Government Tax Cuts on Stocks Make China ETFs Soar | Page 2 of 2 | ETF Trends

Foreign investment seems to be pouring into China, as well: in the first quarter, it increased 61.3%.

Retail sales are up, foreign investment is flowing, and the Chinese trade surplus seems to be unaffected by a U.S. economic slowdown. China is actually the second largest economy when measured by purchasing power.

Sagami suggests that buying China on the dips can be a profitable move for an investor to make. We would wait until this fund crosses above its trend line (200-day moving average) before diving in.

It’s been a rough few months for these funds. Will the tax rate cut help sustain today’s momentum?

  • iShares FTSE/Xinhua China 25 Index (FXI), down 12.9% year-to-date
  • PowerShares Golden Dragon Halter USX China (PGJ), down 20.2% year-to-date
  • SPDR S&P China (GXC), down 15.5% year-to-date