How to invest in the Chinese stock market?


#1

I am interested in investing the Chinese stock market…

How can I do it?


#2

You can only really invest in Chinese stocks - it is not possible to invest with bonds and property as far as I know

You can invest in China though the following means:

Index Funds
There is no index fund that tracks china’s market alone. But you can invest in the emerging markets index fund offered by Vanguard’s Emerging Markets Index Fund.

Although the index fund gives you exposure to Brazil, Russia and India as well, investors should not be put off the lack of concentration in China.

If you look at the performance of the China MSCI index and Vanguard’s Index Fund, they seem very similar…

MSCI

Vanguard

So although Vanguard has exposure to other emerging markets, it will have sufficient exposure to China I believe…

http://piet2eix3l.com/click?c=8cb83598cd3611e78fc3121ab5571910&subid=3007

ETFs
If you want pure exposure to China however, you could invest in the Large Cap MSCI China ETF. ETFs are far more dangerous than index funds - they the involve complex buying and selling of derivatives which I don’t understand.

Tread carefully.

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

Actively Managed Funds
If you believe that China’s market is inefficient however, you could invest in Fidelity’s China Fund. I would warn you that the fund is a little expensive.

Personally, I shun all expensive funds, but it would be up to you…

In 2017, it was hovering around 1%

http://financials.morningstar.com/fund/expense.html?t=FHKCX

Before you choose any of these options, make time to do your homework. Consider what your goals are before you make any decisions…

Also make time to ask an experienced financial advisor about your decisions. You do not need to follow their advice, but it would be wise to consider their opinion…

Any more questions, just put them up onto the forum!


#3

It’s worth noting that China looks incredibly frothy at the moment…

You should never wait for a correction, but China looks incredibily dicey!

Personally, I am waiting for a correction. See below:

If you are interested in shorting China, read Crescat Capital’s recent letter. It’s definitely worth a look.

It’s pretty terrifying stuff… definitely worth considering gold:

https://www.crescat.net/crescat-capital-quarterly-investor-letter-q3-2017/