The iShares China Large-Cap ETF (FXI) experienced a significant decline of 5.01% on October 15, 2024, as investors grew increasingly concerned about China's economic prospects and the potential effectiveness of government stimulus measures.
The plunge in FXI was fueled by reports that China's finance ministry announced plans to increase borrowing without providing specific details on the timing or the amount, disappointing investors who were hoping for more clarity on the government's support measures. Additionally, a Reuters poll suggested that China's economic growth in 2024 might miss the government's target, further exacerbating fears about the country's economic trajectory.
Moreover, Barclays analysts recommended option trades to hedge against potential disappointment from China's stimulus efforts and the increased likelihood of a Trump presidency in the United States. This recommendation reflected the broader concerns among investors about the policy environment and its potential impact on China's economy.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.