When this hedging can't be accomplished perfectly, as in the case of some individual Chinese bank, Goldman offsets its position with an index of several Chinese banks.
The initial results from HSBC's January Purchasing Managers' Index survey of Chinese manufacturers showed activity there contracting, though at a slightly slower pace than in December.
This Sunday, Chinese authorities released its purchase managers index survey showing the fourth straight month of gains.
In Hong Kong, where many foreign investors make their bets on Chinese themes, the Hang Seng Index has surged 18.5%.
There was some more weak economic data coming out of China overnight, as the Chinese non-manufacturing purchasing managers index fell in September, while consumer sentiment also weakened last month.
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Beijing has launched a firework safety index during the upcoming Chinese New Year holidays that advises against setting off fireworks and firecrackers in poor weather conditions, China Daily reports.
For one thing, the consumer price index has been signaling lower Chinese inflation in the months ahead.
Last week, the Chinese government released the official Purchasing Managers Index showing that after a slow down in February, industry is firing on all four cylinders again.
The Bloomberg China-U.S. Equity Index, which tracks the hotly traded Chinese ADRs, recently advanced 1.1% in New York to hit a 9 day high of 105.70.
In recent months, for instance, the widely followed Shanghai Composite Index has risen whenever investors have thought that Chinese officials would intervene to pump up the economy and has fallen whenever they, contrary to expectations, have not done so.
The MSCI China index, which tracks large- and mid-cap Chinese companies, trades at eight times next year's earnings, about a third below its 10-year average.
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The yuan may well still be undervalued but our index suggests American manufacturing should have less to fear from Chinese competition than it did five years ago.
The Chinese yuan has been undervalued for the past few years according to the Big Mac Index, but it has now improved to become fairly valued.
Thus even index investing god Burton Malkiel thinks he can beat the market by adding some Chinese octane to his asset mix.
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Chinese stocks were higher ahead of the data, with Hong Kong's Hang Seng Index up 0.9% and the Shanghai Composite Index 2.1% higher.
Chinese stocks were higher ahead of the data, with Hong Kong's Hang Seng Index up 0.5% and the Shanghai Composite Index 1.1% higher.
Chinese prices of steel have risen by 20% since November, and the Baltic Dry Index, a measure of shipping rates and hence the demand for commodities, has more than doubled, although it is still 84% below its 2008 peak.
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The Chinese market had its best day in two months, and the chart of the Shanghai A Share Index is starting to look more interesting.
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This year and last saw Chinese stocks retreat after an extraordinary 80.0% run-up in the closely watched Shanghai Composite Index in 2009.
In China, where Hong Kong's Hang Seng Index climbed 0.7% and the mainland's Shanghai Composite Index dropped 0.2%, investors were digesting a string of earnings reports from large Chinese companies.
An index giving a greater weight to, say, China might be less useful because there are not enough Chinese bonds to buy.
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