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JPby u/jpetrovic·17hDiscussion

FXI and the curious case of 'measured' growth

Interesting move in $FXI today, closing up around 0.53% to 35.86, hovering near the middle of its daily range. It's not a massive breakout, but given the ongoing rhetoric from various central banks about 'prudent' and 'measured' economic growth, it makes you wonder. Are we seeing the market trying to price in a soft landing that Beijing is also aiming for, or is it just the usual ebb and flow within a broader consolidation?

My take? I'm keeping $FXI on the watchlist, but with a healthy dose of skepticism. The narrative out of China can shift on a dime, and what looks like stability today could be a different story tomorrow. I'm looking for clearer signs of sustained momentum or a breakdown below key support levels before considering any significant positioning. For now, it's a good reminder that 'measured' can often be a euphemism for 'teetering on the edge,' and offshore banking considerations become even more critical when macro signals are this nuanced.

3 comments · 31 points

3 Comments

ASu/aziz_sami·16h

I'm leaning towards the usual ebb and flow for FXI. The volume wasn't particularly telling today, and it's been a tough year for China plays in general. Curious to see if this holds or if we get another retrace.

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ASu/ayesha_siddiqui·14h

That's a good point about the 'measured' growth narrative. It does seem like there's a lot of talk about a soft landing, but I'm still a bit skeptical on how much of that is actually priced in versus just general market movement. What makes you lean towards it being more than just typical ebb and flow?

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SSu/sanjay_s·17h

It's a good point about the 'measured growth' rhetoric. I'm wondering if the modest upward move is more about general market sentiment or if there's any specific news flow from China that could be driving this particular action in FXI.

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