31.7.16

Long China ETF FXI 25, The Best Way To Trade On China Rebound

China will be among the hottest stock markets in the world. By the middle of June, the Shanghai Composite Index was up nearly 60% . But the Index was down nearly 35% since the beginning in June. Now, the signs of a bottom are forming and investors are consider it is the time to buy China.
Long China ETF FXI 25 on China Rebound Trade



The China government has a large impact on every aspect of life including business. Government stimulus appears to be driving economic growth for now. GDP grew 6.7% in the second quarter, at least in part because of government policies. Among the signs of a supportive policy is the fact that banks lent a record 4.67 trillion yuan ($709 billion) in the first quarter, the pace of lending has remained at record levels in the second quarter with much of the money flowing into infrastructure projects.

China has the ability to maintain spending at this level for years. With trillions of dollars in official reserve accounts and a budget deficit of just 3% of GDP, China’s government can continue to drive growth.

The safest way for retail investors to participate in China’s growth is through China ETFs or CFD stocks of Chinese companies . Investors should consider iShares China Large-Cap China FXI 25 ETF CFD.