China ’s latest economic reports have raised hopes as the nation’s leadership changes in March. Last week brought some surprises from China, as a number of commentators continued to express doubts about the “cyclical recovery” which many economists have discussed.  A key focus of the debate involves the consequences of China’s 30-year old “one child” policy, which has left the nation with a shrinking workforce.  During 2012, the segment of the population considered to be of “working age” (15 – 59 years old) shrunk by 0.6 percent from 2011. In March, Li Keqiang will assume the position of China’s new Premier when the National Party Congress convenes.  The party’s general secretary Xi Jinping, will become President.  Both leaders are considered advocates of reducing the high degree of income inequality in the nation.  A massive revolt by the nation’s poor is a threat which is taken very seriously by the new leadership.   Hong Kong ETFs to Surge in 2013? On January 18, China’s National Bureau of Statistics reported that the nation’s fourth quarter GDP beat expectations by expanding 7.9 percent on a year-over-year basis, despite forecasts of a 7.8 percent increase.  The Bureau of Statistics also reported that retail sales increased in December by 15.2 percent on a year-over-year basis, compared to 14.9 percent in November.  The nation’s electrical output rose to its highest level since August, as industrial output increased by 10.3 percent in December. China’s Customs Administration has been busily defending its January 10 report that the nation’s trade surplus increased by 48 percent in 2012 on an annual basis.  The Customs Administration claimed that China’s foreign trade increased by 6.2 percent during the year, with exports rising 7.9 percent and imports rising 4.3 percent.  Many economists have expressed skepticism about the report’s veracity. The chart for the Shanghai Composite Index (below) indicates that after experiencing a “death cross” moment last summer, the 50-day moving average is lower than the 200-day moving average.  Nevertheless, the 50-day moving average is headed back toward the 200-day MA for a “golden cross”.  At Friday’s market close the 50-day moving average had reached 2,189 and was just 66 points below the 200-day MA.  After closing at 2,317 its next resistance level is the March 2, 2012 high of 2,460  (Chart courtesy of  Stockcharts.com ) The chart (below) for the iShares FTSE China 25 Index ETF (NYSEARCA:FXI) portrays a more pleasant situation.  The 50-day moving average is on a steady climb above the 200-day moving average and at 41.70, FXI is well above the 50-day MA of 38.71, flying away from an inverse head-and-shoulders pattern.  FXI has a Relative Strength Index of 66.69 and its next resistance level is the February 3, 2012 closing price of 49.49.  (Chart courtesy of  Stockcharts.com ) Emerging Markets ETF Update:  iShares FTSE China 25 Index Fund ETF (NYSEARCA:FXI):  +0.82%,  This ETF is designed to track the FTSE China 25 Index Fund.  The FTSE China 25 Index tracks the performance of the top 25 Chinese companies; each company is traded publicly on the Hong Kong Stock Exchange.    Learn More About iShares ETFs SPDR S&P China ETF (NYSEARCA:GXC):  +0.45%,  This ETF  seeks to closely match the returns and characteristics of the total return performance of the S&P China BMI Index. iShares MSCI Emerging Markets Index Fund ETF (NYSEARCA:EEM):  +0.27%, This ETF is designed to track the performance of the MSCI Emerging Markets Index.  The MSCI Emerging Markets Index tracks emerging markets’ stock market performance as reflected by the performance of top companies and sectors in many emerging markets including China, Russia, Mexico, Brazil, Taiwan, and India. iShares MSCI Brazil Index Fund ETF (NYSEARCA:EWZ):  -0.02%, This ETF is designed to track the performance of the MSCI Brazil Index.  The MSCI Brazil Index tracks Brazilian stock market performance as reflected by the performance of top companies and sectors in Brazil including PetroBras, Banco Bradesco, Vale SA, and CIA De Bebidas Das Ame. Flap with S&P Doesn’t Derail Turkey ETF Bottom line:   Despite longstanding concern that China ’s economy could be headed for a “hard landing”, the most recent economic reports suggest that those fears may be unwarranted.   Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.