Ways into China

ReportInvestor

Not an investment recommendation, but just a point of information for anyone who has already decided to get exposure to the Dragon.

FT

".....buying Chinese shares directly is not a realistic option for UK-based investors. Indeed, even professional fund managers who want to invest in China have to be creative to get around the quota system.

The Aberdeen Global China Opportunities Fund, for example, invests in Hong Kong-listed H-shares in mainland Chinese companies. The First State Greater China Growth fund holds about half of its assets in mainland-listed stocks, a third in Hong Kong and a fifth in Taiwan.

Bestinvest, the broker, argues that most investors are better off putting their money into Asia-Pacific funds rather than China-specific ones to avoid putting all their eggs in one basket.

It recommends funds including Aberdeen Asia Pacific, which has 19 per cent of its assets in Hong Kong and 4 per cent in mainland China; Invesco Perpetual Asian, with 21 per cent in Hong Kong and 7 per cent in China; and Templeton Global Emerging Markets, which has 17 per cent of its assets in mainland China and 14 per cent in Taiwan....."

YorkshireBoy

So my decision (although not yet actioned) to go for INV PERP HK & China Acc might be a poor one then?

I had looked at INV PERP Asian Acc but didn't think there was enough exposure to China.

ReportInvestor

Hi YB,

I tried to find your earlier thread and searched for "China" but couldn't seem to find it. Could you add a link?

I don't think the article actually says that your decisions is a poor one. It is just reporting one broker's opinion.

I'm really just providing information here, as I don't actually have an investment in China that I follow other than a generalised SE Asia unit trust.

YorkshireBoy

ReportInvestor wrote:

I tried to find your earlier thread and searched for "China" but couldn't seem to find it. Could you add a link?

I haven't posted previously about China (I don't think anyway). It's just that I'd selected this fund as one of four I was going to buy into for my first venture into equity ISA's.

I'm really just providing information here, as I don't actually have an investment in China that I follow other than a generalised SE Asia unit trust.

I already have some exposure to Asia (and hence China) through my first fund purchase INV PERP World Gth Ptfl Acc which contains a little bit of the Invesco Perpetual Asian Fund.

dunstonh

I've had the Gartmore China Opps Fund for many years now. Although the way I spread my money around the high risk funds, I cant be accused of not having enough diversification.

I also have far east funds as well. It does no harm to have a little in China (specific) as well as far east (general and emerging).

Market_Oracle

I'm in the Jp Morg Chinese IT

You will now have missed buying during the last accumulation phase, May through Oct 06.

Still the MACD is pretty neutral so probability is good for a break to new highs.

whambamboo

Market_Oracle wrote:

I'm in the Jp Morg Chinese IT

You will now have missed buying during the last accumulation phase, May through Oct 06.

Still the MACD is pretty neutral so probability is good for a break to new highs.

mm
yer what?

tom188

I believe MO is referring to Moving Average Convergence Divergence

see here
http://www.investopedia.com/terms/m/macd.asp

gt94sss2

I find it easier to buy shares in Western companies which have decent Chinese (and Indian/Russian etc) prospects such as HSBC.

I have also been considering the iShares FTSE/Xinhua China 25 which I can buy commission free with my ISA provider.

Regards
Sunil

Debt_Free_Chick

Fidelity also has a China fund