China ETFs – Long Term Growth or Short Term Bubble?

This year has seen China ETFs dramatically rise through July and then stumble in August.

Is the market just taking a breather or are these the first signs of a collapsing bubble in China? These questions and more are addressed in the Forbes article Proceed, Cautiously, Into China.
Writer Eric Platt points out that even with the Shanghai Stock Exchange up more than 70% year-to-date, Chinese equities remain below the pre-downturn levels.
Since strict rules limit outside investors, one of the few ways for investors to gain exposure to China’s growth is through exchange traded funds. The largest ETF that specializes in China is the FTSE-Xinhua China 25 Index Fund (FXI). FXI invests in the 25 largest and most liquid companies in the China equity market.
Platt also interviews several money managers to get their view on whether China represents risk or opportunity.
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