This is Why China-Focused ETFs, Stocks Are Soaring on Tuesday Morning
Key Points:
China-focused ETFs and U.S.-listed Chinese stocks surged Tuesday after Beijing announced a broad stimulus package to revive its economy.
The iShares MSCI China ETF ( $iShares MSCI China ETF (MCHI.US)$ ) and iShares China Large-Cap ETF ( $iShares China Large-Cap ETF (FXI.US)$ ) both jumped around 6%.
The stimulus includes cuts in short-term interest rates, lower mortgage rates, and plans to inject 800 billion yuan ($114 billion) into the economy.
Major stocks like Alibaba ( $Alibaba (BABA.US)$ ), JD.com ( $JD.com (JD.US)$ ), and PDD Holdings ( $PDD Holdings (PDD.US)$ ) rose sharply, as did Chinese EV makers XPeng ( $XPeng (XPEV.US)$ ), Nio ( $NIO Inc (NIO.US)$ ), and Li Auto ( $Li Auto (LI.US)$ ), all up by 6% or more.
The iShares MSCI China ETF ( $iShares MSCI China ETF (MCHI.US)$ ) and iShares China Large-Cap ETF ( $iShares China Large-Cap ETF (FXI.US)$ ) both jumped around 6%.
The stimulus includes cuts in short-term interest rates, lower mortgage rates, and plans to inject 800 billion yuan ($114 billion) into the economy.
Major stocks like Alibaba ( $Alibaba (BABA.US)$ ), JD.com ( $JD.com (JD.US)$ ), and PDD Holdings ( $PDD Holdings (PDD.US)$ ) rose sharply, as did Chinese EV makers XPeng ( $XPeng (XPEV.US)$ ), Nio ( $NIO Inc (NIO.US)$ ), and Li Auto ( $Li Auto (LI.US)$ ), all up by 6% or more.
Nomura analysts, however, warned that while these measures boost investor confidence, fiscal policies are still needed to fully halt the economic slowdown.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
