Shanghai Stock Exchange Composite Index fell
The SSE (Shanghai Stock Exchange) Composite Index was down after most of China’s macroeconomic indicators pointed to a slowdown in the Chinese economy. The SSE Composite Index fell 0.25% and closed at 3,580.8 points for the week ended November 13, 2015.
China lifts ban on IPOs
On November 6, 2015, the China Securities Regulatory Commission (or CSRC) resumed initial public offerings (or IPOs) after putting a ban on them in July due to the stock market crash that month. This announcement shows the confidence of the CSRC in the stability of domestic stock markets.
Impact on China-focused mutual funds
The weekly returns were negative for China-focused mutual funds, namely the Clough China Class A Fund (CHNAX), the John Hancock Greater China Opportunities Class A Fund (JCOAX), the Eaton Vance Greater China Growth Class A Fund (EVCGX), and the Guinness Atkinson China & Hong Kong Fund (ICHKX).
JCOAX posted the highest negative returns of 3.7% for the week ended November 13, 2015. For the same period, EVCGX stood second with a return of -3.5%, closely followed by CHNAX with -3.4% returns. ICHKK provided the lowest negative return of 3.1%.
Due to volatility in oil prices, American Depositary Receipts (or ADRs) of Chinese companies such as CNOOC (CEO) and PetroChina (PTR) fell by 8.1% and 7.3%, respectively, for the week ended November 13.
In the rest of the articles in this series, we’ll look at various Chinese macroeconomic indicators and their impact on China-focused mutual funds.
Correction: This article originally described the mentioned funds as ETFs. This was a copy editing error that we have since corrected. We apologize for this mistake.