“We expect Beijing to continue rolling out a slew of small-scale measures to deliver the around 7.5 percent annual growth target,” Ting Lu, an economist at Bank of America Merrill Lynch, said.
Investors can track the Chinese markets through broad options like the iShares China Large-Cap ETF (NYSEArca: FXI) and SPDR S&P China ETF (NYSEArca: GXC). The China funds lean toward financial sector stocks, with FXI allocating 53.3% of its portfolio to financials and GXC including 29.8% in the sector. [Big China ETFs Rally, but Investors Hardly Notice]
Alternatively, investors can focus on a domestic play with the burgeoning consumer sector. The Global X China Consumer ETF (NYSEArca: CHIQ) includes a 64.4% weight toward consumer discretionary and 29.9% in consumer staples.
Furthermore, we can now directly access Chinese stocks through China A-Shares ETFs, like the db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR), KraneShares Bosera MSCI China A ETF (NYSEArca: KBA) and PowerShares China A-Share Portfolio (NYSEArca: CHNA). Unlike other China ETFs, these A-Shares ETFs track companies listed in China’s stock exchange, whereas the other options track companies listed on Hong Kong or U.S. exchanges. [A-Shares ETFs in Focus After MSCI Rebuffs EM Promotion]
For more information on China, visit our China category.