Posts Tagged Chinese Stock Exchanges

EVEN critics of China’s stockmarket would be hard-pressed to call it dull. After losing almost three-quarters of their value between late 2007 and the end of 2008, shares have gone back on the rampage. They are up by more than 70% this year, and that encompasses a wrenching 15% decline since late July (see chart). Combined, China’s two mainland bourses in Shanghai and Shenzhen are second only to America’s, measured by the value of domestic listings. Activity is frenetic: the average share in China has changed hands three times so far this year.

Up, Down, Up

http://www.economist.com/businessfinance/displaystory.cfm?story_id=14327311
www.crinvestmentadvisors.com
Wealth Management

Firstly, the index tumbled as much as 5% today (as many have predicted about world stock exchanges) as concerns that the powerful rally this year is becoming a feeling that the markets are overheating.

Most of our clients are either invested in United States, European or Latin American stock exchanges and their exposure to Asia is usually through ADR´s. So, what is the Shangai exchange and why does it matter? It is the largest exchange in mainland China, but unlike the Hong Kong exchange it is still mostly closed to foreign investors. Therefore, it is a excellent way to get a sensing of the mood in China itself, not just the mood the world has about China.   It is a way to sense which direction the wind is blowing within the nation. The composite index is the benchmark index and sits at 2,785.  Think of it as like the Dow Jones Industrials. This exchange and index are important for our investors because CR Capital Advisors recommends significant exposure in Asia and especially China. And Shangai, although our investors are in ADR´s, is important to watch, track and be informed about as we become more and more familiar and comfortable with Asia as investors.

It´s bigger than it looks

Here is the top ten on the exchange and some names to get familiar with.
1. PetroChina (3,656.20 billion)
2. Industrial and Commercial Bank of China (1,417.93 billion)
3. Sinopec (961.42 billion)
4. Bank of China (894.42 billion)
5. China Shenhua Energy Company (824.22 billion)
6. China Life (667.39 billion)
7. China Merchants Bank (352.74 billion)
8. Ping An Insurance (272.53 billion)
9. Bank of Communications (269.41 billion)
10. China Pacific Insurance (256.64 billion)

We also recommend reading or at least perusing “What´s New” every day, The Wall Street Journal Asia
http://www.wsj-asia.com/

www.crinvestmentadvisors.com

“International Wealth Advisors”