Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Investing in China
Old 11-11-2006, 09:33 PM   #1
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Investing in China

http://early-retirement.org/forums/i...p?topic=1467.0

China continues to be the rage. I was chatting this week with the General Counsel for a well known retail chain, and he pointed out the huge proportion of Chinese product in their stores. We both wondered (somewhat tongue in cheek) if Americans manufacture anything anymore.

Besides FXI, any other efficient ways to invest in the growth of China today in a targeted manner? How do you feel about doing so?
__________________

__________________
Craig is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Investing in China
Old 11-11-2006, 09:59 PM   #2
Thinks s/he gets paid by the post
wabmester's Avatar
 
Join Date: Dec 2003
Posts: 4,459
Re: Investing in China

Quote:
Originally Posted by Charles
Besides FXI, any other efficient ways to invest in the growth of China today in a targeted manner? How do you feel about doing so?
AFAIK, the only other China-play ETF is PowerShares Golden Dragon (PGJ). Both of these funds are somewhat limited in terms of number of holdings (around 25), market cap (large), sector exposure (little or no consumer sector, for example). But, I'm happy to have the exposure to China.
__________________

__________________
wabmester is offline   Reply With Quote
Re: Investing in China
Old 11-12-2006, 12:35 AM   #3
Recycles dryer sheets
 
Join Date: Feb 2005
Posts: 454
Re: Investing in China

FXI has a .74% ER, compared to .3% for diversified VWO.

If you're willing to stockpick, can buy ADRs. Though an ADR may attract buyers, driving price up compared to companies without ADRs. (If you do pick an ADR, please post.)

China is a great growth story, but there's also risks of corruption, repatriation, and other political risks.

Japan may be an indirect play on growth in China/Asia-ex-Japan. VPL has an ER of .18%. Not pure Japan, has 17% Australia&NZ.

VWO is about 55% Asia-ex-Japan/Oz/NZ, including 18% Korea, 13% Taiwan, 9% China.
__________________
lazyday is offline   Reply With Quote
Re: Investing in China
Old 11-12-2006, 01:05 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
Re: Investing in China

I found Matthews Asian Growth and Income (MACSX) as a surrogate for China.

http://finance.yahoo.com/q/bc?s=MACSX&t=my

Up 13% YTD, +21.8% average annual return for the last 5 years, 10 years up, 1 year down (down 23.2% in 1997).

Their idea is not to invest in companies IN China, but companies nearby who will benefit as China grows--who sell to China, etc. I liked the concept. I figure that the Chinese economy has a lot of upside in the long run, but I am not comfortable putting my capital in-country.

My 2 centavos.



__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Re: Investing in China
Old 11-12-2006, 08:44 AM   #5
Recycles dryer sheets
 
Join Date: May 2006
Posts: 442
Re: Investing in China

Quote:
Originally Posted by lazyday

China is a great growth story, but there's also risks of corruption, repatriation, and other political risks.
Also there is a risk of a RE and growth bubble. And its hard to say how the dollat to yuan currency will play out. China still has a large percentage of its people living on farm and villages that has yet to be put to work in the factories. So as long as money keeps flowing into china and they got stuff to seel to the rest of the world, I still see a lot of growth left.
__________________
dmpi is offline   Reply With Quote
Re: Investing in China
Old 11-13-2006, 07:12 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Investing in China

I agree with Ed's approach.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Investing in China
Old 11-13-2006, 09:30 AM   #7
Recycles dryer sheets
 
Join Date: Apr 2006
Posts: 397
Re: Investing in China

You might want to look at T. Rowe Price's New Asia Fund. 33% China including Taiwan and Hong Kong. 5 yr return 24.35%.

2soon
__________________
2soon2tell is offline   Reply With Quote
Re: Investing in China
Old 11-13-2006, 10:10 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Investing in China

Quote:
Originally Posted by Ed_The_Gypsy
I found Matthews Asian Growth and Income (MACSX) as a surrogate for China.
I bought MACSX almost exactly 3.5 years ago, and it's up 84.04%.

Quote:
Originally Posted by Ed_The_Gypsy
My 2 centavos.
shouldn't that be 2 yuan?!
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Investing in China
Old 11-13-2006, 10:48 AM   #9
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Re: Investing in China

Quote:
Originally Posted by Charles
Besides FXI, any other efficient ways to invest in the growth of China today in a targeted manner? How do you feel about doing so?
Have you read Bernstein's "Thick as a BRIC"?
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Value Investing Arif FIRE and Money 6 04-26-2016 07:01 PM
Big news from China...What is impact on USA stock market? fire2china FIRE and Money 4 05-14-2007 10:35 AM
Investing in China Hyperborea FIRE and Money 9 11-04-2004 08:12 PM
Book Report - Four Pillars of Investing cute fuzzy bunny FIRE and Money 24 03-25-2004 12:24 PM
International Exposure in Investing arrete FIRE and Money 21 04-03-2003 10:54 AM

 

 
All times are GMT -6. The time now is 09:16 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.