Not only does China dominate Asia in terms of sheer size, but it’s the world’s leading producer of textiles and manufactured goods. Thanks to its 1.3 billion residents, China is also the second largest auto market and consumer of crude oil.
Reflecting this optimism, the iShares FTSE/Xinhau China 25 (NYSE: FXI) is up 38.69 percent through November 1st. The fund, which tracks top companies on the Hong Kong Stock Exchange, has been one of the top performing single-country ETFs so far in 2006.
China is so hot, Goldman Sachs has invested in Gao Hua Securities, and Cisco Systems has invested some $700 million in emerging and upstart Chinese enterprises.