ETF Trends
ETF Trends

The iShares FTSE China 25 (NYSEArca: FXI) is down 12% from its 2013 high even as the Dow Jones Industrial Average sets new records, illustrating the divergence between emerging and developed markets do far this year.

Now, JP Morgan (NYSE: JPM) has downgraded China to underweight and recommended bearish bets against the country’s largest banks.

“Growth momentum is now slowing with policy response constrained; a nasty combination,” Adrian Mowat, JP Morgan’s chief Asia and emerging-market strategist, wrote in a note Monday, Bloomberg News reports.

FXI, the Chinese ETF, has dropped below its 200-day exponential moving average. [S&P 500 Record, Dow Streak Overshadow China ETF Decline]

Earlier this month, the government unveiled new measures designed to cool property prices. [China ETFs Tumble on Home-Price Curbs]

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