A U.S.-listed exchange traded fund that invests in Chinese companies is attracting new investors at the fastet rate in a couple of years as reports indicate that China's government will soon take steps to stimulate the nation's economy. According to Bloomberg News, the fund, iShares China Large-Cap ETF (NYSE:FXI) took in $518 million in August.
That's the biggest inflow since December of 2012, when invrstors gobbled up $1.34 billion of the fund's shares, the report said.
The Bloomberg report cited Walter Price, a senior portfolio manager at Allianz Global Investors, explainig it thusly,
People are getting more constructive on China, on the Chinese government’s smooth recovery plan. The U.S. and European markets are making their new highs, and the China market is very far from its high, so the feeling is that these stocks are going to catch up.
Here are the top holdigns of iShares China Large-Cap ETF, as reported by Bloomberg.