China’s Ambitious Energy Initiatives Should Power CHIE

China continues to push boundaries when it comes to its nationalist initiatives, which includes relying on itself for more energy resources. Alongside this goal is to reduce its carbon footprint by focusing on greener energy sources, and apparently, it's going big on that promise with its construction of a massive wind farm.

Wind energy has been a persistent green theme for investors looking for opportunities that align with environmental, social, and governance (ESG) measures. For China specifically, this could present investors with additional incentive to look at the country for opportunities.

"China is planning the world’s largest wind farm, a facility so huge it could power the whole of Norway," a Euro News Green report said. "Chaozhou - a city in China’s Guangdong province - has revealed ambitious plans for a 43.3 gigawatt facility in the Taiwan Strait."

"Operating between 75 and 185 kilometres offshore, the 10km long farm will feature thousands of powerful turbines," the report added.

It underscores China's push to become the top global superpower by shoring up its energy-producing abilities by looking at its own resources instead of relying on other countries. As such, investors may want to consider the high growth potential of thematic funds that play off China's push for energy dominance with an exchange traded fund (ETF) such as the Global X MSCI China Energy ETF (CHIE).

Targeted, Efficient Exposure

CHIE seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI China Energy IMI Plus 10/50 Index. The fund invests at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index.

The underlying index tracks the performance of companies in the MSCI China Investable Market Index (the “parent index”) that are classified in the energy sector, as defined by the index provider. CHIE is a possible value play that investors can use as the fund dips below its 50-day moving average.

CHIE gives investors:

  1. Targeted exposure: CHIE is a targeted play on the energy sector in China — the world’s second-largest economy by GDP.
  2. ETF efficiency: In a single trade, CHIE delivers access to dozens of energy companies within the MSCI China Index, providing investors an efficient vehicle to express a sector view on China.
  3. All share exposure: The index incorporates all eligible securities as per MSCI’s Global Investable Market Index Methodology, including China A, B, and H shares, red chips, P chips, and foreign listings, among others.

For more news, information, and strategy, visit the Thematic Investing Channel.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.