How to trade Shanghai Composite?

[alphaman]

Long China/Short US seems like a reasonable bet to me. But I'm having difficulty locating a suitable instrument for the Chinese indices. The closest thing I can find is some silly ETFs which I prefer not to use because their historical performance do not quite follow the Shanghai Composite.

Anyone trades the Chinese markets?

 

[CanOz]

Long China/Short US seems like a reasonable bet to me. But I'm having difficulty locating a suitable instrument for the Chinese indices. The closest thing I can find is some silly ETFs which I prefer not to use because their historical performance do not quite follow the Shanghai Composite.

Anyone trades the Chinese markets?

Here is the SC Index and the ETF called FXI. Heres a recent article in Seeking Alpha

http://seekingalpha.com/article/120780-etf-update-time-to-look-at-china

Enjoy!

CanOz

 

[alphaman]

Thanks CanOZ.

It seems FXI has been tracking somewhere between SP500 (red) and Shanghai Composite (green).

 

[Trembling Hand]

Thanks CanOZ.

It seems FXI has been tracking somewhere between SP500 (red) and Shanghai Composite (green).

The ETF is in USD? Is that the diff?

 

[sinner]

You can trade FXI on the ASX if you use Commsec (although as mentioned in the iShares thread, liquidity is a bit terrible) with the code IZZ.

EWH is IHK.

 

[alphaman]

The ETF is in USD? Is that the diff?

Good point TH, I never thought about that.

The ETF is listed in New York, so it's in USD. USD/RMB looks unnaturally stable, so I'm not sure if exchange rate had any effect.

Interestingly, it seems the Shanghai index is also in USD, according to Shanghai Exchange:

indices are adjusted according to applicable exchange rate (middle price between RMB and US dollar on the last trading day of each week) at China Foreign Exchange Trading Center.

I'm not familiar with FX, but the bottom line is the ETF has not followed Shanghai into the recent high, so I don't really see the ETF as a viable proxy. Geez what's the point of having an index if you cannot trade it!

 

[gfresh]

You can trade FXI on the ASX if you use Commsec (although as mentioned in the iShares thread, liquidity is a bit terrible) with the code IZZ.

I have been looking at IZZ.. but unfortunately it doesn't seem to be tracking the current recovery in the SSE Is this because the top 25 stocks it tracks is not leading the recovery? Does seem a bit useless..