China growth and how you can participate?

China's economy keeps growing. Over the last twenty years they have set up a massive manufacturing sector that has provided double digit growth in several years. In 2008, although the US economy is taking a beating, the chinese economy isdoing quite well and this will continue as long as there is an appetite for low cost goods. To support the economy, Oil and Gas, Electricity and Resources also needs to grow.

 

It is difficult for the small investor to understand the complexities in the Chinese economy and the markets. Here is where the ishares FTXE Xinhua China 25 ETF comes in.

When you buy an ETF - an acronym for Exchange traded fund, you essentially buy a slice of the market.This ETF invests at least 90% of its assets in the securities of the FTSE China 25 index and is a great overall play on China. The chart attached shows its movement and it is trading well below its high in the last 52 weeks.

 

In the words of Sir John Templeton, one of the world's pioneers in global investing:

It seems to be common sense that if you are going to search for those unusually good bargains, you wouldn't just search in your country.  But why not search everywhere?

Chinese shares could continue to fall in 2008. But they won't do so without creating some values that may end up being some of best stocks for the next 10 years.

 

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Last Trade: 142.90 Trade Time: 4:00PM ET Change: 2.76 (1.89%) Prev Close: 145.66 Open: 144.48 Bid: 143.25 x 100 Ask: 143.40 x 100 NAV¹: 144.4 ¹As of 10-Apr-08

Day's Range: 142.17 - 146.60 52wk Range: 104.90 - 219.56 Volume: 9,682,064 Avg Vol (3m): 9,151,310 YTD Return (Mkt)²: -20.72% Net Assets²: 5.54B P/E (ttm)²: 14.86 Yield (ttm)²: 1.55% ²As of 31-Mar-08