Additionally, Stuart Rae, AllianceBernstein’s chief investment officer, believes Chinese stocks look cheap and companies could benefit from lower commodity prices and higher consumer demand due to improved wages. The market is still developing, with companies fighting for market share. Additionally, fundamentals are improving, including those at big state-owned enterprises.
“We’ve generally been underweight SOEs, but now we’re adding,” Alistair Way, investment director of emerging markets at Standard Life, said in the article.
The iShares China Large-Cap ETF (NYSEArca: FXI), which tracks large-cap Chinese firms, including large state-owned companies, has gained 6.7% over the past three months. [China ETFs to Generate Slower and Steadier Returns]
Alternatively, investors can target the two large Asian economies through the First Trust ISE Chindia Index Fund (NYSEArca: FNI), which includes Chinese and Indian stocks. FNI is up 5.7% over the past three months. [Emerging Markets Two-Step Lifts This ETF]
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.