Friday
May272011
Shanghai Composite Versus FXI
Friday, May 27, 2011 at 02:59PM Even though it isn't a pure China play, a large number of US investors use the FXI ETF to gain exposure to the Chinese equity market. Based on the recent performance of China, it's a good thing that FXI doesn't track it tick for tick. As shown below, China's Shanghai Composite has taken a nosedive over the past couple of weeks. Over the last year, the Shanghai Composite is now down 5.63%. FXI, on the other hand, has held up okay recently and is up 2.06% over the last year.
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Reader Comments (2)
Is it safe to assume that is a manifestation of the continuing slide in the Greenback?
U.S. Dollar Index chart is reasonably ugly over the last 12 months.
Last year? Are you sure? It seems you study is only valid for the last 6 months or so.
In addition, the fact that FXI does not track the Shanghai Composite may not be good news for those who tried to short Chinese equities using this proxy...