In previous post we have discovered that EWH, the popular iShares HK ETF, does not hold any stocks in Chinese enterprise. There is another popular ETF from iShares that holds Chinese enterprise shares only-FXI. FXI tracks the FTSE/Xinhua China 25 Index.
This ETF buys H-shares only. H-shares are tradable shares on the Hong Kong Stock Exchange, issued from companies that are incorporated in China. The top three holdings of FXI as of today are China Mobile (941 HK), ICBC (1397 HK) and China Life (2628 HK). This ETF has captured the biggest H-share companies in the HK Stock Exchange.
If you are bullish on the large Chinese corporates, you definitely should consider buying FXI. This FXI ETF should track quite well with the HSCEI (Hang Seng China Enterprise Index) – the second most important index in the Hong Kong Stock Market. There are FXI call/put options too which can give you long/short exposure.
