Moreover, MSCI recently denied mainland Chinese A-shares entry into its benchmark indices, citing ongoing need to diminish heavy-handed regulation and to make the A-share market more accessible.
Related: China A-Shares ETFs Wait on MSCI Decision
“If things go wrong in China, it affects everyone,” Mark Williams, chief China economist at Capital Economics, told Bloomberg. “There was a burst of optimism two months ago that growth was beginning to accelerate. Those hopes of acceleration have faded away as more data came in. Stimulus is not having much of an impact.”
China ETF traders who are wary of ongoing weakness in the Chinese markets can also look to inverse or bearish options to hedge their positions. For instance, the Direxion Daily FTSE China Bear 3X Shares (NYSEArca: YANG) takes three times the inverse or -300% daily performance of Chinese stocks. Additionally, the Direxion Daily CSI 300 China A Share Bear 1x Shares (NYSEArca: CHAD) takes the inverse exposure to Chinese A-shares.
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iShares China Large-Cap ETF