1. China’s economy is jumping, but investing in individual stocks
remains risky. Here are nine funds and three ETFs that can give you a
piece of the action.This is clear: Business in China is booming.This
gets complicated: Translating that growth into investment gains.But
that’s not to say it can’t be done. And with China giving every
indication of becoming the world’s next economic giant, it’s time
to consider whether and how to expose your investment China portfolio
to that country’s high-revving growth engine.The statistics are
startling. China’s gross domestic product is growing around 10%
annually, compared to 3% or so in the United States. The consumer’s
wide-open wallet is driving the U.S. economy, but consumer-spending
growth in China clocked in at 13% last year, compared to 8% in the
United States military connector. China’s middle class, now
estimated at 150 million to 200 million people, is expected to double
in size in the next five years.Investors who have taken the plunge in
China in recent years have been well rewarded. The average mutual
fund that invests in China and the nearby Asian Tiger nations has
gained 17.5% over the past three years, far better than the S&P
500’s ($INX) 5.4%.But this isn’t the first time China has seen
rapid growth. The country experienced a major investment boom in the
early 1990s. But China added too much nail products manufacturing
capacity, too fast, and the bubble burst in 1994-1995, sending the
economy into a tailspin. The Hong Kong-based Hang Seng index lost 31%
in 1994 alone.Is it too late to catch this phase of China’s growth?
Some analysts say it’s different this time around, and thus this
boom won’t go bust. “There’s much more to the Chinese economy than
in the 1990s,” says Edmund Harriss, manager of the Guinness Atkinson
China & Hong Kong Fund (ICHKX). Back then, the economy “was under
the government’s thumb, and the emphasis was strictly on growth.”
This time, “it’s about profits, too.” In the 1990s, the government
owned almost everything, while “much of the growth this time is
coming from foreign investment and Chinese public corporations as
well as privately-owned bag filter companies,” Harriss says.China’s
growth story is enticing, but profiting from that growth isn’t as
simple as buying China’s version of Google (GOOG, news, msgs) or
General Electric (GE, news, msgs). Just like in the United States,
fast-growing, high-profit sectors draw competition like flies. So,
just like in the United States, yesterday’s highflier could be
tomorrow’s busted stock. But unlike United States stocks,
information on Chinese stocks is hard to come by. Most have no
analyst coverage, and, depending on where they’re listed, the
financial reports might be of dubious quality.Bottom line: Unless you
live there or have a staff of analysts that does, making consistent
money buying individual Chinese stocks is a tough game.Mutual funds

2. and exchange-traded funds are the only practical way you can get
unfiltered access to China’s boom including seo firm . Since China
is a hot item with U.S. investors, investment managers are rolling
out new funds and ETFs to capitalize on the trend. So far, though, I
know of only nine mutual funds and three ETFs that focus on the
country. Here’s a list of those options (one ETF is too new to
include — more on that below) plus the additional information I
consider most relevant for pinpointing the best prospects. China’s
fast growth, political structure and uneven disclosure make investing
there a risky business. All sorts of things, from currency
revaluations to economic overheating, could go wrong. Thus,
successful investing in China requires a long-term view. Commit only
two-year money to China. That will give you time to ride out the
inevitable downdrafts. Also, don’t put too much money at risk. Most
investment advisors recommend putting no more than 5% to 10% of your
investment dollars in this sort of an emerging market.