We have made the following adjustments to the EMCHI as of April 15th: Baidu (BIDU, quote) and Tencent (TCEHY, quote) as mega-cap plays in the index already occupy the two largest weightings but have seen healthy pullbacks to core support and remain the best mix of proven revenue growth and valuation attractiveness.
Chinese Internet Plays – The pullback is an opportunity.
Asian emerging markets ended the day mixed even after Chinese Premier Wen Jiabao talked about the growing need for the People’s Bank of China to intervene. Hong Kong equities remained strong until late afternoon when the Hang Seng dropped and closed over 89 points to the downside.
Much has been made of the Chinese government’s attempts over the past few years to rein in the country’s fast-growing Chinese housing market.
Asian markets nudged up in Wednesday trading as hopes of stimulus from American and European governments outweighed concerns over the Spanish banking bailout and impending Greek elections.
Markets were mixed on Thursday as the world continues to digest the latest developments out of Europe. Today, we’ll talk about the Chinese economy, the health of Chinese developers, weakness in the Bovespa, and whether we’ll see further selling in May.
On Sunday Chinese Premier Wen Jiabao strongly hinted his government would enact more stimulus in order to catalyze the slowing Chinese economy (FXI, quote), sending global markets higher on Monday. If this economic stimulus does indeed come to fruition, where should investors park their cash to take advantage of increased growth?
The week ahead presents surprisingly little in terms of economic data, in both developed and emerging markets. Investors are hoping that this may bring a relief rally to equities given the precipitous drop in values since the May 6th elections in France and Greece.