China’s economy is booming and is on track to become the world’s next great economic giant. You need to invest in China and profit from their explosive growth. The good news is that now you can easily invest in China without having to open a foreign brokerage account or buy Chinese stocks overseas.

My article for Investor’s Daily Edge on 04/09/09 specifically recommended the iShares FTSE/Xinhua China 25 Index (FXI). This Exchange Traded Fund (ETF) is traded in the U.S. and holds a nice basket of Chinese stocks. This ETF seeks to mirror the Chinese stock market.

If you took my advice, you’d have seen a nice short-term gain as the FXI rose over 12% in just over a month. Now that’s a nice short-term gain. Our staff here at Investor’s Daily Edge strives to give you information that you can profit from, that is our passion.

If you missed this opportunity to get into FXI, don’t worry-it’s not too late. I still think China is one of the best places to put your money. Let me explain why you should invest in China.

Domestic consumption in China is skyrocketing as people’s disposable income rises. China’s retail sales are exploding higher due to strong demand for TVs, jewelry, refrigerators, air conditioners, washers and dryers.

Yes, the Chinese want to live like Americans. Imagine if China’s 1.3 billion people consumed goods and services like the people in the West. China could easily be the biggest economy in the world and their GDP could surpass the U.S. in less than 10 years. There is a huge amount of potential for growth in the Chinese market. This opens the door for a major profit opportunity for you.

Ancient China was once an advanced and powerful civilization, with major contributions to the arts and sciences that rivaled those of Rome and Greece. However in the 19th and early 20th centuries, China was overwhelmed by civil unrest, major famines, military defeats, and foreign occupation. After World War II, communists established a dictatorial socialist system that imposed strict controls over society. Then in 1978, the Chinese government started to focus on market-oriented economic development and by 2000 economic output had quadrupled. Today, most Chinese citizens are enjoying a higher standard of living and personal freedoms are getting better. The next step is for China to embrace democracy and freedom which looks promising.

China is currently open to foreign trade and investment. Opening their economy in 1978 was a really good idea. This led to efficiency gains which increased GDP over 1,000%. China now stands as the second-largest economy in the world after America as measured on a Purchasing Power Parity (PPP) basis that adjusts for price differences. China has a rapidly growing private sector and is a major player in the global economy.

Bank lending is soaring and money is flooding into the Chinese economy. China’s money supply is surging and a large amount of money is going into infrastructure projects like improving their electric power grid which includes the building of new nuclear power plants.

What’s more, China is sucking up the world’s natural resources. Beijing is taking advantage of its $2 trillion in cash reserves and low commodity prices to bolster its supply chain. They are buying up oil reserves, steel, iron ore, aluminum, copper, zinc, etc. This is starting to push natural resource prices higher. Think about what will happen to oil prices when all the Chinese start to drive cars.

China’s economy is going to continue to grow at an amazing rate and hopefully help lead the global economy out of this recession.

Again my favorite China play for you to consider: The iShares FTSE/Xinhua China 25 Index (FXI), which tracks the Chinese stock market as measured by the FTSE/Xinhua China 25 index. This ETF offers tremendous profit potential. Jump on the China money train now…

Best Wishes,

Ted Peroulakis