Furthermore, the Chinese economy is currently in a transitioning period as Beijing aims to shift its economic model to a more sustainable consumer-led economy from its reliance on heavy investments like infrastructure.
“Our bottom line: We believe China’s growth rate will slip to still-solid and more sustainable levels. That should remain a positive for EM assets and risk assets, even if the sailing is unlikely to be as smooth ahead,” according to BlackRock.
The iShares China Large-Cap ETF (NYSEArca: FXI), the largest China-related ETF that tracks Chinese companies listed on the Hong Kong stock exchange, has increased 33.8% year-to-date. Similarly, other China H-shares ETFs options including the SPDR S&P China ETF (NYSEArca: GXC) and the iShares MSCI China ETF (NYSEArca: MCHI) jumped 48.4% and 51.0%, respectively, so far this year.
For more information on the Chinese markets, visit our China category.