Email of the day on how to buy the Hang Seng
Comment of the Day

September 09 2015

Commentary by Eoin Treacy

Email of the day on how to buy the Hang Seng

Thank you for your excellent service, it’s so nice to hear a calm voice every morning these volatile days! I have a short question? I want to buy Hang Seng index, there must be some with a large discount today???? All the best. A subscriber for 27 years!!!!

Eoin Treacy's view

Thank you for your kind words and support through the years. I am delighted you are enjoying the audios and I agree that China is a lot more interesting right now than it has been for the last month.

The US listed China Fund Inc. (CHN) is currently trading at a discount to NAV of 12%. This is not especially wide for the fund but it is worth highlighting the reason it been able to pay outsized special dividends in December of the last four years is because it is investing in shares that yield 5-6% and still trades at a significant discount.

In the UK, the JPMorgan China Investment Trust trades at a discount to NAV of 16.67% and yields 1.02%. It found at least near-term support in the region of the 2014 lows in late August and a reversionary rally remains in evidence. 

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