After reading this article: http://chinascope.org/archives/6458
Summary:
-The US has a history of "attacking" countries economically and using these attacks to make the us dollar stronger
-The real value of the US economy is five trillion, not eighteen trillion because most of the US economy is based on virtual transactions not physical production
-US tried to attack China in this way and it didn't work
-Alternatives currencies are being used such as Alipay in China (and bitcoin) will make the traditional currency obsolete
-US and China may go to war with each other in ten years
I am fairly convinced that investing in a China is a good idea, however I am not really sure how to do this. I haven't done that much research so far, but it seems like the MSCI China or the Hang Seng China Enterprises (HSCEI) would be good ways to go.
I think that anyone who plans to live off of investments long term should consider what is going to happen to the US economy in a decade.
Does anyone invest in China? How do you do this? What do you think about the article? Thanks
How to invest in China?
Re: How to invest in China?
I buy Tencent and Baidu.
Predicting the future is a messy game.
Your article reminds me of the crusty old gangster from Looper. "Forget Paris go to Shanghai."
https://m.youtube.com/watch?v=oGo96xzNSEs
Predicting the future is a messy game.
Your article reminds me of the crusty old gangster from Looper. "Forget Paris go to Shanghai."
https://m.youtube.com/watch?v=oGo96xzNSEs
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The Old Man
- Posts: 503
- Joined: Sat Jun 30, 2012 5:55 pm
Re: How to invest in China?
I invest in the Vanguard Total World Stock Index Fund. It invests in 98% of the world's investable stock markets which includes China. I also invest in Vanguard Total International Stock Index Fund (the world ex USA).James_0011 wrote: ↑Wed Jun 14, 2017 8:34 amI think that anyone who plans to live off of investments long term should consider what is going to happen to the US economy in a decade.
Does anyone invest in China? How do you do this? What do you think about the article? Thanks
Personally, it is too difficult for me to predict the future, so I use an index approach. I do believe China has a bright future, so a higher than index weighting would probably be warranted.
Re: How to invest in China?
In emerging markets ETFs, china is the largest holding.
I use that, here in Europe the purely "china" ETFs still have TERs that are too high for my liking (0.75% and up)
I use that, here in Europe the purely "china" ETFs still have TERs that are too high for my liking (0.75% and up)
Re: How to invest in China?
I agree with Sclass. Buy some of their leading internet/tech companies like Tencent and Baidu. On top of being decent businesses and being in tech, which seems to self-select for monopolies or at least oligopolies, the Chinese government won't let these companies fail, as they can't afford to have the US/US companies completely dominate the internet.
As others have mentioned, the emerging market funds/ETFs have a chunk invested in China. You could also invest in the A-shares Chinese funds. Though, A couple select bets and emerging market funds are probably good exposure to China. This is my current investment mix. Funds for diversification and then some concentrated bets in specific companies.
China is definitely part of the future, but they are far from perfect and they are at point in their economic development that causes many developing countries to stumble. I do think they will eventually get past this part and cement themselves as a developed country, but there will probably be some pain along the way.
Be careful with most of those conclusions in the summary part of your post. They are either not entirely true or only true from a certain point of view. For instance, the belief that physical production is what matters and because of this the US economy is actually 1/3rd it's current value. It doesn't matter if what is produced is physical or just composed of electrons. What matters is if it creates value.
Also, it's not like the US doesn't still produce stuff. The US produces roughly 19% of global manufacturing, while China is around 25% in 2016. I can't find the article I read earlier this week with these numbers, but here is one from 2012 with very similar numbers.
https://www.mapi.net/blog/2014/01/china ... ufacturing
This article shows each country ranked by competitiveness in manufacturing. The US ranks 2nd only to China and is projected to be 1st in 2020. With the rise of automation, energy cost is a bigger factor now than before and natural gas is basically free in the US right now.
https://www2.deloitte.com/global/en/pag ... index.html
Don't forgot who wrote that article you posted and what incentives they have coming to the conclusions noted in the article. Also, don't forget that I'm American.
As others have mentioned, the emerging market funds/ETFs have a chunk invested in China. You could also invest in the A-shares Chinese funds. Though, A couple select bets and emerging market funds are probably good exposure to China. This is my current investment mix. Funds for diversification and then some concentrated bets in specific companies.
China is definitely part of the future, but they are far from perfect and they are at point in their economic development that causes many developing countries to stumble. I do think they will eventually get past this part and cement themselves as a developed country, but there will probably be some pain along the way.
Be careful with most of those conclusions in the summary part of your post. They are either not entirely true or only true from a certain point of view. For instance, the belief that physical production is what matters and because of this the US economy is actually 1/3rd it's current value. It doesn't matter if what is produced is physical or just composed of electrons. What matters is if it creates value.
Also, it's not like the US doesn't still produce stuff. The US produces roughly 19% of global manufacturing, while China is around 25% in 2016. I can't find the article I read earlier this week with these numbers, but here is one from 2012 with very similar numbers.
https://www.mapi.net/blog/2014/01/china ... ufacturing
This article shows each country ranked by competitiveness in manufacturing. The US ranks 2nd only to China and is projected to be 1st in 2020. With the rise of automation, energy cost is a bigger factor now than before and natural gas is basically free in the US right now.
https://www2.deloitte.com/global/en/pag ... index.html
Don't forgot who wrote that article you posted and what incentives they have coming to the conclusions noted in the article. Also, don't forget that I'm American.