2 Ways To Play China With ETFs | ETF Trends

The story of rapid growth in China slowed down a bit, but now investors are wading back into the market and taking another look at this emerging market powerhouse. Exchange traded funds (ETFs) that track this country are an opportunity for those investors ready to get back in the game.

The ETF Professor on Benzinga reports the scenario is looking much more fertile for China as Beijing is a bit less worried about inflation than in recent months. Could this indicate a more bullish view on economic growth is possible?[China ETFs: Challenges In The New Year.]

China will invest nearly $200 billion into affordable housing this year. Rising real estate prices have the government ready to put the flames out of an overheated real estate market if need be. The plan, explains Daniel Hayden IV for The San Francisco Gate, calls for the building and renovation of 10 million low cost homes. The total investment will be 1.3 trillion yuan ($198 billion), with 500 billion yuan coming from central and local governments and the remainder of the funds coming from public institutions and businesses.This should help spur on other areas of the economy.

For those investors looking to invest via ETFs, there are:

  • iShares FTSE/Xinhua China 25 (NYSEArca: FXI)
  • SPDR S&P China (NYSEArca: GXC)
  • PowerShares Golden Dragon Halter USX China (NYSEArca: PGJ)
  • The Market Vectors China ETF (NYSEArca: PEK)

If you still are not sure of the emerging economy of China, there are ways to short the movements. There are still problems and issues the country must face. [Why Chinese Yuan ETFs Could Be Ready To Pop.]

Some problems include, according to Zarathustra W for Business Insider, that the competition from India is undermining China.  China may face a labor shortage soon; corporate profits are also cooling off and slower growth may be ahead; asset prices are trending up and inflation is still a threat. If you are more of this mind set, check out:
  • ProShares Short FTSE China 25 (NYSEArca: YXI)
  • ProShares UltraShort FTSE/Xinhua China 25 (NYSEArca: FXP)

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.