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published in Blogs
Apr 25, 2019
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Markets unprepared for impact of ‘massive’ Chinese policy shift, economist warns - CNBC

Markets unprepared for impact of ‘massive’ Chinese policy shift, economist warns - CNBC

Markets have been lulled into a false sense of calm and are unprepared for the impact of a seismic shift in Chinese economic policy, according to Saxo Bank chief economist Steen Jakobsen.

Stocks in China tumbled on Thursday amid worries that Beijing could pull back on stimulus measures following recent better-than-expected economic data. READ MORE...

Related Ticker: MCHI

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


MCHI's RSI Indicator recovers from oversold territory

The RSI Oscillator for MCHI moved out of oversold territory on November 02, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In 30 of the 31 cases the stock moved higher. This puts the odds of a move higher at 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on MCHI as a result. In 72 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 82%.

The Moving Average Convergence Divergence (MACD) for MCHI just turned positive on November 03, 2026. Looking at past instances where MCHI's MACD turned positive, the stock continued to rise in 39 of 48 cases over the following month. The odds of a continued upward trend are 81%.

Following a +5.34% 3-day Advance, the price is estimated to grow further. Considering data from situations where MCHI advanced for three days, in 212 of 261 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.

Bearish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCHI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 85%.

MCHI broke above its upper Bollinger Band on November 05, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for MCHI entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Notable companies

The most notable companies in this group are PDD Holdings (NASDAQ:PDD), Yum China Holdings (NYSE:YUMC), H World Group Limited (NASDAQ:HTHT), Tencent Music Entertainment Group (NYSE:TME), Vipshop Holdings Limited (NYSE:VIPS), TAL Education Group (NYSE:TAL).

Industry description

The investment seeks to track the investment results of the MSCI China Index. The fund generally will invest at least 80% of its assets in the component securities of the underlying index and in investments that have economic characteristics that are substantially identical to the component securities of the underlying index. The index is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of equity securities in the top 85% in market capitalization of the Chinese equity securities markets, as represented by the H-shares and B-shares markets. The fund is non-diversified.

Market Cap

The average market capitalization across the iShares MSCI China ETF (MCHI) ETF is 18.31B. The market cap for tickers in the group ranges from 4.55B to 118.18B. PDD holds the highest valuation in this group at 118.18B. The lowest valued company is LEGN at 4.55B.

High and low price notable news

The average weekly price growth across all stocks in the iShares MSCI China ETF (MCHI) ETF was 7%. For the same ETF, the average monthly price growth was 14%, and the average quarterly price growth was 31%. YUMC experienced the highest price growth at 4%, while LEGN experienced the biggest fall at -5%.

Volume

The average weekly volume growth across all stocks in the iShares MSCI China ETF (MCHI) ETF was 1%. For the same stocks of the ETF, the average monthly volume growth was -19% and the average quarterly volume growth was -16%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 39
P/E Growth Rating: 84
Price Growth Rating: 57
SMR Rating: 54
Profit Risk Rating: 91
Seasonality Score: 6 (-100 ... +100)
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Markets unprepared for impact of ‘massive’ Chinese policy shift, economist warns - CNBC