China ETFs grow on Fed rates, MSCI hopes

Investors are returning to exchange-traded funds focused on China and Hong Kong as increasing odds that the Federal Reserve will move slowly in raising U.S. interest rates stoked demand and traders braced for MSCI Inc.’s decision about whether to add mainland stocks to its benchmark indexes, Bloomberg reports. ETFs that invest in equity and debt securities traded on mainland exchanges and in Hong Kong posted inflows of $387 million last week, the most since March, data compiled by Bloomberg show. The iShares China Large-Cap ETF, which owns the country’s 50 largest companies by market value, grew for the first time this year as short interest declined from a 2014 high.