Invest in China, how? why?

[LuxLiving]

If you were going to make a play in China, how would you invest? What vehicle and why?

[humandraydel]

Re: Invest in China, how? why?

All my money on Environmental Catastrophe, please.

But honestly, I would only invest via some sort of market index. Individual companies are too risky, IMHO.

[kv968]

Re: Invest in China, how? why?

All my money on Environmental Catastrophe, please.

But honestly, I would only invest via some sort of market index. Individual companies are too risky, IMHO.

You could invest in an ETF like iShares FTSE/Xinhua China 25 Index (FXI). However I have to agree with humandraydel with the "too risky" comment. Although if you've got a little "play" money and would like to take a shot that would be the way to do it IMO.

[meaghanchan]

Re: Invest in China, how? why?

If it were me I'd do it as part of an emerging markets index of some kind; most emerging markets mutual funds have pretty large amounts of money in China, but because they're spread out to other countries too you don't get as much single-country risk.

Failing that, I agree with kv968 that an ETF like the one he mentioned would be the way to go.

[JBinKC]

Re: Invest in China, how? why?

It is risky mainly because there really aren't very many legitimate Chinese companies to choose from and of those legitimate businesses that are more immune to competition are very overvalued compared to other emerging markets stocks in similar sectors.

The only values in China right now are the contract manufacturers and that sector is not really attractive IMO because every contract manufacturer in the world already operates a sweatshop in China.

I would avoid unless perhaps you have the opportunity with an IPO of a large moneycenter type bank mainly because I think the Yuan is grossly undervalued.

I also think if you are into playing cyclical investments like metals. ACH has a much higher beta than AA.

[PRICEPLUS]

Re: Invest in China, how? why?

What protection of law do you have if you invest in China? I would not invest a nickel there!

[safari]

Re: Invest in China, how? why?

I got about $11K invested in China (FXI and MCHFX).

[Scanner]

Re: Invest in China, how? why?

Not for me but here's a good article:

http://moneycentral.msn.com/content/invest/forbes/P62506.asp

[mbhunter]

Re: Invest in China, how? why?

Another thing to consider is how heavily Chinese industry depends on Americans consuming. How much more can we consume given our debt load? Seems like the main Chinese market is getting a little overextended.

[PauletteGoddard]

An investor is you!

If you were going to make a play in China, how would you invest? What vehicle and why?

PowerShares has an ETF : the Golden Dragon Halter USX China Portfolio. It's heavily weighted in information technology and telecommunication services, but the style allocation is mostly small-cap and mid-cap. I've gotten my PowerShares toes wet with some other ETFs, and later this year maybe this will be the one I pick up. Although I do already have Vanguard Emerging Mkts Stock Index (VEIEX).

[kittycat0604]

Re: Invest in China, how? why?

I think now is kinda late to invest in China, at least for a while. The majority of stocks you can buy here in US are very much overvalued. I have a friend who bought the PetroChina(the top oil and Gas company in China) about 3 years ago at $25/sh, and now it is about $122/sh(after come down from $140/sh recently). He told me he would buy more if it comes down below 100, but I do not see it happenning soon. And I think Cinese Stock market is heavily influnced by govenment, so unless you know what the Chinese leaders are thinking or familiar with Chinese politics, it is too risky to invest there. You could be rich in one day and lost all your money in hours without knowing the reason...

I think investing in a Emerging Market fund is a better idea.