- China’s latest gross domestic product data, released Monday, missed analysts’ expectations by a wide mark, leading to losses in Chinese equities.
- There was a ripple effect in China-focused U.S. exchange-traded funds, with BlackRock’s iShares MSCI China ETF and iShares China Large-Cap ETF both off more than 2% Monday.
- Monday’s declines follow a rebound in China-focused ETF inflows earlier this year.
China’s stuttering economic rebound took another hit in the latest quarter, leading to significant losses in New York-listed Chinese stocks and China-focused ETFs on Monday. China’s GDP rose only 4.7% year-over-year in Q2, falling short of analyst expectations and the 5.3% growth recorded in Q1.
US-Traded China Stocks, ETFs Hit Hard The slowdown rippled through markets, with e-commerce giants Alibaba (BABA) down 2.1%, PDD Holdings (PDD) down 3.1%, and JD.com (JD) down 5.3%. This impacted China-focused ETFs like BlackRock’s iShares MSCI China ETF (MCHI), down 2.1%, and the iShares China Large-Cap ETF (FXI), down 2.2%.
The weaker-than-expected GDP data is a setback for investors who had hoped for a stronger economic rebound following earlier government stimulus efforts.
