PT - JOURNAL ARTICLE AU - Leon Jin AU - Peng Song TI - The Development of Chinese ETFs DP - 2006 Sep 21 TA - ETFs and Indexing PG - 139--149 VI - 2006 IP - 1 4099 - http://guides.pm-research.com/content/2006/1/139.short 4100 - http://guides.pm-research.com/content/2006/1/139.full AB - Over the past 20 years, China's economy has achieved rapid and steady growth, averaging an annual rate exceeding 9 percent. World Bank 2005 GDP statistics show that China has become the 4th largest economy in the world. Nonetheless, accessing China's capital markets remains difficult for global investors. Under these circumstances, ETFs are naturally becoming a convenient and appropriate alternative investment choice. This article provides a brief introduction to China-related ETFs, discussing those ETF products trading overseas and in the Chinese domestic market. In overseas markets, the most popular China-related ETF is the iShares FTSE/Xinhua China 25 Index Fund. To access the Chinese “A” Share market, the iShares FTSE/Xinhua A50 China Tracker is the only ETF available to international investors, while domestic investors have a wider set of choices. Among local ETFs products, the China SSE 50 ETF was the first to market and is most popular currently. Thanks to the extended rapid growth of the macro-economy and China's equity market reform, the Chinese securities market has grabbed the attention of both domestic and overseas investors to an unprecedented degree. The opportunity for indexed investment has finally arisen and China-related ETFs will undoubtedly continue to be a good choice for global investors.