“When a market goes crazy like this, no other topic becomes interesting,” Arthur Kwong, the head of Asia Pacific equities at BNP, said. “That’s a big negative signal — it’s as if nothing else is important. That makes me paranoid.”
The Chinese economy expanded at its slowest pace since 2009 over the first quarter as data from manufacturing, industrial output and exports all missed estimates.
Nevertheless, Chinese equity bulls remain optimistic as the market remains attractively valued, compared to other markets. For instance, FXI shows a 12.5 price-to-earnings ratio, GXC has a 12.8 P/E and MCHI has a 13.1 P/E.
iShares China Large-Cap ETF
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Max Chen contributed to this article.