I noticed that, in spite of all the rhetoric and bad things mentioned abt the New Security Law,... things are looking good after the law has been introduced and first arrests made in the last few days,....

fund inflow from China > all bad news.

Based on yesterday traded total value for Hong kong equity is around HKD 250 Billion , If i recall well the value is comparable during 2015 and 2007 pre bull.

Good observations, bro,....good news for me too,...tq.

Hi sifus, I would like to diversify a little bit globally and think that China is a good market to bet on.

Would like to ask what's the best way to buy from HKSE (probably just looking at index now and not specific companies).

Should I just go through RHB Tradesmart and pay the extremely high fees? Since I am going to hold this for the long term.

2822 or 2832 which duplicate A50 performance on shanghai and shenzen.

if you don't always trade I think there is no issue if u use RHB tradesmart.

Morninng bro,... happen to come across your thread when I wanted to update this thread,...

A short reply to your questions above is to explore using Interactive Brokers and their white-(something) companies for best cost-efficiency. YOU can see a lot of infos inside here for this. ... You can use the local brokers,.. but the cost is higher,....

Other bros,... I mentioned abt the HK Dollar peg many times in this thread,... updating here with this news below,....

https://www.thestar.com.my/business/busines...ar-peg#cxrecs_s

thanks for the suggestions, will look into it. Definitely not trading.

Alright, always been hearing about IBKR, guess I'll finally check it out now.

Personally, I don't favor 2822 or 2823 for long term buy and hold. It's only good for short term trading.

Several reasons why I don't think A50 are long term buy n hold: A50 only hold 50 companies listed in mainland China, of which nearly half are financials. Annual management fees are also high.

Long term holding, you can consider the Vanguard Total China ETF (3169) which the poster Simplylegendary was looking at above. This has 800+ companies and low annual expenses. Or can consider ishares 2846, 300 companies listed in mainland.

or can consider my personal favs China investments exposure,:

1) 3173 HK Premia China New Economy

2) 0829EA Affin Hwang New China Tracker. This one is listed in Bursa itself n can save on brokerage and forex.

Both are "new economy" , tech heavy ETFs. The difference being the Affin ETF invests in China companies in US and HK. The Premia etf is invested in Shanghai and Shenzen new economy stocks. 0 bank exposure in both.

FYI 1 year return based on bloomberg:
3173 = 48%
0829EA = 25%

Not bad, considering the past 1 year there was a trade war and covid pandemic!.

I hold both etf for long term China exposure. Short term tho, I have been day trading A50 warrants (warrants over 2823).

This post has been edited by Cubalagi: Jul 8 2020, 10:12 PM

Any other pros and cons of investing directly in HKSE etf vs Bursa's China Tracker etf besides fees and forex?

I currently hold ETFs in bursa, Hkex, SGX and have been using etfs since 2013. They are good diversification tools.

The cons:
Bursa China Tracker (0829EA) has low volume. If u don't fully understand ETFs, that might unnerve you. But U actually look at the market maker for liquidity. Note tht the marker maker doesn't provide liquidity when HK is closed. So eg between 9-9.30am, when bursa open but HK is still closed, there won't be liquidity. Same with lunchbreak.

The pros: Well, transaction costs (brokerage, forex etc) are big deals, esp if you are buying small amounts. Another pro is that I can easily contact the fund manager if I have questions and they will layan (At least Affin does). Worse case, I know I can call Bukit Kiara to complaint if I feel I've been mistreated.

btw there are two Chinese etfs on bursa, one by Cimb Principal and one by affin. I don't like the Cimb Principal one because it uses the FTSE China 50 index (like the FXI in US) . Another "too much bank" ETF. The stocks I want to invest in the long term are the likes of Tencent. Baba, JD, Meituan etc, and not old economy ones like CCB, ICBC, Sinopec etc.

Anyway, these are my personal views. Please do your own DD.

This post has been edited by Cubalagi: Jul 9 2020, 10:53 AM

Thanks for the information. I'm kinda caught between wanting growth (so tech stocks) and stability (bank stocks) so I guess I should look through my current portfolio and see which one I need more.

Bros,... aren't you guys concerned if the pegging of the HKD and the USD is removed or revised ? You might then have Exchange Risk.

The thing abt investing is we wished to invest into an environment with a stable currency and preferably, with a 'normally' stronger currency than our native currency,...

In this new world, big tech is considered a defensive sector and banking is the risky sector. There are also many bank stocks on Bursa Malaysia if you want banking exposure, whereas there is no big tech. That's my thinking anyway.

This post has been edited by Cubalagi: Jul 9 2020, 01:36 PM

Most likely revised. Removal will take quite some time.

Removal will hurt many US company and hk local company at hk. Which is not the main objective from US who want more more pressure toward china.

The speculation that the first move will be limit the ability of HK banks to buy USD.

That's why we can see financial institutions like hsbc, standard chartered share price is lag behind hang seng index.

While all those related to tech and china economy related continue fly.

Most of the fund inflow from china still only aim china related stock and tech while stay away financial institutions like hsbc, stan chart and banks.

This post has been edited by foofoosasa: Jul 9 2020, 01:42 PM

I don't think it will happen. Right now u can see the market is also not taking this threat seriously. But, if it happens, it will send a shockwave to the whole global financial system.

Having said that, I have been bearish Hong Kong for several years. I don't buy Hong Kong stocks or HSI. I buy Chinese stocks listed in Hong Kong, which is a different thing, as they earn in RMB.

Tq bros,....

On my part,.. I tend to believe that The US will do 'something' along this line to try to hurt China. Perhaps,... the first action could be,... as reported,... to limit HK Banks' access to USDs.

With China trying to promote usage of their RMB, and trying to steer away from the USD,... hmm,... now would be a good time for them to do this.

Bro CL,... as for the Chinese stocks listed in the HKeX, if they are denominated in the RMB, wouldn't you be experiencing Exchange Rate Risk due to the volatility of the RMB ? Secondly,... if you are going fpr the dividend, you would be experiencing 10% withholding tax too, unless of course, you are gunning more for growth,...

If nothing happens to the peg, and your Chinese stock is listed in HKD, then things will be status quo, HKD will still be a good currency to be exposed to.

Hong Kong will be hurt, but ultimately US too. I see such an act to be the beginning of the end of the USD as the global reserve currency.

US has the privilege of having the world reserve currency. As Uncle Ben in Spiderman said "with great power comes great responsibility".

The stocks doesn't have to trade in RMB. I usually buy the HKD ones. But the important thing is that the revenues are in RMB. So, if RMB strengthen, the stocks go up in HKD. Vice versa. That's one reason why Chinese stocks are volatile.

N I don't really care about dividend for Chinese stocks. As I mentioned above, I am interested in the tech types, which hardly pay dividends. I stick with Singapore and Malaysia for dividends. I'm not an all out dividend investor like you!

Anyway, a break in the peg will be a risk off moment for all risk assets. U will probably get a big market crash everywhere.

This post has been edited by Cubalagi: Jul 9 2020, 04:07 PM

Tq for replying and for your opinions,...

Thing is,... for myself,.. with my dividend-paying companies, I get a lot of capital-growth. I carry this belief that if we pick the right dividend ctrs,.. capital-appreciation will come along as a topping on the cake. This,.. I have enjoyed with many of my ctrs in different countries that I invest into..

Sharing an excerpt of an article below that I read this evening. This resonates with what you said this morning,... :-

Reports that the Trump administration was looking to undermine the HKD peg were dismissed. In fact, the Hong Kong Monetary Authority has been intervening this month to defend the lower (or stronger) limit of the 7.75-7.85 convertibility band for USDHKD. More importantly, the US cannot unilaterally revoke the HKD peg. The Linked Exchange Rates System (LERS) was established in October 1983 by Hong Kong and not by the US-Hong Kong Policy Act of 1992. The 1992 Act has, however, been amended last November by the US Congress via the Hong Kong Human Rights and Democracy Act. In late May, US Secretary of State Mike Pompeo certified that HKSAR no longer enjoyed a high degree of autonomy after the draft National Security Law for HKSAR was submitted to the National People’s Congress.

--------------------------------------------------------------

Trump advisers rule out undermining Hong Kong's dollar peg

https://www.reuters.com/article/us-usa-hong...s-idUSKCN24E2W4

Yeah bros,... saw some news these two days abt the peg,....

1) NO removal or chg seen in the near term since there is not much support from politicians.

2) POTUS said no chg to be made. He said this morning, our time,....evening DC Time,...

Congrats to you guys holding-on,...