CHIB ETF tracks the S-BOX China Technology which gives a clear picture of the performance of the technology sector of China. Falling under the China Equities category, it operates at an annual expense ratio of 0.65%. This fund belongs to the equity ETF asset class which helps the investors in targeting the right market as per their requirements, focusing on investments in China, maintaining the spirit of its benchmark.
The economy of China is a complete power packed house, where the economy boosts of a good growth in its GDP, and a very low inflation rate. The subscriber of the cell phones has increased drastically. If we compare the number of subscribers issuing cell phones in the U.S & China we can see that China excels by a drastic difference of 676 million subscribers. Since this ETF belongs to the Technology Sector we can assess the penetration rate of the internet users. China has gained a potential volume of revenue from the online advertising market, and online game markets. The broadband Industry has been pumped up with good revenue to strengthen its infrastructure momentously. The online game market and internet users are expected to see a further increase in its users. The consumption market for China plays a very important role in the high economic growth. The purchasing power of the nation reflects the welfare and consumption trends of the economy.
The western regions of China are a major attraction for foreign investments for a simple reason, their potential markets and their kitty of skills.
There has been a special focus on High tech fields during the annual Investment and Trade Forum for Cooperation between East and West China. This meet has seen a heavy potential in foreign investments from 57 countries with a major focus on High techs.
Samsung Electronics has chosen to build its base in the country, in order to fully utilize the countries talent and policy incentives which are expected to push the economy forward in its restructuring with the transfer of its interest from east to west. The countries reformation and restructuring has led to the largest foreign hi-tech project in west China, which by chance is noted to be the single largest investment by Samsung. Xi’an is known to have the largest reserve of the talent in information technology, and thus is the major target of attraction for the tech buffs.
Nokia’s net sales in china for its services and products own up to 16.7% of the company’s total sales a remarkable percentage showing the rise in the demand for these tech goods in the domestic economy itself.
Talks are being held with the minister of trade from Israel seeking investment opportunities in China in particular focus on financial technology sector. This would mean an increase in the online financial services and a further demand for net engaged facilities, opening up further opportunities for the technology sector of China and reasons for foreign investors to concentrate on invest china technology sector. 600 million cell phone users and 300 million internet users comprise of the Cell phone and internet market of China, a figure that we cannot afford to elude. This only suggests that there is still huge potential in the market because the rate of penetration among the internet users is still very less a mere 25%.
