Macro guys seem to be loading up on FXI calls. U.S. guys are nervous they have missed China or are underweight.
Look at Emerging Money China Index for specific Stocks and ETFs to play forChina exposure.
Yes, the inflation story CPI is 4.9% — is going to continue to make headlines. But the picture of inflation pressure is easing, while January Home Loan data at 1 trillion yuan was lower than expected. This should work to dampen the fears of a property bubble.
Last night there was more than $1 billion of call buying across a range of upside strikes in the FXI. This is huge upside demand out of the US last night for China.
You want to see a group of laggards? Large cap names with China exposure underperformed index and sectors. Focus on Industrial & Commercial Bank of China (IDCBY, quote), Bank of China (BACHY, quote), China Mobile (CHL, quote), and China Life (LFL, quote). The Hang Seng Index is flat on the year, even though since the start of Chinese New Year the Shanghai Composite Index has rallied 8.8%.
I feel strongly about this opportunity to buy China on the dip.
|Emerging Money China ETFs|