Chinese stock market-anyone doing it? | Forex Factory

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Chinese stock market-anyone doing it?

  • #1
  • First Post: Aug 6, 2007 1:06am Aug 6, 2007 1:06am
HI guys

I m chinese, but live my whole life in states...dont even know how to read chinese correctly

but I heard the stock market there is booming...everyone, according to my aunt, is doing stocks...its a "stock nation" they call it...just wondering if anyone here is doing it...

I m not saying that randome gambling will get u places...but the market is more or less a "lucky" market right now...thoughts?

my question is will everyone in china get rich?
  • #2
  • Aug 6, 2007 1:16am Aug 6, 2007 1:16am
I'm no expert but seeing how China is poised to likely become the next "powerhouse" I think there might be money to be made if done properly, but like I said, I don't know a whole lot on this subject.
  • #3
  • Aug 6, 2007 1:17am Aug 6, 2007 1:17am
I trade the Hang Seng futures index...
Mr. Trend
  • #4
  • Aug 6, 2007 2:22am Aug 6, 2007 2:22am
i am looking to go long again at PTR and SNP, i can wait.
its just money
  • #5
  • Aug 6, 2007 7:36am Aug 6, 2007 7:36am
Quoting xxfunguyxx
HI guys

I m chinese, but live my whole life in states...dont even know how to read chinese correctly

but I heard the stock market there is booming...everyone, according to my aunt, is doing stocks...its a "stock nation" they call it...just wondering if anyone here is doing it...

I m not saying that randome gambling will get u places...but the market is more or less a "lucky" market right now...thoughts?

my question is will everyone in china get rich?
Well, I doubt everyone in China is going to get rich, but certainly some will! The Shanghai market is going to be very volatile, so if you like risk, it's a good place to play. If you are in the West, you can't invest directly, and have to go through ADR's and ETF's.
Here's a list of ADR's:
http://www.nyse.com/about/listed/7.h...done&default=1

While for ETF's, I've just been using GXC , but there are a number of others.
  • #6
  • Aug 6, 2007 10:20am Aug 6, 2007 10:20am
Just to follow up, here are links to two yahoo chart views of GXC, FTI (China based ETF's), the Shanghai, and the Dow.
In the first, which is plotted to relative values re. 3 months ago, you can see how the ETF's took off vs both the Shanghai and especially the Dow, as speculative interest started pouring money in, looking to not only bet on China's booming markets, but to catch on to the drop un USD/CNY.
http://finance.yahoo.com/charts#char...urce=undefined

The second is plotted relative to values 1 month ago; in that you can see how the general performance of the ETF's has followed the DOW, as interest peaked and (more recently) money is being pulled out.

http://finance.yahoo.com/charts#char...urce=undefined

Over the last 5 days, the effect is even more pronounced; while the Shanhai continues to run up, the ETF's contnue to plunge (even relative to the Dow) as money is pulled out in a flight to safety:

http://finance.yahoo.com/charts#char...urce=undefined

(sorry, I had to reset the charts as I can't plot Shanghai against the others on short time frames).

In the long run, I think there's good opportunities (though not as spectacular as if we had direct access to Shanghai), as in the next chart which is Shanghai, FXI, and the Dow over the last two years (GXC is a new product, and hence doesn't have a longer term chart):
http://finance.yahoo.com/charts#char...urce=undefined

Though it's best to wait out the current shakeout. Maybe by then, CNY will be more freely traded, and this will be moot anyway..
  • #7
  • Aug 30, 2009 10:09pm Aug 30, 2009 10:09pm
I'm thinking of buying some GXC/FXI/ or possibly EEM, yes i know EEM is emerging markets. So anyone investing in these? I think from the above posts everyone who particpated in 2007 probably crashed with the markets in 2008 lol!

But today is 2009 anyone buying china for this recovery?
  • #8
  • Aug 30, 2009 10:35pm Aug 30, 2009 10:35pm
Quoting xxfunguyxx
HI guys

I m chinese, but live my whole life in states...dont even know how to read chinese correctly

but I heard the stock market there is booming...everyone, according to my aunt, is doing stocks...its a "stock nation" they call it...just wondering if anyone here is doing it...

I m not saying that randome gambling will get u places...but the market is more or less a "lucky" market right now...thoughts?

my question is will everyone in china get rich?
I am a Chinese, a pure Chinses, even though studied and worked overseas in many countries for 8 years.

Since 2000, I actively participate in Chinese stocks. From 2005 to 2008 I made a lot from the stock market.

Yes, you are right. Almost every family participate in stocks or mutual funds. And only about 10% made money consistently.

Chinese stock markets are full of speculations and manipulations. In my opinion, it is kinda gambling casino. But if you know these speculation and manipulations rules, it is very easy to make money with your knowledge, experiences and patience.

Is and will every one get rich? Yes, but some people(big goverment officers and businessman, some professionals) are getting rick with light speed, but some people like snails. So imbalance are all over China, in Beijing, GDP per capita is about 6k USD, but in some inland poor villages, maybe several hundred USD only.

Wish I helped you.
  • #9
  • Sep 4, 2009 1:55am Sep 4, 2009 1:55am
Unless you want to go for buy and hold for a few years which will most likely generate profiit, it is extremely hard to do.

Chinese stocks are very prone to manipulation and fraud.
Check out on yahoo finance some crazy examples: EFUT, LDK, TSL.

These stocks can change up to 67% in one day on bad or good news which you will most likely not be able to find anywhere.
  • #10
  • Sep 28, 2009 4:44pm Sep 28, 2009 4:44pm
Quoting eric
Unless you want to go for buy and hold for a few years which will most likely generate profiit, it is extremely hard to do.

Chinese stocks are very prone to manipulation and fraud.
Check out on yahoo finance some crazy examples: EFUT, LDK, TSL.

These stocks can change up to 67% in one day on bad or good news which you will most likely not be able to find anywhere.
I agree individual stocks are extremely dangerous, I bought index fund ETfs
I'm sill concerned with the Chinese government nationalizing the major companies though any thoughts on that?

By the way if anyone bought the a Chinese index fund since march they would've of made over 100% return quite impressive performance from a index!! Some individual stocks have rose much more then that.
  • #11
  • Oct 24, 2009 11:18pm Oct 24, 2009 11:18pm
Chinese stocks in China trade at a premium to the same stocks in Hong Kong. This is because the HK stock-exchange is liquid (the 2nd most liquid in the world, 1st is London) and the Chinese ones in Shanghai and Shenzhen are less liquid or shall we say unliquid.
What that means is that there is a lot more money than there is stock in Shanghai. In a mature market, stocks would continually rise under such a scenario but China is not a mature market where finance is concerned.
  • #12
  • Nov 3, 2009 4:38pm Nov 3, 2009 4:38pm
Your best bet is Hang Seng Hong Kong.

I was eying a long position in March at around 12K, take a look at it now, it's run rings around SP DoW etc. Dont know why I never took it on, too busy with other stuff I guess.

Now its about 21K, I'd say we missed the boat lol.
  • #13
  • Nov 4, 2009 10:21am Nov 4, 2009 10:21am
Hang Seng does exactly what the Dow does, even though most major stocks are PRC state-owned.

Dow highs 14000 = HSI highs 30000
Dow lows 6500 = HSI lows 14000

A factor of 2.14
  • #14
  • Nov 11, 2009 8:00pm Nov 11, 2009 8:00pm
i am a native Chinese, I also make stocks. China's stock market is not as easy as you imagine making money, man-made phenomenon of a very serious operation. If you have money can control a lot of stock in order to reap a lot of money
  • #15
  • Nov 20, 2009 6:46pm Nov 20, 2009 6:46pm
Quoting xxfunguyxx
HI guys

I m chinese, but live my whole life in states...dont even know how to read chinese correctly

but I heard the stock market there is booming...everyone, according to my aunt, is doing stocks...its a "stock nation" they call it...just wondering if anyone here is doing it...

I m not saying that randome gambling will get u places...but the market is more or less a "lucky" market right now...thoughts?

my question is will everyone in china get rich?
u claim to be chinese and you can't even read chinese? do you feel no shame? that's like a white person not knowing english or his european mother tongue.
you are an american. ABC. you are nothing like Real Chinese in China.
  • #16
  • Nov 20, 2009 11:55pm Nov 20, 2009 11:55pm
I'd like to tell everyone as a pure chinese, living in China, Chinese stock market is becoming better and better than ever before with the fast development of chinese economy and the largest population in the world.

You can make money if you could find a good company and have a long term run investment in it. Manipulation, which also exist in all world market, do exist in the chinese stock market but it can almost be ignored because it is very small.

Do you know Warren Buffett? I am sure you know. He just had a largest invest in a chinese company, BYD at the bottom of 2008. Eveyone can see till now he has maken big money from the investment in China.
  • #17
  • Dec 1, 2009 2:00pm Dec 1, 2009 2:00pm
Its funny i found this topic, i was about to start a new one.

Im interested in Asian stock markets for various reasons that i won't discuss atm. I hear that Chinese (shangai A) stocks cannot be bought from non-chinese nationals. Only b stocks and hk stocks.

while searching for an online broker that deals with asian stockmarkets, i came up with boom.com.hk (no i am not advertizing), and was wondering if anyone here has had any experience with them. ANZ bank bought 10% of that broker, so I hope that they are credible.

The prospect of China/Asia becoming the new economic centre of the world, together with the currently low EURHKD rate, makes it, in my opinion, a great opportunity to simply discard. I am not after fast money, nor volatile stocks, rather steady gainers which might become the next decade's big multinational companies.
  • #18
  • Edited 9:31pm Dec 1, 2009 7:59pm | Edited 9:31pm
Quoting GreedyPIPs
Its funny i found this topic, i was about to start a new one.

Im interested in Asian stock markets for various reasons that i won't discuss atm. I hear that Chinese (shangai A) stocks cannot be bought from non-chinese nationals. Only b stocks and hk stocks.

while searching for an online broker that deals with asian stockmarkets, i came up with boom.com.hk (no i am not advertizing), and was wondering if anyone here has had any experience with them. ANZ bank bought 10% of that broker, so I hope that they are credible.

The prospect of China/Asia...
Your best bet is HK where PRC companies are traded at a discount to the same in Shanghai/Shenzhen.
There's not much of a difference in fees between brokers and banks.
  • #19
  • Dec 2, 2009 4:05am Dec 2, 2009 4:05am
Hey Thanx for the info!
Are the HK brokers regulated & supervised by an authority ?
I'm kind of worried wiring money just like that...
  • #20
  • Last Post: Dec 2, 2009 8:53am Dec 2, 2009 8:53am
Yes, ofcourse. It's a mature, sophisticated market. You don't become the world's 2nd most liquid market for nothing.
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