This article was originally published on ETFTrends.com.
A U.S.-China trade dispute couldn't hold down growth for China's economic growth in 2019. The country's gross domestic product (GDP) grew by 6.1%, which fell in line with estimates by analysts polled by Reuters.
The world's second largest economy grew at a lower pace compared to 2018 when it hit 6.6%. 2019's 6.1% growth also represented its slowest rate since 1990 based on Reuters records. The growth comes amid a "phase one" trade deal agreement with the U.S., which became official on Wednesday.
“The uncertainties faced by corporates are diminishing along with the progress in US-China trade negotiation since December,” said Chaoping Zhu, global market strategist at JP Morgan Asset Management.
“Although the US government maintained most of the tariffs on Chinese products, the signing of the phase-one trade deal is a signal that the situation is unlikely to deteriorate. Against this background, corporate confidence keeps improving in the recent months,” Zhu added.
Despite the positive growth, there are still risks that remain if investors are looking to throw some capital towards China-focused funds.
“While businesses and investors can afford to breath a sign of relief, after a difficult 2019, we still see risks to the China outlook as mainly weighted to the downside, given the fragile nature of the trade truce and the risks that still stalk China’s financial markets,” Rafferty added.
Here are three China ETFs to be mindful of:
- Xtrackers CSI 300 China A-Shares ETF (ASHR) : seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 300 Index. The underlying index is designed to reflect the price fluctuation and performance of the China A-Share market and is composed of the 300 largest and most liquid stocks in the China A-Share market. The underlying index includes small-cap, mid-cap, and large-cap stocks.
- Xtrackers CSI 500 China A-Shares Small Cap ETF (ASHS) : seeks investment results that correspond generally to the performance, before fees and expenses, of the CSI 500 Index. The index is designed to reflect the price fluctuation and performance of small-cap companies in the China A-Share market and is composed of the 500 smallest and most liquid stocks in the China A-Share market.
- Xtrackers MSCI China A Inclusion Equity ETF (ASHX) : The investment seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI China A Inclusion Index. The underlying index is designed to track the equity market performance of China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program.
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