Profit from a Chinese rebound

Article Excerpt

Chinese stocks are up roughly 16% since early September. That’s largely because the country’s industrial production and exports are picking up, and government measures to stimulate the economy are taking effect. China’s growth rate could reach 8.2% nextyear, and its long-term outlook is positive. Here are two Chinese exchange traded fund (ETF) recommendations. One invests in all publicly traded Chinese stocks available to foreign investors. The other holds small cap Chinese stocks. SPDR S&P CHINA ETF $68.92 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com) is an ETF that aims to track the S&P China BMI Index, which is made up of all publicly traded Chinese stocks that are available to foreign investors. Right now, SPDR S&P China ETF holds 184 stocks. The $919.1-million fund’s top holdings are China Mobile, 7.6%; China Construction Bank, 7.5%; Industrial & Commercial Bank, 6.1%; CNOOC Ltd., 4.4%; Tencent Holdings Limited, 4.4%; PetroChina Corp., 3.7%; Bank of China, 3.7%; Baidu, 3.3%; China Life, 2.8%; and…