【China Asset Select】05 Northbound Trading Guide: Using Hong Kong ETFs for Cross-Market Arbitrage
Over the past two years, Chinese assets have been like a roller coaster—plunging all the way down, but in doing so, catching the eyes of global investors once again.Valuation recovery story: A-shares went through a prolonged compression, and today their overall P/E ratios have dropped to historical lows, like “quality goods on sale.”The Hong Kong label: The Hang Seng Index and Hang Seng Tech Index still carry the title of “the world’s cheapest market,” cheap enough to make investors take a second look.Smart money in motion: Southbound capital continues to pour in, with ETFs like Hang Seng China Enterprises (HSCEI) and Hang Seng Tech repeatedly hitting record turnover. Beneath the noise lies opportunity.Policy momentum: From growth stabilization to capital market reforms, policy has acted a
CN Assets Pick|02:Why Is Smart Money Buying the Dip in Chinese Assets?
Recently, there’s been an intriguing phenomenon: global capital markets remain volatile, yet more and more smart money is quietly flowing into Chinese assets.Why is this happening? Is it blind optimism, or is there a deeper investment logic at work? Today, let’s unpack the forces behind this capital shift.01 Macros: How is China’s economy really doing?Some media outlets fixate on short-term fluctuations and overlook China’s long-term growth potential. In 2024, China’s GDP growth still exceeded 4.5%, outpacing major developed economies. By comparison, the U.S. hovered around 2%, with the euro area even lower.Behind that growth are ongoing urbanization and consumption upgrades. China’s urbanization rate surpassed 65% last year, and the consumption upgrade that accompanies city living is stil
CN Assets Pick|02:Why Is Smart Money Buying the Dip in Chinese Assets?
Recently, there’s been an intriguing phenomenon: global capital markets remain volatile, yet more and more smart money is quietly flowing into Chinese assets.Why is this happening? Is it blind optimism, or is there a deeper investment logic at work? Today, let’s unpack the forces behind this capital shift.01 Macros: How is China’s economy really doing?Some media outlets fixate on short-term fluctuations and overlook China’s long-term growth potential. In 2024, China’s GDP growth still exceeded 4.5%, outpacing major developed economies. By comparison, the U.S. hovered around 2%, with the euro area even lower.Behind that growth are ongoing urbanization and consumption upgrades. China’s urbanization rate surpassed 65% last year, and the consumption upgrade that accompanies city living is stil
💰Unlocking Growth: China's Monetary Easing and Top ETFs & ADRs
China ETFs and ADRs Rally Premarket As China Announces First Monetary Policy Shift Since 2010 to Spur GrowthChina will adopt an "appropriately loose" monetary policy next year as part of steps to support economic growth, state media reported on Monday citing a Politburo meeting, marking the first such shift towards loosening since 2010.China will implement a more proactive fiscal policy and step up "unconventional" counter-cyclical adjustments, Xinhua reported, citing the Politburo."A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments," it said.The new wording for the monetary policy
China Valuations Attractive: Is It The Right Time To Invest?
As a result of a series of stronger-than-expected policies being introduced, investor confidence has been reignited, resulting in a significant increase in both Hong Kong and A-share market prices today. After a period of volatility and correction, analysts believe that the market is now entering a period of broad-based recovery. Why Invest in China Now?There are several key reasons that make China a compelling investment opportunity at this moment:1. Valuations Are Relatively LowOver the past few years, China’s stock market has been impacted by various factors, such as the COVID-19 pandemic, regulatory tightening, and geopolitical tensions. This has resulted in lower valuations for Chinese stocks, especially in comparison to other global markets. For long-term investors, these lower
Lesson 2: Three Popular Categories of Hong Kong ETFs
In the previous lesson, we provided a brief overview of the classification of Hong Kong ETFs.This time, we will walk you through the lesson from an investment perspective, focusing on three key categories of Hong Kong ETFs: "Broad Market Index ETFs, Sector/Thematic ETFs, and Leveraged/Inverse ETFs." This will help unlock more investment potentials.1.Broad-Based Index ETFsBroad-Based Index ETFs are the type of ETFs that most investors will come to know first.In the Hong Kong market, there are numerous index ETFs, with the most prevalent being the Broad-Based Index ETFs.Currently, the largest Broad-Based Index ETF in size is TRACKER FUND (2800.HK), which tracks the Hang Seng Index. Additionally, there are ETFs that track the Hang Seng China Ent