An answer to the question of what the Olympics would mean to China and its exchange traded funds (ETFs) appears to be taking shape, and so far, it’s not a pleasant one. In fact, it pretty much seems to be business as usual.

Shares hit a 19-month low in trading today, after reports showed inflation in the country jumped to its highest level in 12 years in July, reports Elaine Kurtenbach for the Associated Press. The decline was led by airlines, textile exporters and refiners.

The producer price index also rose 10% from July one year ago, its highest rate of increase since 1996.

In somewhat better news, the country’s trade surplus also grew to $25.3 billion, its highest level in eight months and up 4% from one year ago. Exports soared by 26.9%, says Joe Mcdonald for the Associated Press, a sharp turnaround from June, where export growth dropped to 18.2%.

ETFs that concern China:

• iShares FTSE/Xinhua China 25 (FXI), down 22% year-to-date
• PowerShares Golden Dragon Halter USX China (PGJ), down 30% year-to-date
• SPDR S&P China (GXC), down 26.5% year-to-date
• NETS Hang Send China Enterprises (SNO), down 8.4% since May 22 inception

Tags: Asia, China, Emerging Markets, FXI, GXC, PGJ, Retail, SNO