Saturday, February 18, 2006

China Investment Strategies
A paper by Burton Malkiel of the "A random walk down wall street" fame, Jianping Mei and Rui Yang in the Journal of Investment Consulting Vol7, No3, Winter 2005-2006 pg 32-47 touched upon why they believe the Chinese economy will continue to roar and ways for the investor to make money. Indeed some of the themes are very similar to the ones touched upon in two previous posts:

Profiting from long term trends and

Emerging Markets for the small guy

And some other suggestions - the conclusions are ways make money from China
  • Open end US Mutuals like "Alliance Bernstein Greater China", Fidelity China Region", "Matthews China", "Columbia Greater China Z", "Dreyfus Premier Greater China" and "Guinness Atkinson China"
  • Closed end shares like "Jardine Fleming China region", "Greater China" and "China Fund"
  • Investing in Taiwan, HK and Japan since these economies are and will be even more closely intertwined with China
  • Investing thru US companies with China exposure, they name UPS, Wal Mart, ProLogis (a REIT) and Yum Brands . (previous posts on UPS and WMT )
  • Investing in Chinese ADR's
  • Investing in Natural Resources (previous post on Canada, Australia, BHP Billiton and Rio Tinto)
Needless to say it was pleasant to see many of the themes and trends validated by Malkiel, it was however disheartening to see that the two China ETF's namely
  1. FXI ($71.65) - the Barclays FTSE/Xinhua China 25 Index Fund
  2. PGJ ($15.65) - the Power Shares Golden Dragon Halter USX China
that offer almost all the benefits of Open and Closed funds at lower costs were ignored. For a copy of the paper leave an address on your post.

1 Comments:

Blogger A K said...

Mail us the paper

9:27 PM  

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