Goldman Warns China Correction Possible; Shanghai Renews Record High [View article]
Regarding your comment about a shortage of Chinese ETF shares to short, I've heard about problems related to shorting country-based ETFs in general in the past and related to EWJ specifically, which I follow more closely. I don't short stocks/funds, but do trade options. I can tell you with experience trading EWJ that despite it being the most actively traded country-based ETF and very active in general, its options action leaves something to be desired.
Goldman Warns China Correction Possible; Shanghai Renews Record High [View article]
Curt, thank you for your questions.
The direct impact of the larger trading band announced today for the yuan is rather limited at this point for FXI. Reason being, 23/25 (approx. 40% of fund) of its top holdings and 87+% of its components are Hong Kong-listed. Also, due to the HK$ peg to the US$, there is limited forex-based impact, however this could change in the future. Note there are plenty of possible macro effects following the PBoC's actions. A sell-off in the mainland will likely spillover, hurting FXI, as we've already seen.
Goldman Warns China Correction Possible; Shanghai Renews Record High [View article]
Goldman Warns China Correction Possible; Shanghai Renews Record High [View article]
The direct impact of the larger trading band announced today for the yuan is rather limited at this point for FXI. Reason being, 23/25 (approx. 40% of fund) of its top holdings and 87+% of its components are Hong Kong-listed. Also, due to the HK$ peg to the US$, there is limited forex-based impact, however this could change in the future. Note there are plenty of possible macro effects following the PBoC's actions. A sell-off in the mainland will likely spillover, hurting FXI, as we've already seen.