Stephen Davis of Signal Investment Research is taking a positive stance on the outlook for China, on the premises that the worst is over. First of all, valuations of China stocks in Shanghai are attractive while China’s cyclical sectors — industrial, materials and energy — are performing better-than-expected and point to a turn in other sectors and the markets as a whole, reports Steve Gelsi for MarketWatch.
The political leadership change in China is the next big transition that investors are eying. Chris Oliver for MarketWatch reports that the final transition process has kicked off in Beijing, with the opening of 18th Communist Party Congress, with the outcome expected to be made public by Nov. 14, when the meeting ends. Vice President Xi Jinping is widely expected to become the next general secretary of the Communist Party of China’s Central Committee and soon after take over as China’s president from current leader Hu Jintao.
Other China-focused ETFs:
- iShares MSCI China Index Fund (NYSEArca: MCHI) down 2.1%
- SPDR S&P China ETF (NYSEArca: GXC) down 1.6%
- PowerShares Golden Dragon China Portfolio (NYSEArca: PGJ) down 1.3%
iShares FTSE China 25 Index Fund
Tisha Guerrero contributed to this article.