Since being the epicenter of the coronavirus outbreak, China’s gotten a head start on a recovery versus the rest of the global economy. Market experts like Michael Spencer, Deutsche Bank’s chief economist and head of research for Asia Pacific, feel China’s economy still has room to grow after its recovery, which could be “very impressive.”
China’s economy contracted during the first quarter, but that effort could be followed up with a growth of 5%-6% quarter on quarter in April-June.
“The domestic demand part of the Chinese economy has recovered well,” Spencer told CNBC’s “Squawk Box Asia.”
Here are three funds to consider as China continues its recovery:
- Xtrackers CSI 300 China A-Shares ETF (NYSEArca: 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 CSI 500 China A-Shares Small Cap ETF (NYSEArca: 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 (NYSEArca: ASHX): The investment 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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