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
- $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
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV