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News  ›  The Motley Fool

Why One Investor Sold $6 Million of the MSCI China ETF Amid a Nearly 30% Run

The Motley Fool Logo The Motley Fool By Jonathan Ponciano
Why One Investor Sold $6 Million of the MSCI China ETF Amid a Nearly 30% Run

Hong Kong-based Fosun International completely exited its $5.84 million position in the iShares MSCI China ETF (MCHI) during Q3, selling 106,000 shares. The exit comes after the ETF surged nearly 30% year-to-date, reflecting a broad recovery in Chinese equities. The move reflects risk management and portfolio rebalancing rather than bearish sentiment on China, as investors trim exposure after strong gains to reallocate capital to better risk-reward opportunities.

Insights
MSTR   negative

Shares declined for fourth straight session to lowest level in over a year


MCHI   neutral

The ETF experienced strong performance (30% YTD gain), but the investor's exit reflects tactical rebalancing and risk management rather than negative outlook. The article frames this as disciplined portfolio architecture following a sharp rebound, not a bearish signal on the fund itself.