Investing in China

27
Nov

Trading Chinese Assets vs. “Buy and Hold”

The age-old question when it comes to wealth management, whether we’re referring to Chinese assets or anything else one can invest in: should you trade the asset in question (buy low, sell high, rinse and repeat… hopefully) or simply “passively” buy and hold? Right off the bat, it makes sense to start by making two

15
Nov

Do Chinese Assets Belong in the Risk-on or Risk-off (Safe Haven) Category?

The economy of China (#2 worldwide in terms of nominal GDP) tends to frequently be presented in a bit of a “combative” manner and compared to either the economy of the United States (#1 worldwide in terms of nominal GDP) or let’s say Western economies in general, whether we are referring to entities such as

08
Nov

Black Swan Events in China… or China as a Black Swan Event?

Throughout his books, Nassim Taleb frequently refers to so-called black swan events, which he explains through a now-famous turkey analogy. Simply put, a turkey who is fed each and every day by his generous owners has every reason to believe humans are his friends. With each day that passes, more data strengthens the turkey’s viewpoint…

06
Nov

When to Invest in China? Dollar Cost Averaging vs. Lump Sum Investing

As mentioned on more than one occasion, ChinaFund.com has one mission and one mission only: making sure our clients make the best possible investment decisions with respect to Chinese assets. When the time is right to buy, we recommend just that. The same way, when market conditions indicate that selling is the superior strategy, bringing

28
Oct

Liquidity Crunch in the US: Implications for China?

Some investors have been spooked by the recent liquidity issues in the US repo market and the Federal Reserve’s subsequent attitude. As a brief explanation, a repo agreement or repurchase agreement is essentially a transaction between two entities, where the one in need of liquidity (the dealer) gives assets that it owns such as bonds

07
Oct

(How) Does The Chinese New Year Affect the Economy, Markets and… Investors?

One might be tempted to think that, finally, we have a common denominator when it comes to China and the proverbial West, one pertaining to how disruptive the “holiday” season(s) can be. However, as frustrating as it may seem, things are once again different in China, as this article will hopefully make clear. On the

04
Oct

Risk and Money Management When Investing in China

One of the most common misconceptions among investors is that to succeed, you have to be right more frequently than you are wrong. That is hardly the case, whether we are referring to Chinese assets or any other asset class. For example, you can be right 9 out of 10 times and generate 1% each

02
Oct

(Financial) Fraud in China: How to Avoid Portfolio-Disrupting Scams

When it comes to financial crimes committed within China, the laws at least (even if the efficiency of the authorities with respect to applying them can sometimes be questionable) are very strict and as such, a valid case can be made that a strong legislative disincentive exists. But as far as laws that pertain to

30
Sep

To Short Sell or Not to Short Sell: Should One Short Chinese Assets?

In a previous article, we have made it clear that in China (most likely more so than in more established Western jurisdictions), both extremes of the investment spectrum are well-represented: from genuine long-term opportunities to more or less reckless short-term speculation options. Through this post, we will be taking a closer look at the latter

27
Sep

Investment vs. Speculation in China: Is Any Trend Your Friend?

One of the top mistakes investors make when allocating capital (toward Chinese assets or any other asset class, for that matter) is lumping all assets of an asset class in the same category. Or assuming that just because an asset class is doing well, every asset you touch will turn to gold just because it’s