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
Investing in China
13
Dec
Dec
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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
Nov
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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
Nov
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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
Nov
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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
Nov
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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
Oct
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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
Oct
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(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
Oct
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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
Oct
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(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