August 27, 2007 at 3:48 pm by Tom Lydon
The Chinese economy and exchange traded funds (ETFs) continue to grow in a seemingly unstoppable manner. Already blessed with good fortune, Chinese stocks trading in the U.S. rallied the most since 2004 today most likely because of the optimism surrounding the country’s incredible economic growth and prosperity, according to Lu Wang for Bloomberg.
China has attempted to cool its sizzling economy several times already, and now the government has decided to allow domestic, individual retail investors to directly invest in the Hong Kong stock market in hopes of attracting more investors to Hong Kong’s markets. As a result, all of the major Hong Kong indexes have been trading higher, reports Kimberly DuBord for Briefing.com.
Chinese ETFs hold share classes of companies in China and Hong Kong that foreign investors can trade. They reached new highs today and are up since our domestic market low on Aug. 15th.
- iShares FTSE/Xinhua China 25 Index (FXI) is up 25%.
- PowerShares Golden Dragon Halter USX China (PGJ) is up 19%.
- SPDR S&P China (GXC) is up 26%.
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