Chinese Economics Thread

siegecrossbow

siegecrossbow

General
Staff member
Super Moderator
plawolf said:
Potentially, as you have a lot of foreign capital flowing to China right now to take advantage of the higher yields and better stability since China is the only major economy that has COVID19 firmly under control.

However, Chinese capital controls should make it much harder for the bubble to burst suddenly, as foreign funds cannot pull out very quickly, and Chinese market rules automatically suspend trading if there is too much volatility in share prices.

Foreign investment funds and short sellers will hate it, but pension funds and the like who are more interested in stable, long term returns will love it once they get a taste. That is a major reason for US intervention stop stop big American pension funds from investing in China. They are worried that once they get a taste of the Chinese market, that those pensions will never look back to invest the US stock markets again. Even Trump knows the importance of pension funds in helping to stabilise the American stock market and prevent it from becoming a swing machine tailored to short sellers, as would happen if major US pension funds invest elsewhere and investment firms further dominate the market.
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I don't think Chinese stock markets allow short selling? They should also put a cap on how much money you can withdraw at once.
 
D

Dolcevita

Major
plawolf said:
Potentially, as you have a lot of foreign capital flowing to China right now to take advantage of the higher yields and better stability since China is the only major economy that has COVID19 firmly under control.

However, Chinese capital controls should make it much harder for the bubble to burst suddenly, as foreign funds cannot pull out very quickly, and Chinese market rules automatically suspend trading if there is too much volatility in share prices.

Foreign investment funds and short sellers will hate it, but pension funds and the like who are more interested in stable, long term returns will love it once they get a taste. That is a major reason for US intervention stop stop big American pension funds from investing in China. They are worried that once they get a taste of the Chinese market, that those pensions will never look back to invest the US stock markets again. Even Trump knows the importance of pension funds in helping to stabilise the American stock market and prevent it from becoming a swing machine tailored to short sellers, as would happen if major US pension funds invest elsewhere and investment firms further dominate the market.
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Interesting. How does one go about investing in Chinese stock market? I am quite clueless though I have interest.
 
hullopilllw

hullopilllw

Junior Member
Registered Member
Dolcevita said:
Interesting. How does one go about investing in Chinese stock market? I am quite clueless though I have interest.
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there are Shanghai Connect and Shenzhen Connect for foreign fund seeking to buy mainland stock. Some chinese companies like BYD and Tencent even dual listed on HK. The blockbuster IPO investors are waiting for since last year is Ant Financials.
 
localizer

localizer

Colonel
Registered Member
M

Mcsweeney

Junior Member
Dolcevita said:
Interesting. How does one go about investing in Chinese stock market? I am quite clueless though I have interest.
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Which country are you in? The easiest thing is to find an Exchange Traded Fund ("ETF") in your country's stock exchange that invests in Chinese companies. You simply put however much money you want into the ETF and the fund collectively buys a bunch of stocks in e.g. the top 50 Chinese companies. This is a lot safer than picking individual Chinese stocks to invest in because if one of the companies fails, you don't lose everything. In this sense, you are betting on the Chinese stock market as a whole to do well.

Example: Kraneshares in the US. You'd simply buy the stock symbol "KFYP".
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this is just one example of many.
 
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