We continue to hear in the news how China has a strong economy with tremendous potential. As an investor, if you want to take part in this emerging market, there are several options. One is the iShares FTSE/Xinhua China 25 Index (FXI) exchange-traded fund. This ETF includes only the 25 largest companies listed on the Hong Kong exchange, which are the most liquid Chinese stocks, and have been earmarked by the government to showcase the country’s best corporations. Remember, China is still a communist country.
FXI continues to reach new highs and has returned 20.9% year-to-date. Top holdings include China Mobile, PetroChina and CNOOC (energy).
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.