August 22, 2011 (Chinavestor) One of the advantages of being a China think tank is that investor tend to ask us the right questions, helping us to focus on issued that are important. One of them is worth a short brain storming for the benefit of the general China stock investor community. Here is the question: "Do you have any perspective that if the next inflation number shows a sizeable move downward that the govt might hint at relaxing? They are putting their foot down pretty hard and they cannot risk overshooting, especially with the rest of the world looking as bad as it is. Your thoughts?"
The answer is that investors have to pay attention to the iShares FTSE/Xinhua China 25 Index (NYSE:FXI) and the Morgan Stanley China A-Share Fund (NYSE:CAF), among other ETFs. Here is why.