China Fears Hit the Market: Long the FXP

One fund is doing quite well today, that would be the ProShares UltraSh FTSE/Xinhua China 25 (NYSE:FXP) up 7.6%.  Playing the FXP is a way to bank coin as China catches the blame for the latest bearish swing.

Short China - ProShares UltraSh FTSE/Xinhua China 25 (NYSE:FXP)

Traders are worried that the slowdown in China is going to cause us all pain, Chinese equities are under severe pressure today and the selling is most likely to continue.  If it does than the FXP is your weapon of choice.

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ProShares UltraShort FTSE/Xinhua China 25 (the Fund) seeks daily investment results that correspond to twice the inverse daily performance of the FTSE/Xinhua China 25 Index (the Index). The Index consists of 25 of the largest and most liquid Chinese stocks listed on the Hong Kong Stock Exchange.

This free float-adjusted index caps the weight of any of constituent stock at 10% to ensure broad representation of the Chinese economy. The Fund takes positions in securities and/or financial instruments that, in combination, should have similar daily return characteristics as –200% of the daily return of the Index.