China is still investment-worthy

Despite the slowest growth rate in over 20 years (7.7% predicted in 2013 and 8.1% in 2014), China is still attractive for investors, reports Josh Ehrlich of ETFinsight. Investors just need to know where to look.

One area that could offer returns is China’s private sector. But identifying what companies are independent of the government is easier said than done.

Read: Don’t give up on China

Take Huawei, a massive telecom player, says Ehrlich. The company has been accused of having direct ties to the Chinese government. It has been unable to refute these accusations because the management offers very little transparency.

Read: Chinese copper demand drops, stocks rise

And an undervalued Yuan and concerns over loan quality for Chinese banks add to the issues.

Still, Ehrlich suggests the following ETFs for exposure to China: CHI (iShares China All-Cap Index Fund); XCH (iShares China Index Fund); and ZCH (BMO China Equity Index Fund).

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