This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

4 Ways to Play China's Energy Stance

NEW YORK (TheStreet) -- According to the International Energy Agency (IEA), China has taken the top spot as the world's largest energy consumer and as a result is pledging to develop cleaner energy.

Last year, China consumed 2.252 billion tons of energy equivalents, almost 4% more than the United States, driven by growth in its industrial and infrastructure sectors. As for the future, the nation is likely to continue to see growth and is expected to witness a further increase in its appetite for energy. To help balance the correlation of growth and carbon dioxide emission, China has agreed to reduce its emissions based on GDP output through the use of alternative energy sources.

In fact, China plans on spending nearly $738 billion over the next 10 years developing cleaner energy sources and has already started doing so. Of the 60 nuclear reactors that are currently under construction around the world, nearly one-third of them are being constructed in China. Additionally, last year China built more wind turbines than any other country and is expected to install an additional 18 gigawatts worth of wind turbines this year. Lastly, China has attracted more than $11 billion in capital for renewable developments in the second quarter alone, more than the United States and the European Union combined.

In a nutshell, China's growing economy and emphasis on alternative energy spending is staggering and could pose an opportunity for investors. Some ways to play this are:

¿ Market Vectors Nuclear Energy ETF (NLR), which allocates nearly 40% of its assets to uranium miners, who will reap the benefits of an increased number of nuclear plants. Additionally, NLR allocates nearly 27% of its weightings to Chinese companies which are involved in nuclear energy.

¿ Claymore/MAC Global Solar Energy (TAN), which allocates nearly 30% of its weightings to Chinese companies. TAN includes Chinese solar companies Yingli Green Energy (YGE) and LDK Solar (LDK) in its holdings.

¿ Market Vectors Global Alternative Energy ETF (GEX), which is a diversified play on alternative energy and allocates nearly 16.9% of its assets to Chinese companies. GEX's holdings are concentrated on companies whose technologies are involved with solar power, bio energy, wind power, hydro power and geothermal energy.

¿ PowerShares Global Clean Energy (PBD), which is a diversified play on alternative energy and allocates 13.45% of its assets to China. PBD is based on the WilderHill New Energy Global Innovation Index, which is composed of companies that focus on greener and generally renewable sources of energy and technologies facilitating cleaner energy.

Stock quotes in this article: NLR, TAN, GEX 
Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net , where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,428.51 +19.97 0.12%
S&P 500 1,868.33 +3.48 0.19%
NASDAQ 4,102.2110 +6.6950 0.16%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs