ETF Trends
ETF Trends

The countdown to the Bejing Olympics has begun, and with only three weeks left it is insightful to look at how China is preparing for this honor, and how exchange traded funds (ETFs) and investments might be rewarded if all goes well.

Dune Lawrence for Bloomberg begins by telling us that dog is off the menu, model planes have already been grounded and post office patrons must be ID’d before mailing a letter. Security screenings have doubled at airports, new traffic rules apply and flying objects are under scrutiny as the government is going to great lengths to ensure that not even gridlock will spoil the event from running smoothly. China’s investment in security may wind up being as much as 50% more than what Athens spent in 2004.

Beijing has already enforced drastic measures to decrease pollution in the city before the Olympics, beginning a dramatic smog control measure over the weekend. The plan is a two-month cycle where drivers take turns using their cars, so for instance, as Lisa Chow for MarketPlace reports, today only odd-numbered license plated autos are allowed on the street. It is estimated that this will take more than half of Bejing’s 3.3 million cars off city streets.

ETFs that could potentially be affected by the Olympics, which begin on Aug. 8:

  • iShares FTSE/Xinhua China 25 Index (FXI), down 18.3% year-to-date
  • SPDR S&P China (GXC), down 22.4% year-to-date
  • NETS Hang Seng China Enterprises (SNO), launched on May 22

    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.