Posted by: donmihaihai | August 22, 2021

Invest in China

I have always invested in China since the start, not day 1 but close. Either directly in China companies listed in SGX or indirectly through Singapore companies that operate in China or managed funds.

Managed funds is still being called Unit Trust I believe and those funds were called Greater China Fund back then. How things changed. So I was an early believer of China and put some money into it. I last add in 2016 and actually sold a little last year.

Then in June I decided that Aberdeen has lost it way, where top 3 holdings are all China Tech and switch another fund with more old economy stocks in the top 10 holdings since the craziness in China stocks was mainly in China Tech and many old economy stocks valuation are not in excess, that was what I believe and still think so. So with what is happening to China Tech, I think I am lucky. The switch actually locked in and save some money.

In investing, don’t join in the crowd unless you are so sure of getting of out that crowd before everyone does. I switched because I suddenly realised that I was in the crowd and I did not invest in China Fund last year because of China Tech and now not going to do anything until some major drop across the board in China markets or the craziness is back.

I know China will overtake US in term of GDP in my lifetime but that doesn’t mean that stock market will perform just as such. Does SZ and SH charts look like belonging to a country with GDL increasing close to 10% yearly for decades? Remove JKSE and put SSE name in, would more like a stock Index belong to China.

Stock market doesn’t work in a way that say, because the economy is doing well, the market must do well. Personally I think, without the China Tech, China should be the place to be because of its secular bear market since last 2 peaks in last 20 years. I like to invest in places where the charts go nowhere for decades. Yes that include STI and a few others.


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