facebookIs it a good idea to invest in China through a HK-listed ETF as part of a long-term investment strategy, considering the uncertain future of the territory and its currency? - Seedly
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Anonymous

Posted on 17 Oct 2020

Is it a good idea to invest in China through a HK-listed ETF as part of a long-term investment strategy, considering the uncertain future of the territory and its currency?

Recently I've been looking at 2801.HK to gain some lower cost exposure to the Chinese market, but I'm a bit nervous about Hong Kong. I'm a relative beginner, and don't think I know enough about currency risk. Am I better off going with an Ireland-domiciled ETF, even at higher cost?

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Discussion (1)

Frankie Rappaport

Frankie Rappaport

Level 16. Sage

Posted on 17 Oct 2020

The choice should depend more on combined trading and annual ETF/broker

fees.

The risk is more inherent to the single stocks if the ETF, not so much of the domicile of the ETF.

With 0.20% annual fees 2801 seems an exellent choice.

2

Question Poster

24 Oct 2020

Thanks for your reply! Yes, I've asked around about this and there's a lot I need to learn yet but I think I get it.

Frankie Rappaport

Frankie Rappaport

24 Oct 2020

You're wellcome. The broad MSCI China indices seem a good longterm investing choice. . U.S. domiciled one is: MCHI and tracks the MSCI All China IMI Index. TER 0.59% annually. Relatively longterm successful now. . The 2 Ireland domiciled ones that are large enough to survive (assets under management larger than 100 mio EUR) track the MSCI Emerging - China NET: -the iShares MSCI China UCITS ETF USD (Acc) ISIN IE00BJ5JPG56 has the advantage to be an accumulating one, so dividends do not need to be re-invested by you which reduces performance because of trading fees. TER is 0.40%, ticker ICGA in EUR on german Xetra stock exchange -iShares MSCI China A UCITS ETF ISIN IE00BQT3WG13 is a much larger distributing one (dividends quarterly), same TER 0.40%, ticker CNYA in USD on London Stock Exchange and ticker 36BZ in EUR on german Xetra stock exchange . On the Hong Kong Stock Exchange You could have cheaply the Global X MSCI China ETF (HK:3040) that tracks the MSCI China NR HKD index for TER 0.35% annually . . . On all the things importantly to avoid, You could read here: https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

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