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 Hong Kong Exchange & HK Stocks, Per title post-Extradition Bill W/drawal

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XweienX
post Jul 8 2020, 10:00 AM

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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.
XweienX
post Jul 8 2020, 12:08 PM

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QUOTE(foofoosasa @ Jul 8 2020, 11:21 AM)
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.
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thanks for the suggestions, will look into it. Definitely not trading.

QUOTE(Hansel @ Jul 8 2020, 11:23 AM)
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
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Alright, always been hearing about IBKR, guess I'll finally check it out now.
XweienX
post Jul 8 2020, 11:07 PM

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

QUOTE(Cubalagi @ Jul 8 2020, 10:05 PM)
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).
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XweienX
post Jul 9 2020, 11:43 AM

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QUOTE(Cubalagi @ Jul 9 2020, 10:50 AM)
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.
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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.

 

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