Only to lesser extent, because China RMB is still not a major currency..

And everyone's debt is now much higher than before..

China huge debts is more on the corporate side. US is more on the govt side.

This post has been edited by Cubalagi: Mar 31 2020, 06:28 PM

China.. Yes. Already March preliminary PMI readings are showing recovery from Feb. They are also doing big stimulus programs in terms of infrastructure and tax breaks together with monetary easing. And low oil prices is good for China. But their export sector will still get hit tho..


HK - has other problems aside from covid-19.

Trade war, HK riots..

Coz HSBC is the largest bank in HK.

Why u hold this ETF?

Yes, 2800 is the biggest and also the first ever ETF in Asia I think.

But "Biggest" shouldn't be the first reason for buying an ETF. And I'm not sure about "safe" and "no surprises" since we are talking about investing in HK which is always full of risk and suprises.

For me, the first and main reason I buy a particular ETF is because I hold a particular view of the future prospects of the underlying assets. Which is translated in the index performance tracked by the ETF.

For example, because of the massive money printing, debt and uncertainty globally, I think gold will perform well. So I looked for a Gold etf to invest in. There are a few choices of gold etf everywhere, and I will then choose one that is acceptable.

In this case, you are buying 2800, which is a HSI ETF. So do you think that HSI will perform well in the future and why?

This post has been edited by Cubalagi: May 3 2020, 08:30 PM

I don't like HSI. As you said, it's 70% China. The other 30% is HK. And I'm rather bearish of HK future.

I prefer HSCEI compared to HSI, that's pure 100% China HK stocks. Look at 2828 for HSCEI exposure.

Or you can even go for direct A shares exposure via 2822 or 2823. This is A50. Good thing about A share is that as foreign investor have limited access, the correlation is very weak with global markets. Low correlation is good for diversification purpose.

I have owned HSCEI and A50 etfs over the years, going in and out. The main problem with HSI, HSCEI and A50, are the high concentration of banks in the indices. Same like KLCI and STI. I think current recession will cause banks to underperform.

They also don't have enough exposure to the new companies, Iike the US listed Chinese giant tech stocks like Ali Baba, JD.com, Baidu. And even HK listed Meituan Dianping (grab food, food panda of China). How can one claim to invest in China without exposure to these companies?

My view, to invest in China now, I rather go for the new economy types. My preference will be the smaller etfs eg:

2812: Global China new economy: US listed, HK listed and China mainland listed
3173: pure China mainland listed new economy. Lots of Chinese biotech and Healthcare exposure.

You maybe suprised to know that my main China exposure is via 0829EA on Bursa Malaysia. This is only US China stocks and HK China stocks, no A shares. So it's not like 2812 which has A shares, but it's wider in terms of industries. But important is cheaper transaction costs. But if I want to add my China exposure 3173 will be on my shopping list.

This post has been edited by Cubalagi: May 4 2020, 10:32 AM

Yes, it's HSI without HK stocks, with extra Chinese H shares filling in the gap. HSCEI is a bit more volatile tho..

U can read this on A shares correlation:

https://www.kiplinger.com/article/investing...s-consider.html

And if u are familiar with mainland China, u know that the ppl are really big into all the apps and fintech stuff. I would like my Chinese investment to be overweight those, rather than old economy like banks, property development and OnG. HSI only gives me Tencent, mostly the rest are old economy.

And another reason is that China stimulus vs the coronavirus is also focused on the "new infrastructure" things like 5G, AI, IoT, biotech.. They are not doing a bazooka helicopter money like the US.

2812 is mostly the big ones like Baba, Tencent

3173 are the small ones u never heard before, listed in Shanghai and Shenzen. 300 of them screened by the fund manager. Potentially the future Baba and Tencent.

The only thing is that the ETFs are relatively small and trading volume is low. But the fund managers are pretty solid.

Don't want to spoon feed you but u can look at the managers website.

https://etfprod.premia-partners.com/etf/3173

3173 is still on my wishlist, I haven't bought it yet. Waiting for some clarity in the world + I already have China exposure as I said. But from the same fund manager, I own some 2804 Vietnam ETF.

This post has been edited by Cubalagi: May 4 2020, 03:12 PM

But don't buy tomorrow. China mainland market is still closed for 1 May holiday. This ETF will have bad liquidity when mainland closed.

In China, they have these "ETF wrappers" sold by the bank.
Basically a fund that invest in an ETF. It's good for the bank because they can sell it like a fund and charge stupid fees, not good for investors.

Hi

Just an update. Good news for Han Seng ndices. Finally.

https://www.cnbc.com/2020/05/19/china-techs...seng-rules.html

This post has been edited by Cubalagi: May 19 2020, 06:03 PM

Before..

My China Tracker ETF (0829EA) which has Baba and Meituan already hit record high.

This post has been edited by Cubalagi: May 20 2020, 01:51 PM

The changes will only take place in August so got time.

Waiting to see if S&P breach 3000..then see situation. Maybe I take some profit

I currently hold:
3140 Vanguard S&P500 etf
2804 Premia Viet etf

And 0829EA etf (Bursa) for my foreign equity index exposure.

This post has been edited by Cubalagi: May 20 2020, 02:08 PM

Just convinience n habit. I dislike too many exchanges and exchange rates n costs etc to think about.

Sooner or later the likes of Baba, Bidu, JD.Com will leave US markets. Immediate beneficiary I guess will be HKEX (0388).

Unforunately, this US-China spat will only gets worse as the US elections loom closer. Anti China sentiment is shared by both Republicans and Democrats. This will probably be cause of the next major market downfall after Covid-19. Which is also why I will still keep growing my USD and Gold allocations.

This post has been edited by Cubalagi: May 21 2020, 03:17 PM

All the Chinese ADR are incorporated in these islands. Lukin Coffee is also incorporated in Cayman.

Im sure HKEX, if not SSE. No point in LSE with the UK special relationship with the US. For Baba ADR, no problem as the ADR are ready exchangable to the HK listed shares. Expect the others like Bidu, JD.Com to apy for listing in Hk as well soon.

I keep USD cash deposit. Btw today n tomorrow I will lighten my Equity exposure, in general.. I want a peaceful CMCO Hari Raya next week.

https://www.reuters.com/article/us-baidu-de...s-idUSKBN22X1HA

Bidu is considering delisting from Nasdaq and listing in HK.

Firstly,, as u know, I don't like HSI the index. There are other superior indices out there and now is a time to be selective. For eg today is the start of the CCP party conference and they might announce a big stimulus. If I want to take advantage of that, I will probably get 2822 or 2823 instead of HSI.

However I have been taking money off equities this week, instead of adding more. Take that for what it's worth.

As for USD, exposure, as an alternative, you can also buy a USD money market ETF like 3096. Since u trade US, u can also buy ETF like UUP.

https://www.scmp.com/tech/policy/article/30...ampaign=3085362

China stimulus.. Still no sign of helicopter money for the rakyat..