Back to top

Image: Bigstock

China Stocks Heat Up: Time to Invest?

Read MoreHide Full Article

  • (1:30) - Is The Chinese Economy Caught In A Doom Loop?
  • (6:05) - Will China’s Defensive Measures Be Enough To Revive The Economy?
  • (11:00) - What Impact Will The United States Election Have On Chinese Investing?
  • (16:55) - Why Should You Consider Investing In China Right Now?
  • (21:30) - XTrackers Harvest CSI 300 China A-Shares ETF: ASHR
  • (24:20) - Episode Roundup: CRTC, KWEB, MCHI, EMXC
  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Amanda Rebello, Managing Director and Head of Xtrackers Sales at DWS Group, about investing in China.

China's economy has been facing challenges recently. According to WSJ, there are as many as 90 million empty housing units in the country, while the population continues to decline. Additionally, youth unemployment is on the rise.

In response, Chinese authorities recently introduced a major stimulus package after three years of limited support, sparking an impressive rally in Chinese stocks and in sectors with high exposure to China, including copper, mining companies, casinos, luxury goods makers, and European automakers.

Since then, stocks have slipped, and it appears that investors are uncertain whether these measures will be enough to prevent the economy from falling into a deflationary spiral. Can the recent rally sustain itself?

Some well-known, widely held U.S. companies, including Apple (AAPL - Free Report) and Tesla (TSLA), have significant exposure to China. So, what’s the bull case for investing in China ETFs?

We also discuss the implications of the U.S. election, as Trump plans to raise tariffs on Chinese goods by at least 60%. The Biden administration has also imposed strict limitations on China’s access to advanced American technology.

The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR - Free Report) tracks an index of the 300 largest and most liquid Chinese shares traded on the Shanghai and Shenzhen exchanges.

The Xtrackers US National Critical Technologies ETF (CRTC - Free Report) holds developed market equities in sectors vital to U.S. national security. NVIDIA (NVDA - Free Report) and Amazon (AMZN - Free Report) are its top holdings.

The KraneShares CSI China Internet ETF (KWEB - Free Report) provides exposure to Chinese internet companies listed on Hong Kong or U.S. exchanges.

The iShares MSCI China ETF (MCHI - Free Report) offers exposure to multiple classes of Chinese equities available to international investors, such as H-shares, B-shares, Red-chips, P-chips, and foreign listings.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

 

Published in