The headline harps on the slowing growth of China, when in reality the country is still a rock star as far as growth. The country’s Q3 GDP rose 9.1% Y/Y. This is troubling to some because it is down from 9.5% in Q2. The quarter marks the slowest growth since 2009 and many now believe the issues in Europe are spilling over to the Asian region.
I have no doubt the Eurozone issues are affecting all regions around the world, but to say it will be the end of the growth story in China is ridiculous. Even if growth comes in between 8.5% and 9.5% for the next 2 years, China remains the engine that is powering the world.
Based on the P/E ratio of 7.1 that China currently carries it is clear the numbers are pointing to bargain prices today. Even though the shares are cheap, they can always get cheaper and I would suggest slowing building a position in the country and the region.
ETFs that give investors exposure to China include the iShares FTSE Xinhua 25 ETF ($FXI), SPDR S&P China ETF ($GXC), and a slew of Chinese sector ETFs from Global X Funds.
No comments:
Post a Comment