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Posted: 4/10/2015 11:19:29 AM EDT
I keep seeing lots of stocks in the Chinese markets with a lot of activity. I just can't bring myself to give money to China.
I know that I can make some money off the returns, but can't get over the fact that I'm helping China help take more control over the world.

What do you think?

Thanks
Link Posted: 4/10/2015 11:34:08 AM EDT
[#1]
China isn't taking over anything. I know this won't be popular here but this is my viewpoint.

They pimped their poor as cheap labor for profit. Now that they do have a middle class developing and people expect to make money in exchange for work. Because of that they are losing market share quickly to Pakistan and india in terms of low skill manufacturing jobs.

If the Chinese or Indians want to "take over" by paying their people 4 cents an hour, I'm not concerned about it.

Both of those countries will always have a lot of control due to their sheer population size. People make a big deal about us "owing" china. China's entire economy is propped up on making cheap goods and being able to sell us those goods. Make no mistake, China's economy is 99.9% dependent on the united states. They need us to survive, and we need 50 cent cotton bath towels to survive.

Someone that is more educated than I am may be able to correct me, but that's the way I see it.
Link Posted: 4/10/2015 12:12:39 PM EDT
[#2]
A wise investor puts aside his personal and perhaps even political emotions and goes where the money is.

Take a look at Chinese ETFs.  My favorites are GXC, FXI, FCHI and MCHI although there are several other "good" ones; a lot easier and safer than trying to pick individual Chinese stocks.

They are down a bit today; you missed a big move yesterday (my GXC was up 5 or 6% I think).

A little bit safer would be to go with an emerging market fund where you will get exposure to several different countries.

The other play is to look at companies with a large exposure to China like Ford, Starbucks, Yum, etc.

Just be aware that in addition to all the "normal" forms of risk, you will also be exposing yourself to currency rate risk.
Link Posted: 4/10/2015 1:11:29 PM EDT
[#3]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
A wise investor puts aside his personal and perhaps even political emotions and goes where the money is.

Take a look at Chinese ETFs.  My favorites are GXC, FXI, FCHI and MCHI although there are several other "good" ones; a lot easier and safer than trying to pick individual Chinese stocks.

They are down a bit today; you missed a big move yesterday (my GXC was up 5 or 6% I think).

A little bit safer would be to go with an emerging market fund where you will get exposure to several different countries.

The other play is to look at companies with a large exposure to China like Ford, Starbucks, Yum, etc.

Just be aware that in addition to all the "normal" forms of risk, you will also be exposing yourself to currency rate risk.
View Quote


With ETF's, isn't there a minimum to invest in? Something like $2,500 to $10,000, depending on which one it is.
Link Posted: 4/10/2015 1:43:27 PM EDT
[#4]
Discussion ForumsJump to Quoted PostQuote History
Quoted:


With ETF's, isn't there a minimum to invest in? Something like $2,500 to $10,000, depending on which one it is.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
A wise investor puts aside his personal and perhaps even political emotions and goes where the money is.

Take a look at Chinese ETFs.  My favorites are GXC, FXI, FCHI and MCHI although there are several other "good" ones; a lot easier and safer than trying to pick individual Chinese stocks.

They are down a bit today; you missed a big move yesterday (my GXC was up 5 or 6% I think).

A little bit safer would be to go with an emerging market fund where you will get exposure to several different countries.

The other play is to look at companies with a large exposure to China like Ford, Starbucks, Yum, etc.

Just be aware that in addition to all the "normal" forms of risk, you will also be exposing yourself to currency rate risk.


With ETF's, isn't there a minimum to invest in? Something like $2,500 to $10,000, depending on which one it is.


No:  ETFs trade like stocks; you can buy one (1) share if you'd like, although depending on what you have and where you have it, you'll pay a commission (just like a stock).  Which brings us back to individual stocks:  you will still need to invest something like $5,00-$10,000 per stock in order to make it cost effective unless you pay zero/low commission.
Link Posted: 4/11/2015 10:18:01 PM EDT
[#5]
I'm not big on products made in China either and there are some things I won't invest in no matter the potential profit. For me it's tobacco since I spent years addicted to it. My opinion if it bothers you don't invest, there are plenty of other things to make money on. If you decide to I'd remember their economy is a bubble of crony capitalism and most of the government and business reports are probably lies. I did start a really small position in Alibaba at 85. I'll double it if they go below they IPO price of 68. I think they have some long term potential.      
Link Posted: 4/12/2015 12:54:31 PM EDT
[#6]
I think I look at it differently than most people.  I don't consider it investing in China, I consider it investing in a company headquartered in China, (presumably with many, but not all, Chinese shareholders).

Now, this gets some what murky since the Chinese gov't owns some or all of many Chinese companies, and receives taxes from those which it doesn't own.  The same is also true for the USA, of course.  China is going through the same stage of growth that the US did in the last part of the 19th century, with many of the same kinds of complaints being raised today as were directed at the US back then.

I look at trade the same way.  I am not trading with China, I am trading with Mr. Li, or whoever.  I suspect that I have a lot more in common with the man on the street in China than I do with a member of the US congress.

I have invested successfully in both China and Russia, which I admit made me feel a bit strange, considering my Cold War upbringing.

Now, I have no problems with investing in China, but I am not currently invested there.  (With the exception of mutual funds, it would be a full time job tracking where in the world they invest).  

I am considering shorting a Chinese fund.  

If you are not comfortable investing in China, I would recommend that you ignore the Chinese market, and concentrate on areas where you are comfortable.  This may sting a bit if you find you have passed up a winning investment, but that is the way the cookie crumbles.

Link Posted: 4/12/2015 5:51:43 PM EDT
[#7]
Link Posted: 4/14/2015 3:01:46 AM EDT
[#8]
I wouldn't believe anything a Chinese company would put out regarding revenue, net income, etc.  I wouldn't buy a Chinese stock. YMMV
Link Posted: 4/14/2015 3:15:29 AM EDT
[#9]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
A wise investor puts aside his personal and perhaps even political emotions and goes where the money is.

Take a look at Chinese ETFs.  My favorites are GXC, FXI, FCHI and MCHI although there are several other "good" ones; a lot easier and safer than trying to pick individual Chinese stocks.

They are down a bit today; you missed a big move yesterday (my GXC was up 5 or 6% I think).

A little bit safer would be to go with an emerging market fund where you will get exposure to several different countries.

The other play is to look at companies with a large exposure to China like Ford, Starbucks, Yum, etc.

Just be aware that in addition to all the "normal" forms of risk, you will also be exposing yourself to currency rate risk.
View Quote



This.  I would look at relevant ETFs before I would try to pick individual stocks in China.
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