WisdomTree Trust WisdomTree China ex-State-Owned Enterprises Fund

CXSE

Market cap $521M

Despite mounting macro headwinds at the start of the year, Chinese equities have continued to deliver positive performance. While near-term flows can provide further upside, the durability for the equity rally will hinge on policy choices ahead.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

After a tumultuous period for markets in which the Trump administration raised tariffs on goods imported from China to 145%, news of an apparent deal with the Chinese government brought the tariff level down to 30% as of mid-May 2025. The S&P 500 seemed to breathe a sigh of relief at this news, turning positive year-to-date (YTD) after a significant drop in April.

By Christopher Gannatti, CFA, Global Head of Research Key Takeaways In Q1 2025, the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN) led all performers, benefiting from a capital-efficient structure that captured gains in both gold futures and gold mining equities amid persistent inflation concerns and geopolitical instability.

Has the AI trade moved to China? Why Chinese chipmakers may soon change the semiconductor space.

One of the top themes year-to-date has been China-focused technology ETFs. China technology stocks have surged on AI enthusiasm related to China startup DeepSeek's AI model launch.

The long-awaited international equity renaissance might finally play out in 2025. If that happens, China stocks appear poised for leadership.

China equities turned in admiral performances last year. That's because there were hopes that PBOC might delivery wide-ranging monetary stimulus in 2025.

Sentiment remains fragile in China and Hong Kong stock market even China services activities have improved in December. Weak market breadth and a persistent bearish trend of the Chinese yuan since November has added to more woes to the Hang Seng Index.

By Christopher Gannatti Key Takeaways August and September 2024 saw dramatic shifts in Japan and China's equity markets, with Japan's policy communication triggering a market spike up in the yen and down in equities, and China's stimulus leading to a rally—showing how quickly policy can reshape returns.