Emails of the day 1 & 2
Comment of the Day

July 23 2014

Commentary by David Fuller

Emails of the day 1 & 2

On china funds

“Hi. For the A share market, is there an ETF or futures that are readily accessible to foreigners?”


“Thank you very much for your comment on ETF's in India. Can you please also advise whether or not you might have a similar suggestion for ETFs for China? As always thank you for the excellent service you provide.”

David Fuller's view

Thank you for your kind words.  Yes, there are a number of funds, ETFs ITs (closed end funds) listed in the Chart Library which could be of interest to you.  Since the ambitious menu restructuring project will not be completed for another couple of months, type China into the Library’s ‘Search’ facility.  The funds, ETFs and ITs are mostly listed in the lower portion of the second column and also throughout the third column. 

While there are many more than you will be interested in, the investment vehicles will also show you where they are listed, and this information will definitely be relevant for global subscribers. 


For instance, I generally prefer investment vehicles managed by the larger institutions, and for convenience as a UK citizen, I will often opt for a London listing which will usually be quoted in sterling.  For example, over the last few years I have held an investment in the JPMorgan Chinese Investment Trust plc (JMC LN).  It is an IT (closed-end fund).  I like ITs because they can be bought or sold like stocks.  Additionally, they usually trade at a discount to NAV, which can be quite large if the market is out of favour.  For instance, JMC currently sells at a discount to NAV of 11.69%, according to Bloomberg, and here are its Top 10 holdings.  When China’s stock market does well over several years, that discount will narrow and may also move to a premium, in which case it may be appropriate to commence profit taking.  Subscribers will be able to select investment vehicles which they prefer and are listed in their country or region, and currency of favour.  Also, the bigger firms often have multiple listings, which you can check online.

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