Morningstar Rating

ETF Research and Analysis

by Patricia Oey
Suitability
IShares MSCI China MCHI provides broad, cap-weighted exposure to Chinese equities available to foreign investors and is suitable for use as a satellite holding.
Investing in China can be confusing. Most offshore investors   Read more 

Bull Case

MCHI invests in some of the largest Chinese companies with substantial economies of scale.
Long-term investors in this fund may benefit from a strengthening Chinese yuan.
China's recently announced reform plan may lay the foundation for stable, albeit slower, growth in the medium term. Read more 

Bear Case

China is transitioning from capital spending to consumer spending as a driver for growth. There could be some policy and regulation uncertainty in the near term.
The liberalization of interest rates likely will weigh on the margins of the big four banks, which account for about 30% 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 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Lost in Translation: Emerging-Markets Dividend ETFs 
Watch more 

Premium Membership

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