There are + 150 million credit card users in China and only a little less than 50% of the population has participated so far. A 2011 Credit Suisse study estimates that the net household Chinese income will touch RMB 55.8 Trillion by 2015; a 130% rise from 2010 figures. The various china consumer ETF available to US investors are seeing good incoming and CHIQ Global X China consumer fund announced that the net assets under management are now above US$142 million as of October 2012. Mean-while Chinese snack maker giant Want-Want posted a 19% rise in net sales for first half of 2012 touching $1.28 billion and assured that the company’s net profit has risen 38% to $231 million on a year on year basis. The company incorporated in 2007 is selling billion dollars worth of rice cakes, jellies & other snacks to its consumers. Naturally the owner Tsai Eng-Meng with US$ 8 billion is the richest man in Taiwan. [Forbes 2011 Taiwan Billionaires list]. Individuals invested in the Chinese consumer company equities have benefitted too from the growth. The rapid rise of Want-Want Holdings, mirrors the consumer sector of the Asian giant and its growth at this time & and moment. In fact the segment leader Tingyi Holdings has also shown a jump in profits. With 170 million Middle Class citizens, China was behind only USA in 2010 but it constituted a low12 % of the country’s total population. This penetration will be 75% by 2030. Buying in? US investors are increasingly adding foreign market exposures to their portfolios and the biggest hurdle in most cases is stock selection. Basic investment mistakes are made due to ignorance about country’s Geo Political environment and a lack of real time feed. So, for right reasons a number of American investors are moving in China Consumer Sector via equity traded funds. Global X CHIQ ETF may be good choice on broader basis. Though it is heavy on the top ten holdings [50%] increasing the individual company wise risk but has an allocation pattern spread over all facets of the Chinese consumer sector. As with all funds, one buys & sells on the spot price and liquidity is much higher than direct investments done in foreign markets. CHIQ ETF follows NYSE based S Box China Consumer Index which is a fair indicator of the sectors performance. The exploding middle class in the nation spells a good investment opportunity. The currently low valuations of the Chinese markets is another reason to tap on this trend with no further delay. The Exit Strategy: “Have a long term outlook” The truth is that rise in consumption will not stop in China, at least not in the foreseeable future and the demand-supply dynamics will prevail. When you have 1.3 billion consumers wanting to buy more and more houses, foods of all kinds, producers will supply and benefit. Expanding country’s internal consumption share in GDP is a clear focus in the State’s Five Year Plan. This dismisses any policy based volatility. As per Government estimate, consumption may be at 43% of the total GDP by 2020, although lower than developed economies, but will have grown 10% in the last decade alone. read more The length of the fling may be case to case basis? The traders will use re-entry strategies to maximise cash flows, but long term investors in CHINA Consumer Sector Funds may display better returns on their dollars. Visit : http://www.globalxfunds.com/chinasector/chinaconsumeretf/