El interés en corto de iShares China Large-Cap ETF da a los inversores una idea del grado en que los inversores apuestan por la caída de las acciones de iShares China Large-Cap ETF. Los datos de interés en corto se actualizan cada dos semanas.

iShares China Large-Cap ETF (ARCA:FXI), Informe de interés en corto

iShares China Large-Cap ETF

Consumer Cyclical

Financial Services

Communication Services

Energy

Technology

Real Estate

Industrials

Basic Materials

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Healthcare

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Other

The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The index designed to measure the performance of the largest companies in the Chinese equity market that trade on the Stock Exchange of Hong Kong (SEHK) and are available to international investors, as determined by FTSE International Limited (the index provider or FTSE). The fund is non-diversified.

Tencent Holdings Limited

Meituan Dianping

ISHARES CHINA LARGE CAP ETF

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/10/2024-10-02_09h01_16.png" alt="" style="width:624px" /></figure>
<h4 class="wp-block-heading">The Power Of Missile Defense</h4>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-raytheon-missile-defense-iron-dome-patriot-rtx-mc-10022024">click here</a> for an enlarged chart of Rtx Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>).
Note the following:
<ul>
<li>This article is about the big picture, not an individual stock. The chart of RTX stock is being used to illustrate the point.</li>
<li>Yesterday, Iran fired about 180 ballistic missiles on Israel.  Israel and the U.S. were able to intercept most of these missiles with missile defense systems. These missiles reached Israel in 12 minutes. The defense was impressive considering there were no fatalities.</li>
<li>What happened in Israel yesterday shows the power of missile defense systems and illustrates the opportunity for investors in missile defense stocks.</li>
<li>As full disclosure, RTX is in The Arora Report&#8217;s ZYX Buy Core Model Portfolio. RTX is The Arora Report's favorite missile defense stock.&nbsp;</li>
<li>The chart shows that RTX has broken out on the success of missile defense in Israel.</li>
<li>RTX is a joint developer of the Iron Dome used in Israel. RTX is best known for its Patriot Air And Missile Defense System.  RTX also produces several other missile defense systems and aircraft engines.</li>
<li>RTX entered The Arora Report portfolio when the stock experienced a massive drop on the news of cracks in Pratt &amp; Whitney engines. The Arora Report uses over 50 different strategies. RTX belongs to the strategy of buying a good company where the stock is down due to a fixable technical problem.</li>
<li>The chart shows the power of buy zones.  Buy zones allow investors to buy stocks and ETFs when the probability adjusted risk reward is more favorable.  Risk and reward are two sides of the same coin in investing. Smart money focuses on risk adjusted returns. In contrast, the momo crowd focuses only on rewards – the result is that the momo crowd goes through volatile cycles of making money and losing money, and in the end, accumulating far less than smart money.</li>
<li>The chart illustrates the power of a billionaire and hedge fund technique known as a trade around position.&nbsp; A trade around position can dramatically increase profits and reduce risks.</li>
<li>The chart shows that the RTX trade around position was started at an average of $80.70. The position has over 50% gain as of this writing.  The trade around position is separate and distinct from the core position.</li>
<li>Peace is not about to break out in the world.&nbsp; As such, all investors should consider a defense stock or ETF in their portfolio.</li>
<li>For those interested in ETFs, The Arora Report&#8217;s ETF of choice is iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>).&nbsp; As full disclosure, ITA is in The Arora Report&#8217;s ZYX Allocation Model Portfolio.&nbsp;</li>
<li>Automatic Data Processing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>) is the largest private payroll processor in the country.&nbsp; ADP uses its data to provide a glimpse of the employment picture ahead of the official jobs report that will be released on Friday.&nbsp; ADP employment change came at 143K vs. 120K consensus.&nbsp; This indicates that the jobs picture is staying strong.</li>
<li>Previously, JOLTS job openings came at 8.04M, higher than expectations.</li>
<li>&nbsp;ISM Manufacturing Index came at 47.2 vs. 47.4 consensus.</li>
</ul>
<h3 class="wp-block-heading">Buying Stampede</h3>
Stocks are experiencing a once in a century buying stampede in Hong Kong.  Stocks in Hong Kong rose 7%. Property developers rose 47%, and broker stocks rose 35%.  As full disclosure, Hong Kong ETF iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) is in The Arora Report&#8217;s ZYX Emerging.
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are neutral in Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>).
In the early trade, money flows are negative in &nbsp;Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are negative in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>). The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing selling along with junk stocks.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash. A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

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Opportunity In Missile Defense Stocks, Once In A Century Buying Stampede In Hong Kong

China is on track to outpace the United States in advanced technology and military manufacturing by 2035, according to recent reports.
What Happened: China is projected to overtake the United States in advanced technology and military manufacturing within the next decade, according to a South China Morning Post<a href="https://www.scmp.com/news/china/science/article/3280584/made-china-2035-will-it-topple-us-hi-tech-and-military-manufacturing-10-years?module=top_story&amp;pgtype=homepage"> report</a> on Wednesday. 
Recently, Lu Yongxiang, former vice-chairman of the National People's Congress, stated in the Chinese Journal of Mechanical Engineering that the decline of US manufacturing is irreversible. Lu, who has played a significant role in shaping China&#8217;s long-term strategies, emphasized that the US&#8217;s competitive edge is rapidly diminishing.
Lu, who also served as the director of the expert advisory board for the "Made in China 2025" program, predicted that by 2035, China will lead globally in manufacturing and its economy will surpass that of the US. He noted that China has already achieved most of the goals set in the "Made in China 2025" plan, despite countermeasures from Washington.
China&#8217;s rapid progress in high-end industries, such as shipbuilding and renewable energy, has outpaced expectations. However, Lu acknowledged that China still lags behind the US in some advanced fields, particularly in advanced weapons production.
See Also: <a href="https://www.benzinga.com/news/24/09/41061660/ex-microsoft-ceo-and-billionaire-steve-ballmer-says-he-gets-most-important-stuff-from-elon-musks-x-i?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Ex-Microsoft CEO And Billionaire Steve Ballmer Says He Gets &#8216;Most Important Stuff&#8217; From Elon Musk&#8217;s X: &#8216;I Wanna Know Straight From The Source&#8217;</a>
Why It Matters: China&#8217;s advancements in technology and military manufacturing have significant implications for global geopolitics and economic balance. In August, it was reported that Nvidia Corp.&#8217;s <a href="https://www.benzinga.com/news/24/08/40157250/nvidias-high-tech-ai-chips-reach-xi-jinpings-military-sidestepping-us-trade-restrictions-report">high-tech AI chip</a>s were reaching Xi Jinping&#8217;s military despite U.S. trade restrictions. This indicates that China is finding ways to circumvent U.S. blockades to advance its military technology.
Moreover, China has been heavily investing in semiconductor manufacturing. In the first half of 2024, <a href="https://www.benzinga.com/markets/asia/24/09/40697855/chinas-chipmaking-investments-top-us-taiwan-south-korea-combined-what-it-means-for-nvidia-asml">China invested $25 billion</a> in chipmaking equipment, surpassing the combined spending of the U.S., Taiwan, and South Korea. This massive investment underscores China&#8217;s commitment to becoming a global leader in advanced technology and manufacturing.
Price Action: At the time of writing on Wednesday, KraneShares Trust KraneShares CSI China Internet ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) was up by 6.02%, iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) was up by 4.98%, &nbsp;iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) was trading 5.59% higher, while Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>) was up by 5.70%, according to <a href="https://pro.benzinga.com">Benzinga Pro.</a>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/09/41078582/tim-cook-led-apple-reportedly-abandons-openai-funding-round-discussions-but-nvidia-and-microsoft-cou?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tim Cook-Led Apple Reportedly Abandons OpenAI Funding Round Discussions, But Nvidia And Microsoft Could Still Invest In ChatGPT-Parent</a></li>
</ul>
Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

News

Global

FLCH

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China Set To Surpass US In Advanced Military Manufacturing By 2035: Report

Jim Cramer is sounding the alarm, but not in the way you might expect. For those bullish on Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Cramer's latest take might be <a href="https://www.benzinga.com/topic/jim-cramer">hard to swallow</a>.
<h2 class="wp-block-heading">Hot Money Streaming Out Of Nvidia, Apple</h2>
In a tweet, Cramer said, &#8220;The hot money is streaming out of Nvidia and Apple and into China. Let it stream. Do not defend these now. Let this money leave. On China only BABA has actual fundamentals if you must&#8230; But let it rain here. Get all of these short Nvidia options and ETFs to play out.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The hot money is streaming out of Nvidia and Apple and into China. Let it stream. Do not defend these now. Let this money leave. On China only BABA has actual fundamentals if you must.. But let it rain here. Get all of these short Nvidia options and etfs to play out..
&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1841411620481663388?ref_src=twsrc%5Etfw">October 2, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The reasoning? Cramer hints that Nvidia's sky-high valuations and Apple's post-iPhone slump might leave them vulnerable to short-term pain. If you&#8217;re holding Nvidia options or ETFs, Cramer believes you might want to ride the short wave. 
Cramer&#8217;s suggestion is a subtle signal that a pullback could be looming, especially as investor sentiment shifts and valuations begin to look more stretched than a Friday-night binge-watch.
The GraniteShares 2x Short NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVD#NASDAQ">NVD</a>) and the Direxion Daily NVDA Bear 1X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDD#NASDAQ">NVDD</a>) are inverse ETFs positioned to gain on Nvidia stock&#8217;s underperformance. Investors in the Direxion Daily AAPL Bear 1X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPD#NASDAQ">AAPD</a>) gain when Apple shares underperform.
Read Also: <a href="https://www.benzinga.com/government/24/10/41127863/despite-nvidia-selloff-bidens-law-and-taiwan-semis-advantage-offer-growth-potential">Despite Nvidia Selloff, Biden&#8217;s Law and Taiwan Semi&#8217;s Advantage Offer Growth Potential</a>
<h2 class="wp-block-heading">Only Alibaba Has Actual Fundamentals, Says Jim Cramer</h2>
Meanwhile, where should the more adventurous traders look? According to Cramer, only one Chinese juggernaut is worth considering amid the capital outflows into China: Alibaba Group Holdings Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#NYSE">BABAF</a>). 
The e-commerce giant, despite facing regulatory hurdles, is backed by solid fundamentals. The GraniteShares 2x Long BABA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BABX#NASDAQ">BABX</a>) provides leveraged exposure to Alibaba shares. Other ETFs with substantial allocation to Alibaba shares in their portfolio include the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) (8.96% Alibaba stock), iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) (9.03% Alibaba stock) and the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>) (11.05% allocation to Alibaba stock).
If you must dip into the Chinese markets, BABA might be your best bet—just don't expect smooth sailing.
Cramer's latest recommendation suggests patience with Nvidia and Apple, letting short sellers have their moment, and keeping a cautious but interested eye on Alibaba's potential for a rebound.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41135385/nasdaq-ends-1-5-lower-as-tesla-nvidia-and-apple-fall-investor-optimism-declines-fear-index-remains-">Nasdaq Ends 1.5% Lower As Tesla, Nvidia, And Apple Fall: Investor Optimism Declines, Fear Index Remains In &#8216;Greed&#8217; Zone</a></li>
</ul>

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ALIBABA GROUP HOLDING LTD by Alibaba Group Holding Limited

BABAF

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Cramer Says 'Hot Money' Flowing From Nvidia, Apple Into China, Focus On Alibaba 'If You Must'

<a href="https://digital-strategy.ec.europa.eu/en/news/commission-sends-requests-information-youtube-snapchat-and-tiktok-recommender-systems-under-digital" title="https://digital-strategy.ec.europa.eu/en/news/commission-sends-requests-information-youtube-snapchat-and-tiktok-recommender-systems-under-digital">https://digital-strategy.ec.europa.eu/en/news/commission-sends-requests-information-youtube-snapchat-and-tiktok-recommender-systems-under-digital</a>

GOOGL

SNAP

EU Commission Sends Requests For Information To YouTube, Snapchat, TikTok On Recommender Systems Under Digital Services Act

JD.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) shares are trading higher by 2.36% during Monday&#8217;s session and are higher by 27% over the past week. Shares of U.S.-listed Chinese companies are trading higher on continued strength amid stimulus efforts. September PMI data beat estimates but factory activity fell, which may raise stimulus hopes.
What Happened: JD.com, one of China's largest e-commerce platforms, saw its stock soar by 27% over the past week, driven by several factors, including strong hopes for increased economic stimulus from the Chinese government and better-than-expected economic data.
Over the past week, JD.com's stock was propelled higher following the People&#8217;s Bank of China's aggressive monetary easing measures. The central bank cut the reserve requirement ratio (RRR) by 50 basis points, reducing it to 9.5%, which is set to inject around 1 trillion yuan ($140 billion) into the financial system.
Read Also: <a href="https://www.benzinga.com/news/24/09/41085958/fed-chair-jerome-powell-set-to-speak-as-economists-raise-concerns-over-risks-arising-from-potential">Fed Chair Jerome Powell Set To Speak As Economists Raise Concerns Over Risks Arising From Potential Policy Missteps And 2024 Election</a>
This increased liquidity provides banks with more capital to lend, potentially easing financial pressures on businesses like JD.com, which rely heavily on consumer spending and economic confidence to drive growth.
What Else: In addition to the RRR cut, the PBoC lowered key interest rates, including the seven-day repo rate and the 14-day reverse repo rate, marking the central bank's increasingly proactive stance toward stabilizing economic growth. The cuts come amid growing concerns about China&#8217;s economic slowdown, with the government clearly signaling its intent to bolster liquidity and stimulate demand.
Investors were further encouraged by the release of China's September PMI data. Although factory activity fell, signaling continued weakness in the industrial sector, the overall PMI beat expectations, fueling optimism that China's economy is not deteriorating as rapidly as feared. 
The stronger-than-expected data, coupled with the prospect of further stimulus, sparked a rally in Chinese stocks across the board. JD.com, which is often seen as a barometer for China&#8217;s domestic consumption, benefitted from this shift in sentiment, with investors betting that more stimulus measures could lead to increased consumer spending on e-commerce platforms.
Read Also: <a href="https://www.benzinga.com/news/24/09/41085958/fed-chair-jerome-powell-set-to-speak-as-economists-raise-concerns-over-risks-arising-from-potential">Fed Chair Jerome Powell Set To Speak As Economists Raise Concerns Over Risks Arising From Potential Policy Missteps And 2024 Election</a>
Traders and investors can gain exposure to Baidu through&nbsp;KraneShares CSI China Internet ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NASDAQ">KWEB</a>) and&nbsp;iShares China Large-Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NASDAQ">FXI</a>).<a href="https://www.benzinga.com/quote/kweb" target="_blank" rel="noreferrer noopener"></a>
<h2 class="wp-block-heading">How To Buy JD Stock</h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 
For example, in JD.com&#8217;s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from&nbsp;<a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, JD has a 52-week high of $42.68 and a 52-week low of $20.82.

Why JD.Com Stock Is Up 27% Over The Past Week

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-30_08h18_55.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">Chinese Market Breaks Negative Pattern</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-fomo-driving-chinese-market-breaks-negative-pattern-ashr-mc-09302024">click here</a> for an enlarged chart of Xtrackers Hvst CSI 300 China A Shs ETF Class A (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASHR#NYSE">ASHR</a>).
Note the following:
<ul>
<li>In a prior article, we shared with you details of China's stimulus program. Prior to last Tuesday, Chinese stocks had been beaten down and had been trading at low valuations.</li>
<li>The chart shows that the Chinese stock market has broken the negative pattern of lower highs.</li>
<li>The chart shows that the pattern existed from the 2021 peak until last week.</li>
<li>When the rally first started, the concern was that this rally would also fail like prior rallies. Initially, it was simply prudent to consider the rally in Chinese stocks last week to be suspect.  The chart shows that even the COVID opening rally failed, and the subsequent AI rally also failed.</li>
<li>The chart shows that the rally is on high volume. This indicates conviction and provides confirmation for the rally.</li>
<li>RSI on the chart shows that the Chinese stock market is very overbought. Overbought markets tend to pullback in the short term.</li>
<li>In Shanghai, the CSI 300 jumped 8.5%. This is the biggest single day gain since 2008.</li>
<li>The five day gain in Shanghai is the strongest since 1996.</li>
<li>The chart shows that this rally has decisively broken the downtrend like a rocketship.</li>
<li>From a technical perspective, such strong rallies tend to take stocks higher after a brief pullback.</li>
<li>The rally is partly driven by fear of missing out (FOMO) among foreign investors who are rushing into China.</li>
<li>Money is flowing out of safer Chinese 30 year Treasury bonds and into Chinese stocks. Chinese 30 Treasury bond futures fell to a two month low after losing 3.6% last week.  This is the worst quick loss ever.</li>
<li>For the day, the economic data from China is poor. China's PMIs are weak. Here are the details:
<ul>
<li>Manufacturing PMI came at 49.8 vs. 49.4 consensus.</li>
<li>Non-manufacturing PMI came at 50.0 vs. 50.4 consensus.</li>
<li>A number less than 50 is considered economic contraction.</li>
<li>Expectations are that China's PMIs will spike up in the coming months due to government stimulus.</li>
</ul>
</li>
<li>As full disclosure, The Arora Report has published new buy zones for Xtrackers Hvst CSI 300 China A Shs ETF Class A (ASHR) and iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) in The Arora Report&#8217;s ZYX Emerging. There is also a new buy zone for emerging markets consumer Columbia Research Enhanced Emerging Economies ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ECON#NYSE">ECON</a>) in The Arora Report&#8217;s ZYX Emerging. Emerging market consumers are getting rich and provide one of the best opportunities for long term investors. Instead of chasing the price on Chinese stocks and ETFs, prudent investors should consider being highly selective. </li>
<li>In The Arora Report analysis, investors are ignoring two risks in China:
<ul>
<li>The traditional geopolitical risk, especially related to Taiwan.</li>
<li>The risk of Trump being elected. Trump is proposing 100% &#8211; 200% tariffs on Chinese goods. Such tariffs will negate much of the benefit from the Chinese government stimulus.</li>
</ul>
</li>
<li>Unlike last week, the optimism from China is not carrying to the U.S. for the following reasons:
<ul>
<li>Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), the owner of Chrysler, Jeep, and Fiat, is giving poor guidance.</li>
<li>Volkswagen A G Unsponsored Represent 1 10th Sh ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) is also providing poor guidance.</li>
<li>Stocks of General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) are coming under pressure.</li>
<li>Negative sentiment from Europe is carrying to the U.S.</li>
<li>East coast dock workers may go on strike, disrupting commerce.</li>
</ul>
</li>
<li>Also not helping this morning is that quarter end window dressing is almost over.&nbsp; In window dressing, some money managers buy the best performing stocks of the quarter so that they can show their clients in the quarter end reports that they were holding the best performing stocks.&nbsp; This was partially the reason for the recent strength in NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and other AI stocks.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
In the early trade, money flows are neutral in Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>).
In the early trade, money flows are negative in Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and NVDA.
In the early trade, money flows are negative in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing some selling along with junk stocks.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

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Emerging Global Shares Dow Jones Emerging Marketsnsumer Titan Index Fund

ECON

STLA

VWAGY

FOMO Drives Biggest Gain In Shanghai Since 2008, Chinese Market Breaks The Negative Pattern

Macro Notification

Beijing Housing Regulator Eases Home Purchase Restrictions For Non-Local-Resident Buyers

Beijing Adjusts Down Payment Ratio For First Home Buyers To No Less Than 15%, Down Payment Ratio For Second-Home To No Less Than 20%

Macro Economic Events

Econ #s

Economics

China's Beijing Issues Notice On Adjusting Home Purchase Policies

Benzinga Market Summary: Chinese Stocks Continue Higher Amid Stimulus Measures, Autos Drop On Weak Stellantis Guidance

China's Ministry Of Housing And Urban-Rural Development, Financial Regulator Hold Meeting On Ensuring Delivery Of Homes

Forex

China's FX Regulator Said The Likelihood Of Further Deleveraging In China's Foreign Debt In Q4 Is Low, And Foreign Debt Levels Are Expected To Remain Stable

Benzinga Market Summary: Dow Closes At Record, Oil Rises On Middle East Uncertainty, Bitcoin Rises, China Stocks Continue Higher

Blinken Says Concluded A Candid And Substantive Meeting With China's Wang Yi, Discussed Working To Disrupt Flow Of Drugs Into United States With Chinese Counterpart Wang Yi, Improving Communication Between Our Militaries, Risks Of Artificial Intelligence

China Urges Local Companies To Avoid Using Nvidia's AI Chips

Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) shares are trading higher by some 22% to $106.09 this week, fueled by a confluence of favorable <a href="https://www.benzinga.com/markets/asia/24/09/41011343/tech-stocks-rise-materials-sector-rallies-on-chinas-stimulus-nvidia-surges-whats-driving-markets-tue">macroeconomic developments</a> in China and optimism surrounding the company's future growth prospects. 
This week&#8217;s gain comes after the People's Bank of China (PBoC) announced aggressive monetary easing measures, which are expected to have wide-ranging positive effects on Chinese tech companies.
What Happened: The PBoC's decision to cut the reserve requirement ratio (RRR) for banks by 50 basis points, from 10.0% to 9.5%, is one of the most substantial easing measures seen in recent years. The move will inject approximately 1 trillion yuan ($140 billion) into the banking system, freeing up liquidity for lending and stimulating economic activity.
In addition, the central bank slashed both the seven-day repo rate and the 14-day reverse repo rate, further emphasizing its commitment to reviving China's economy, which has been under pressure from a property market slowdown and declining consumer confidence.
Read Also: <a href="https://www.benzinga.com/news/econ-s/24/09/41066122/feds-preferred-inflation-gauge-comes-in-below-expectations-for-august-easing-concerns-about-rising-p">Fed&#8217;s Preferred Inflation Gauge Comes In Below Expectations For August, Easing Concerns About Rising Prices</a>
This fresh wave of liquidity is expected to directly benefit companies like Baidu, which have significant exposure to sectors like AI, cloud computing, and autonomous driving that are heavily reliant on capital investment and government support. 
With banks now having more liquidity to lend, Baidu could see increased access to capital, facilitating the expansion of its AI capabilities, which remain a core pillar of the company's long-term growth strategy.
What Else: Beyond the immediate impact of the monetary easing, Baidu is also poised to benefit from the broader stimulus plans being discussed by Chinese authorities. Reports suggest that China may issue up to $284 billion in sovereign debt as part of a larger fiscal stimulus package. 
Such a package could bolster infrastructure spending, particularly in sectors like AI, autonomous driving, and smart cities, where Baidu has been heavily investing. As a leading player in AI, Baidu stands to gain from any policy measures aimed at boosting high-tech innovation and digital transformation in China.
Moreover, Baidu's strong position in China's digital economy has helped the stock rally in anticipation of stronger future earnings. The company's recent developments in AI—including its generative AI platform, Ernie Bot, which competes directly with OpenAI's ChatGPT—have placed Baidu at the cutting edge of global AI innovation. 
As China seeks to close the technological gap with the U.S. in this critical area, Baidu's leadership in AI could attract more government support and investor interest, making it a key beneficiary of the country's long-term tech ambitions.
Read Also: <a href="https://www.benzinga.com/general/biotech/24/09/41065699/sec-charges-cassava-sciences-over-manipulated-alzheimers-trial-data-company-and-former-execs-agre">SEC Charges Cassava Sciences Over Manipulated Alzheimer&#8217;s Trial Data, Company And Former Execs Agree To Pay Penalty</a>
Traders and investors can gain exposure to Baidu through KraneShares CSI China Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NASDAQ">KWEB</a>) and iShares China Large-Cap ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NASDAQ">FXI</a>).
<h2 class="wp-block-heading">How To Buy BIDU Stock</h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Baidu&#8217;s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, BIDU has a 52-week high of $136.53 and a 52-week low of $79.68.

BIDU

Why Baidu Stock Is Popping Off This Week

Benzinga Market Summary: August PCE Inflation Slows, Oil On Watch As Hurricane Helene And Middle East Tensions Cause Supply Uncertainty, Chinese Stocks Continue Higher On Stimulus

<a href="https://newsroom.paypal-corp.com/2024-09-26-PayPal-Introduces-PayPal-Complete-Payments-in-China#:~:text=Leveraging%20its%20global%20resources%2C%20PayPal,covering%20more%20than%20100%20currencies">https://newsroom.paypal-corp.com/2024-09-26-PayPal-Introduces-PayPal-Complete-Payments-in-China#:~:text=Leveraging%20its%20global%20resources%2C%20PayPal,covering%20more%20than%20100%20currencies</a>
PayPal unveiled <a href="https://www.paypal.cn/portal/merchant/ncps">PayPal Complete Payments</a>, a safe and efficient all-in-one platform that integrates a range of customized products and solutions to support Chinese merchants in selling globally. This platform streamlines payment and receivables processes for businesses of all sizes in China, empowering them to thrive in cross-border trade and the digital economy.
Today, PayPal's global and China management teams engaged with over 700 merchants from across the country along with partners. They provided insights into PayPal's global and local business strategies, cross-border payment solutions, industry trends, and specific initiatives designed to drive business growth for Chinese merchants.

PYPL

'PayPal Introduces PayPal Complete Payments In China' - Newsroom

<a href="https://www.wsj.com/world/china/chinas-newest-nuclear-submarine-sank-setting-back-its-military-modernization-785b4d37?mod=latest_headlines">https://www.wsj.com/world/china/chinas-newest-nuclear-submarine-sank-setting-back-its-military-modernization-785b4d37?mod=latest_headlines</a>&nbsp;
&nbsp;
China's newest nuclear-powered attack submarine sank in the spring, a major setback for one of the country's priority weapons programs, U.S. officials said.
The episode, which Chinese authorities scrambled to cover up and hasn't previously been disclosed, occurred at a shipyard near Wuhan in late May or early June.

'China's Newest Nuclear Submarine Sank, Setting Back Its Military Modernization; Pierside Accident Came As Beijing Attempts To Expand Its Navy' - WSJ

U.S. Treasury Secretary Yellen Says It Will Be Necessary To Get Deficits Down To Keep Interest Costs Manageable; Inflation Remains Top Biden Administration Priority But Is Down Considerably, Wages Rising; Ties With China Have Gotten Closer, Have Found Constructive Ways To Discuss Differences; U.S., China Cooperating In Necessary Areas

Asia markets mixed in holiday-thin trade as investors access economic data in the region

PDD Holdings: China Stimulus Adds Rocket Fuel, Reiterate Buy

Billionaire investor David Tepper, founder of Appaloosa Management, says he's bullish on "everything" in China. ETFs are an effective way to gain d...

A Renowned Billionaire is Bullish on China – Let's Investigate how to Invest in China via ETFs

Fed Chairman Jerome Powell sounded ever-so-slightly hawkish when he said the Fed was in no rush to raise rates. So it's no understatement to call these tense, uncertain times, and that was reflected in equities' performance today.

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iShares China Large-Cap ETF (ARCA:FXI), Informe de interés en corto

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