China could have hassle attracting traders once more this yr.

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

“It’s kind of the old cliché. Fool me once, shame on you. Fool me twice, shame on me,” the agency’s founding companion advised CNBC’s ETF Edge this week. “You’ve got this situation where China’s economy expanded. The stock market went nowhere. It’s been very volatile. There’s been periods where it’s gone way up but also come way down.”

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

“You’ve got a whole new issue that you have to think about when going to that market,” he mentioned. “Is it investible from a standpoint of total return? Or is it really a growth story in the economy alone and not in the actual return of the stock market?”

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

“The geopolitical factor with China is certainly on everyone’s mind,” mentioned Mann, the agency’s world head of product and capital markets. “China was down last year. It is down again this year. Investors are probably looking a lot at the political side.”

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