China exchange traded funds fell more than 2% on Tuesday after the country raised fuel prices and a BHP Billiton (NYSE: BHP) executive said China’s steel production is slowing.
The $6.4 billion iShares FTSE China 25 Index Fund (NYSEArca: FXI) slipped 2.2% in early trading. The ETF is up about 9% year to date.
“China, the world’s biggest energy consumer and steelmaker, is raising fuel prices for the second time in less than six weeks,” Bloomberg News reports.
“There will be some sort of slowdown coming out of China and the Asian economies,” said Tim Price at PFP Group, in the report. “It can definitely take the heat out of the commodities markets.”
Meanwhile, Chinese steel production is slowing down as the nation tries to boost domestic consumption and reduce its reliance on exports. Earlier this month, China cut its 2012 economic growth target. [China ETFs Slip on Lower Growth Forecast]
iShares FTSE China 25 Index Fund
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