The MSCI China Index is up more than 16% thus far this year. A push by the country’s government to inject more foreign investment should keep bulls happy in the interim.
The time to boost foreign investment comes amid geopolitical tensions, especially when considering a potential trade war with the United States. As reported by CNBC, the country published a 2025 action plan for stabilizing foreign investment to help pave the way for foreign capital investment in domestic telecommunication and biotechnology industries.
The document established standards in government procurement. This has been a recurring issue regarding conducting business in the country as well as a strategy on incorporating more foreign investment, particularly in educational and cultural sectors.
“We are looking forward to see this implemented in a manner that delivers tangible benefits for our members,” said Jens Eskelund, president of the European Union Chamber of Commerce in China, according to the CNBC report.
Per the CNBC report, the European Union Chamber of Commerce said the country is also clearing the path for foreign investment in other key areas aside from education and culture. As mentioned, this includes telecommunications and then healthcare. That would allow businesses from other parts of the globe to view the country as a potential destination to conduct commerce.
“We appreciate the Chinese government’s recognition of the vital role foreign companies play in the economy,” Michael Hart, president of the American Chamber of Commerce in China, said in a statement. “We look forward to further discussions on the key challenges our members face and the steps needed to ensure a more level playing field for market access.”
2 Ways to Play China Equities
If China can maintain its bullish momentum, traders will want to keep the Direxion Daily FTSE China Bull 3X Shares (YINN ) close. The fund offers an ideal solution for traders who want to avoid the concentration risk associated with exposure to individual China stocks and prefer a broad market approach.
YINN seeks daily investment results equal to 300% of the performance of the FTSE China 50 Index. This gives traders exposure to the 50 largest and most liquid public China companies currently trading on the Hong Kong Stock Exchange as determined by FTSE/Russell.
When volatility strikes in China equities, traders can stay flexible and profit in a downtrend with inverse ETFs. In the case of YINN, traders can take the opposite side with the Direxion Daily FTSE China Bear 3X Shares (YANG ). Like YINN, it provides the same 300% exposure, but the inverse of the FTSE China 50 Index.
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