near term. You’re better off waiting for that to clear. up before new buying. buying…