A FTSE All-Share tracker or a global equity index fund will have plenty of exposure to the economic growth in Africa over coming decades. Personally I would rather get exposure to a market from the established safety of the UK than invest there directly (i.e. I would rather buy HSBC than a China, Emerging Markets or Asia Pacific tracker; or Unilever over an "emerging markets consumer staples etf" because so much of Unilever's growth is coming from those markets anyway).
Its a mess at the moment, the regulatory framework. It looks like its very easy to get burnt by investing in China. Great piece of research! I dont see a great % of total allocation to be in Chana, but the MSCI weight increase will tend to rise in future, so downside will be protected somewhat. Also it would make sense to rebalance more frequently because of these huge swings of the Red Dragon.
My approach on investing in China is their Belt and Road global projects being constructed. For example...China investing in Cambodia. Big projects such as tunneling through mountains, building railways, new freeways, new infrastructure....all require steel, cement, cables, ... all the fundamentals. Then comes actual construction of buildings. These buildings will be installed with computers/technology softwares.....even lumber will be used in all the developing nations.
Watched 2nd time, trying to find the most optimised China-focused ETF. Would have been great to see risk/return graph for the last 3-5 years. By the way it is the most informative video on the subject.
Hi Concerned Voter, thanks I'm glad it was useful. The good thing about using videos that come up from the PensionCraft community on our Sunday evening Q&A is that they're interesting to a lot of people. Thanks, Ramin.
Interesting. I've just got exposure to China through the vanguard emerging markets fund at the minute (and some IT's like Scottish mortgage). Think I steer clear of some of those fancy china ETFs
Pension craft you are so good w investinganalysis. Love your analysis. What did you do before this or is this what you have always done? I want to do what you do some day
Hi Metal Bum, I'm pleased you liked the video and thank you for watching. I worked in investment banking as a global strategist just prior to starting PensionCraft, my doctorate is in physics though. Here's a link to my website that tells you more about me pensioncraft.com/about-us/
Hi Richard, you're right an EM fund will have a large China weight, and that's the only choice I have because I'm on the Vanguard platform. However, as I show in the video the return on domestic A-shares has been better than the return on general EM funds since 2005 and some people may want exposure to stocks that benefit from high Chinese domestic growth. Thanks, Ramin.
As ever excellent info from Ramin, I’m one of the Pensioncrafters, believe me if you want insightful info regarding investments you’ll get loads for a tiny monthly fee, IFA’s wouldn’t come near. I’m pretty new to investing properly and have got a huge amount of info from this channel, and more once I signed up.
Come on Vanguard UK, they should add more ETFs.I am still with Vanguard , but I am consider to change platform. Great video, thanks for your hard work and resources .
Hi Róbert, the choice is limited on Vanguard's platform, but I think that is partly to protect investors from the riskier markets, and China A shares are certainly very risky. Thanks, Ramin.
Hi Mutton Man the "iShares MSCI China A UCITS ETF USD (Acc)" fund (ISIN IE00BQT3WG13) tracks the MSCI China A Inclusion Index which "is designed for global investors accessing the A shares market using the Stock Connect framework and is calculated using China A Stock Connect listings based on the offshore RMB exchange rate (CNH)." www.msci.com/documents/10199/de49f888-d502-4914-8bd3-e91afb6330ca The iShares fund doesn't list Alibaba because it trades on the New York Stock Exchange & Hong Kong Stock Exchange or Tencent which trades on the Hong Kong Stock Exchange. Thanks, Ramin.
These ETFs are another way of catching a falling knife. Chinese companies trading in US stock exchange are exempt from external audits and do not have to adhere to specific accounting methods. To trade in the US exchanges, the US passed legislation to prevent fraudulent accounting method, except for the Chinese companies. Proceed with extreme caution and do your due diligence.
as of March 23 2a20. the mainland China market is starting to recover. It appears the Mainland China market will rebound six months sooner than the USA because the elections will retard things. The etf I have money in is a China Staples fund called CHIS.... There is a 2nd fund KWEB. KWEB , which includes HK stocks is not doing as well as CHIS. So Pension Craft please do a vid on CHIS. (USA dlrs.... on the SP 500)
Only Trump can save California State Government from its poor investments choices in Chinese Stocks and Corporations. California State Government/Politicians have failed its economy and citizens with state pensions, President Trump and the Federal Government will eventually be called to save California economy from Global Socialism. Trump, “The Stable Genius” for President in 2020.
Hi Tim, I'm quite positive about China's long term prospects. What they've achieved in terms of development over the last few decades is spectacular. If they can manage their credit bubble the prospects for future growth looks good. Part of their transformation is going to be achieved by focussing on education. According to this article on Statista "By 2016, it [China] was building the equivalent of nearly one university every week and in terms of graduate numbers, it has surpassed both Europe and the United States." And it goes on to say that "the World Economic Forum reported that China had 4.7 million new STEM graduates in 2016 while India had 2.6 million. The United States had 568,000 recent STEM graduates in 2016." www.statista.com/chart/7913/the-countries-with-the-most-stem-graduates/ They are clearly positioning themselves to be a global leader in technology and this is starting to pay off e.g. the rollout of their 5g network which should boost productivity. Thanks, Ramin.
The demographics are changing rapidly though, its gone from something like 50% of the population being classed as in poverty to 10%. You could argue the USA is not very free for a lot of its population and has a growing rich/poor divide. Big cities in China are very modern, using apps for payments, have electric busses instead of diesel like most other countries, they are developing a huge amount of solar power, its moving pretty fast. Companies I have dealt with in China have modern factories with better working conditions than places I have worked in the UK. Furthermore like Pensioncraft says the education is fantastic. They lead the exam results, ranked 1st in the world, way better with their maths results than the UK for example.
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Personally I look forward to the development of African markets, and the ability to get in on an African index early
A FTSE All-Share tracker or a global equity index fund will have plenty of exposure to the economic growth in Africa over coming decades. Personally I would rather get exposure to a market from the established safety of the UK than invest there directly (i.e. I would rather buy HSBC than a China, Emerging Markets or Asia Pacific tracker; or Unilever over an "emerging markets consumer staples etf" because so much of Unilever's growth is coming from those markets anyway).
African countries are impoverished and full of corrupt leaders with high crime. There are barely any Large Cap companies in Africa for a reason.
@@burningcoal5705 western leaders are equally corrupt. Pot calling kettle black
Thank you so much for this video! Such a great broad introduction in the Chinese stock / ETF market. Going to invest in MSCI China A. 😁
Glad it was helpful!
Good presentation, appreciated the cape ratio explanations
Its a mess at the moment, the regulatory framework. It looks like its very easy to get burnt by investing in China. Great piece of research! I dont see a great % of total allocation to be in Chana, but the MSCI weight increase will tend to rise in future, so downside will be protected somewhat. Also it would make sense to rebalance more frequently because of these huge swings of the Red Dragon.
My approach on investing in China is their Belt and Road global projects being constructed. For example...China investing in Cambodia. Big projects such as tunneling through mountains, building railways, new freeways, new infrastructure....all require steel, cement, cables, ... all the fundamentals. Then comes actual construction of buildings. These buildings will be installed with computers/technology softwares.....even lumber will be used in all the developing nations.
Thank you v much, great academic data and explanations. Really impressed by your indices analysis
Subscribed at once :)
Thank you @Mono Goldfish I appreciate it! Ramin
Watched 2nd time, trying to find the most optimised China-focused ETF. Would have been great to see risk/return graph for the last 3-5 years. By the way it is the most informative video on the subject.
Another excellent video. I have been looking at the Franklin & hsbc msci china etfs for my pension only this last week, so very useful ...many thanks
Hi Concerned Voter, thanks I'm glad it was useful. The good thing about using videos that come up from the PensionCraft community on our Sunday evening Q&A is that they're interesting to a lot of people. Thanks, Ramin.
Interesting. I've just got exposure to China through the vanguard emerging markets fund at the minute (and some IT's like Scottish mortgage). Think I steer clear of some of those fancy china ETFs
This is exactly what I needed! Thank you. As always great analytical work.
Hi Income Boost, that's great! Thanks, Ramin.
Pension craft you are so good w investinganalysis. Love your analysis. What did you do before this or is this what you have always done? I want to do what you do some day
Hi Metal Bum, I'm pleased you liked the video and thank you for watching. I worked in investment banking as a global strategist just prior to starting PensionCraft, my doctorate is in physics though. Here's a link to my website that tells you more about me pensioncraft.com/about-us/
Probably best to invest in a emerging market etf . Ishares do an excellent one which only charge 0.18% and it has a 30% weight in China
Hi Richard, you're right an EM fund will have a large China weight, and that's the only choice I have because I'm on the Vanguard platform. However, as I show in the video the return on domestic A-shares has been better than the return on general EM funds since 2005 and some people may want exposure to stocks that benefit from high Chinese domestic growth. Thanks, Ramin.
@2.00 i see that many chinese large caps actually list in Hong Kong, NYSE, LSE .....is that why buffet ratio low for china ?
As ever excellent info from Ramin, I’m one of the Pensioncrafters, believe me if you want insightful info regarding investments you’ll get loads for a tiny monthly fee, IFA’s wouldn’t come near. I’m pretty new to investing properly and have got a huge amount of info from this channel, and more once I signed up.
Hi Jane thank you, that has made my day! Ramin.
I think Ray Dalio’s continued interest in China has prompted more than a few people to take a look at investing in China!
Come on Vanguard UK, they should add more ETFs.I am still with Vanguard , but I am consider to change platform.
Great video, thanks for your hard work and resources .
Hi Róbert, the choice is limited on Vanguard's platform, but I think that is partly to protect investors from the riskier markets, and China A shares are certainly very risky. Thanks, Ramin.
@@Pensioncraft
That's true, but REITs would be great.
@@Pensioncraft There is the FTSE Emerging Markets UCITS ETF (VFEM) for UK investors but China makes up only 35% of this.
Have you thought about a video on VCT investment?
Thank you !!
You're welcome!
Do a video on pensions
Thanks
Your welcome M S
The (iash) iShare China etf doesn't have Alibaba and tencent in its portfolio. Does anyone know why?
Hi Mutton Man the "iShares MSCI China A UCITS ETF USD (Acc)" fund (ISIN IE00BQT3WG13) tracks the MSCI China A Inclusion Index which "is designed for global investors accessing the A shares market using the Stock Connect framework and is calculated using China A Stock Connect listings based on the offshore RMB exchange rate (CNH)." www.msci.com/documents/10199/de49f888-d502-4914-8bd3-e91afb6330ca The iShares fund doesn't list Alibaba because it trades on the New York Stock Exchange & Hong Kong Stock Exchange or Tencent which trades on the Hong Kong Stock Exchange. Thanks, Ramin.
Invest in Brazil guys, i'm from here and the economy was really hustling before the corona thing
Anyone thinking about buying a little KWEB? It’s been on sale and holds all the big Chinese internet companies.
These ETFs are another way of catching a falling knife. Chinese companies trading in US stock exchange are exempt from external audits and do not have to adhere to specific accounting methods. To trade in the US exchanges, the US passed legislation to prevent fraudulent accounting method, except for the Chinese companies. Proceed with extreme caution and do your due diligence.
I am Chinese, I'd like to know how to invest America ETF in China?
as of March 23 2a20. the mainland China market is starting to recover. It appears the Mainland China market will rebound six months sooner than the USA because the elections will retard things. The etf I have money in is a China Staples fund called CHIS.... There is a 2nd fund KWEB. KWEB , which includes HK stocks is not doing as well as CHIS. So Pension Craft please do a vid on CHIS. (USA dlrs.... on the SP 500)
How do you feel about China Mobile Limited (CHL)? A massive company at a 5 year low with a great dividend
Hi ntr6 I don't ever invest in or comment on single stocks as I don't believe I could outperform markets by stock selection. Thanks, Ramin.
China stock fall in last one year?
Only Trump can save California State Government from its poor investments choices in Chinese Stocks and Corporations. California State Government/Politicians have failed its economy and citizens with state pensions, President Trump and the Federal Government will eventually be called to save California economy from Global Socialism. Trump, “The Stable Genius” for President in 2020.
Be careful.
Hi J L I agree that Chinese equity is a high risk investment as I say in the video. Thanks, Ramin.
I'm not optimistic about Chinas long term prospects. It's a corrupt anarchy of an economy with no freedom and disastrous demographics.
Hi Tim, I'm quite positive about China's long term prospects. What they've achieved in terms of development over the last few decades is spectacular. If they can manage their credit bubble the prospects for future growth looks good. Part of their transformation is going to be achieved by focussing on education. According to this article on Statista "By 2016, it [China] was building the equivalent of nearly one university every week and in terms of graduate numbers, it has surpassed both Europe and the United States." And it goes on to say that "the World Economic Forum reported that China had 4.7 million new STEM graduates in 2016 while India had 2.6 million. The United States had 568,000 recent STEM graduates in 2016." www.statista.com/chart/7913/the-countries-with-the-most-stem-graduates/ They are clearly positioning themselves to be a global leader in technology and this is starting to pay off e.g. the rollout of their 5g network which should boost productivity. Thanks, Ramin.
The demographics are changing rapidly though, its gone from something like 50% of the population being classed as in poverty to 10%. You could argue the USA is not very free for a lot of its population and has a growing rich/poor divide. Big cities in China are very modern, using apps for payments, have electric busses instead of diesel like most other countries, they are developing a huge amount of solar power, its moving pretty fast. Companies I have dealt with in China have modern factories with better working conditions than places I have worked in the UK. Furthermore like Pensioncraft says the education is fantastic. They lead the exam results, ranked 1st in the world, way better with their maths results than the UK for example.
@@dunk8157 the demographics are awful just check the population pyramid
@Ian McLean if u think ur better than them, why was your county not able to beat them in the race for 5G ..... u must be born in negativity.
@Ian McLean na ..... dont care