China’s ETFs Take a Hit After CPI Numbers Released
March 12th at 3:00pm by Tom Lydon
China’s rising inflation is waving a red flag at the country’s exchange traded funds (ETFs).
Wages have been running high, energy prices are high, and food costs and demand are exploding. Sounds a lot like the United States.
Carl Delfeld for ETF Folio adds that fresh evidence of inflation has emerged from China’s National Bureau of Statistics: from 6.5% to 7.1% last December.
The Chinese stock market was jittery about Tuesday’s Chinese February Consumer Price Index report, and with good reason: when it finally came out, the numbers were even worse than expected. It was up 8.7% year over year in February, its biggest gain since May 1996. The forecasts were for a 7.9% increase.
The iShares FTSE/Xinhua China 25 Index (FXI), PowerShares Golden Dragon Halter USX China (PGJ) and SPDR S&P China (GXC) were all down in intraday trading.
