China exchange traded funds rose more than 2% Tuesday on decent volume in morning action after the country’s quarterly economic growth figures were better than expected.

The iShares FTSE China 25 Index Fund (NYSEArca: FXI) rallied 2.3% after China said GDP rose 8.9% in the fourth quarter. Economic growth slowed from the year-earlier period but was stronger than forecast.

The China ETF is trying to move above its 200-day exponential moving average as well as the November high.

“The gradual slowdown over the course of 2011 has led most analysts to conclude that Beijing has successfully engineered a ‘soft landing’ for the economy,” the Financial Times reported Tuesday. Although Europe’s debt crisis continues to dominate the news, many investors are closely watching Chinese stocks as an indicator for the health of the global economy.

The world’s second largest economy was one of the worst performers in 2011 as investors sold out of all emerging markets on a significant deflation scare. However, some analysts think Chinese ETFs are primed to turn around in 2012. [China ETFs: Finally Bottoming?]

iShares FTSE China 25 Index


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