China might have difficulty bring in financiers once again this year.
ETF Action’s Mike Akins sees obstacles connected to the nation’s capability to produce stock exchange returns.
“It’s kind of the old cliché. Fool me once, shame on you. Fool me twice, shame on me,” the company’s starting partner informed CNBC’s ETF Edge today. “You’ve got this situation where China’s economy expanded. The stock market went nowhere. It’s been very volatile. There’s been periods where it’s gone way up but also come way down.”
According to Atkins, emerging market ex-China items are amongst the biggest inflows ETF Action is seeing.
“You’ve got a whole new issue that you have to think about when going to that market,” he stated. “Is it investible from a standpoint of total return? Or is it really a growth story in the economy alone and not in the actual return of the stock market?”
Franklin Templeton Investments’ David Mann points out another problem for financier hesitancy.
“The geopolitical factor with China is certainly on everyone’s mind,” stated Mann, the company’s worldwide head of item and capital markets. “China was down last year. It is down again this year. Investors are probably looking a lot at the political side.”
The Hang Seng Index is down more than 6% this year and practically 30% over the past 52 weeks.
