IP HK & China

Chickereeeee

The recent boom and small drop in the China stock market is currently making the news. However, funds (eg Invesco Perp HK and China fund) and also the Morninstar category China Equity (used by the FT as the benchmark) shows nothing like the growth/volatility of the index, showing only 50-80% growth over the last 5 years.

Could somebody tell me why this is?

Thanks

C

Chickereeeee

To answer my own question, it appears that the China index that shows the market bubble currently popping (maybe) is the SSE Composite Index.

http://finance.yahoo.com/echarts?s=000001.SS+Interactive#{"allowChartStacking":true}

This has many companies in which you cannot invest if you are outside China. The iShare MSCI China ETF index tracker (and pretty much all funds) only includes companies/share classes that CAN be invested in outside China.

https://www.ishares.com/us/products/239619/ishares-msci-china-etf

These are showing much lower volatility, and did not have a bubble to POP - until a about March.

Thanks C.

bowlhead99

Chickereeeee wrote: »

To answer my own question,

Yes, I added some colour on the 'china index tracker' thread running concurrently