(PASI) Lyxor PEA China Enterprise - Ratings and Ratios

The Lyxor PEA China Enterprise HSCEI UCITS C (PA:PASI) is an ETF that tracks the Morningstar China TME NR USD Index, providing investors with exposure to Chinese equities. As a China Equity ETF, it is designed to capture the performance of Chinese companies, offering a diversified investment opportunity in the region.

Analyzing the ETFs characteristics, we note that it is domiciled in France and has a relatively modest Assets Under Management (AUM) of €65.49M. This suggests that while it may not be a highly liquid or widely held ETF, it still offers a viable option for investors seeking China-focused exposure.

From a technical analysis perspective, the ETFs price action indicates a bullish trend, with the short-term Simple Moving Averages (SMA20 and SMA50) above the long-term SMA200. The current price of €9.94 is near the SMA50, suggesting a potential support level. The Average True Range (ATR) of 0.30, representing 3.00% of the current price, indicates moderate volatility. Given the 52-week high and low of €10.85 and €7.27, respectively, the ETF has demonstrated significant price movement in the past year.

Combining technical and fundamental insights, we can forecast the ETFs potential future performance. With the Chinese economy expected to continue growing, albeit at a slower pace, and the HSCEI Index tracking the Hang Seng China Enterprises Index, which comprises Chinese companies listed on the Hong Kong Stock Exchange, we anticipate a positive outlook for the ETF. The current technical setup, with the price above the SMA200 and near the SMA50, suggests a potential continuation of the bullish trend. Therefore, we forecast a potential price target of €11.20 in the next 6-12 months, representing a 12.7% increase from the current price, driven by a combination of Chinas economic growth and the ETFs technical momentum.