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With the burgeoning Chinese economy growing at an unprecedented rate, investors have been clamoring to gain access to the growth in earnings and rise in Chinese stocks. The current regulation of the Chinese markets prohibits the purchase of A class shares by foreigners. Although foreigners can purchase B class or H class shares listed in Hong Kong, investors have been searching for alternative investment vehicles. China ETF's are a product that is listed in the US markets and allows investors to purchase a position without the need to deal with the challenges of buying offshore. Chinese exchange traded funds such as the iShare FTSE/Xinhua China 25 Index, SPDR S&P China and Powershares Golden Dragon Halter USX China funds are examples of funds comprising Chinese stocks. Unlike conventional stocks, exchange traded funds are a basket of stocks representing an asset class, region or sector. The advantage of investing in ETF's is that you are not exposed to the movements of just one stock. The basket weighting minimizes the effect of any one adverse movement in one of the constituents whilst still providing upside potential from exposure to the sector.
IShare FTSE/Xinhua
China 25 Index ETF: Top 10 Holdings China Mobile: 9.49 % Powershares Golden
Dragon Halter USX China fund ETF: Top
10 Holdings PetroChina Co Ltd
Depository Receipts: 5.99% SPDR S&P
China ETF: Top 5 Holdings * The reported
percentage holdings are subject to market
change. Next Article: Canada ETF |
