2024-04-04 23:41:55 ET
Summary
- Chinese stocks are at a 20-year low and trading at 10x PE, indicating a lack of investor confidence.
- The ETF consensus EPS growth of 12% is in line with the S&P 500 while the Chinese economy growth a twice the US.
- FXI suffers from weak diversification with large weight in the struggling Banking sector.
- The Chinese macro outlook is still positive, but investor confidence has been shaken by various factors, leading to a decline in portfolio and FDI flows.
Summary
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FXI: A Value Trap