June 9, 2011 (Chinavestor) A broad sell-off hit China stocks in Asia on Thursday. The Shanghai Composite Index (SHA:000001) fell 47.0 points or 1.7% while the Hang Seng Index (INDEXHANGSENG:.HSI) shed 51.8 points or 0.2%. High oil prices continue to weight on economic recovery, argued investors in the U.S. the day before, pushing the DJIA lower for the sixth day in a row. Negative market sentiment carried over to Asia hurting Chinese stocks in return.
Chinese ETFs, the iShares FTSE/Xinhua China 25 China Index (NYSE:FXI) and the Guggenheim China Small Cap ETF (NYSE:HAO) are in focus for today.
Chinese stocks listed in U.S. exchanges fell hard yesterday, hurting Chinese ETFs as well. The iShares FTSE/Xinhua China 25 Index (NYSE:FXI) fell 0.5% but the Guggenheim China Small Cap ETF (NYSE:HAO) dived over twice as much as small caps retreated.
Outlook is uncertain if trading is Asia was a proxy. Small and large caps fell hard in Asia on Thursday, boding ill for Chinese ETFs. Stocks that fell outnumbered those that advanced five to one among 25 components of the iShares FTSE/Xinhua China 25 Index (NYSE:FXI). Among small caps, only twenty out of 162 components of the Guggenheim China Small Cap ETF (NYSE:HAO) rose in Asia this morning.