China’s EV Demand, Clean Energy Can Help Charge Recovery

Source: VettaFi


Date: November 10, 2023

While there’s still more work to do in order for China to revitalize its economic growth, demand for electric vehicles and clean energy technology can help charge its recovery moving forward.

The real estate sector continues to pump the brakes on an economic recovery as the Chinese government looks to inject more stimulus to try and stimulate economic growth. However, there are certain areas seeing growth while the economy as a whole tries to catch up: the EV and clean energy technology business, according to a recent CNBC report.

“Electric vehicles and everything around sustainability and renewable power technology. In those areas, China’s absolutely booming,” said Standard Chartered’s Bill Winters at the Global Financial Leaders’ Investment Summit.

As the world transitions to renewable energy sources, China is also looking to reduce its carbon footprint with an emphasis on EVs and clean energy tech. It calls to mind certain leveraged exchange-traded funds that provide opportunities in the current market environment.


3 Clean Energy Trading Opportunities

For trading a burgeoning EV sector, consider the Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV), which seeks to achieve 200% of the daily performance of the Indxx US Electric and Autonomous Vehicles Index.

The index provides exposure to 25 U.S.-listed companies poised to disrupt the existing transportation market by bringing new and cleaner modes of transportation, such as electric and autonomous vehicles. It includes companies beyond vehicle manufacturers to paint a more holistic picture of the industry. The index includes charging station manufacturers such as ChargePoint and Blink, companies involved in software development and the manufacturing of various electrical components, and electric vehicle manufacturers such as Tesla, Lucid, and NIO.

Likewise, an emphasis on clean energy tech will benefit the Direxion Daily Global Clean Energy Bull 2x Shares (KLNE), which seeks to return 200% of its benchmark index, the S&P Global Clean Energy Index, in a single day. The index gives exposure to developed market countries whose economic fortunes are in the global clean energy business, including companies that are involved in the production of clean energy or provide green energy technology and equipment.

For broad exposure to upside in China as it looks to reenergize its economy, consider the Direxion Daily FTSE China Bull 3X ETF (YINN). If the country can pull out of its economic growth woes, traders can play the bullish card with YINN, which tracks an index (the FTSE China 50 Index) comprising the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange.



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