Investing in China

Not only is China’s economic growth attracting attention from governments of the Western World, but also from investors lured by its growth and potential wealth-creation. It is predicted that China will grow by approximately 8% this year and will outpace Western nations by a wide margin over the next decade.

At present, Canadian investors have only three dedicated China mutual funds to choose from, as listed below, with returns posted to August 31/03. A China exchange-traded fund is expected within the next six months: the iShares FTSE/Xinhua Hong Kong China 25 Index Fund. Hong Kong also is a beneficiary of the mainland’s expansion and the iShares MSCI Hong Kong exchange traded fund is available presently.

Another way to invest in China is through domestic companies that do business there, such as Nortel and Manulife.