Chinese stocks gain
Markets eased today as President Donald Trump called the US-China trade war “a little squabble” and tweeted that the deal would happen “much faster than people think.” The hope that China may boost the slowing economy with a fresh fiscal stimulus also pushed the markets up.
China’s Shanghai Composite Index rose 1.91% to 2,938.68 on May 15. The index opened higher today and maintained upward momentum during the day following the 0.8% gain in the S&P 500 (SPY) on May 14.
Economic data disappoint
While the indexes rose, China’s economic data disappointed analysts on May 15.
China’s industrial production growth dropped to 5.4% in April, lower than the expected 6.5% and even lower than March’s 8.5%. Its retail sales growth dropped to 7.2% in April compared to 8.7% in March. Its retail sales growth was also lower than the expected 8.6%.
Growth in fixed investments dropped to 6.1% in April compared to 6.3% in March. The expectation had been 6.4%.
We’d expected a rebound in ETF prices on May 14 even as the Shanghai Composite Index fell marginally.
The iShares MSCI China ETF (MCHI) gained 1.68% on May 14, outperforming US and Chinese indexes. Meanwhile, the iShares China Large Cap ETF (FXI) gained 1.6%. It was up 0.68% in premarket hours as of 4:43 AM EDT.
The technology-focused KraneShares CSI China Internet ETF (KWEB) gained 2.21% yesterday during US trading hours.
The XTrackers Harvest CSI 300 China A-Shares ETF (ASHR) was the best-performing major China-focused ETF on May 14 with a 3.04% gain. The ETF was up 1.25% in premarket trading at 4:18 AM EDT.