Inside the Surging China Technology ETFs

Concerns have been building over the Chinese market lately, with many funds tracking the country facing nearly double digit losses over the past three month time period. In fact, the most popular ETF tracking the nation, (FXI – ETF report), has lost about 7.2% in the past 90 days, suggesting some serious pain for the country’s biggest stocks.

Bad news lately

The main reason behind the country’s slump is the financial sector. Low rates pushed investors into risky ventures, but as short-term interest rates have been rising, it is becoming clear how shaky the Chinese economic foundation really is.

This is especially true now that the country’s economic growth is expected to slow down further this quarter, which is putting extra pressure on lending, and the financial sector in general. Given this situation and the optimism over the U.S. market, many are having a hard time looking beyond domestic shores for investments.

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