Email of the day
"David, you have often noted China health care as a choice investment. Do you know of any vehicle to invest specifically in "China healthcare" available to US investors?
"I am about to renew my subscription to FM for the 25th year. Could not live (invest) without you.
David Fuller's view I thank you for your generous comment
and long-term support."
The
short answer is that we have not found any yet. However, healthcare is a rapidly
developing sector, and certainly not just in China. For instance, look at Johnson
& Johnson (JNJ US) - a US Autonomy yielding 3.1%, which has moved steadily
higher this year. While currently overextended after 17 consecutive weeks to
the upside, this is certainly a share to consider following the next reaction
and consolidation towards the MA.
As you
know, I hold the Dublin-listed Atlantis
China Healthcare Fund (ATCHLTH ID), managed by Jang Liu, as do some subscribers
although it cannot be purchased in the USA. It is a very
expensive Fund but at least it is performing.
We have been searching for other Chinese healthcare funds - not least Eoin -
but have so far not found anything that we would feel comfortable in mentioning
to subscribers. Interestingly, there were a few China healthcare shares listed
in the US OTC market, although not in mainland China. That is always a warning,
in my opinion. We had not mentioned them because they were serial underperformers,
and we are not surprised to discover that they have subsequently been delisted,
according to Bloomberg.
Eoin
pointed out that there is a Chinese share called Beijing
Tongrentang (600085 CH), which develops, manufacturers and markets Chinese
traditional medicines and medicinal wines. It has done very well and judging
from the performance, we would not be surprised if it is held by the Atlantis
Fund, given the similar pattern. Eoin also noted Tong
Ren Tang Technologies (1666 HK), which also develops Chinese patent medicine.
It has been a spectacular performer over the last two years but is currently
quite overextended and had a big downside weekly key reversal last week.