Fixed asset investment is still averaging around 23% to 25%. The copious investments have been a key driver in industrial activity, which in turn has helped drive demand for basic commodities and raw materials. CLSA data reveals that activity in the manufacturing sector has increased 32% year-to-date, which has helped generate a 28% rise in profits for industrial firms year-over-year. [China and the European Debt Crisis]
At the World Economic Forum’s annual meeting in Dalian, Chinese Premier Wen Jiabao expressed his confidence in Chinese growth and enticed investors to look to China as an opportune investment locale, according to Xinhuanet.
“I am confident that China’s economy will grow over a longer period of time, at a higher level and with better quality and make new contribution to robust, sustainable and balanced growth of the global economy,” Wen stated. “We sincerely welcome foreign companies to actively involve themselves in China’s reform and opening up process and share the opportunities and benefits of China’s prosperity and progress.”
While foreign direct investments slowed during the first eight months of 2011 from the same period a year ago, economists remain optimistic, given China’s high growth rate, reports Chris Buckley for Reuters.
“Things are still not as bad as 2008 and we don’t have that kind of liquidity crunch around the globe like last time,” Wei Yao, economist at Societe Generale, said. “China’s overall economic growth is still a very big comparative advantage … so this is still the major attraction.”
U.S. Global Investors offers investors exposure to China’s growth through its China Region Fund (USCOX).
Alternatively, exchange traded fund investors may opt for other investment options that focus on China, including these ETFs:
- iShares FTSE/Xinhua China 25 Index Fund (NYSEArca: FXI)
- SPDR S&P China ETF (NYSEArca: GXC)
- PowerShares Golden Dragon Halter USX China Portfolio (NYSEArca: PGJ)
- iShares FTSE China (HK Listed) Index Fund (NYSEArca: TCHI)
- Guggenheim China All-Cap ETF (NYSEArca: YAO)
- Market Vectors China ETF (NYSEArca: PEK)
- iShares MSCI China ETF (NYSEArca: MCHI)
- First Trust China AlphaDEX ETF (NYSEArca: FCA)
China small-cap ETFs include:
- iShares MSCI China Small Cap Index Fund (NYSEArca: ECNS)
- Guggenheim China Small Cap ETF (NYSEArca: HAO)
China sector-themed ETFs include:
- Global X China Consumer ETF (NYSEArca: CHIQ)
- Guggenheim China Technology ETF (NYSEArca: CQQQ)
- Guggenheim China Real Estate ETF (NYSEArca: TAO)
- EGShares China Infrastructure (NYSEArca: CHXX)
- Global X China Technology ETF (NYSEArca: CHIB)
- Global X China Energy ETF (NYSEArca: CHIE)
- Global X China Financials ETF (NYSEArca: CHIX)
- Global X China Industrials ETF (NYSEArca: CHII)
- Global X China Materials ETF (NYSEArca: CHIM)
Inverse/leveraged options include:
- ProShares UltraShort FTSE/Xinhua China 25 (NYSEArca: FXP)
- ProShares Ultra FTSE/Xinhua China 25 (NYSEArca: XXP)
- ProShares Short FTSE/Xinhua China 25 (NYSEArca: YXI)
- Direxion Daily China Bear 3x Shares (NYSEArca: CZI)
- Direxion Daily China Bull 3x Shares (NYSEArca: CZM)
For more information on China, visit our China category.
For full disclosure; Tom Lydon is a board member of U.S. Global Investors (GROW).