To The Moon

🌟🌟🌟China saw a boom in the consumer market during the 3 day Qingming Festival Holiday that ended on Saturday, marked by bustling tourist attractions and surging consumption.

According to data from Meituan,   a leading ECommerce Platform, the average daily consumption in the service sector across China, saw a staggering 39% year on year increase, a testament to the vibrant consumer sentiment during the holiday period.

$iShares China Large-Cap ETF(FXI)$ tracks a market cap weighted index of 50 of the largest Chinese stocks that are traded on the Hong Kong Stock Exchange.  FXI is also one of the oldest China focused ETFs established since October 5 2024 with Assets Under Management of USD 4.56 billion.  The Fund Manager is BlackRock, the largest Fund Manager in the world.

The Top 10 holdings include Alibaba, Tencent Holdings, China Construction Bank, Meituan, Netease, Industrial and Commercial Bank, Bank of China, Baidu, Ping An Insurance and JD. com. 

The Top 10 holdings weightage is 57%.  Total number of holdings is 52.  The expense ratio is 0.74%.  Distributions are paid every 6 months.  The current distribution yield is 3.16%.

$Alibaba(09988)$  is the pioneer of ECommerce in China and has since expanded globally.  Its business include cloud computing, digital media and entertainment, delivery and other business offerings.

$TENCENT(00700)$  is the world's largest video game vendor as well as one of China's largest technology companies offering ECommerce, Cloud Computing, Entertainment, Internet Platforms and Business ecosystems.  WeChat was developed by Tencent and is used everyday by millions of Chinese.

$MEITUAN-W(03690)$  is one of the most popular Chinese shopping platforms for locally found consumer products and retail services including entertainment, dining, delivery, travel and other services.

$NTES-S(09999)$  develops and operates online PC and mobile games, advertising services, email services and ECommerce platforms in China.  It is also one of the largest Internet and video game companies in the world.

Ray Dalio, the billionaire founder of Bridgewater Associates says that Now is the time to invest in beaten down Chinese stocks as the government is in the midst of preparing stimulus measures to improve the economy.

According to South China Morning Post, the government has lowered key interest rates and reserve ratio requirements in the last few months and is now widely expected to resume buying Treasury Bonds to inject more liquidity  into the economy.

Performance wise, FXI is down 0.9% in the past week but is up 4% year todate.  In 2023, FXI is down 17%.

China is the world's 2nd largest economy and to me a well diversified portfolio is not complete without  investing in China.  FXI ETF is my Tactical Long Term Bet that the Chinese economy is well on its way to recovery and will flourish in the long term.

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