2024-06-20 13:12:01 ET
Summary
- iShares China Large-Cap ETF experienced a recovery of 20.7% to $26.80 per share in June 2024, outperforming the S&P 500.
- Chinese stocks have been in a bearish trend since February 2021, lagging U.S. and European stocks near record highs.
- Value investors like Charlie Munger saw potential in Chinese stocks due to growth prospects and the value of leading companies.
In an early 2024 Seeking Alpha article on the iShares China Large-Cap ETF (FXI) product, I highlighted the ugly price action in 2023 and the start of 2024. FXI was trading at the $22.20 per share level on January 16, 2024, when I concluded:
I favor a small portfolio allocation in iShares China Large-Cap ETF, leaving room if the ETF challenges the critical October 2022 and October 2008 technical support levels. I view FXI as a lotto ticket for an improvement in Chinese-U.S. relations. The ugly price action over the past years creates significant value for investors with a long-term horizon and stomach for the potential for a continuation of mark-to-market losses.
Read the full article on Seeking Alpha
For further details see:
FXI: A Contrarian Investment Opportunity