China exchange traded funds (ETFs) could maintain a steady pace as the country’s economy will likely outshine neighboring Asian economies.
According to Bloomberg‘s Economic Momentum Index for Developing Asia, China will be able to maintain sustainable, rapid growth over the next five years, outpacing other Asian economies.
As compared to 22 emerging Asian economies, ranking from 16 categories such as economic competition, education level, urban migration, high-tech exports and inflation, China ranked numbered one, with a score of 76.2%, followed by India, with a 64.1% score, and Vietnam, with a 61.9% score.
“I am not surprised that China comes out on top on this metric,” remarks Victor Shih, a professor at Northwestern University with a background in Chinese economy. “China probably should be placed on top among emerging Asian economies.”
However, Dr. Shih also notes that China’s rank may be over skewed since the Communist government is loathe to reveal accurate debt levels. Additionally, increased lending and the jump in property prices in China could lead to a banking crisis in the worst case scenario, and strikes, riots and protests are also on the rise, says Sun Liping, a sociology professor at Beijing’s Tsinghua University.
For more information on Asian economies, visit our Asia category.
- Guggenheim China All-Cap ETF (NYSEArca: YAO)
- 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)
- Market Vectors Vietnam (NYSEArca: VNM)
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.