Due to the recent economic weakness, investors have been selling Chinese equities, which has fallen the most among global markets after Greece’s this year.
The steep fall off has created bargains among Chinese equities trading in Hong Kong, according to Mark Mobius, emerging markets fund manager at Franklin Templeton Investments.
“The market already presents itself with opportunities to pick stocks at a bargain -– companies which have been unduly punished by panicked sell-offs and volatility,” Mobius told Bloomberg. “Fundamentals in China still remain positive.”
Looking at China ETF options, the iShares China Large-Cap ETF (NYSEArca: FXI) and SPDR S&P China ETF (NYSEArca: GXC) both track Chinese companies listed on the Hong Kong stock exchange, or H-shares. GXC trades at a 8.58 price-to-earnings and a 0.97 price-to-book, compared to ASHR’s 13.54 P/E and 1.99 P/B.
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Max Chen contributed to this article.