China is still grappling with inflationary pressures, but exchange traded funds (ETFs) that invest in Chinese companies have rallied lately.

Chinese consumer prices in March rose 5.4% over a year ago, driven by surging food costs, the AP reported Friday.

Inflation in China is on the rise despite four interest-rate hikes since October. Friday’s report showed consumer inflation rose in March at the fastest rate since 2008.

iShares FTSE/Xinhua China 25

Long China exposure with ETFs:

  • 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)

Short exposure to China with ETFs (Remember, these ETFs are not meant to be used as a buy-and-hold tool. Daily monitoring is required in order to short the markets moves.):

  • 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.