Year of the dragon

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As demand for access to China increases, the range of ETFs tracking this country is growing. Barney Hatt looks at the development of funds investing in Chinese securities

  Prior to the introduction of ETFs tracking Chinese benchmarks, investors looking to capitalise on the country’s booming economy struggled to find efficient investment vehicles to gain exposure. Hong Kong listed companies and mutual funds were the primary choices.  However, the recent and rapid expansion of single country ETFs has significantly broadened investor options.  BlackRock’s iShares was first to introduce a China ETF in October 2004 tracking the Xinhua 25 index, listed in London.  An ETF is a liquid and flexible tool to tap this country, especially as there are invest...

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