Global X Management Company, a New York based asset manager, has launched two ETFs tracking the consumer and industrial sectors in China.
The Global X China Consumer ETF is designed to replicate the S-Box China Consumer index. As of October 30, the largest stocks were food and beverage companies, followed by an automobile company and a department store retail group.
Global X says the Chinese President Hu Jintao recently announced the government is expanding domestic spending, particularly in consumer demand.
China's retail sales also increased in October by 16.2% over a one year period, according to the National Bureau of Statistics of China.
Global X also highlights the incremental contribution of Chinese consumers to the global consumption of tradable goods started to exceed that of the US in 2007, a trend which is expected to continue.
The Global X China Industrials ETF tracks the S-Box China Industrials index. The largest stocks include an industrial manufacturer, infrastructure groups followed by industrial shipping and logistics services, as of October 30.
The asset manager says China is boosting its industrials sector with a $580bn stimulus package, focused on construction, railways, subways and airports. China is also set to overtake the US as the world's largest manufacturer by 2015, according to IHS Global Insight.
Global X Management CEO Bruno del Ama says: "China is an incredibly efficient manufacturing hub for the world, as well as the main source of growth in global consumer demand."
The two funds are part of a range of China sector ETFs yet to be released by Global X, including the China Energy fund, Financials fund, Materials fund and Technology fund.
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