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  • Chiq Global X China Consumer The Largest Egg In The ETF Basket 0 comments
    Aug 23, 2013 4:38 AM

    Bringing up a comparison with the Russian markets that had been posted as the most consumers oriented and flourishing consumer industry, the latest analysis is now showing the BRIC bloc (Brazil, India, and China) to have the most potential demographic profiles and are emerging as the most prospective markets in the world economy. The change can be the resultant of the political instability of the Russian economy and the progress rate of the Chinese GDP.

    China is already emerging as the biggest market for consumer products. The strong demographics of the country and the increasing spending power of the people have lead to a change in the strategy of the choices pertaining to spending values. The welfare of the middle class has lead towards choice of westernization and royal class spending. The female population of the country has a good amount of spending power left to her choice, which was not the scenario earlier, as the preference of the female population plays a major role in the area of spending the consumer industry is now at stage of boon.

    China gladly emphasizes themselves as the world's largest market for cars and luxury commodities, thereby attracting the inflow of foreign investment in the china consumer sector. It has been a very good year for the Chinese economy which has seen the disposable income for urban Chinese quadruple, and the spending power increase drastically.

    Being the most powerful region in the ASEAN Bloc, and having good ties with the American, European and Australian economies in terms of trade and markets, china proves its impact on the world economy again and again despite the shortcomings occurring in its own economy.

    By the year 2020, 51% of the urban population would have been dominated by the mainstream consumers showing the impact of the increase in China's GDP.

    China Mengniu Dairy Co. Ltd the topmost asset holder of CHIQ ETF, at a 5.99%, is the largest supplier, manufacture and distributer of quality dairy products in China. According to China Industrial Information Issuing Centre, the sales volume and sales value of the company are ranked first.

    China's leading automobile manufacturer, named after the Great Wall of China, has the second most influential holding of the ETF with 5.94%.

    China is the most potential market for Apple products. The iPad and iPhones is a desirable and luxury product, used by the country. Approximately 2000, service centers are placed in the region, intimating the extensive use of the gadgets and nearing the goal of becoming the biggest market for Apple Inc. According to Canalys the market for Chinese smart phone is exploding. The sales are doubling and surprisingly one-third of all smart phones are being sold in China a figure reportedly much more than the United States, India, Japan and the United Kingdom put together. September 10 is the set date for the launch of "iPhone 5C," in china by Apple. So far the sales of the laptops and iPhones are souring in the dragon nation, showing high potentials to the gadget companies.

    The inflow of foreign investments into this sector would mean that the availability of the consumer goods in the Asian markets would be easier and cheaper, brightening up the prospects of further inflow of funds.

    Chiq global x china consumer is one such ETF that provides an excellent exposure to the best indigenous companies in the Chinese markets, holding good potentials for the investors.

    Global X China Consumer ETF delivers as per the performance of the consumer benchmark after an annual expense attuned to 0.65%. CHIQ ETF has forty indigenous Chinese holdings that make up the Solactive China Consumer Index post. China Mengniu Dairy Co. Ltd., Great Wall Motor Co. Ltd., Hengan International Group Co. Ltd., China Resources Enterprise Ltd. and Melco Crown Entertainment Ltd. have emerged as the top five holdings of the China Consumer ETF.

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