Chinese markets and related exchange traded funds are too big to ignore, and investors should consider exposure to this expanding emerging economy.
The Chinese equity market has been steadily advancing on steady stimulus measures.
“China attempted to do a big crunch down on credit in 2018, and since then, they’ve been doing drip stimulus because that is working at stabilizing their economy,” Jan van Eck, CEO, VanEck, said at the Inside ETFs conference.
Van Eck also highlighted the fundamental growth prospects of a large population base with favorable demographics and an increased focus on a domestic consumer-based economy.
“China is such a big domestic economy, like the U.S. Trade hasn’t even contributed to their growth over the last five years,” van Eck added.
Turning To China A-Shares ETFs
As a way to capture growth in the Chinese markets, investors can turn to China A-shares ETF options, such as the VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: PEK) and the VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEArca: CNXT).
The VanEck Vectors ChinaAMC CSI 300 ETF tries to reflect the performance of the CSI 300 Index, which is comprised of the 300 largest and most liquid stocks in the Chinese A-share market.
The VanEck Vectors ChinaAMC SME-ChiNext ETF follows the SME-ChiNext 100 Index, which tracks the performance of the 100 largest and most liquid China A-share stocks listed and trading on the Small and Medium Enterprise Board and the ChiNext Board of the Shenzhen Stock Exchange.
Furthermore, van Eck singled out the VanEck Vectors Video Gaming and eSports ETF (NASDAQ: ESPO) as a way to tap into increased Asian demand for online video gaming and increased leisure time among a growing middle-income class.
Watch Jan van Eck Discuss China ETFs
For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.