In the long run I am very positive about China and its economy. It is a gigantic country with an enormous drive and a sea of opportunities. Besides it is governed by a central committee with a clear long term agenda and the power to exercise its will.
China will attain its goal to become a very prosperous country. That being said, the country is so big that things cannot be obtained in a swift and easy way. It will take decades to arrive where they want to be.
China has prospered in the years behind us from high and fast growing exports but here it may have overstretched its ambition. The Chinese government has acted accordingly to change its focus to its domestic market.
That is a wise step but it will not be consumed without some minor or major hick-ups. For the coming years we will experience this period of transition. In my opinion this will provide for many interesting entry points.
HSBC MSCI China UCITS ETF
To start of this section I will tell a little bit about the MSCI China index. There are more MSCI China indices (to make it a bit complicated). For instance the MSCI China A Index only tracks the stocks of shares that only the Chinese themselves are allowed to buy.
This HSBC China ETF however is tracking the MSCI China Index that contains shares that may be bought by foreigners. The MSCI China A Index may show rollercoaster-like movements as it is in the hands of many Chinese individuals that love to speculate.
That is why I opted for the HSBC MSCI China UCITS ETF as it is much more predictable and it much more represents the underlying strength of China.
This HSBC China ETF is a physical ETF, for me an extra advantage as compared with the China A shares as they cannot be bought by foreigners.
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HSBC MSCI China UCITS ETF info:
ETF provider: HSBC
Exchange: Euronext Parijs
This HSBC MSCI China UCITS ETF has quotations on different exchanges and is known under several ticker symbols. As long as the ISIN number is identical you are dealing with the same ETF.