Investing

Chinese Credit Crisis Fears Pounding China ETFs and ADRs

If you think that the United States is down, the move was even worse in China. Barron’s took its shot at a coming credit crisis in China over the weekend, but what stood out is that this was the Barron’s cover story. The move had Chinese shares handily lower by saying that China’s construction and infrastructure projects put the nation where the U.S. and Japan were before financial calamities.

Barron’s noted, “China’s credit growth to back lavish construction and infrastructure projects is similar to that of the U.S. and Japan before they faced financial calamities.” The fears sent the Shanghai Composite down some 5.3% and the Hang Seng in Hong Kong down by 2.2% on Monday. The move is really hurting exchange traded funds (ETFs) and American depositary receipts (ADRs) trading in the United States, as you might have guessed.

  • iShares FTSE China 25 Index Fund (NYSEMKT: FXI) is down 3.2% at $31.69, against a 52-week range of $31.62 to $41.97.
  • iShares MSCI China Index (NYSEMKT: MCHI) is down 3.3% at $39.24, against a 52-week range of $38.70 to $50.14.
  • iShares MSCI Hong Kong Index (NYSEMKT: EWH) is looking “less bad” because it tracks Hong Kong instead of mainland China, as it is down only 2.2% at $17.94.

The China Fund Inc. (NYSE: CHN) is a closed-end fund and its shares are down 1.7% at $19.20, but shares hit a new 52-week low this morning and the adjusted 52-week range is $19.09 to $24.25. Templeton Dragon Fund Inc. (NYSE: TDF) is another closed-end fund for China, and it is down 2.9% at $23.75, but it also hit a new low and the 52-week range is $23.66 to $30.02.

Now look at the active stocks that trade as ADRs in New York:

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.