China’s recovery continues

Article Excerpt

ISHARES CHINA LARGE-CAP ETF, $45.80, is a hold for safety-conscious investors. The ETF (New York symbol FXI; buy or sell through brokers) tracks the 50 largest, most-liquid Chinese stocks. Investors pay a high 0.74% MER. The units yield 2.2%. Top holdings for the $4.5 billion fund are Tencent (Internet), 9.2%; Alibaba (e-commerce), 9.2%; Meituan Dianping (group buying/food delivery), 8.6%; China Construction Bank, 5.4%; JD.com (e-commerce), 5.0%; Wuxi Biologics, 4.6%; Netease (Internet), 4.0%; Ping An Insurance, 4.0%; and Industrial & Commercial Bank, 3.8%. Despite the new Democrat-led administration in the U.S., uncertainty over the China-U.S. relationship—including exports—will likely persist. However, China now appears to have COVID-19 under control. Domestic consumption should be a strong driver this year as it recovers from the coronavirus-induced slump and the impact of social distancing measures. iShares China Large-cap ETF is a buy for aggressive investors. investors…