Is China’s Real Estate Market and ETF Primed for a Boom?
January 21st at 1:00pm by Tom Lydon
Although U.S. real estate-related exchange traded funds (ETFs) are frozen right now, China is undergoing a vast migration to the cities, which could be priming the country for a real estate boom.
Tony Sagami for Money and Markets says the Chinese government is all for this migration, and while exact numbers aren’t available, 150-200 million up-and-comers are moving into China’s largest urban cities. Cities like Shenzhen and Chongqing are transforming from small fishing towns to major modern metropolis’ in just two decades.
The Claymore/Alphashares China Real Estate (TAO) is a fairly new offering, launched on Dec. 18. The fund gives investors access to the mainland Chinese real estate market.
While China and its ETF, the iShares FTSE/Xinhua China 25 (FXI) have fallen on tough times, TAO could be a fund to keep an eye on as the country’s population becomes more urban.
