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

2 days ago 2

Jonathan Ponciano, The Motley Fool

Mon, December 29, 2025 astatine 7:50 AM CST 5 min read

Hong Kong-based Fosun International sold 106,000 shares of MCHI successful the 3rd quarter.
The shares sold were worthy an estimated $5.84 million.
The determination marked a afloat exit for Fosun, which reported holding nary MCHI shares arsenic of September 30.
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Hong Kong-based Fosun International afloat exited its presumption successful the iShares MSCI China ETF (NASDAQ:MCHI), selling 106,000 shares and reducing reported assets by $5.84 million, according to a November 14 SEC filing.

According to an SEC filing dated November 14, Fosun International reported a implicit merchantability of its holding successful the iShares MSCI China ETF (NASDAQ:MCHI) during the 3rd quarter. The commercialized progressive the disposition of 106,000 shares, with the determination valued astatine $5.84 cardinal based connected quarterly pricing.

Top holdings aft the filing:

NYSE:LANV: $187.90 cardinal (69.65% of AUM)
NYSE:BFLY: $20.68 cardinal (7.67% of AUM)
NYSEMKT:ASHR: $17.16 cardinal (6.36% of AUM)
NASDAQ:MSFT: $4.85 cardinal (1.80% of AUM)
NASDAQ:GOOGL: $3.78 cardinal (1.40% of AUM)

As of Friday, shares of MCHI were priced astatine $61.27, up 28% implicit the past twelvemonth and good outperforming the S&P 500, which is up 15% successful the aforesaid period.

Metric

Value

AUM	$7.86 billion
Yield	2.3%
Price (as of Friday)	$64.46
1-year full return	32.87%

MCHI's concern strategy focuses connected tracking the MSCI China Index, providing vulnerability to large- and mid-cap Chinese equities crossed a scope of sectors.
The portfolio consists chiefly of H-shares and B-shares, representing the apical 85% of the Chinese equity marketplace by marketplace capitalization, with a non-diversified structure.
The ETF is structured arsenic a non-diversified money that invests astatine slightest 80% of its assets successful the constituent securities of the MSCI China Index.

The iShares MSCI China ETF (MCHI) is simply a U.S.-listed ETF offering targeted vulnerability to Chinese equities. The money leverages a marketplace capitalization-weighted approach, enabling investors to enactment successful the show of starring Chinese companies crossed aggregate sectors. By tracking the MSCI China Index, the ETF provides entree to the Chinese equity market.

Moves similar this are little astir marketplace timing and much astir portfolio architecture. Country-specific ETFs tin beryllium almighty tools erstwhile sentiment is washed out, but they besides request subject erstwhile the rebound arrives. The iShares MSCI China ETF had a beardown year, with nett plus worth up much than 30% twelvemonth to day arsenic of precocious September, reflecting a wide betterment crossed ample and mid-cap Chinese stocks. That rebound pushed the money adjacent to the apical of its caller trading range, with valuations and volatility some rising alongside optimism.

Exiting a single-country ETF aft a crisp determination higher doesn’t needfully awesome a bearish presumption connected China itself. It tin conscionable arsenic easy bespeak hazard management. MCHI holds much than 500 companies, but its show is inactive driven heavy by a fistful of mega-cap names and by argumentation decisions extracurricular immoderate investor’s control. For diversified portfolios, trimming oregon eliminating vulnerability aft a beardown tally tin escaped up superior for areas with amended risk-reward balance