Is anyone holding 2800.HK in HKEX? That's one of my ETF holding in HK so be good to know how u guys feel.

It replicates the Hang Seng index and is probably the biggest ETF in HKEX. So I guess safe and no surprises?

Gotcha bro.

The reason is because my investment first three principle "diversify, diversify, diversify", the next three is "low cost, low cost, low cost". So apart from ETFs in US, my second biggest bet is China-focused ETFs, since I can't buy A-shares directly, the next best thing is H-shares, but I am really bad at stock picking. Hence I just buy the whole basket! Also 2800.HK's component are 70% China companies, which I like.

2828 could be an even better choice, I am in the same line with you on HK's outlook.

Can I understand that 2828 is basically 2800 minus the HK companies (like HSBC).

Low correlation is often understated, and diversification is key.

Right now all indexes globally are too correlated.

I admit that the FAANGs of China have not monopolized China's index like what happened in the US. It bites both ways I guess, if tech stocks drops basically most US Indexes will go down.

Indeed KLCI and STI are heavy on banks, if US is any indication the banks' weightage will drop. But also then again, banks is a local business and tech is not. US tech companies are able to take the world, but the same cannot be said of Malaysia and Singapore tech companies. So it could be a decade before the regional banks being taken out from the indexes like what happened to US, if ever.

I sometimes have reservations about smaller company whose market cap is less than 1B USD, are 2812 and 3173 big companies in the new economy, or smaller ones?

OK this is really interesting, I might even stop putting money into 2800 and start going into 2828.

Yes, you could say that I was in China before most did.

HSI only gives us Tencent, indeed.

OK so 2812 is big boy and 3173 is smaller players and 300 of them. Do they try to replicate an index such as "SZSE Technology Index" or they are active managers picking their own lot. How about expense ratios? I know I should Google all these....but since there's a sifu here.

For a 2 year fund the size is not bad at 100 M+ USD, expense ratio is 0.50%. Not bad considering there are so many competitors out there.

Will check it out.

Hey man, just checked my China bank account (which I have not used for ages), apparently I can buy direct into their "ETFs" even though I don't own a brokerage account in mainland China.

They call it ETFs but it fact it is a fund but their allocation includes shares, I've taken a screenshot of one of the "tech / new economy" funds. And obviously you need RMB and a China bank account, so not the most practical, if you read Chinese here goes, just for fun.

The expense ratio is pretty high though. 2.5% to buy and 0% to sell if you hold it for over 730 days.

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This post has been edited by simplylegendary: May 5 2020, 05:01 PM

Yea apparently so....from the expense ratio fees. But I guess it's the same elsewhere whereby funds are wrapped around ETFs, like a glorified version of robo advisories.

Quick question, do you guys have your own CCASS account or your HK stocks are held under nominee?

1. I am using Standard Chartered HK Priority Banking to buy my HK shares, they probably have a brokerage license since I can do HKEX trading inside the online app. I don't know if the shares are held under nominee or with a CCASS under my own name.

2. Now lockdown....

HSI is turning into China Index, which is not necessarily a bad thing.

I know this is a HK exchange forum, but is there any reason why you buy 3140 instead of US' VOO or their Irish domiciled version?

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?

Yes, so it's 4% return for 3 months if the stock prices moves between 80% - 110% of my original principal, but if it goes down more than 80% I have to take the hit and take the stocks, which by now has only 80% or even lower compare to my principal.


Currently the practicals ones I can get hold of are Singapore Government bonds, corporate bonds or US T bills.

1) Singapore bonds - subscribed via banks in SG. (HK gov bonds seems to be very low and I am not interested to accumulate more HKD as I already have)
2) Corporate bonds - blue chip companies issuing debts, right now there are still companies giving out 4% bonds with a few years maturity, but I have not sold bonds in secondary markets so I am not sure about slippage or volatility, I am guessing there shouldn't be.
3) T bills - maybe just buy via Vanguard or something, since I don't know how to buy T bills directly, and Vanguards fees are cheap enough.

This post has been edited by simplylegendary: May 27 2020, 04:36 PM

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.