Economic data is showing that China is well on its way to a “V-Shaped” recovery given the latest manufacturing numbers from the country’s National Bureau of Statistics. With China leading the way, can other nations follow its path?
“China’s official manufacturing PMI for May came in at 50.6, according to the country’s National Bureau of Statistics,” a CNBC report stated. “A private survey released Monday also showed manufacturing activity in China unexpectedly expanding in May, with the Caixin/Markit manufacturing PMI coming in at 50.7 for that month. PMI readings above 50 signify expansion, while figures below the level represent contraction.”
“That’s a V-shaped recovery you see in the (Purchasing Manager’s Index), down sharply in February, back up in March, still strong in April, back up a little above 50 in May,” said IMA Asia’s Richard Martin.
Whether other nations can recover similarly remains to be seen, but as China’s economy continues to recover, here are a few funds to consider:
- Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR): seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 Index. The fund will normally invest at least 80% of its total assets in securities of issuers that comprise the underlying index. The underlying index is designed to reflect the price fluctuation and performance of the China A-Share market and is composed of the 300 largest and most liquid stocks in the China A-Share market. The underlying index includes small-cap, mid-cap, and large-cap stocks.
- Xtrackers Harvest CSI 500 China-A Shares Small Cap ETF (ASHS): seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 500 Index. The index is designed to reflect the price fluctuation and performance of small-cap companies in the China A-Share market and is composed of the 500 smallest and most liquid stocks in the China A-Share market. Under normal circumstances, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in A-Shares of Chinese small-cap issuers or in derivative instruments and other securities that provide investment exposure to A-Shares of Chinese small-cap issuers.
- Xtrackers MSCI China A Inclusion Equity ETF (ASHX): seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index. The fund will normally invest at least 80% of its total assets in securities (including depositary receipts in respect of such securities) of issuers that comprise the underlying index. The underlying index is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program.
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