Anyone Into China Stocks?
 

With all this major growth happening in China, its painful to be missing out.

What you following?

If you don't know Chinese or don't have some close Chinese friends, you'd better stay away.

I do have many chinese friends but this is rubbish.... fundamentals are fundamentals whether its chicken tikka or chop suey.

I mean the Chinese live in China, not the Chinese live abroad...:winkwink:

my bf has some stocks in china

i have alibaba.com and xing (this one is in trouble)

It's a mistake to invest in the stocks themselves. Too volatile. I invested heavily in a China based mutual fund (AGF 701) and in the 16 months ending December 2007 I did 107% on it.

One of the reasons the funds are better is that they get preferential rates on the IPO's there, so when China Construction Bank and others did theirs it was a big win.

I think the days of the big gains are over there...You can probably expect a return on your investment close to the same percentage as the GDP growth of China itself.

I sold most of my China stuff last Xmas. I have bought back in a little bit as prices are low now but mostly I have gone into bonds until this mess in the economy gets a bit better. I am leaving a little sugar free to get in on the Visa IPO this month tho.

I own BHP (mining)
and CPTC.OB which supplies transmission cable to china.

CPTC has been painful though.

^ he nailed it !

Look into malysia and possibly india ! Chinas stock market boom is over at least for now!

Im not sure he did nail it. First off, China's boom is not over by any measure. I am already into China and India funds and ive seen superb growth but there were corrections in both this year which may be another entry point. Id like to work on building up my own portfolio of china equities.

Regarding Malaysia, well id rather go with emerging markets in latin america. Thats where the big growth is right now.

As for the Visa IPO, well one could argue that the timing is questionable...

:1orglaugh:1orglaugh

A popular way to invest is through the ETF FXI which holds 25 of the largest public companies in China. Here are the ETF's top holdings:

Holding Dollar Value % of Total Portfolio
CHINA MOBILE LTD N/A 10.45
CHINA LIFE INSURANCE CO-H N/A 8.91
PETROCHINA CO LTD-H N/A 7.84
IND & COMM BK OF CHINA - H N/A 5.84
CHINA CONSTRUCTION BANK-H N/A 5.82
PING AN INSURANCE GROUP CO-H N/A 5.37
CHINA SHENHUA ENERGY CO - H N/A 4.52
CHINA MERCHANTS BANK - H N/A 4.11
CNOOC LTD N/A 3.99
CHINA COMMUNICATIONS CONST-H

Here's more detail: http://www.etfconnect.com/select/fun...sp?MFID=136505

I'm a big fan of emerging markets and hope they will continue to do well even if the US falls further into recession.

Look into BIDU. the only china stock you need.

Hey Hershie, now you're talking! Some good leads there.....

You might look into India as its less mature and is considered to be far less reliant on the US than China and therefore less vulnerable to a US recession.

Im already doing well on India but im also starting to examine Brazil right now as it really seems to be taking off. I wonder what its vulnerabilities might be though in the latin america side of things.

I would never buy a single stock in any emerging market and always opt for a basket like an ETF or index. I was just looking at this article on PetroChina where the gov't has started to lean heavily on the company to subsidize gasoline prices for drivers to counter inflation... that will hurt profits big time going forward... so that kind of stuff you just can't account for using fundamental or technical analysis scares me in emerging markets: http://www.businessweek.com/magazine...ge_ companies

I don't think you can even call Brazil an emerging market any longer its doing so well and seems so stable. They really do have some world beating companies...

Two new India ETF's just stated trading and it has taken a long time for this to come to market because of regulatory stuff they had to deal with - I think the PowerShares one just started trading yesterday:

PowerShares India Portfolio (PIN)
WidsomTree India Earnings Fund (EPI)

Hey Hershie, which emerging markets interest you these days? Which are at the earliest stages in growth?

Definitely worth looking into India. I know a lot of funds in the UK avoided India for a long time because it just doesnt yet have the image and its infrastructure isnt as developed as China. A whole range of India funds came online in the two years because the growth has been so significant.

There was approx 20% correction in Dec through Feb in the India markets... good way in.

Right now I am only into a few mutual funds with EM exposure, a BRIC ETF, FXI and VWO (I like Vanguard's EM ETF rather than EEM as the MER is so much cheaper with similar holdings). I have no other country specific EM holdings and it represents about 15% of my total portfolio.

As for the boom being over I am not saying there will be no growth, not by a long shot. But I am sure it is not going to be like last year.

Visa is one of those things where I am sure in 5 years I will be kicking myself if I don't at least get a little taste. It wont be like Mastercard....But it is probably a good long term entry.

FXI is good. It is pretty much has the same holdings as the AGF fund:

http://www.agf.com/t2scr/static/app/...en/fund801.jsp

Whether or not this is the time to buy...who knows. I got back in a bit recently but I am still wondering if we are seeing the bottom in China yet.

I hope you didnt buy it during its first week of trading...I made a boat of money from that stock buying and selling it the first 45 days it was live.

Im always skeptical about Chinese stocks..

I dont know about china but in balcan I have 80% profit last year