China’s prospects look bright

Article Excerpt

Chinese stocks are up 27% in the past year, as the country’s economy keeps growing at a still-strong annualized rate of 7% or more. China is exporting more goods to a recovering U.S., which is offsetting slower exports to Europe and weaker Chinese property markets. At the same time, the drop in prices for oil and other commodities is cutting costs for Chinese businesses. Meanwhile, the country is moving to boost economic activity and raise competition by, among other things, privatizing state-owned firms and making it easier to start a business. The government is also expanding public services, like welfare, which should spur consumer confidence. Here are two Chinese ETF recommendations. One invests in all publicly traded Chinese stocks available to foreign investors. The other holds small cap stocks, which tend to be riskier than the average Chinese stock. SPDR S&P CHINA ETF $81.83 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com) aims to track the S&P…