Morningstar Rating

ETF Research and Analysis

by Patricia Oey
IShares MSCI China MCHI tracks the MSCI China Index, which seeks to provide broad cap-weighted exposure to Chinese equities listed offshore, primarily on the Hong Kong Stock Exchange.
Investing in China can be confusing.  Read more 

Bull Case

This fund invests in some of the largest Chinese companies with substantial economies of scale.
This fund's expense ratio is one of the cheapest among China-specific ETFs.
The Chinese government is attempting to transition its economy toward a more sustainable growth trajectory, away from capital spending and toward domestic consumption. Read more 

Bear Case

There could be some policy and regulation uncertainty in the near term as the government tries to engineer its economic transition.
The liberalization of interest rates likely will weigh on the margins of the banking sector, which accounts for a significant portion of this fund.
High levels of local government debt, a shadow banking system, and off-balance-sheet bank debt are risks to China's financial system and economy. Read more 

Are There Viable Alternatives to Traditional Bond ETFs? 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Premium.