Quietly quietly, China (Greater China) shares has rallied, against skeptics.
Shanghai Index. Rallied from 2,000 points end of last year to current 4,480 points, a whopping 124%.
Hang Seng China Enterprise Index. Rallied from c.10,000 points to 14,459 points, an increased of c.45%.
Hang Seng Index. Rallied from 22,500 points to 28,123 points, an increased of c. 10%.
Taiwan Weighted Index. Oops, broken the peak ten years ago.
It seems like A shares and H shares are still below their last peak.
Well, many investors jumped into China (Greater China) funds during the 2007 rally and saw the price to plummet in 2008. Thereafter, China funds investors has suffered. Most, I guess, has thrown in the white towel.
However, for the past 6 months or so, China funds has fought back, it seems. Referring to MorningStar's fund performance tracking page, year to date top spots almost taken by China funds.
Once bitten, twice shy. Do we dare to put our money in China funds again? We see commentators discussing the direction of China shares, we even heard China citizens are crazy about trading shares now.
As I read the comments by JP Morgan and Barings, in FundSuperMart HK, those two fund houses opined China H shares still has legs. FundSuperMart Malaysia shown the market valuation for Hong Kong and Hang Seng Mainland 100 are having low PE.
I also read in newspaper (can't remember which newspaper) that, according to plan, Shenzhen-Hong Kong Connect will be implemented in second half of 2015. The previous Shanghai - Hong Kong Connect has succeeded to push Hang Seng Index and allowed foreign funds to buy into Shanghai A shares.
So, is it worth a try? China shares has been the cheapest for the past few years right until the current rally. Which market is cheap now? FSM Malaysia says it is Hong Kong and HSML100. FSM HK says H shares still has steam.
To go or no to go? I have my preferred fund in my mind. I will put in little bit lah.
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