China ETFs continue to feel the downward pressure of trade fears as three of the biggest based on total assets were down after the Asian markets faltered on Monday.
As of 12:00 pm Eastern Time, iShares China Large-Cap ETF (NYSEArca: FXI) was down 0.23%, iShares MSCI China ETF (NASDAQ: MCHI) was down 0.41% and KraneShares CSI China Internet ETF (NYSEArca: KWEB) was down 0.27%.
The tit-for-tat tariff war between United States and China are getting the majority of the blame as U.S. President Donald Trump’s latest threat was to impose an additional round of tariffs on $200 billion worth of Chinese goods. Prior to that, the Trump administration imposed a 25 percent tariff on over $50 billion worth of Chinese goods with the Chinese Commerce Ministry responding with a 25 percent tariff of their own on $34 billion worth of U.S. goods.
As evidenced in the charts below, this back-and-forth has wreaked havoc on FXI and MCHI in particular during the past month. KWEB is the only ETF in the green, effectively shrugging off the trade war news.
