China ETFs May Be Most Promising of Asian Emerging Markets

 |  Includes: EPI, FXI, GXC, PEK, PGJ, PIN, VNM, YAO
by: Tom Lydon

China ETFs could maintain a steady pace as the country’s economy will likely outshine neighboring Asian economies. According to Bloomberg’s Economic Momentum Index for Developing Asia, China will be able to maintain sustainable, rapid growth over the next five years, outpacing other Asian economies.

As compared to 22 emerging Asian economies, ranking from 16 categories such as economic competition, education level, urban migration, high-tech exports and inflation, China ranked numbered one, with a score of 76.2%, followed by India with a 64.1% score, and Vietnam with a 61.9% score.

“I am not surprised that China comes out on top on this metric,” remarks Victor Shih, a professor at Northwestern University with a background in Chinese economy. “China probably should be placed on top among emerging Asian economies.”

However, Dr. Shih also notes that China’s rank may be over-skewed since the Communist government is loath to reveal accurate debt levels. Additionally, increased lending and the jump in property prices in China could lead to a banking crisis in the worst case scenario, and strikes, riots and protests are also on the rise, says Sun Liping, a sociology professor at Beijing’s Tsinghua University.

China ETFs:

  • Guggenheim China All-Cap ETF (NYSEARCA:YAO)
  • iShares FTSE/Xinhua China 25 (NYSEARCA:FXI)
  • PowerShares Golden Dragon Halter USX China (NYSEARCA:PGJ)
  • The Market Vectors China ETF (NYSEARCA:PEK)

India ETFs:

  • WisdomTree India Earnings Fund (NYSEARCA:EPI)
  • PowerShares India Portfolio (NYSEARCA:PIN)

Vietnam ETF:

  • Market Vectors Vietnam (NYSEARCA:VNM)

Max Chen contributed to this article.