Global X MSCI China Utilities ETF [CHIU] Stock Forecast

China has drastically eased its Covid-19 measures. Both domestic mobility and international traffic should increase in 2023.

Most global economists feel that any recovery in China could be more U-shaped than V-shaped. The 2022 Chinese economy can best be described as a spluttering car engine.

In just a short amount of time following the 20th Party Congress, we have seen multiple green shoots in the Chinese market. After the Party Congress, we are seeing signs of coherent policy support in the property sector.

President Xi's political report to the 20th National Congress laid out the long-term vision and ideologies for the Chinese Communist Party, where development remains a top priority over the long term. With numerous global and domestic uncertainties this year, President Xi's speech delivered at the opening of the Party Congress was met with much anticipation.

It appears to us that there is less potential for support for the country's embattled housing sector in the near term. While there had already been restrictions on the export of high-end chips to China, Biden's recent announcement basically expanded the number of components that are restricted.

Our main takeaway from China's 20th Party Congress is the emphasis on security, implying further self-sufficiency—and potential investment opportunity—in the food, energy and technology sectors. At the time of writing, Chinese stocks have regained most of the decline immediately following the Congress, a decline precipitated by unreasonable expectations of positive policy change in areas such as Zero-COVID.

The basic power division in China is between the Party and the state apparatus. The most interesting personnel changes will be those affecting members of the Politburo Standing Committee.

Investors looking at China may be able to find bargains given the headwinds the country has been facing over the past year with its real estate development crisis and resurging COVID-19 cases. That said, it could help investors looking for opportunities in certain areas to take into account the country's zero-COVID policy.

China faced significant setbacks in Q2 2022 as a surge in Omicron cases brought Shanghai into approximately a two-month lockdown. The convergence of headwinds in 2022 is prompting Beijing to maintain an accommodative stance on the economy.

Non-China Asian exports are still growing, but the pace of increase has slowed and will slow still further as key export destinations struggle with inflation, energy security, and rising recession risks. In year-on-year terms, the rate of overall export growth is now skirting single-digits again.

Global X MSCI China Utilities ETF is a US stock and trading under the symbol CHIU

Global X MSCI China Utilities ETF stock price is $14.4311 today.

Yes, Global X MSCI China Utilities ETF is a publicly traded company.