Economy: China's economic growth significantly affects FXI, as it mirrors the performance of large Chinese companies. A strong economy generally boosts the index.

Geopolitics: Political tensions, trade wars, and international relations involving China influence investor sentiment and the perceived risk associated with FXI.

Regulations: Chinese government policies, regulations affecting specific sectors, and monetary policy decisions directly impact the profitability and valuation of companies within FXI.

Global Markets: Global market conditions, especially in developed economies, affect investor risk appetite and capital flows into emerging markets like China.

Company Performance: The financial health, earnings reports, and growth prospects of the constituent companies within the FXI index are crucial drivers of its price.

Currency Fluctuations: Changes in the value of the Chinese Yuan (CNY) relative to other currencies, particularly the US dollar, impact the returns for foreign investors in FXI.

Investor Sentiment: Overall market sentiment towards Chinese stocks and emerging markets plays a significant role in determining demand and therefore the price of FXI.

Sector Performance: The performance of key sectors represented in the FXI, such as financials, technology, and consumer discretionary, influences the index's overall price movement.