Consider a Broad Investment in China
China’s growth is assured by its rising population, which already is the world’s largest. As long as broader industrialization continues, drawing peasants into the ever-increasing number of Chinese cities and factories to fuel Western-style consumption, China’s economy will continue to grow. However, it is difficult to know what sectors will benefit the most.
The Chinese government has its proverbial thumb on the scale, picking winners and losers; business transparency is not yet part of the culture. Western investors also are handicapped in understanding the consumption habits of the Chinese consumer. One way to invest in China without trying to pinpoint a breakout sector is through SPDR S&P China ETF (GXC).