Investing in China

20
Jan

Is China’s Economy a Ponzi Scheme?

Quite a few analysts have voiced concerns that China’s economy is essentially a Ponzi scheme which needs perpetual growth to sustain itself. From the (in)famous South China Morning Post op-ed of Jake Van Der Camp to a wide range of criticism by Kyle Bass and other financial media opinion formers, it has become clear that

17
Jan

Doing Business in China: Hands-on Tips from ChinaFund.com

As those of you who are familiar with our work and track record know, the experience of the ChinaFund.com team let’s say transcends the financial world. To put it different, we have proverbially been there and done that in China for over 13 years when it comes to anything from brick & mortar endeavors to,

16
Jan

Wealth Management in China: New Frontier or Pipe Dream?

As explained on more than one occasion here on ChinaFund.com, tremendous wealth has been built in China since let’s say the Deng Xiaoping reform days. However, we would be painting an incomplete picture of reality by limiting ourselves to the previous statement. In the spirit of precision, we need to make it clear that two

13
Jan

Financial Panic(s) in China: Systemic Risk or Tradeable Opportunity?

Whether we are referring to “maturing” jurisdictions such as China or mature ones such as various Western jurisdictions, it is a quasi-axiomatic statement that one cannot have a man-made financial system without occasional financial panics. From bank depositors who are standing in line in a desperate attempt to withdraw while they still can to investors

10
Jan

Volatility in China: Deal Breaker, Necessary Evil or Opportunity?

Whether we are referring to anything from asset prices to the legislative dimension, volatility is most definitely something one cannot ignore in China, more so than in more mature Western jurisdictions. Some investors choose to stay away from China altogether for this very reason (in other words, volatility represents a deal breaker) As far as

01
Jan

Is China a Maturing or Mature Economy/Market?

Only the most recklessly optimistic investors would have assumed that the let’s say pre-2010 economic growth trajectory of China can be maintained indefinitely, with yearly GDP growth rages in the double digits. While such a trajectory was not only possible but downright required back when China was a much poorer nation if the country were

13
Dec

Alternative vs. Complementary: Should You “Pick a Side” When Investing in Chinese Assets?

It isn’t all that difficult to pick up on the fact that frustration is building up across all areas of society: Politics is becoming more and more fragmented, with those on the left as well as right being willing to embrace their respective extremes rather than work toward identifying common denominators People being willing to

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…