How much capital do you risk in the PRC market? One million dollars? Two million? ….?
Here is a very nice video report from the BBC on the China stock market from yesterday:
http://www.bbc.com/news/world-asia-china-33389577
Many articles on china equities market. All written by journalists either not in China or generic business reporters not experienced on china matters. Pretty much worthless white noise / commentary.
Like others here , I play the china market in my mad money account. Discipline mandates no more than a 2-3 percent of total portfolio. The rest remains in boring and recently sideways ETFs like VTI and VXUS... Boring is ok too !
As for china entered last January 2014 at around the 2200 level, in and out up to 3100... Paused and Watched it zoom to 5100 in disbelief and fall back to 3600 over the past 3 months and now ready to go back in.
Reminds me a bit of the 2007 China rally. These bull boom and bust cycles are entirely consumer driven ( with some margin hot sauce added by the government there) and so don't and won't end with one single whimper...there are retail consumer stages to any inflating and deflating bubble that can be traded.
The biggest issue is the volatility and not specifically being able to trade real time - time zone, market access, especially with ETF's.
One had to be ahead of the daily moves on a 12 hour lead time. Always risky.
But the daily limit is 10 percent so that's a little downside insurance when trading this way. Of course the ETF s don't have those limits but in theory they mimic the underlying market.
This is all mad money. Don't try this at home.
