Latest news with #iSharesMSCIChinaETF
Yahoo
10-04-2025
- Business
- Yahoo
Trump Halts Tariffs for Most, Tightens Grip on China as Ackman Warns
Billionaire investor Bill Ackman (Trades, Portfolio), who just days ago warned about the risks of President Donald Trump's aggressive tariff strategy, is now backing the administration's decision to step back at least temporarily. On Wednesday, Trump announced a 90-day pause on reciprocal tariffs for more than 75 countries that had initiated negotiations with the U.S. The big exception? China. The president didn't just leave China out of the deal he also raised tariffs on Chinese imports to 125%, accusing the country of showing no respect for international trade norms. Ackman, who runs Pershing Square Capital Management, said the move brings clarity to who the U.S. views as reliable trade partners. He didn't mince words, calling China a bad actor and pointing out that American companies are already working to shift supply chains to other countries with a better chance of cutting favorable deals with the U.S. Time is not China's friend, he wrote in a post on X, adding that firms with operations in China are accelerating their plans to diversify. Meanwhile, China isn't sitting still. It hit back with 84% retaliatory tariffs on U.S. goods starting Thursday, intensifying tensions between the world's two largest economies. In a press conference, Chinese foreign ministry spokesperson Lin Jian said Beijing doesn't want a fight but will not fear ongoing tariff pressure. He added that Washington's strategy won't gain support from the international community and is doomed to fail. Chinese equities are already feeling the squeeze. The iShares MSCI China ETF (NASDAQ:MCHI) has dropped 11.26% over the last week and is down nearly 15% over the past month. That's a much steeper fall than the S&P 500, which lost 3.77% and 5.43% over the same periods. While broader market returns are also negative, China-focused assets have been hit harder, reflecting deeper concerns around trade tensions and economic stability. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
China Hit With 54% "Reciprocal Tariff" Rate Following Trump Address. 3 Things Pinduoduo Stock Investors Should Know
Stocks plunged on Thursday in response to President Donald Trump's "reciprocal tariffs." While the president had telegraphed his desire for punitive tariffs to try to balance the trade deficit the U.S. has with much of the world, investors were taken aback by their size. China has long served as a scapegoat for Trump so perhaps it's not a surprise that goods imported from China will now face a 54% tariff, which includes a 20% rate the president imposed earlier. U.S. stocks tumbled on the news, but the impact on Chinese listings was much more modest, as the iShares MSCI China ETF was down just 0.9% on Thursday. International stocks are outperforming U.S. stocks so far this year, and that makes sense. Not only do international stocks have less exposure to Trump's trade war and the weakening consumer confidence in the U.S., but valuations are much lower in international equities, especially entering the year. China stocks are especially cheap right now, and one that has been a standout performer in recent years is PDD Holdings (NASDAQ: PDD), the parent of Pinduoduo and Temu, which is challenging Alibaba and for e-commerce supremacy in China. Let's take a look at what PDD stock investors should know about the tariffs. The 54% tariffs being imposed in China will affect the Chinese economy in a number of ways. Already, a number of companies like Nike have moved some of its production out of China to neighboring countries like Vietnam, and that trend could accelerate as companies looking to avoid the tariffs move production to countries with lower rates or even to the U.S. In 2024, U.S. imports from China totaled $438.9 billion. In addition to sending production out of China, the trade war could also weigh on an already weak Chinese economy if it makes goods more expensive, and China has already said that it will impose its own tariffs to protect its economy and its interests. The size of the impact on the Chinese economy is unclear, but more consumer weakness will weigh on e-commerce operators like PDD Holdings. PDD Holdings doesn't break down its revenue by region, but the company has put considerable effort into marketing Temu, its low-cost e-commerce platform, enough so that it's made the digital advertising market more competitive and it's grabbed market share from a number of e-commerce companies and other retailers. Amazon has responded to the threat from Temu and Shein by launching Haul, its own low-cost platform, though it's unclear how it's performing. PDD brought in $54 billion in revenue in 2024, but its gross merchandise volume (GMV), or the value of goods sold on its platform, is likely much larger. At a minimum, the company likely did $5 billion in GMV in the U.S., but it's probably several times larger than that, given Temu's impact on the e-commerce market. Advertising is the biggest source of revenue for the company so it's also reliant on advertisers being confident in customers spending on the platform. Prior to the tariffs announcement, some investors were already rotating into Chinese stocks, including billionaire David Tepper, seeing an opportunity there as Chinese stocks are much cheaper than their U.S. counterparts. In that sense, PDD Holdings could benefit if the tariffs drive the U.S. economy into a recession as it's one of the more popular Chinese stocks for American investors to own. Though its growth rate has slowed down in recent quarters, the company reported 24% revenue growth in the fourth quarter, continuing to outperform competitors like Alibaba and At a price-to-earnings ratio of just 11, there's a good argument for buying PDD based on its fundamentals. Before you buy stock in PDD Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PDD Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $461,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $578,035!* Now, it's worth noting Stock Advisor's total average return is 730% — a market-crushing outperformance compared to 147% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 5, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon and Nike. The Motley Fool has positions in and recommends Amazon and Nike. The Motley Fool recommends Alibaba Group and The Motley Fool has a disclosure policy. China Hit With 54% "Reciprocal Tariff" Rate Following Trump Address. 3 Things Pinduoduo Stock Investors Should Know was originally published by The Motley Fool
Yahoo
05-04-2025
- Business
- Yahoo
Emerging Markets Offer Safe Haven from Trump Tariffs: Swiss Analyst
In Pictet Asset Management's April barometer, titled "Emerging market assets offer refuge from Trump tariffs," Chief Strategist Luca Paolini argues that Trump's policies give emerging markets the upper hand as trade tensions escalate. The Geneva, Switzerland-based wealth-management firm has upgraded Chinese equities to overweight from neutral, citing positive signals from the domestic economy that outweigh concerns about Trump's tariffs. Investors seeking exposure to this trend might consider the iShares MSCI China ETF (MCHI). Meanwhile, European equities were downgraded to neutral from overweight following their strong rally. Pictet remained neutral on stocks, bonds and cash overall, but expressed a preference for emerging market bonds due to their growth prospects, solid global trade and attractive yields. The firm also maintained a positive stance on gold as a hedge against geopolitical tensions. For investors seeking this exposure, the SPDR Gold Trust (GLD) provides a direct investment vehicle. This strategic shift comes as U.S. growth is expected to slow to 2% in 2025, with businesses delaying investments due to trade policy uncertainty. In contrast, China's economy is projected to grow 5.2%, supported by strong industrial production, a stabilizing housing market, and ongoing fiscal and monetary stimulus. As Trump's tariff policies create volatility in developed markets, investors may find better opportunities in emerging economies that face less direct impact and offer stronger growth potential, according to the Swiss firm's analysis. Emerging economies are projected to grow 4.3% in 2025, outpacing developed markets at 1.6%, according to the report. The iShares MSCI Emerging Markets ex China ETF (EMXC) offers exposure to these markets while excluding China for investors who want emerging market exposure with reduced Chinese concentration. Pictet maintains overweight positions in several sectors expected to perform well despite trade tensions. Communication services remain attractive due to AI-driven growth potential, with the Communication Services Select Sector SPDR Fund (XLC) offering focused exposure. Financials could benefit from strong earnings and possible Trump-led deregulation, the Pictet report said. Utilities round out Pictet's favored sectors, with the iShares U.S. Utilities ETF (IDU) providing exposure to companies that offer defensive characteristics combined with long-term electricity demand growth. The report notes that Germany and the European Union's defense and infrastructure spending improve Europe's prospects, potentially offsetting some impacts from U.S. tariffs. However, the U.K. economy continues to struggle, likely prompting rate cuts from the Bank of England. In fixed-income markets, emerging market debt presents strong opportunities. With supportive interest rates, widening growth differentials and improving global trade, Pictet has taken an overweight stance on local currency government debt and corporate bonds from these regions. The implications of these trade tensions became evident in March when Trump's tariff policies triggered a selloff in U.S. equities, with the S&P 500 suffering its worst quarterly loss in three years. European stocks, however, outperformed the U.S. by a record margin, while emerging markets demonstrated resilience, benefiting from a weaker | © Copyright 2025 All rights reserved
