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Cramer’s Top Trade on China’s Recovering Economy

It seems the Chinese economy is stabilizing, Jim Cramer said Monday, as China's trade surplus ballooned in October to its widest level in nearly four years and export growth rose to a five-month high.

Cramer’s Top Trade on China’s Recovering Economy

"Both the macro data and the micro from individual companies that do business in China are saying the same thing: the Chinese economy is stabilizing," Cramer said. "They've got inflation whipped and 2013 should be a better year for the People's Republic than 2012."

To play it, the "Mad Money" host doesn't recommend investing directly in individual Chinese companies, but rather the iShares FTSE China 25 Index Fund exchange-traded fund. The FXI owns a basket of what Cramer considers "the highest quality Chinese companies," including oil and gas companies CNOOC and PetroChina and China Mobile, as well as several large Chinese banks and insurance companies.

(Read More: What's an Exchange-Traded Fund?)

"If I'm right about the stabilization in the land of Mao, then the FXI should go higher, possibly much higher," Cramer said.

Read on for Cramer's Game Plan for the Rest of the Week

When this story was published, Cramer's charitable trust owned the FXI.

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