Indeed, the evidence is pointing to a winning hand for investors in Chinese equities. Not only is GDP finally trending upward, but leaders have more boldly expressed a willingness to employ monetary/fiscal stimulus to support a 7.5% growth rate. (They're likely to see north of 8% without stimulative measures.)
With a variety of benchmark indexes offering forward P/Es of nine to 10, stocks tied to China look better than they have in years.
While there are those who may view exchange-traded favorites like GXC and iShares FTSE China 25 (FXI) as lower risk assets due to their diversification, I tend to favor trading partners in the Asia-Pacific region.
If you're intrigued by the manufacturing angle, iShares MSCI Australia (EWA) beckons as one of China's most important providers of materials. (Also, you shouldn't shake a stick at that 4.1% SEC distribution yield.)South Korea, as represented by the iShares MSCI South Korea Index (EWY), is another key trading partner with China. Whereas the U.S. and Europe import a staggering amount of goods/services from the mainland, Korea, the fifth largest trading partner, is a net exporter. For believers in the idea that China is in the process of transitioning to a powerful consumer class, EWY is a solid ETF in the Asian neighborhood. Follow @ETFexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV