Should I diversify my investments to China/Hong Kong?

Hi, dear Tan Kel Vin,

thats a good question.

The more general question would be: how should I approach stock investing as to allocation anyway. I feel, that would be a global index ETF first, but one with China share, so possibly MSCI ACWI ETF (like SPYY/ACWI).

When you're a Singapore resident and begin stock investing, it is a bit normal that (because of 'home bias') You chose into Singapore stocks, but Singapore market is a very small one, unimportant from a global view. Also single stock investing is not recommendable, since it does not work out longterm (at least when compared to appropriate stock indices). ETFs are the smarter way to longterm investing.

When You do not like MSCI ACWI investing you could buy China only ETFs, maybe 10 (or up to max 20%) of your current portfolio. Difficult to tell which ETF is the best for China, I think MCHI or maybe PGJ or that 'ex state owned' one could be top for the general investor. Though I own some China Technology ETFs (KURE, CQQQ, HK 2820) it is really not something I would recommend to other persons: China risk plus Technology risk added, these risks could be important, also China equity are extremely volatile, more stocks there are owned by retail investors than in the U.S., so there could be very emotional price drifts.

good luck 🍀

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