After a precipitous sell off since the June highs, some have warmed up to Chinese equities, finding value in China stocks and country-specific exchange traded funds.

ETF investors who are interested in the Chinese market have a number of options to choose from. For instance, the iShares China Large-Cap ETF (NYSEArca: FXI) is the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange. Similarly, other China H-shares ETFs options include the SPDR S&P China ETF (NYSEArca: GXC) and the iShares MSCI China ETF (NYSEArca: MCHI).

Over the past month, FXI gained 12.2%, GXC rose 11.1% and MCHI returned 11.5%.

Additionally, investors can take a look at China A-shares ETFs that track mainland Chinese stocks traded in Shanghai and Shenzhen, including the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR), KraneShares Bosera MSCI China A ETF (NYSEArca: KBA) and Market Vectors ChinaAMC A-Share ETF (NYSEArca: PEK).

Over the past month, ASHR increased 12.4%, KBA added 10.5% and PEK advanced 9.7%.

Traders have cut bearish bets on A-shares ETFs to a four-month low on expectations that the latest policy effort to stimulate China’s economy and a postponed U.S. interest rate hike would help stabilize the A-shares market, reports Taylor Hall for Bloomberg.

Specifically, short interest in ASHR fell 9.2% as of Friday, the lowest since June 9 and down from a record 25% in August.

The A-shares ETFs continued to advance on the New York Stock Exchange, along with Chinese stocks in Hong Kong, as China’s markets remained closed until October 8 for a week long holiday. Chinese equities were strengthening after Beijing took steps to support specific sectors.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.