Stoked by strong manufacturing data, China-related exchange traded funds have surged over the past week as investors’ fear of a potential “hard landing” are allayed.
On Monday, the preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of manufacturing activity, rose to 51.1 in October from 49.9 at the end of September, according to a WSJ report.
“All these data confirm our view that there is no risk of a hard landing in China,” HSBC Chief Economist for China Hongbin Qu said in the WSJ report.
The largest ETF tracking China, iShares FTSE China 25 Index Fund (NYSEArca: FXI) gained nearly 13% on the week.
The rally in the Chinese equities, along with the broader emerging markets, has also been mirrored by rebounding commodities prices. [Russian ETFs Glide Higher with Oil, Commodities]