MHh
2022-04-11

If you are bullish on China, want a diversified buy and don't want forex risk, can consider $Lion-OSPL China L S$(YYY.SI)$.

This ETF tracks the Hang Seng Stock Connect China 80 Index, giving you access across all sectors and industries. Top 10 holdings are familiar names to most people. Some of them are tech companies and therefore overlaps with the Hang Seng Tech index or $Lion-OCBC Sec HSTECH S$(HST.SI)$. Companies such as Tencent, Meituan are overlaps but percentages of exposure are different. One thing to note, Alibaba is NOT included in this. So depending whether you love or hate Alibaba, this is something to consider.


The other advantage is by virtue of it tracking the Hang Seng Stock Connect China 80 Index, there is no direct exposure to ADRs. Even in the most unfortunate event of delisting, this has no direct risks. In addition, by tracking this index, you are only buying leaders of each sector or industry, without have to do the tedious work of stock picking!'

Expense ratio is capped at 0.62% for the first 2 years since inception. Definitely not cheapest but cheaper than most unit trusts and pretty much comparable across its peers that tracks similar indices. 

Currently no dividend has been announced but not ruled out. Dividend may be given at discretion of the fund manager. Any dividend to me is considered a bonus as I am into it for the growth story of China. However, for this year, based on what I've heard, there should be about 2% dividend coming this June!


Price is attractive now. The price is in part driven down by China's rising Covid-19 casesand her zero Covid policy. Do bear in mind that China aims for 5.5% gdp growth this year and if it achieves that, many of these companies could benefit!


@AliceSam@RDPD富爸穷爸@Wayneqq@LuckyPiggie



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Comments

  • LuckyPiggie
    2022-04-11
    LuckyPiggie
    compared to US ... I think China has a better outlook and maintain some growth.
    • dallanube: 
      and bigger discount
    • MHh: 
      But as volatile, if not more volatile than the US stocks. This growth is expected to take another 5-10 years to overtake US as the largest economy
    • MHh: 
      I agree and is undervalued unlike the US markets. china likely will undergo credit loosening this year, opposite of the US! China will likely hit its target gdp growth too!
    • LuckyPiggieReplyMHh: 
      we need more news on HK and CN stocks  [Grin]
    • MHhReplyLuckyPiggie: 
      Have news but need good news!
  • MonaMaMa
    2022-04-12
    MonaMaMa
    HS Tech rebound
    • MHhReplyed62: 
      I added earlier so now waiting for the next price point
    • ed62ReplyMHh: 
      chance to buy more
    • MHh: 
      Slight rebound today but have to watch again whether it will persist
  • Oldhead
    2022-04-12
    Oldhead
    So far the China related ETFs by Lion Global -OCBC have been disappointing.
    • MHh: 
      Anything that tracks china, tech or not in the past 1 yr is negative. Pretty much like what is happening to US now. Any index that tracks US is probably negative
  • 秉汧
    2022-04-12
    秉汧
    I would bet on china growth too, but probably not in any selected sector… there’s high regulatory risk so diversification is needed.
    • MHh: 
      Ya.. looking at US this year. Likely China should outperform
  • SilentInvst1
    2022-04-13
    SilentInvst1
    the analysis is a good read. China aiming to achieve economic growth and usually the big firms will benefit from economic uptrend.
    • MHh: 
      Thank you[Happy]
    • MHh: 
      Im still optimistic on its medium to long term prospects. Anyway the ETF will be rebalanced so less worries!
  • yeo
    2022-04-12
    yeo
    Might take years to recover
    • yeoReplyMHh: 
      Your cost price is low. Not hard to recover
    • MHhReplyyeo: 
      Not worried. Just whether to add on further weakness and if got sufficient cash
    • MHh: 
      Will be some form of recovery by year end. Now beaten because of covid cases and leading to worsening supply chain issues and inflation in part
    • MHh: 
      Yes, this one hard to trade. Have to be clear that investing and horizon needs to be at least 3-5 years. If you are conservative, maybe even 5-10 years. But never know if there
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