Investors didn’t appear completely sold on China’s second-quarter GDP rise of 3.2% as more mixed economic data suggested a gloomier picture. China’s retail sales unexpectedly fell by 1.8% year-over-year in the month of June.

“Chinese shares fell the most in five months, as signs of an uneven economic recovery rattled investors already worried by a rapid run-up in the country’s stock markets,” a Wall Street Journal article noted. “The benchmark Shanghai Composite retreated 4.5% Thursday. That means it has now fallen for four of the past five sessions, after surging since the end of June on optimism that China has shaken off the worst effects of the coronavirus.”

For investors sensing a possible value play, one way to get Chinese equity exposure is via ETFs like the Xtrackers MSCI All China Equity ETF (CN). CN seeks investment results that correspond to the performance, before fees and expenses, of the MSCI China All Shares Index.

The fund will normally invest at least 80% of its total assets in securities of issuers that comprise either directly or indirectly the underlying index or securities with economic characteristics similar to those included in the underlying index. The underlying index is designed to capture large- and mid-capitalization representation across all China securities listed in Hong Kong, Shanghai and Shenzhen.

^MSCN Chart

^MSCN data by YCharts

Here are two more options to watch and consider as China continues its recovery:

  1. 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.
  2. 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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