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.