In my limited experience, Yes it is. I believe that the confluence of the $586 billion economic stimulus package, tax cuts and easing inflation is being reflected in the positive price action of FTSE/Xinhua China 25 Index Fund. Furthermore, China is going to spend money on low-cost housing, social welfare and rural infrastructure, in an effort to stimulate domestic spending, all positive signs for equity investors. Increasing volumes in the FXI signify increasing confidence from investors and I suspect that FXI is headed higher.
The top 10 holdings of the fund as of November 14, 2008 are:
10.17% CHINA MOBILE LTD
8.57% CHINA LIFE INSURANCE CO-H
8.25% IND & COMM BK OF CHINA - H
6.78% PETROCHINA CO LTD-H
5.51% CHINA PETROLEUM & CHEMICAL-H
4.64% CHINA CONSTRUCTION BANK-H
4.49% CHINA COMMUNICATIONS CONST-H
4.22% CHINA TELECOM CORP LTD-H
4.11% CNOOC LTD
3.83% CHINA CITIC BANK - H
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