ETF Explainer: MCHI

February 01, 2013

iShares MSCI China ETF

Each month, we look at an ETF with a particularly interesting chart and explain the market forces behind its performance. This month, we examine the iShares MSCI China ETF, which tracks total market performance for the world's largest emerging market. What's pushing MCHI's return?

ETF Explainer: VWO
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DEC 26 As its economy continues to open, China announces a direct exchange program with Japan for the yuan and yen, removing the required intermediation of U.S. dollars.

JAN 18 For the first time in history, the amount of Chinese citizens living in urban areas surpasses rural populations, even as the Chinese economy shows signs of slowing.

MAR 20 BHP, the world's largest producer of iron ore, further stokes fears of a Chinese slowdown, saying it was seeing signs of "flattening" iron ore demand in China.

APR 26 China starts a protracted disagreement over the rightful ownership of the Paracel Islands. Chinese shares slump.

JUL 17 The SEC announces a probe into New Oriental, an N-class share. Chinese ETFs that hold N-shares plunge 4%. MCHI, which excludes N-shares, jumps 1.8% on the news.

AUG 27 China's industrial firms see earnings fall 5.4% YOY in July, as a slump in global demand and weak domestic demand dampens revenues.

OCT 15 Chinese producer prices fall 3.6% YOY in September, quelling fears about inflation and inviting speculation that more stimulus is on the way.

NOV 28 Faced with an untenable demographic situation, rumors swirl that Chinese officials are exploring changes to the country's one-child policy.