China investments

noclaf

Thrugelmir said:

China is a region where active manangement produces far greater returns than passive benchmarked against MSCI. Was reading over the weekend that 51 companies on the Hang Seng have been suspended for a failure to publish their annual accounts on time this year. A clear illustration of how markets are in reality very different to each other in terms of corporate governance etc. 

Your last point is also a timely reminder for all investors to be wary about focussing their investments into specific geographies/regions...if the proverbial manure hits the fan could be a very painful lesson. Conversely the same applies for other markets (US, UK etc), ideally you don't want to be too concentrated in any market (maybe after a market crash I might feel a bit braver ) though from a corp governance and controls perspective have more faith in the US and UK compared to China and other EM countries.

Thrugelmir

noclaf said:

Thrugelmir said:

China is a region where active manangement produces far greater returns than passive benchmarked against MSCI. Was reading over the weekend that 51 companies on the Hang Seng have been suspended for a failure to publish their annual accounts on time this year. A clear illustration of how markets are in reality very different to each other in terms of corporate governance etc. 

Your last point is also a timely reminder for all investors to be wary about focussing their investments into specific geographies/regions...if the proverbial manure hits the fan could be a very painful lesson. Conversely the same applies for other markets (US, UK etc), ideally you don't want to be too concentrated in any market (maybe after a market crash I might feel a bit braver ) though from a corp governance and controls perspective have more faith in the US and UK compared to China and other EM countries.

The UK markets trumps the US for corporate governance. The UK by market value has a larger capitisation of listed closed end investment companies than the US by a considerable margin. That's down to the esteem that the UK is held in when it comes to capital raising from international investors. US investment banks prefer London to New York for new listings.