Two ETFs for a Chinese resurgence

Article Excerpt

Chinese stocks are up 25% from June 2013, as the country’s economy continues to grow at an annualized rate of 7.5% or more, even with slower exports to Europe and the U.S. Recent government policy changes are also raising optimism for growth. The country recently brought in measures to boost economic activity and raise competition, including making it easier for private firms to win contracts over state-owned enterprises. It also plans to better protect farmers’ land rights, grow the labour force by loosening the one-child policy, and spur consumer confidence by expanding public services. 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 risker than the average Chinese stock. SPDR S&P CHINA ETF $79.24 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com) aims to track the S&P China BMI Index, which is made up of all publicly traded…