Global exchange-traded fund - China Merchants SZSE TMT50 Total Return Index ETF

CHINA

China Merchants SZSE TMT50 Total Return Index ETF keeps sliding: down 5.2% in 3 days 15 June, 2018

NEWS BITES - ETF

China Merchants SZSE TMT50 Total Return Index ETF (SZ:159909), the 50th largest Exchange Traded Fund by market cap in China, extended its slide on Friday, shedding an additional 10.0 fen (2.1%) to close at CNY4.73. The units have sunk 26.0 fen (5.2%) over the past three trading days, compared with the Morgan Stanley Capital International China Index [MSCI China] which fell 10.2 points (1.56%) in the three days for a relative price change of -3.6%. The fall was exacerbated by a cumulative 3-day volume of 1.4 times the average 3-day volume of 10,505 units.

Price Change %1 Month3 Month6 Month1 Year
159909-8.9-13.4-14.50.2
MSCI China0.7-2.610.032.1

THE PAST THREE YEARS

China Merchants SZSE TMT50 Total Return Index ETF sinks 49% in 3 years

China Merchants SZSE TMT50 Total Return Index ETF (SZ:159909), has sunk CNY4.58 (or 49.2%) in the past three years to close at CNY4.73 today. Compared with the Morgan Stanley Capital International China Index which has risen 33.5% over the same period, this is a relative price change of -82.7%.

SECTION 1

CHINA MERCHANTS SZSE TMT50 TOTAL RETURN INDEX ETF BEARISH SIGNALS

1.1 Technicals:

Downtrend: The ETF continues its significant downtrend. The ETF dropped 2.1% on high volatility today.

+ The price sank 4.4% in the last week and tumbled 8.9% in the last month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 4.92 minus the 26-day EMA of 5.0 is negative 0.08 suggesting a bearish signal. Both EMA prices are falling, another bearish signal.

+ Falls to Rises: in the past month the number of falls outnumbered rises 12:7 or 1.7:1.

1.2 Low Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverCNY44,681 (US$6,965)In Bottom Quartile
Price/MAP500.91In Bottom Quartile
Price/MAP2000.88In Bottom 8%
Volatility %2.3In Bottom 8%
Price Change %-2.1In Bottom 5%

SECTION 2

CHINA MERCHANTS SZSE TMT50 TOTAL RETURN INDEX ETF BULLISH SIGNALS

2.1 Technicals:

+ The 1.3% premium to 12-month low of CNY4.67 against the 24.2% discount to high of CNY6.24 suggests the decline might be bottoming.

+ The present value of CNY1,000 (PV1000) invested five years ago in China Merchants SZSE TMT50 Total Return Index ETF is CNY1,434, for a capital gain of CNY434.

+ 5 years Multiplier in CNY = 1.434x

+ Compound Annual Growth Rate (CAGR) in CNY = 7.5%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in China Merchants SZSE TMT50 Total Return Index ETF is $US1,372, for a capital gain of $US372.

+ 5 years ago USD 1 equalled CNY 6.135

+ 5 years Multiplier in USD = 1.372x

+ Compound Annual Growth Rate (CAGR) in USD = 6.5%

2.2 Oversold/Bullish/Support Signals:

+ At CNY4.73 the price is below the lower Bollinger band support of CNY4.74, indicating an upside for it to return to the band.

+ The Relative Strength Index (RSI) of 27.8 has breached the oversold line of 30, suggesting the price decrease of 6.3% in the last 14 days is unusually high.

+ The ETF is oversold according to the Williams % R indicator of -94.9, suggesting the price is close to its 14-day low of CNY4.71.

SECTION 3

PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 9,400 units worth CNY44,681 (US$6,965) traded today. In the past week, volume was 1.5 times average and the units were down 4.4%. The volume was 0.9 times the average daily trading of 10,505 units.

+ The present value of CNY1,000 (PV1000) invested one year ago in China Merchants SZSE TMT50 Total Return Index ETF is CNY1,002, for a capital gain of CNY2.

A comparison with Morgan Stanley Capital International World Index [MSCI World] and Morgan Stanley Capital International China Index [MSCI China] is shown below:

PV10001-week1-month1-year
159909.SZ9569111,002
MSCI World1,0021,0111,118
MSCI China9941,0171,338

3.2 The Best 3 weeks in the past quarter [Relative Price Change or RPC]

Mon-FriChange %MSCI China Change %RPC %Vol Ind [1 is avg]
Mar 26-303.5-1.34.82.6
Apr 30-May 041.60.11.61.5
May 07-111.24.9-3.70.7

3.3 The Worst 3 weeks in the past quarter [Relative Price Change or RPC]

Mon-FriChange %MSCI China Change %RPC %Vol Ind [1 is avg]
Apr 23-27-7.7-1.4-6.47.4
Apr 16-20-3.2-1.5-1.80.4
May 28-Jun 01-2.80.1-2.91.8

3.4 Trailing 3 months

TurnoverUS$887,337
Volume1,103,042
Volume Index (1 is avg)1.6

3.5 Trailing Price Change %

3-Year price change for 159909 was -49.2%. Compared with the Morgan Stanley Capital International World Index [MSCI World] which rose 21% in the 3 years, the relative price change was -70.2%.

Price Change %QuarterYear3 Years
159909-13.40.2-49.2
MSCI World0.31121

3.6 MCap - Historical Perspective

In the past 4 years Market Capitalization has decreased by CNY38.1 million from CNY145.6 million to CNY107.6 million. Based on a dynamic start date of 4 years ago, there have been declines in MCap in 2 out of 4 years.

Close PriceMCap (CNY M)MCap (US$ M)
LastCNY4.83107.616.8
1 Year agoCNY4.68104.215.3
2 Years agoCNY4.98110.916.9
3 Years agoCNY9.31207.333.4
4 Years agoCNY3.55145.623.4

3.7 Year-on-Year Comparison (Trailing year - ended 31 May)

In the past 5 years, 159909 has jumped 47.0% from 3.36 to 4.94, an average annual compound rise of 8.0%.

201820172016201520142013
Close4.944.675.038.583.53.36
% Price Change5.8-7.2-41.4145.34.1
Avg Daily Volume8,3878,6981,548,860273,124484,419364,960
VWP5.244.657.086.352.55
Turnover Period11 yrs 8 d26 yrs 6 mo16 d5 mo29 yrs 3 mo11 mo
Price Range4.45 - 6.244.36 - 5.14.43 - 10.033.23 - 10.032.72 - 42.05 - 3.49

In the past 5 years average daily volume has declined 97.7% from 364,960 units to 8,387 units. Turnover period has increased from 11 months to 11 years 8 days. This indicates a larger number of core investors, making a long-term investment safer.

SECTION 4

RANKING

4.1 Global Rank out of 5,525 ETFs

The present value of $US1,000 invested a year ago is $US1,063, ranking it 1958 out of 5,525 ETFs. Its 6-month relative strength (or price percentile rank) in USD is 18.

DescriptionValueRankQuartile
Net Assets (US$)11.8M3021Third
Rel Strength 6 Mo (US$)184531Bottom
PV$1000 (1Year) US$*1,0631958Second

* 1 year ago USD 1 equalled CNY 6.8027

Jun 15, 2018: USD 1 equals CNY 6.4148

4.2 Rank in the Total China ETF Market [out of 69 ETFs]

DescriptionValueRank
Rel Strength 6 Mon (CNY)466
PV1000-1Year (CNY)1,00246

SECTION 5

PROFILE

5.1 Description

China Merchants SZSE TMT50 Total Return Index ETF is an exchange traded fund incorporated in China. The Fund's objective is to track the performance of the SZSE TMT50 Total Return Index while minimizing the tracking errors. The Fund invests in the member companies of the SZSE TMT50 Total Return Index.

5.2 SNAPSHOT

China Merchants SZSE TMT50 Total Return Index ETF (SZ:159909)

ISIN: CNE100001872

Inception DateSeptember 01, 2011
CategoryBroad Market-Equity
Fund Family NameChina Merchants Funds
Asset ClassEquity ETF

5.3 Contact details

Websitehttp://www.cmfchina.com
Physical Address28/Fl, China Merchants Bank Bldg. 7088 Shennan Avenue Shenzhen China 518040
Phone86-755-8319 6666

5.4 ETF Summary

LastCNY4.83
Volume14,100
Volume Index (1 is avg)1.3
Market CapCNY107.6 million [US$16.8 million]
Day's Range4.83 - 4.88
52-Week Range4.67 - 6.24
Units Outstanding22,270,000
Relative Strength (3 mo)3

5.5 Fund Manager

+ The manager of the ETF is Ping Wang.

159909.SZ

Source: www.BuySellSignals.com