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I do not understand how you can talk about US, EU and Japan but not mention China. Because I'd bet China is in a similar league and has better prospects than an
by mafuy 4mo ago
I do not understand how you can talk about US, EU and Japan but not mention China. Because I'd bet China is in a similar league and has better prospects than any of the three.
- oezi 4mo agoChina's equities aren't really tradable. If they were it would be nice.
- throwaway2037 4mo agoThis is incorrect. There are lots of ETFs that now directly hold China A shares. CSI 300 index is the equiv of S&P 500 in mainland China. Also, via HK Stock Exchange, you can buy China A shares via "northbound connect". A broker like Interactive Brokers supports this type of trading and the bizarre/special currency (CNH) required for it. That said, I excluded China because it is not developed and has awful transparency.
- jingpostmedia 4mo ago[flagged]
- oezi 4mo agoAnd if you look at the composition of the indices and ETFs you realize that you aren't participating in the innovative China, but get typical developing country stocks and very limited exposure to innovation. Also -10% over the last 5 years vs. +103% for the S&P500
- throwaway2037 4mo ago> the innovative China Can you give some example listed stocks that you consider (1) innovative and (2) not a member of CSI 300?
- oezi 4mo agoWell, I mean Alibaba, Tencent, Xiaomi, PDD/Temu, Baidu, Bilibili, NIO, XPeng... These aren't in the CSI 300 and the legal constructs of listing them via HK or other stock exchanges is unfortunately often questionable.
- throwaway2037 4mo agoAll good points. So why not just buy Hang Seng Index? Most of the growth in HSI comes from these innovative Mainland Chinese companies. You don't need to worry about CSI 300 and all of the silliness around CNH current!
- throwaway2037 4mo agoChina is not considered a developed market nor "free". Also, in most developed markets, when the economy is strong, the stock market will boom. China has many, many years when the stock market is weak, but the economy is strong. It is hard to be excited about the Chinese stock market.