cont'd..... True, it may be tempting to say that this means little in the context of recovering losses. One might also note that the fundamentals for Hong Kong based property developers working on the mainland are strong.
The Claymore/AlphaShares China Real Estate Fund (TAO) tracks an index that measures the performance of publicly-traded companies and real estate investment trusts ("REITs") which are open to foreign ownership and derive a majority of their revenues from real estate development, management and/or ownership of property in China. The 40 companies in the index have an average P/E of 10.5 and an average P/B of 1.
The distribution yield is annual and it doesn't appear to be particularly exceptional. The yield may be slightly north of 3%.
Nevertheless, the potential wisdom in using TAO may be in the notion that China is spending a great deal on infrastructure. The companies in the Claymore/AlphaShares China Real Estate Fund (TAO) are fairly well-established developers, and they stand to benefit from China's stimulus package.
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