Chinese/Hong Kong investments

influence

If I were you, I won't simply look for only the H share. Don't just look at the price tag. Look also at the management culture and room for growth. There are some that might actually be overpriced.

Nonetheless, due to the continual growth in Asia, some of the asian funds are less volatile during these months. I don't mean for sure a profit but at least the drop is much less.

As regards to the olympics, I agree very much that olympics is just a catalyst for China's growth. The main reason is still that there are lots of opportunity to develop in just a vast piece of land. Labour is still relatively cheap and political situation is relatively sound these years.

Lastly, don't listen to speculation and believe every word. Trust in your vision and facts.

Good Luck with your investment.

EdInvestor

wombat42 wrote: »

Wow - at least someone else has some understanding of China.

YOU HAVE TO UNDERSTAND THE CHINESE STOCK MARKET IN ITS OWN TERMS AND NOT JUST BLINDLY APPLY THE PRINCIPLES OF OTHER WORLD STOCK MARKETS TO IT.

But don't you understand the other risk here?

What if the Chinese Government decided not to control interest rates like this any more? Do you think it would tell you ( or foreign fund managers ) in advance it was going to stop?

Or would you just find yourself in a crash scenario with no warning, and no basic economic fundamentals underpinning it, just politics?

influence

One thing I am not quite sure is that why people ignores Europe and all focusing on China. The quicker it rise, the quicker it falls.

The market structure in China is not very established at the moment. it is an EMERGING market.

H stock in HK is 'safer' but still it belongs to the same company. Remember to have enough diversification to take any negative shock.

Have a safe play and take good care of your money.

dunstonh

One thing I am not quite sure is that why people ignores Europe and all focusing on China. The quicker it rise, the quicker it falls.

Its called fashion investing. It usually results in inexperienced investors losing a lot of money by investing in what is fashionable without having a clue about what they are doing and the risks they are taking. Other fashion investing over the years has been tech stocks, property and china.

Having a small percentage of high risk funds is great as part of your rebalancing portfolio. Going in gung ho is going to be one hell of a rollercoaster and a lot of people just dont realise how much. Get the right side of a 70% gain and you may not mind a 40% drop. However, get that 40% drop first and then watch the comments on the board multiply about their investments going down. The recent correction was a good example of that.

purch

Its called fashion investing

Anyone can make money in the short term by following the fashionable markets and investing into bubble markets, but over the medium and long term sound economic principals usually win out over following high risk and fashionable trends. ( ask Warren Buffett if you want to know what sound econimic principals are....he has a decent track record )

Bubbles always ( or always have ) burst at some time

The Chinese Stock Markets ultimately work in the same way as every other Stock Market....they are not unique in anyway except maybe in the amount Investors will lose if and when there is a reversal because a market as young and underdeveloped as China's has no reference points, no underlying demand and no one to sell to when it starts to crash !!!:eek:

Thats why it's HIGH RISK.

Good luck to you if you can ride the wave and time when to take your profits. :T

Cutting profits as well as cutting losses is the hardest thing for even the most experienced of professional traders to do.

dunstonh

Anyone can make money in the short term by following the fashionable markets and investing into bubble markets,

Absolutely. Even those in the tech stocks bubble made money as long as they rebalanced their portfolio. Just as those investing in China now and rebalancing are. My Gartmore China fund has spawned many more investments into totally unrelated areas which are worth far more than the original investment into that fund. If a 70% correction came it wouldnt matter one jot (well it wouldnt be nice). I have taken the excess out during the bubble period and placed it into other areas.

Trying to time the bubble though is futile. It could crash Monday or 2 months from now or 2 years from now or not crash to that level at all (in a major sense as we all know corrections are par for the course). Those that lose the most are the ones that go 100% into that area (or top heavy at least) and then stay in it too long and then get caught out, lose a fortune, pull out and swear never to invest in the stockmarket again. When in reality, they werent properly invested in the stockmarket whilst those with a balanced portfolio suited to their risk profile go on to ride the correction and make money and are quite happy with their steady eddie progress.

dipsomaniac

As an alternative, I am just wondering what would be the safest stock market investment I could make that most likely just beats ICICI savings account over the long term (10 year timeframe)

if you think interest rates have peaked the safest funds are corporate bond/fixed interest interest or any cautious managed fund with a high allocation of these.

Cautious managed funds and corporate bonds seem to be a waste of time - I would may as well just stick my dosh in ICICI instead of them.

what do you think are the safest stock market investments??

EdInvestor

dipsomaniac wrote: »

what do you think are the safest stock market investments??

Big blue chip UK shares that pay decent dividends - in fund terms, UK equity income funds. It's a known fact AFAIK

dipsomaniac

a portfolio of income shares is 3 x more volatile than a corporate bond/fixed interest portfolio

dunstonh

You can also reduce the risk from equity funds by utilisng funds in the UK Equity & Bond Income, UK Other Bond, Property and UK fixed interest sectors. Whilst some of those are not stockmarket, they would reduce the risk over 100% equity.