China equities have continued to underperform the broader market throughout the second half of 2011.

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The $6 billion iShares FTSE-Xinhua China 25 Index Fund (FXI) is down nearly 19% since the end of June compared to only a 2% decline for the S&P 500.  Bloomberg reports that the benchmark index for China’s stocks fell to a two-year low after profit growth for industrial companies slowed and a jump in interbank borrowing costs signaled the nation’s cash crunch is worsening.

FXI invests in the 25 largest and most liquid companies in the China equity market that are available to international investors. Top holdings include China MobileChina Construction BankChina Life InsuranceIndustrial & Commercial Bank of China and Bank of China.

Other China ETFs include SPDR S&P China ETF (GXC) and the Golden Dragon Halter USX China Portfolio (PGJ).

For more ETF investing choices, see the ETF Directory for a complete list of country ETFs.

 

– ETF MarketPro Staff

December 29, 2011