Separately, Bloomberg reported China scrapped a ceiling on investments by sovereign wealth funds and central banks in its capital markets, part of efforts by the government to encourage long-term foreign ownership and shore up slumping equities. [The Case for China ETFs]
FXI and other China ETFs have been outperforming the S&P 500 recently after trailing the U.S. in the first three quarters of the year.
“Better economic data is now breaking bearish sentiment in the world’s second-largest economy. The trend higher appears very much to still be intact, and a new cycle of strength may be emerging in Asia. This is important because a bet on China is a bet on renewed export growth,” Michael A. Gayed writes for MarketWatch.
iShares FTSE China 25 Index Fund
