In the end, it all comes down to what kind of diversity you’d like, how the allocation is spread out among individual companies, what sectors you’d like exposure to, expenses and performance. Do you want indirect exposure? Or do you want some bigger exposure to China’s financials? It’s up to you – just look under the hood.

These are the four major ETFs tracking China that are available:

PowerShares Golden Dragon Halter USX China (PGJ): Currently has total assets of $204.5 million, 102 holdings, and and expense ratio of .60%. This fund seeks to replicate, before fees and expenses, the Halter USX China Index, which is made up of U.S.-listed securities of companies that derive a majority of their revenue from the People’s Republic of China.

Sector allocation for the fund: consumer discretionary, 8.5%; consumer staples, 1.9%; energy, 18.7%; financials, 5.9%; health care, 5.3%; industrials, 12.1%; information technology, 23.1%; materials, 7%; telecom services, 12.8%; utilities 4.7%.

iShares FTSE/Xinhua China 25 Index (FXI): Has total assets of $29.3 billion, 50 holdings and an expense ratio of .74%. FXI tracks the underlying index FTSE/Xinhua China A50 Index, which provides investment results that correspond generally to the performance, before fees and expenses, of publicly traded securities, A-shares, in the Chinese market.

Sector allocation for the fund: banks, 31.6%; life insurance, 9.9%; electricity, 7.8%; industrial metals, 6.7%; general financial, 6.4%; industrial transporation, 5.5%; oil & gas producers, 5.2%; construction & materials, 4.9%; real estate, 4.4%; mining, 4%; beverages, 3.9%; mobile telecom, 3%; general retailers, 2.61%; other 4.2%

SPDR S&P China (GXC): Has total assets of $127.9 million, 124 holdings and an expense ratio of 0.6%. The ETF seeks to match the returns and characteristics of the total return performance of the S&P China BMI Index. The S&P China BMI Index is a market capitalization weighted index that defines and measures investable publicly-traded companies located in China, but available to foreign investors. The China Index is “float adjusted.”

Sector allocation for the fund: financials, 31.7%; telecom services, 19.2%; energy, 18.4%; industrials, 9.1%; information technology, 6.2%; materials, 4.7%; consumer discretionary, 4.3%; consumer staples, 3.4%; utilities, 2.9%; health care, 0.30%

NETS Hang Seng China Enterprises Index (SNO): Total net assets are $1.3 million, 43 holdings and an expense ratio of 0.51%. SNO mainly corresponds to the performance of H-Shares of Chinese enterprises traded primarily on the Stock Exchange of Hong Kong, which are weighted according to a free-float adjusted, market-capitalization weighted methodology. It has a reported 15% cap on stock weights.

Sector allocation for the fund: financials, 55.4%; energy, 22%; properties & construction, 7.5%; materials, 4.5%; services, 3.7%; telecom, 3.4%; utilities, 1.9%; consumer goods, 0.9%; industrial goods, 0.80%.

So far, China’s Shanghai Composite Index has fallen 57%  this year, compared to the S&P 500, which is down 15%, and the FTSE 100, down 19%. Although the Chinese markets will recover eventually, the downward movement may not quite be over, reports Billy Fisher for TheStreet.

An example is the Chinese granddaddy fund, iShares FTSE/Xinhua China 25 Index (FXI), which has traded 18.6 million shares as of last Tuesday, with average volume over the past three months at 20.3 million shares traded daily. China is just not short-term material, however, and analysts like the long-term idea of China investments. As of right now, growth rates are down and inflation is a looming threat. FXI is down 29.3% year-to-date.

Tony Sagami for Money and Markets has some thoughts about where the economy is headed, as well. Historically, markets tend to do well in an Olympics host country, going up an average of 21% in the 12 months after the games. Will China carry that torch forward?

Chinese policy makers have been trying to keep inflation and growth under control by letting its currency rise against the dollar, raising export tax refunds for garment manufacturers, increasing bank lending limits and considering an economic stimulus package.

Whichever direction China goes in the near term, wait for these funds to head back over their 200-day moving averages before considering whether it’s right for you.

The growth potential for China in the long run is apparent, but be prepared to stick out a long and volatile ride. Other ETFs to ride along with:

• PowerShares Golden Dragon Halter USX China (PGJ), down 35.2% year-to-date
• SPDR S&P China (GXC), down 33.1% year-to-date
• NETS Hang Seng China Enterprises Index Fund (SNO), down 21.3% since May 22 inception

After the Dow Jones lost more than 340 points, Europe’s FTSE-100, Germany’s DAX and France’s CAC all fell by mid-afternoon. In Moscow, reports Louise Watt for the Associated Press, the RTS benchmark was down more than 6% to lows not seen in more than two years.

Asia wasn’t immune, either. In Japan, the Nikkei 225 sank 2.8%, while the Hong Kong Hang Seng index fell more than 2% to its lowest point in more than a year. India, Australia and Singpapore also fell sharply.

Among the funds that track these major benchmarks are:

• NETS S&P/ASX 200 (AUS), down 20.4% since April 10 inception
• NETS Hang Seng China Enterprises Index Fund (SNO), down 21% since May 22 inception
• NETS CAC40 Index Fund (FRC), down 14.9% since April 16 inception
• NETS FTSE Singapore Straits Times Index Fund (SGT), down 8.9% since July 22 inception

Obviously, market turbulence is not just confined to U.S. borders, and international markets and ETFs are showing major signs of distress. The global benchmarks are enough to make any investor wince, with negatives across the board: iShares S&P Europe 350 Fund (IEV) is down 27.5%, while the FTSE China 25 Index Fund (FXI) has plummeted 43%.

These numbers make Gary Gordon at ETF Expert ponder if the bigger bear right now is financials or international. The U.S. credit crisis has penetrated much of the globe now. Remember that the dollar has been in recovery, and that a turnaround takes much longer than a crisis. Sit tight and stay tuned, and remember to be opportunistic on an international level. Here are some other numbers:

• Dow Jones Industrials: 21% off its high of Oct. 9, 2007
• S&P 500: 21% off its high of Oct. 9, 2007
• NASDAQ: 20.7% off its high of Oct. 31, 2007

Global ETFs:

• iShares MSCI South Korea Index (EWY), 46.9% off its Oct. 31, 2007, high
• Vanguard FTSE All-World ex US ETF (VEU), 25.5% off its Oct. 31, 2007, high

Financials:

• Financial Select Sector SPDR (XLF), 44.8% off its June 1, 2007, high
• iShares Dow Jones US Financial Services (IYG), 46.3% off its Feb. 20, 2007, high
• KBW Insurance Fund (KIE), 30.8% off May 16, 2007, high

Overall, it’s a tough call. Investors should protect themselves by staying out until the trend shows up again and these funds cross above their 200-day moving averages before getting back in.

Shanghai tops a list of Chinese cities and their business conditions recently released by The Economist.  The list is made up of 44 Chinese cities that were compared in five areas: economic performance, market opportunities, labor market, infrastructure and environment.

The port city of Shanghai was deemed the top city and the best place to do business in mainland China. However, the list is on a scale from 1-5, and Shanghai landed at 3.42, seemingly indicating that there’s some room for improvement.

Not far behind Shanghai was the swiftly growing Guangzhou and the Olympics host, Beijing.  Guangzhou is a city that is tops for infrastructure, while Beijing is the home to the best labor market.

Some of the top 15 cities include larger cities, focusing on the boom in the domestic market.  Some of these cities include Tianjin and Chengdu.

Some smaller cities have also performed well.  Cities with lower external trade exposure have shown promising trends during the recent global economic slowdown.  These cities are expected to do nicely over the next decade or so as the Chinese economy matures and no longer relies so heavily on exports for growth.

When China resumes the uptrend that dominated much of 2007, perhaps some of these cities will be able to capitalize and play to their strengths.  Some ETFs looking to capture this continued growth include:

• iShares FTSE/Xinhua China 25 Index (FXI), down 28.4% year-to-date
• SPDR S&P China (GXC), down 31.9% year-to-date
• PowerShares Golden Dragon Halter USX China (PGJ), down 32.9% year-to-date
• NETS Hang Seng China Enterprises Index (SNO), down 17.4% since May 14 inception
• Claymore Alpha/China Small Cap (HAO), down 26.9% since Jan. 30 inception

The leap forward came as a result of speculation that Beijing would launch an economic stimulus package, reports Parvathy Ullatil for Reuters. The markets saw their biggest gain in four months. Today, though, skepticism abounded and the previous day’s gains were eliminated.

Government officials aren’t talking about the plan, Elaine Kurtenbach for the Associated Press says. The rumors, however, were that the country’s leaders were considering a stimulus package worth at least $29.1 billion as well as a plan to ease monetary policy by the end of the year, reports Judy Hua for Reuters.

The idea of a post-Olympic bounce in China was momentarily floated, as a number of foreign fund managers are poking around the market. They’re seeing impressive valuations, reports The Economist. But as the stocks have fallen back today, the pessimists think that such stimulus packages would likely not do any good, since trade is the country’s main vulnerability. Container traffic to Europe has stalled, and it’s been contracting to the United States since last year.

• iShares FTSE/Xinhua China 25 Index (FXI), down 25.8% year-to-date
• SPDR S&P China (GXC), down 29.8% year-to-date
• PowerShares Golden Dragon Halter USX China (PGJ), down 30.3% year-to-date
• NETS Hang Seng China Enterprises Index (SNO), down 17.4% since May 22 launch

Chi Lo for Business Week reports that the total Olympics-related spending in the last four years only accounted for an average of 0.3% of China’s total GDP each year.

Beijing would have to be an economic powerhouse for it to influence national economic growth. But as it is, Beijing’s population is only 1.1% of the national total. There has also been no spillover effect on investment outside Beijing.

In better news, though, retail spending in China is expanding at the fastest pace in nine years, and July proved that China’s growth was strong even as prices climbed.

Paul Panckhurst and Nipa Piboontanasawat for Bloomberg reports that sales rose 23.3% to 869.2 billion yuan ($126 billion) after gaining 23% in June. This was more than analysts anticipated.

But will that all be enough to put China on the growth path again?

• iShares FTSE/Xinhua China 25 Index (FXI), down 26.9% year-to-date
• SPDR S&P China (GXC), down 31.3% year-to-date
• PowerShares Golden Dragon Halter USX China (PGJ), down 31.9% year-to-date
• NETS Hang Seng China Enterprises Index (SNO), down 18% since May 22 launch

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

China has officially kicked off the Beijing Summer Olympics, and investors will soon have their many questions answered: Will the games have any impact on ETFs? Will growth continue after the athletes have all packed up and returned home?

Not all is going smoothly at the moment, however: China’s Shanghai Composite Index has fallen to its lowest level in nearly 19 months as investors sell airlines and other market heavyweights, reports Elaine Kurtenbach for the Associated Press. Analysts so far are puzzled that the big rally expectations have so far not materialized.

Many suspect that China was just not able to overcome negative reports, such as how the country’s inflation is at 12-year highs. Investors appear to be cautious as they wait for the games to end before making a decision.

It’s not for lack of trying, though. China has undergone a massive makeover in anticipation of the games, reports Kevin Johnson for USA Today. A high-speed train takes passengers from Beijing to neighboring Tianjin; three new lines have been added to the city’s subway system, including one to the airport; sports venues in the city have gone modern. Beijing also took care to ensure that these developments would continue to support the city after the games closed.

As you wait and see what the long-term impact will be, for now, just sit back, relax, watch your favorite sport while you track some of these ETFs:

• iShares FTSE/Xinhua China 25 (FXI), down 23.9% year-to-date
• PowerShares Golden Dragon Halter USX China (PGJ), down 30.7% year-to-date
• SPDR S&P China (GXC), down 28.8% year-to-date
• NETS Hang Send China Enterprises (SNO), down 8.4% since May 22 inception

There’s also the Dow Jones 2008 Summer Games Index, which is not backed by an ETF. The index holds companies that are official partners, sponsors and suppliers of the summer games. About half of the components are Chinese companies. As more Olympic games take place, the composition of the index will shift accordingly, according to Dow Jones.

A little-known company there, BYD Corporation, has rocketed to the number two producer of batteries in the world in less than a decade of existence. Next up, BYD (which stands for Build Your Dream) is planning a green-energy car, reports David Barboza for the New York Times.

China is no longer happy with being the home of low-cost, low-skilled, low-margin manufacturing for toys, clothes and other goods, and is taking on the world’s largest corporations for business, customers, power and, of course, recognition.

The two-fisted approach involves incentives for companies to innovate while discouraging low-end manufacturing from operating in Southern China. This step would discourage one of the crucial drivers for their past economic rise, and beginning the next phase of becoming a high-tech economic zone.

ETFS that would thrive in this environment:

• SPDR S&P China (GXC), down 23.9% year-to-date
• iShares FTSE/Xinhua China 25 Index (FXI), down 20% year-to-date
• PowerShaes Golden Dragon Halter USX China (PGJ), down 26.8% year-to-date
• NETS Hang Seng China Enterprises Index Fund (SNO), launched May 14

The Chinese residential market has managed to maintain its strength, and the pace of construction is hard to keep up with. Tony Sagami for Money and Markets illustrates this with the fact that around 70% of all the world’s construction cranes are on Chinese soil.

According to the National Development and Reform Commission, China’s top economic planning agency, house prices in 70 large- and medium-sized Chinese cities rose 9.2% in the second quarter from a year before. Around 80% of all Chinese homes are bought with 100% cash, and the savings rate in the country is 25%. This is why China’s housing market has been isolated from the U.S. breakdown.

There are a couple Chinese real estate stocks and ETFs listed on U.S. exchanges that could eventually reflect the buildup in Chinese real estate:

• Claymore AlphaShares China Real Estate (TAO), down 29.6% year-to-date
• iShares FTSE/EPRA NAREIT Asia Index Fund (IFAS), down 21.5% year-to-date