December 4, 2008
China 50 ETF
If you’d like to invest in the Chinese stock market, assuming you are able to set up a local account, the China 50 ETF is a pretty good way to go. Here’s a simple introduction to and the current holdings (sorted by weighting) of the ETF. When things are down 60, 70, 80% and the mood is grim, it’s usually a good time to start systematically putting some money into stocks.
December 4th, 2008 at 10:52 am
Symbol? I can’t find this by the Bloomberg symbol above….
December 4th, 2008 at 10:54 am
@Damian: 510050
December 4th, 2008 at 12:04 pm
Still trying to catch falling knives?
December 4th, 2008 at 12:23 pm
I have been doing just that (systematically putting some money) into the XinHua A50 through HKSE (HKSE: 2823 )since Sept. hopefully he worth something in 2-3 year…
December 4th, 2008 at 12:51 pm
C.M., what % of its revenues does the average Chinese family save? How are its costs distributed - what % for house, car expenses, utilities, entertainment? Do you think that rising local consumption might partially offset the expected slowdown in US consumption?
December 4th, 2008 at 2:43 pm
@Brian: Nope, just socking a little money away every week and forgetting about it.
@James: It’s probably not a bad idea.
@ivanhoff: Dunno, but it’s a lot… probably 40-50% on average is my guess. 1/5 urban households has a car, I’m not sure what private home owenrship rates are. Nothing can offset the slowdown in US consumption. :)
December 4th, 2008 at 4:33 pm
the Chinese stock market look like nasdaq composite index on 30/09/2002 (hope) bye
December 4th, 2008 at 5:07 pm
@Luca: Well it could fall another 40% from here and return to 2005 levels … I can see that happening, so I’m probably “early” yet again.
December 4th, 2008 at 9:01 pm
Why not FXI?
December 4th, 2008 at 9:19 pm
@Steve: FXI represents 25 Hongkong-listed Chinese companies … I’ll have to take a look tomorrow at how correlated the China 50 ETF and the FXI are (if I can remember) … if you scroll down the linked spreadsheet I’m sure there are a lot of names you don’t recognize, especially those in the blood products business. :) (I follow FXI and FXP for the ETF newsletter so I do keep an eye on them.)
December 4th, 2008 at 10:19 pm
any idea why FXP has gone from 180 to 45 in the last month?
December 4th, 2008 at 10:43 pm
@bob: Ha! These Ultra-things work in mysterious ways and I’m just glad the system said exit/short FXP at $86 or so.
December 5th, 2008 at 7:44 am
Why not China Life (LFC)? Sure they have consumer side of the business……but, do they not invest a potion of those premiums in the Shanghai stock market?
Pull up a chart of LFC…….it looks very similar to Chair’s.
December 5th, 2008 at 8:53 am
@C. Maoxian,where can i find a free Bloomberg?
December 5th, 2008 at 1:22 pm
@Chad: LFC is one of the China 50 ETF component stocks; you have single stock risk if you just buy LFC.
@midi: I understand there were a number of Bloomberg terminals in the dumpster area behind Lehman Brothers; take a look there.
December 10th, 2008 at 6:35 pm
good call