I first mentioned China about a month ago<\/a>, noting that Chinese stocks were cheap and that they had quietly been outperforming the S&P 500.<\/p>\n Well, Chinese stocks are still cheap, fetching only 7 times earnings by the Financial Times\u2019<\/i> estimates<\/a>. And though Chinese stocks have slumped over the past week, they are still outperforming the S&P 500 by a wide margin.<\/p>\n The general consensus is still pretty bearish on China.\u00a0 The feeling is that the country\u2019s best days of growth are behind it.\u00a0 This is true, of course.\u00a0 China will probably never enjoy 10% annual GDP growth again.\u00a0 But its growth rate still puts all developed markets and most emerging markets to shame.\u00a0 And the recent data coming out of China is encouraging.<\/p>\n Earlier this week, I received an email from KraneShares<\/a>, an advisor specializing in China-focused ETFs that laid out a few economic stats worth bullet pointing:<\/p>\n None of these are a reason to run out and invest in Chinese stocks today (though their cheap pricing and momentum certainly are).\u00a0 But they do point to a Chinese economy that has likely quit cooling for now.<\/p>\n Action to take: Allocate a portion of your portfolio to Chinese stocks and plan to hold through at least the first quarter of next year.\u00a0 The <\/b>popular iShares China Large Cap ETF (<\/span>FXI<\/a>)<\/span> <\/b>is a good option, though KraneShares has some interesting alternatives as well.\u00a0 The KraneShares CSO China Five Year Plan ETF (<\/span>KFYP<\/a>)<\/span><\/b> targets Chinese companies that the advisor expects to benefit from the Chinese government\u2019s current five-year plan.<\/p>\n The fund is very thinly traded, so be careful if you decide to buy it.\u00a0 But it also allocated very differently from FXI, with a much higher allocation to technology and consumer stocks. Purchased together, the two ETFs should give you broad exposure to the Chinese market.<\/p>\n Disclosures: Sizemore Capital does not currently have a position in any security mentioned. \u00a0This article first appeared on TraderPlanet<\/a>.<\/p>\n Charles Lewis Sizemore, CFA, is the editor of the\u00a0Sizemore Investment Letter<\/a>\u00a0and the chief investment officer of investments firm Sizemore Capital Management.\u00a0Click here<\/a>\u00a0to learn about his top 5 global investing trends and get your copy of \u201cThe Top 5 Million Dollar Trends of 2013.\u201d<\/em><\/p>\n This article first appeared on Sizemore Insights as It’s Time to Buy China<\/a><\/p>\n![\"big\"](\"http:\/\/charlessizemore.com\/wp-content\/uploads\/2013\/09\/big.gif\")
<\/a><\/p>\n\n