Posted by: Lauren Young on October 19, 2007
Chinese ETFs may be on fire in terms of performance, but some investors are getting cold feet. Despite a run up in the Shanghai Stock Index, mutual fund investors pulled money out of China stock funds for the first time in eight weeks ending Oct. 17, according to EPFR Global, an international fundtracker. “After the recent run-up in emerging equity markets, especially in Asia, valuations are starting to look rich again and investors are holding back a bit,” notes EPFR Global Analyst Cameron Brandt. Korea funds, however, took in cash for the 23rd time in the past 24 weeks.
While a slew of new ETFs and mutual funds focusing on China have been launched this year, investors should proceed with caution, according to Gene Sit of Sit Investment Associates. And Motley Fool says: Get Out of China While You Still Can. Yikes.
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