China Consumer ETF and China Industrials ETF Start Trading on the NYSE Arca
December 01 2009 - 9:50AM
PR Newswire (US)
NEW YORK, Dec. 1 /PRNewswire/ -- New York-based asset manager
Global X Management Company today launched the Global X China
Consumer ETF (NYSEArca: CHIQ) and Global X China Industrials ETF
(NYSEArca: CHII). These are the first ETFs globally that offer
investors targeted access to the rapidly growing China Consumer and
Industrial sectors. The Global X China Consumer ETF seeks to
replicate the S-BOX China Consumer Index, which is designed to
reflect the performance of the consumer sector in China. As of
October 30, 2009, the largest stocks in the Consumer index were
food & beverage companies Tingyi and Want Want China,
automobile company Dongfeng Motor Group, department store firm
Parkson Retail Group, and sports apparel company Li Ning. Chinese
President Hu Jintao recently said that the government is focused on
expanding domestic spending, "especially consumer demand." In
October, China's retail sales jumped 16.2% from a year earlier.(i)
And there is significant room for continued growth: according to
Morgan Stanley, "the incremental contribution of Chinese consumers
in USD terms to the global consumption of tradable goods started to
exceed that of the US in 2007." (ii) This trend is expected to
continue as consumer spending currently accounts for only 36% of
China's GDP, about half the level of the U.S. The Global X China
Industrials ETF seeks to replicate the S-BOX China Industrials
Index, which is designed to reflect the performance of the
industrial sector in China. As of October 30, 2009, the largest
stocks in the Industrials index were diversified industrial
manufacturer BYD Company, infrastructure groups China
Communications Construction and China Railway Group, industrial
shipping and logistics services company China COSCO Holdings, and
building materials firm China National Building Material Group.
China is also spurring its industrials sector with a $580 billion
stimulus package directed towards construction, railways, subways
and airports. In October, China's industrial output rose 16.1% from
a year earlier. (i) According to economic forecasting firm IHS
Global Insight, China will overtake the U.S. as the world's largest
manufacturer by 2015. "China is an incredibly efficient
manufacturing hub for the world, as well as the main source of
growth in global consumer demand," said Bruno del Ama, CEO of
Global X Management. "The China Industrials ETF and China Consumer
ETF provide efficient and diversified access to these China
manufacturing and consumption themes." These ETFs are part of a
family of China sector ETFs, which also includes the China Energy
ETF (ticker: CHIE), China Financials ETF (ticker: CHIX), China
Materials ETF (ticker: CHIM), and China Technology ETF (ticker:
CHIN). These other China sector ETFs are not yet available for
purchase. About Global X Management Company, LLC Global X
Management Company, LLC, a New York-based asset manager, serves as
the investment adviser to Global X Funds. The firm, registered as
an investment adviser with the Securities and Exchange Commission,
specializes in innovative international ETFs. For more information,
visit http://www.globalxfunds.com/. Disclosures: Investing involves
risk, including the possible loss of principal. International
investing may involve risk of capital loss from unfavorable
fluctuations in currency values, from differences in generally
accepted accounting principles, or from economic or political
instability in other nations. Securities focusing on a single
country and narrowly focused investments may be subject to higher
volatility. Structured Solutions AG Indexes have been licensed for
use by Global X Management Company, LLC. Global X Funds are not
sponsored, endorsed, issued, sold, or promoted by Structured
Solutions AG, nor does this company make any representations
regarding the advisability of investing in the Global X Funds.
Carefully consider the Funds' investment objectives, risk factors,
charges, and expenses before investing. This and additional
information can be found in the Funds' prospectus, which may be
obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by
visiting http://www.globalxfunds.com/. Read the prospectus
carefully before investing. Global X Management Company, LLC serves
as an advisor to the Global X Funds. The Funds are distributed by
SEI Investments Distribution Co., which is not affiliated with
Global X Management Company or any of its affiliates. Data sources:
National Bureau of Statistics of China, U.S. Department of Commerce
Index data source: Structured Solutions AG. (i) National Bureau of
Statistics of China (ii) "China's under-consumption over-stated,"
Qing Wang and Steven Zhang, Morgan Stanley, September 15,2009
DATASOURCE: Global X Management Company CONTACT: Bruno del Ama of
Global X Management Company, +1-212-644-6440, Web Site:
http://www.globalxfunds.com/
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