American investment in China's stock market ways and means

American investment in China's stock market ways and means
[2008-12-10 0:40:00 By: XiaoYingJia.com] 1 I
Top - let the experts for your stock: Unless you own or you have an agent living in China, to continue to stock trading in China it is very difficult. Right now it seems, to buy overseas for China's mutual fund and ETF is probably the only viable way to the. - Choose the right fund: Starting from the view the Morningstar Web site. Stars higher in general, the better, so people pay more attention to the four-star and five-star funds. However, due to China's securities market by 2002 is less affected by international capital concern, so no one above Morningstar China Fund was rated five-star. Thus, selection criteria will be allowed to three stars is a very realistic approach. - Concern about the Fund's historical data: Choice of funds, people are usually more concerned about in the past three years and five-year rate of return on investments of the funds, because they more accurately than the short-term data to indicate the future performance of the Fund. However, in recent years in China has too many changes in the influx of foreign investment, private enterprise can flourish, the state-owned enterprises in the national economy, the importance of year-on-year decline, so China has become a special case. Specific to a fund, its operation five years ago, the style is likely to have ceased to apply to the current and future investment market. Therefore, the actual practice should be concerned about the fund in the past year and three years of performance data, relatively speaking, we should pay more attention to three years of data, because it can indicate the Fund's long-term performance. - The selection of focus on the Chinese market fund: International funds in order to reduce the risk will always be conscious of funds invested in China (including Hong Kong) and other countries. However, such a strategy will dilute the investment in the Chinese market, I am afraid that is not what you want. Now that your purpose is to invest in the Chinese market, as far as possible on the selection of those at least 80% of the funds are invested in mainland China and Hong Kong stock market funds and ETF. - Consider the size of the fund: Small-scale fund is usually pursued by the rapid growth, they often brave investors who bring in good returns. For the sake of safety of funds, or should choose the larger funds, such as market value of more than six billion. - Visit the Fund's management team: Usually the main index to track the index fund positions transferred once a year, however, and this rapid change of China's emerging markets strategy, as you may not expect. Fund managers to maximize the return on investment often requires changes in the situation according to the market more frequently to adjust the investment portfolio. Therefore, the recommendations in the choice of funds, to the selection of those smart active fund management team. A look at a foreign bank's Asian fund position changes, the first half of 2006 in which China's blue-chip components to about 4 percent, to the second half increased by about 15 percent, everyone knows China's stock market, and as the adjustment is absolutely necessary. This also shows that most people sperm of fund managers will not sit back and regardless of the excellent situation. We will have to choose to drop the investment portfolio of the fund management team. - Do not invest in the Chinese market as a short-term gambling China's rapid growth, the political system, as well as unfair disclosure of the news makes investment in China has become a high-risk behavior. The short run, from the revaluation of the yuan of economic overheating, a variety of factors could make the sharp volatilities in the market. However, if from a long-term perspective, the Chinese market to you the possibility of a higher return on investment is still very large, you can be confident for their own investment in China and find good reasons. Of course, most investment advisers would not suggest that you put a total investment of more than 10 percent of funds such pressure to China's emerging market. Attachment: list in the United States for the Chinese market ETF ETF in China, known as the "exchange-traded index fund." At present, listed in the United States seems to only four for China's stock market ETF, they are: iShares FTSE / Xinhua China 25 Indexs (code: FXI) iShares MSCI-Hong Kong Index (code: EWH) PowerShares Golden Dragon ETF (code: PGJ) Morgan Stanley China (code: CAF) (Note: This article prepared in January 7, 2007, so the ETF for the number of China's stock market has certainly changed.)