Chinese focused equities and ETFs are still good diversification tools within a portfolio because China is the second largest economy in the world and growth will still outpace that of the developed world for the near term. Appreciation of the Chinese yuan is also likely as the economy continues to grow. [Lower Inflation Gives China ETFs Breathing Room]
This week, the World Bank gave its forecast for the growth in the Chinese economy to be at 8.4% in 2012, reports Paul Baiocchi for Nasdaq. And bear in mind that despite the global growth slowdown and amid the Eurozone’s debt crisis, the Chinese economy still managed to grow 9.2% in 2011.
Chinese focused ETFs:
- PowerShares Golden Dragon Halter USX China Portfolio (NYSEArca: PGJ)
- iShares FTSE Xinhua China 25 Index Fund (NYSEArca: FXI)
- SPDR S&P China ETF (NYSEArca: GXC)
- Guggenheim China Small Cap Fund (NYSEArca: HAO)
iShares FTSE Xinhua China 25 Index Fund
Tisha Guerrero contributed to this article.