The Shanghai stock market is down nearly 6% this week, but several exchange-traded funds that hold Chinese stocks are still beating the S&P 500.
Chinese stocks have taken investors on a ride this year.
Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai composite index rallying nearly 24% and the Shenzhen Component Index Fund ETF up over 34%.
But the Chinese market tanked this week, with the Shanghai index — which was up more than 30% as of last Friday — falling nearly 6%. That makes this the worst week for Chinese stocks since October.
Capital Economics, an independent research firm, attributed the weakness to comments made by China’s top decision-making body about the country’s economic stimulus plans. While Chinese officials said they would continue to support the economy, better-than-expected first-quarter GDP results sparked worries about potential near-term policy easing.
Even so, a number of exchange-traded funds pegged to the Chinese market are rallying — and even beating the S&P 500.
