That's right, bros,... two things that cought my eye,...

1) no helicopter money announced.

2) military spending has been reduced to 6%.

I was thinking both of the above would be increased this round.

Hi guys,

What's your thought about equity linked investment. I wanted to pull out funds from my equity market into government or corporate bonds, and the broker keep pushing this.

Note: Please analyze objectively and don't say all structured products are bad, though most are. ;-)

Equity Linked tied to both shares below
Tencent 0700.HK
Alibaba 9988.HK

Package
Airbag 80%
Coupon 16%
Early call 10%
Period 3 months

Which means that if I buy with principal 100 HKD of Equity Link Investment above, I get a coupon interest of 16% p.a. paid monthly, but if both Tencent and Alibaba drops below 80% of their shares I will get the share + coupon interest instead. The early call is whereby if the shares both goes up more than 10% the whole product will get exercised ahead in advance, and you get back the principal interest based on how much it has been going.

Scenario
1) Make money. Both shares go up more than 10% and early call is struck after trading, I get back principal (100 HKD) + interest period (16% p.a.)
2) Lost money. Both shares go down more than 20% and airbag is struck after trading, I get back share (now at 80 HKD or worse) + interest period (16% p.a.)
3) Make money. Both share go up less than 10% or down less than 20% the whole investment finished in three months, I get back principal (100 HKD) + interest period (16 p.a.)

Summarizing, I have a 36% range max (16% coupon upside + airbag downside protection which means it may go down to 20%), and unlimited downside but shares has to go down beyond 20% for it to take place.

Am I getting it right?

For me i just tighten my seat belt and enjoy the uptrend.
As usual, tencent the king of hk stock my favourite all the time.
If one want add more fund in hkse can consider Alibaba, JD both another good choice.

Does anyone own Vanguard Total China Index ETF (3169.HK).

Considering because of the AUM and low ER. Also because it invest across all type of China shares ( A shares, H, P chips etc).

Thanks Cubalagi, always helpful

I've taken a look at the 2822 and 2823 you mentioned, they are good but two issues
1) not all market, as they tracks A50 companies, which is listed on Shanghai and Shenzhen. Still very good but 3169 takes it one step further even by tracking all major Chinese companies which is listed anywhere.

2) Expense ratio, I think 2822 and 2823 are higher.

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.

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

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

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,...

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.

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,...

Top-up my Chindia fund today. Anyone top-up Tencent and the likes?

BABA is a Giant OCTOPUS, a Fenomenal CASH Machine

Never disappoint