Siwei Zhong

An Often Unmentioned Factor About Chinese Stocks

Yes, H and A -shares demonstrated high correlation.
After my long time analysis I would suggest 50% in A and 50% in H.
The simplest way is HSBC Dragon Fund ETF 0820:HK

For those interested, here is my very old blog article:
www.letsthinkchina.com...

The Next Credit Crisis Will Originate in China

First of all I do agree and believe the NPL issue with the banks (including the 3 listed in Hong Kong) is not fully solved yet. And yes they have been enlarging the denominator of the NPL formula (NP/Total Loan) to lower the NPL ratio.

However ,

1) chinese leaders are not stupid, they know better than anyone else what they are doing. You think they don't know about the NPL with those banks?

2) if you agree that chinese leaders are smart, do you think they will destroy what they have achieved painfully in cleaning up the books and list the 3 major banks (Agricultural Bank of China is still not listed yet, because it's almost an impossible job to clean up the book. Farmers in China are miserable and there is simply no way for them to repay the 'debt')

3) if you look at China as a whole rather than just pinpointing the NPL with banks, do you think China is unable to solve the NPL issue if you look at the trade surplus which is growing month by month?

4) agree with what H.W. said. The subprime in US is not about the 1% of foreclosure, the acutal effect has been drastically multiplied by those creative financial vehicles CDO and the like.

5) Singapore is also a '1-party' environment, but I have to say they have done an excellent job in the past 40 years.

China's Latest Financial Coup: Buy 'H' Shares

donald, FXI is a good choice if you have no HK trading A/C.
I've written an article in June comparing FXI, CAF and A50 tracker, though it's not updated but I think it is still a good reference.

www.letsthinkchina.com...

China's Latest Financial Coup: Buy 'H' Shares

a more profitable approach will be to long HSCEI index which tracks H-shares listed in HK.

Hang Seng index has ~50% of constituents from H-shares, while Hang Seng China Enterprises Index (HSCEI) tracks all of them.

i've done an excel, updated today here showing all H-share constituents discounts if anyone interested to look into individual H-share in the index
spreadsheets.google.co...;output=html&g...

a ETF 2828.HK is available tracking HSCEI

Institutions Chasing CBM Opportunities in China

as a matter of fact, all GEM (Growth Enterprise Market) listed stocks in HK (all stocks start with '8' ) were under heavy speculation in last 2 weeks. Up or down 20-30% was common.

beware of those 'assets injection' stories. The most common story lines are 'energy' 'coal' and 'property'

Though there is no solid evidence, the GEM volatility is believed to be caused by mainland investors who moved their money from A-share to HK due to the short term uncertain policy risk in China (index future, rate hike, bond issue from State Investment corp etc)

China's Selloff Is a Buying Opportunity

In the organizational chart, PBoC shall be linked directly to State Council, a mistake I made in drawing the chart.

China's Selloff Is a Buying Opportunity

IMPORTANT CORRECTION:

The 'beer bubble' theory was made by Mr. Xiang Huaicheng, former Minister of Finance and current
Chairman of the National Council for Social Security Fund, which is another entity directly under the State Council.

Mr. Liu Mingkang made another comment in March saying CBRC "is not taking any special measures targeting the stock market"

Chinese Castle in the Air: The A-Shares Craze

what you mentioned is a long/short trading strategy commonly used by hedge fund.

however i doubt how would that work in the A-share Fund/A-share pair in your example

for any Long/Short, the trader must be positive on the Long and negative on the Short, or more precisely he anticipates a widening of the long/short spread.

I dont see any reason why that would happen to the A-share Fund/A-share pair of assets as A-share stock and A-share funds are both going up starting in Jan 2007.

A-50 index future contract is available in S'pore with very low trading volume.

Selling future contracts would NOT generate cash to play a long/short strategy, future contracts are traded with margin and marked to market daily, and cash settled on expiry date.

Morgan Stanley and iShares: Two China A-Share ETFs

discount to NAV shall never be a reason to invest in a ETF, there are a lot of ETFs whose prices are consistently below their NAVs.

for example, look at this Korean Fund ETF bp0.blogger.com/_UadJ8...

close to open may be, but one of the funds CAF invested is i-share A-50, this will hardly be converted into open because the fund itself doesn't have QFII quota, by Chinese policy it (or any foreigner without QFII) cannot invest in A-share. Besides, most of the other funds CAF invested in are local Chinese funds, again foreigners are not allowed to participate. So the benefit to CAF shareholders are very remote if this 'close-to-open' is a reason.

I personally do not believe in Fund of Funds anyway the only exception is Fund of Hedge Funds with proven track records. Reason is that I do not have the capital to invest directly in those reputable hedge funds.

Morgan Stanley and iShares: Two China A-Share ETFs

Closed End Fund means a fund which will not accept new subscription once its initial placement (which can be private or public placement, if it is a public placement, it is an IPO) is completed. ie, the fund is 'closed'. ie, if you cannot get allocated during the initial placement, the only means to buy it is through the secondary market, the same way like you buying /selling any other stocks

Exchange Traded Fund (ETF) is any fund which trades on any stock exchange.

CAF is both an ETF and Closed End Fund.


Ziwei Zhong
www.LetsThinkChina.com

China Mobile Speculated to Run 3G Service By 2008

the unit for the subscriber number table shall be 'thousands' instead of 'millions'

sorry for the error

Morgan Stanley's China A-Share Fund: The First of its Kind

two major differences between CAF and IFXAF

1) IFXAF is an index tracking ETF, it tracks the Xinhua A50 index. The fund doesn't have QFII quota and it cannot invest directly in China listed A-share, instead it invests in Chinese A-Shares Access Product (CAAPs) issued by a connected person of QFII as underlying investments.

2) CAF is not index tracking, the fund manager has free hand to pick stocks.