Investing in the Chinese stockmarket?

[Ogamer]

Hi,

Sorry to ask a silly question, but what's the most economical way to directly buy shares in the Chinese stockmarket (eg. the SSE) from an Australian perspective ? Thanks.

cheers,

Ogamer

 

[qldfrog]

IZZ is a nice easy way to get exposure (ishares) but it is not direct and is index based

 

[MRC & Co]

Hi,

Sorry to ask a silly question, but what's the most economical way to directly buy shares in the Chinese stockmarket (eg. the SSE) from an Australian perspective ? Thanks.

cheers,

Ogamer

Be very careful.

The Chinese stockmarket is due for a very large correction IMO.

Most of their stimulus has been pouring into their stock/property markets with little emphasis on real production. Their view on consumption/savings has not changed and sentiment on their market is unjustifiably (IMO) bullish.

Perfect scenario for a 'double dip' in their market.

 

[vincent191]

The Chinese stockmarket is not open to foreigners. The best way to get involved is to buy into a fund that invest in China. Talk to your broker.

 

[SilverRanger]

The "H-shares" in Hong Kong, same companies as the ones in China but trading at much lower P/E multiples

 

[Dowdy]

AMP has a China fund listed on the ASX (Code:AGF)

 

[moXJO]

Any one used leveraged etf's (either direction)to trade china?

eg: FXP, FXI (both on US)

 

[moXJO]

Any one used leveraged etf's (either direction)to trade china?

eg: FXP, FXI (both on US)

Forgot to add

Newbies do not use these as a long term investing vehicle and dyo research before hitting the buy button.

A simple example can demonstrate the dangers of utilizing a levered ETF. Suppose an investor purchases a levered ETF at 100 when the underlying index is also 100. Say the markets are experiencing significant volatility as of late, and experiences a 40% reduction in aggregate prices for the trading day. The market now closes at a price of 60 and the levered ETF, which doubles the moves of the underlying falls 80%. The ETF’s value is now reduced to 20.

The next day, the markets completely reverse the previous day’s losses, and experiences a 100% move closing at 120. The levered ETF, following suit, should increase by a multiple of 200%, and closes at a price of 60. Notice the impact leverage has on the returns?

An investor holding a traditional ETF would have a gain of 20 at the end of the second day, while the investor of the levered ETF is still at a loss of 40. The magnification of price fluctuation dramatically reduces the principal basis for the investor to experience subsequent gains. That is a major source of inherent risk for investors of levered ETF’s.

 

[MR.]

The Chinese stockmarket is due for a very large correction IMO.

Most of their stimulus has been pouring into their stock/property markets with little emphasis on real production. Their view on consumption/savings has not changed and sentiment on their market is unjustifiably (IMO) bullish.

Perfect scenario for a 'double dip' in their market.

And continues up another 13%!

That places China up 100% from it's lows.
Thought the yanks being at 50% was overdone..........


Take a Look at the China chart.
"Is the outlook now as favourable as March 2007?"

 

[MR.]

View attachment china3.bmp

 

[MRC & Co]

And continues up another 13%!

That places China up 100% from it's lows.
Thought the yanks being at 50% was overdone..........


Take a Look at the China chart.
"Is the outlook now as favourable as March 2007?"

Yep, their Gov isn't holding back on the stimulus either, despite attempts to transfer it out of the 'casino' and into the real economy (the reason I was looking for a correction in their casino), they follow it up straight after a 5% drop, basically telling the market to keep on pumping like they will be.

 

[MR.]

"Yes, citizens of China, cheap money will continue."
Buy buy buy........ Ummm?

Wonder how this will end? Perhaps :bad:

http://www.google.com/hostednews/ap/article/ALeqM5gyOyu489MGxgNJa4IzoiP9OCksSgD99RE7G80

China's bank regulator spooked investors last week by issuing a statement reminding institutions not to finance speculation. But after that caused the market to plunge by 5 percent, the central bank issued its own statement promising investors its "relaxed monetary policy" would continue.

 

[Tradesurfer]

symbol:FXI is actually a normal weighted etf based on the FTSE/Xinhua China 25 Index. I tend to use this vehicle to trade based on china. By and large the companies are either ADR's traded on the us market or hong kong. Seems to track the Shanghai Index pretty well.

 

[MRC & Co]

symbol:FXI is actually a normal weighted etf based on the FTSE/Xinhua China 25 Index. I tend to use this vehicle to trade based on china. By and large the companies are either ADR's traded on the us market or hong kong. Seems to track the Shanghai Index pretty well.

I would like to see an overlay.

The H-shares don't come anywhere close to tracking Shanghai Composite.

A reason I believe they don't want a futures contract, arbs would have a field day and cause a Chinese market correction/crash (depending on definition).

 

[CanOz]

I would like to see an overlay.

You are quite right Mr.C, there is not a 100% correltation, not even close.

However, i have used it recently to catch most of the last move up. Its also long only.

CanOz

 

[MRC & Co]

You are quite right Mr.C, there is not a 100% correltation, not even close.

However, i have used it recently to catch most of the last move up. Its also long only.

CanOz

Yeh, the idea is there, you can use it for general direction.

Haven't see you around for a while Can, good to see you back.

 

[CanOz]

Yeh, the idea is there, you can use it for general direction.

Haven't see you around for a while Can, good to see you back.

New job, too busy to even surf.

Cheers,


CanOz

 

[moXJO]

symbol:FXI is actually a normal weighted etf based on the FTSE/Xinhua China 25 Index. I tend to use this vehicle to trade based on china. By and large the companies are either ADR's traded on the us market or hong kong. Seems to track the Shanghai Index pretty well.

Yes punched in the wrong symbol. Are the 3x eft still operating, or were they canned after to many people complained of losing all their money?

 

[matty2.0]

some chinese companies list on overseas exchanges.

 

[moreld]

Here's a list of Chinese ADRs I compiled 18 months ago in preparation for shorting the last bubble. http://spreadsheets.google.com/pub?key=tDqlwMrnlNF1FBGs4-hn0DQ&single=true&gid=0&output=html
There's an Excel copy with auto updating available in this post http://www.fusioninvesting.com/2009/07/getting-down-from-my-pulpit/