FXI ETF - what's your next move ?First thing first, congratulations to those who bought this ETF at the beginning of 2024. It has since climbed 70% from the bottom to the current price.
Now, we are at an inflection point. With an ambitious 5% GDP target and 2% inflation rate for 2025, the whole world is watching China for more stimulus plans to be released. Property market, once the darling jewel and near exclusive investment for many people , this dream has been dashed. EV market, touted to be the next sector of growth is facing price cutting amongst the local manufacturers. The tariffs imposed by US does not help, making their import price to the overseas buyers higher and squeezing their profit margins.
In a year or two, I expect more consolidation of EV manufacturers where only the top 3 players will survive and holds significant market shares.
From chart, we can see the price action is now at an inflection point. Refer to the chart , Oct 2022, could we see a repeat of this pattern? Possible but imo, quite unlikely. The government is in a catch 22 position, having to defend itself against the never ending US tariffs and a sluggish domestic market that consumers are still reluctant to spend (as much as the government would like them to be).
Thus, I would be monitoring this chart closely, not adding at the moment but definitely not selling any units as well.
Please do your own due diligence.
