China might have hassle attracting traders once more this 12 months.

ETF Motion’s Mike Akins sees challenges tied to the nation’s capacity to generate inventory market returns.

“It is sort of the outdated cliché. Idiot me as soon as, disgrace on you. Idiot me twice, disgrace on me,” the agency’s founding companion informed CNBC’s ETF Edge this week. “You have acquired this case the place China’s economic system expanded. The inventory market went nowhere. It has been very risky. There’s been intervals the place it is gone approach up but in addition come approach down.”

In accordance with Atkins, rising market ex-China merchandise are among the many largest inflows ETF Motion is seeing.

“You have acquired an entire new subject that it’s a must to take into consideration when going to that market,” he mentioned. “Is it investible from a standpoint of complete return? Or is it actually a development story within the economic system alone and never within the precise return of the inventory market?”

Franklin Templeton Investments’ David Mann cites one other subject for investor hesitancy.

“The geopolitical issue with China is definitely on everybody’s thoughts,” mentioned Mann, the agency’s international head of product and capital markets. “China was down final 12 months. It’s down once more this 12 months. Buyers are most likely wanting rather a lot on the political aspect.”

The Hang Seng Index is down greater than 6% this 12 months and nearly 30% over the previous 52 weeks.