China Stocks UNINVESTABLE Or BIGGEST OPPORTUNITY of the decade?

Investing in China now sound like the last thing one could possibly think about. However, China stocks now could be the best bargain you see for a long time. Here are the key factors to help you understand the risk and reward of investing in China.
0:00 UnInvestable
1:48 Noise vs. Reality
5:59 Herd Behaviour
7:08 Valuation
8:20 Headlines vs. Information
10:02 Catalysts
11:53 Reward
13:31 RISK
15:53 YT Portfolio
What is this channel all about? Value Investing:
• Value Investing Proper...
My 5 Core Stock Market Investing Beliefs
• My 5 Core Stock Market...
KZbin Portfolio Playlist • KZbin $1,000,000 Por...
My Mistakes • Learn From My 15 HUGE ...
If you want to calmly read my investment theses with detailed research reports and clear risk and reward estimations, please check my Value Investing Theses Platform.
sven-carlin-research-platform...
Are you an investor that is just starting? Sign up for the FREE Stock Market Investing Course - a comprehensive guide to investing discussing all that matters: sven-carlin-research-platform...
You can DOWNLOAD THE FREE COMPARATIVE STOCKS LIST AND INTRINSIC VALUE TEMPLATE on my Stock Market Research Platform (with YT STOCKS PORTFOLIO):
sven-carlin-research-platform...
I am also a book author:
Modern Value Investing book:
amzn.to/2lvfH3t
Check my website to hear more about me, read my analyses and about OUR charity.
www.svencarlin.com
Listen to Modern Value Investing Podcast:
svencarlin.com/podcasts/
I am about long-term investing but my wife is about something even more important; long-term health! Naturally Ana KZbin Channel: / @naturallyana
The below links are from third parties or channel sponsors where I get a fee from:
I often get asked about brokers, here is a low fee broker, an international one that allows you to buy on global markets, and also offers complex solutions like options for when your investing skills grow. For now, it is one of the best solutions I have found for global investors, also based on your comments and inputs:
www.interactivebrokers.ie/mkt...
For a $140 discount on SeekingAlpha Premium Annual Plan (From $239 to $99), please use the following link: www.sahg6dtr.com/8QCFWJ/GTSC3/
Brokers video: • How To Select A Broker...
Always keep in mind: “Investing involves risk of loss”

[@jeffreycuadros1685]

One of the few youtubers that is actually smart, great content Sven.

[@Value-Investing]

most of them are much smarten than me, they make much more money than me :-)))

[@johnw8938]

Eye opening charts, data and commentary: 4:52 - translation 👍. 14:43 - understandable projections. 15:20 - You have to think always, am I ready if it happens (sluggish or worse returns). Huge value in this. Great work and insight. Thanks again!

[@Value-Investing]

thanks!

[@erikazn5182]

Great way to keep track of the flow of information on your videos, keep up the good work and thank you for the valuable content!

[@LetteriSC]

Loved this! Not just the content but how you are true to yourself and are not afraid to go against the trend! Amazing video and some real great points to cool down all the craziness

[@Value-Investing]

thanks! Then again, nobody knows what will happen!

[@investScout]

:D

[@AlphaMesco]

Thanks for the great video and for sharing the Asian Times article Sven! Plus nobody maybe noticed that Yi Huiman, the current chief of the CSRC who actually made the accounting deal with the PCAOB, was confirmed in the Central Committee and there's rumors that he may become be the next chief of the PBoC! It doesn't look like a decision going in the direction of "closing the capital markets" to me... Keep up this kind of good content man! 👍

[@Value-Investing]

yes, only the US is closing things to try to delay growth and protect itself and its interests.

[@investScout]

:D

[@sheming106]

Thank you Sven, just what I needed!

[@Value-Investing]

Glad it helped!

[@Lukegaragozlo]

This is one of your best videos Sven! Packed with value that would’ve taken hours to find myself

[@Value-Investing]

that is the plan!

[@lllll819]

Sven , I needed this , thank you so much

[@Value-Investing]

:-)

[@Andrzesz]

So glad that I bought before that rally after watching your video. As always, great content Sven.

[@angelsancheese]

This is what I needed to hear. Thank you

[@Value-Investing]

if you needed to hear something, you must be careful :-)

[@manos6969]

Another great video, thank you Sven. Finally a quality unbiased analysis of the situation in China!

[@Value-Investing]

Thanks!

[@pongop]

Very interesting video! Great stuff!

[@Value-Investing]

Glad you enjoyed it!

[@sksilwal]

Thanks for the analysis Always clear thinking and a cut above the rest U redeem KZbin Keep it up

[@Value-Investing]

Thanks, will do!

[@leonardocrespi424]

Great video! Don't stop Sven

[@Value-Investing]

thanks!

[@VANDELRIO3]

I have watched many of your wonderful videos and I have to say that this one, is 'one of your best' - So useful and so logical - THANK YOU

[@Value-Investing]

thanks!

[@Mzt1231]

Great content! Thank you

[@Value-Investing]

thanks!

[@danienishanov738]

Wow great vid Sven, covering china is crucial, hope u will cover some of their big companies as well. Thanks!

[@Value-Investing]

unlikely, here on YT, China will remain on the macro:-(

[@gergojonas828]

Great audi! Thanks Sven!

[@Value-Investing]

good to hear!

[@RadMan813]

Great video Sven! Cheers

[@Value-Investing]

Thanks!

[@maxjames00077]

You turned up the audio! Omg thank you!

[@Value-Investing]

Thank you for telling me!

[@mikestanmore2614]

This was very interesting, thankyou Sven.

[@Value-Investing]

thanks!

[@hoffmaenncyde]

Thank you, very important content for me! I was loosing big over the last year on chinese stocks, even though i was convinced the valuations were ridicoulously low. Now with Baba etc dropping again 10-20 percent with latest news i just intuitively filled more of my bag. I am now more confident it was the right decision. Lets hope shit does not hit the fence and china leaves Taiwan alone :D

[@Value-Investing]

the key is that you know whatever happens you can survive it!

[@investScout]

:D

[@franksmith4687]

Love your channel, valuable content.... always. I am from Germany and I also love the channel from Markus Koch and EchtgeldTV. Every channel is adding different value to me, big thanks for that!

[@Value-Investing]

thanks

[@danguee1]

Sven - I broadly approve of a risk analysis approach to things like China investment. This has three main prongs similar to yours: 1) come up with educated/intelligent guesses as to the likelihoods of the different outcomes with their potential rewards - and aggregate them 2) be prepared to lose the whole lot 3) therefore, don't put that much in, given that the total-loss option is pretty significant (5-7% max) and 4) demand a pretty high 'discount' on the valuation. I personally regard this a quite valid approach to riskier investment

[@fonebook]

Agreed, around 5% is ideal. I happen to have a 6% allocation. Only stings if it goes to 0 but will be substantial if things turn around.

[@investScout]

😀

[@CarloCampus86]

Great content, really appreciated! I'm maintaining almost the same percentage of my investments in China, by buying some more shares when prices go down, like in the last week. Hope the strategy works for good future returns :)

[@Value-Investing]

Best of luck!

[@lb184]

Great video sven! Could you also make a video on meta situation?

[@Nico-wf8nr]

Been waiting for a video on this topic - Thanks Sven!

[@Value-Investing]

Hope you enjoyed it!

[@ryanh9388]

Same here I have been waiting patiently for this topic.

[@brunoradovanovic2408]

Odličan video👍

[@Value-Investing]

Hvala!

[@davidm1436]

With your comment on how asset managers think you reminded me of a quote by John Maynard Keynes: “Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally”. It was exactly the same 100 years ago.

[@Value-Investing]

always the same!!! Thanks for the quote, I didn't know it!

[@majdnabulsi4093]

Excellent video and makes perfect sense; risks are there but over-reaction in extreme selling. I am in KWEB, CQQQ, TCEHY, BILI, IQ, NIO, XPEV.

[@Value-Investing]

:-)

[@Sujit_Kulkarni]

Bought all of these from India

[@christopheroux4446]

Hi Sven, excellent video well above your average. In the analysis of the risks you mention only the political risk. However, there is also the economical risk linked to the real estade bubble bursting and the associated negative wealth effect on the majority of the chinese population. A parallel to the Japan situation would be very interesting too as Japan had also a real estate bubble and a demographic crisis and it seems China is going the same way.

[@Value-Investing]

thanks for sharing!

[@barisfromberlin]

Thnx for your video 😀👍

[@robykateforest88]

Hi Sven! Thanks for the video! I see also a great opportunity in China and I like a lot the business of Alibaba! I already own different shares of BABA (NYSE) and I'm going to buy more. Would you suggest to continue to buy the stock listed on the NYSE or to buy the stock listed in Hong Kong?

[@lyallbenjamin1045]

Thanks Sven.Helpful.

[@Value-Investing]

Thanks!

[@thomaskismul8541]

Thanks a lot for wonderful worldly wisdom you provide with the rest of us! This investment idea is pure value investing to the core. "Heads I win, tails I lose...well...the money is not gonna matter anyways" :-)

[@Value-Investing]

:-)))

[@bilgisever_kullanici]

Mind opening video as always.👍

[@Value-Investing]

Thank you 😁

[@jakobskounielsen1920]

Thanks for the video. I started positions in different Chinese companies a few weeks ago, and I'm still building. Currently 20% of portfolio, but planning to go to 30% in the near future. But only buying on HKSE through my bank in Hong Kong.

[@Value-Investing]

thanks for sharing!

[@VillemVallimaa]

I've been a subscriber for China Update channel for a while now and recommending. He's a resident and also goes thru local media outlets.

[@bstone50]

Excellent observation. John Templeton used to say that he tried to buy stocks at the point of maximum pessimism. All of the negativity on China from youtube channels and MSM looks a lot like maximum pessimism.

[@Value-Investing]

thanks for sharing!

[@LeoJUrban]

Sven, I would really appreciate the name of the stock and is paying the great dividend that you mentioned in the video. Thank you for your good work.

[@gerryvanrensburg3757]

Thanks Sven. Your content is always great. Are you able to comment on the instruments that one could use to invest in China & India etc. if you don't have a IBKR account.

[@Value-Investing]

no, you have to see what best fits you! A copper miner is also investing in China :-))

[@nadercuadrado]

Sven making a China video? Today’s gonna be a good day

[@Value-Investing]

I said I will make one when the time comes!

[@emailmdg]

Hi Sven - great video! However, I see from multiple sources an HSI PE ratio of around 8.5-9x (vs. the 5.6x you mention). Given that this is a major part of the thesis, can you please clarify?

[@investScout]

True 😀

[@andrearusso8145]

Thanks Sven, great video. Why did you decide to buy KWEB instead of HSI?

[@Value-Investing]

will discuss

[@anononline3313]

Great analysis Sven. Got a small allocation to china myself, I DCA into it every month as i add to my portfolio. On the topic of emerging markets, what is your opinion on Brasil? And Petrobras to be specific.

[@Value-Investing]

I haven't researched it yet :-(

[@stephanetalboom6842]

great content,..agree

[@Value-Investing]

thanks!

[@patrykkowalski7426]

Hi Sven! Do you think it makes a big difference if one owns the honk kong shares or the US listed shares?

[@Value-Investing]

I don't know whether in the future it will make or not :-)))

[@thomashelveg7563]

Definitely agree on the fact that if China starts a war over Taiwan our stocks will be the least of our problems. My only concern is that one day US decides that China is so scary and dangerous that western people can't invest anymore in Chinese company and they block all the trades. I'm currently living this issue with my Russian stocks and it is not pleasant to be in this limbo.

[@pongop]

Good point. I had CNOOC for the high dividend and it got delisted since it's a national company and deemed a security threat here in the US.

[@Value-Investing]

thanks for sharing!

[@TrumpForPrison2023]

Im sorry but, why the hell would you invest in Russia after they annexed Crimea in 2014? Major risk, but more importantly, I wouldn't be able to do it morally. Same reason I don't own defense stocks or even oil stocks.

[@thomashelveg7563]

@@TrumpForPrison2023 why the hell you would invest in US after they bombed Iraq and Serbia?

[@millersfloorcoatings]

@@TrumpForPrison2023 your profile name gives away your political stance, which also is a telltale sign where you stand on oil and fossil fuels.

[@antonblanke]

I love that you‘ve got a Picture your kid made in the background.makes you human & trustworthy

[@Value-Investing]

never trust anybody when it comes to investing, see how it fits you!

[@Traian986]

Very interesting and logical perspective! Thanks for the dose of reality that you bring because the herd mentality is strong and can corrupt everyone!

[@Value-Investing]

thanks!

[@simoarenera]

Audio much Better in this one thank you Sven

[@Value-Investing]

thanks!

[@stevenbi7495]

Hi Sven, can you do a portfolio update and maybe analysis on the Q3 earnings season video? Thanks!

[@Value-Investing]

yes, will likely do next week!

[@programd29]

Thanks for the interesting video Sven. Can you introduce the Chinese stock with the high dividend that you mentioned in the video? Thanks.

[@Value-Investing]

I will not discuss individual Chinese stocks :-( Too much negative comments, not worth it, sorry!

[@eyalkarni3290]

Really nice video. Can you count on the reliability of the earnings numbers on China? Is it possible that companies report higher growth?

[@Value-Investing]

anything is possible!

[@junxu6519]

A viewer from China, another great video, thank you Sven! Chinese stock market is still quite volatile currently and I think the biggest potential risks currently or in the future will be geopolitical risks. We need to value the risk and reward before investing.

[@Value-Investing]

Thanks for sharing!

[@austinluepkes5484]

They let you on KZbin?

[@user-co6hw4ys5q]

​@@austinluepkes5484 via VPN

[@pacocalabasa6605]

For me Chinese businesses have always been uninvestable. I had a fantastic business go to zero in Russia because I didn't sell when you said we should. I am near retirement, and political risk is too much for me to pile on top of normal business and macro risks. For younger people like you and most viewers China may be a great opportunity and the risk is acceptable, all depends on your situation.

[@n4870s]

Us can not break with China. It is buying goods from China and selling ust to china. Too many businesses have factory in china. Also taiwan is not ukraine. No body cares about yellow ppl being occupied.

[@Geronimo7-7-7]

this TEXT ME comment is a scam. Go ahead and report it.

[@it_s_just_me1030]

@@Geronimo7-7-7 yes, everybody should raise it up with the button on the right

[@Value-Investing]

that is also great, as said, there will be plenty of other opportunities!

[@Dr.Dumpnpump]

If your investment went to zero, then it wasn’t a great business nor was it a great buy. BABA is trading at book value right now. That means even if it went to zero you’d get most of your investment back via bankruptcy, clearly that wasn’t the case in your investment in Russia.

[@wongthaiyuan7587]

3rd time watching yet I’m still enjoying this high quality analytic video! But for a believer who’s already well invested into individual stocks eg Alibaba, is HSI high dividend yield etf more suitable than KWEB?

[@Value-Investing]

time will tell, impossible to know now.

[@sultanalbarghouthi6798]

Thanks Sven, good video Though; many comments were mentioning that you sold your BABA shares which is totally your right but if you let us know the reason behind that decision it would be much appreciated. I had a diversified portfolio but due to the enormous drops in Baba I kept selling other stocks in green and adding BABA & Bidu. So regardless of all the noise and politics we need to know what is the fundamental situation for those big techs

[@Value-Investing]

here is everything kzbin.info/www/bejne/eITchICniMtsg8U

[@explorerjlc1743]

basically its over for BABA, Sven admitted his mistake. Sell while you can. Stop averaging down.

[@user-pb4hc9wr2s]

I would agree with everything here, cheers

[@Value-Investing]

that is dangerous :-)))

[@marcdesjardins6022]

Hi Sven, I agree with you concerning our stocks will be the less of our problems in case of a real conflicts with China, hoping this will never happen. However, I am worry about long term tension between US and China that can pressure on Chinese Stocks (like actually) and very bad sentiment, regardless positive fondamentals...this is my biggest worry...Thanks again for your content

[@Value-Investing]

anything can happen!

[@sebfox2194]

This tension has pretty much already happened. Chinese tech stocks are down 80% already. Can they go down 90%? Sure, but if you don't see them going to zero, then the risk to reward is pretty good here.

[@investScout]

@@sebfox2194 True

[@jonathankr]

This is the only time i've listened to Sven. I'm not saying he gives bad advice. He is usually pessimistic on stocks which is super important. I've been watching for years and rarely does he give this type trade. Great risk vs reward option. I'm so glad he showed such confidence on this trade. I'm up 50 % now but the real hard part of stocks... should i sell? I hate this about stock picking, you have to be right twice (buy AND sell). Sven, do you have a rule or method of when to sell? 50% in one months is nuts. I know you said 3x to 5x. But in one month, 50%. What should you do. Just sit and hold? Also. Sven, congrats on Croatia win/3rd place in World cup. Vamos Argentina!

[@TidusVen]

Great analysis Sven. Check these other ETFs as ideas for your YT portfolio: EMQQ (50% China), FMQQ (No China) and INQQ (India Focus).

[@Value-Investing]

I am not interested in ETFs, just to watch it!

[@TidusVen]

@@Value-Investing Fair enough.

[@giovannip8600]

Hi Sven, could you make a list of the resources you use to stay updated or do research?

[@Value-Investing]

very simple: all of them!

[@omarkhan413]

Hello Sven, Im watching from the USA and I'm having difficulty finding an ETF that tracks the Hang Seng Index. Do you have any recommendations? Thank you

[@Value-Investing]

I have no recommendations!

[@WhoAmI-bh3pw]

Such a helpful signal vs. the noise about China. Yes, significant risks, but huge reward potential at present valuations and projected market growth; exactly opposite to US risk/reward. Would you consider doing a specific China stock analysis to see how the macro factors can be assessed in a specific case?

[@Value-Investing]

no, this is it, only macro on YT for China!

[@theworddoner]

One of my issues about investing in China is that Chinese people don’t invest in their own stock market. It’s not seen as a reliable way to grow wealthy as opposed to buying houses. Western markets may have similarities but it’s nowhere near extreme. Their stock market does not follow their alleged growth rate. I’m not comfortable investing in murky waters. Plus it’s not very investor friendly either. A lot of shenanigans happen in that stock market like insider trading, rug pulls etc. Western markets are also susceptible but there are more protections against it.

[@Value-Investing]

Fair point!

[@TakutFlix]

Hi do you know why theres difference in dividend yield between a share and h share? Thanks

[@gtranchedone]

Loved the ASSet manager joke 😂

[@Value-Investing]

:-)))

[@absw6129]

I have been on the fence with Baidu for a long time now. Buying it today along with Google.

[@Griffintheelder]

Great research Sven. But how about the P/E being low because of anticipated lower earnings for Chinese big tech, and how about under a regime that is tightening its grip op its population and commercial sector, these earnings could continue going lower. The market isn´t just pricing in the risk of a Taiwan war, there is equally a fear of a more restrictive regulatory and fiscal environment that could hurt earnings and future growth.

[@Value-Investing]

anything can happen!

[@Michael_Mears]

Thanks, Sven. I can see several China ETFs on the ASX. I'll investigate further.

[@Value-Investing]

thanks for sharing

[@erikm9768]

Sven, would you please cover Meta next time? They are down close to 25% after the last earnings call and would like to see your analysis on their future! The Metaverse is a big gamble of course but the rest of the their business is still very real and interesting to analyze.

[@Value-Investing]

working on it!

[@erikm9768]

@@Value-Investing Thank you a million, excited to watch!

[@augustus331]

Baba was/is my first big position. I'm very cautious with my money, always. I have a massive buffer and I'm glad I was too scared to go all-out when I started investing. As you said, Sven, you can take the hit. I'm a student so I don't have an income save from a thesis-stipend of 300/month. Still, I have enough saved up so I wont have to touch my baba position for 20+ years. This allows me to just wait it out. The cash I used to buy it is gone, now I'll wait 10+ years and see where it goes.

[@JB-jkhb1972]

I totally agree with your analysis. My broker called me as I have 20% of my funds in Chinese stocks. He thought I should get out. I gave him the same analysis as you just did. How about a Similar summary about meta? 😂 I know you do not like it …. However it’s a question of possible risk and reward as we know 👍

[@Value-Investing]

next week!

[@seeker9912]

Wow this call is spot on like 30% gain in one month!

At the end, if you keep going with your through analysis of low risk and high return, even if some risks materialize, the high return of other investments in your portfolio not only overweight the losses, but also give a quite decent return. It's also about what the great Lynch said: having the stomach to get through that period and maintain positions. And that's why thinking on how will you behave if bad things materialize is so important. Thanks for this great video. Keep going! 💪😉👌

[@Value-Investing]

that is how it works!

[@felixfoucher-paquin3171]

Small comment Sven on chinese Indexes, they are not as representative of Chinese economy because of less developped market-based public stock exchanges. That means, we ought to be careful when positioning/picking proxies.

[@Value-Investing]

nothing is a proxy for the economy, just for what is in that index:-)

[@kth6736]

I have been a long term china watcher and would say that rhe 10-20-70 distribution is on the optimistic side. I would build in a margin of safety by using 20-40-40 as the probabilities.

[@Value-Investing]

at the end what matter is what happens :-)

[@florestores]

What happened with "Good day fellow investors"?...great video!

[@Value-Investing]

:-)))

[@blackstarmaster]

You are right, but for me it makes the most sense to calibrate my desisions with the eurodollar market. it is the biggest driver for global economies.

[@Value-Investing]

thanks for sharing!

[@klausfriedrich3661]

Hi Sven - would recommend to go deeper. 1) Current Hang Seng PE Ratio is 8.6 (as of 27/10/22) - which is quite different from 5 (more than 60%!!) 2) many companies in the Hang Seng have significant business share outside of China (e.g. HSBC!!!) - so the Hang Seng Index is not ideal to proxy China 3) putting three indices side to side (Hang Seng, KWEB, Shanghai) does not show us, that chinese and foreigners would "behave" differently. The indices are made up of completely different stocks. E.g. banking stocks in the Shanghai Index and in the Hang Seng performed very, very similarly. While at the same time the Hang Seng includes a number of high-fligh tech stocks that are not included in Shanghai (and gives them a lot of weight). on these counts, your presentation is somewhat biased/misleading best regards

[@Value-Investing]

thanks for sharing!

[@ATLJB86]

I’m not going to lie.. 1,000 shares of Nio for 10,000 seems tempting. If we are shifting to EVs the Nio has the best car and battery system by far. It’s on watch!

[@Value-Investing]

Thanks for sharing!

[@haykhovhan]

Hi. Could you make a video explaining the big indexes tracking the Chinese Markets? Are they as relaiable in terms of how they are making calculation as US indexes? Is it wise to invest in those indexes if the long term prospects seem promising?

[@Value-Investing]

thanks for suggesting!

[@alexd5884]

Hi Sven, thanks for the video. Bennet Institute of Cambridge University published a paper on October 20th, titled A World Divided: Russia, China and the West. They explain the current sentiment around the globe towards China in historical perspective. Tldr new Cold War, battle of ideologies. Huge divide in sentiment between West and East.

[@Value-Investing]

thanks for sharing

[@winstonluo975]

completely agree with your analysis. Now is a great time to use limited positions to invest in China due to extreme pessimistic and fear. But still, as a long-term investor in the Chinese market, I am planning to exit all my position in all Chinese Companies once the situation recovers. One thing for value investors needs to remember, you are able to value what you are investing in, but this is becoming impossible in China. Just one simple, you are investing in a business say making 1 million USD a year net profit/FCF this year, but have a Chance this business will be shut down anytime within the next 5 years because someone gave an order just because that person in power do not like this business. Even worse, you will not receive any compensation and no other means to protect your right and interest.

[@Value-Investing]

thanks for sharing!

[@winstonluo975]

@@Value-Investing just, what the government did completely destroyed the marker norm. I have a consultant company helping the bridging Chinese startup financing and fundraising, funding sources mainly from EURO, and US funds. After the political meeting in late July, all my funding sources said, they will not consider any future investment in China until March 2023, or until the material change of the zero Covid policy. It never happened before, even during 2008 and 2009. This is not sth like 2008, or a downtrend business cycle. It's more like people are concerned about whether my business will be shut down tomorrow or not.

[@bastianpowell3849]

I see the book on the back ground "where the money is". I read this book and its pretty interesting read. I think the author touched quite interesting accounting trick. Normal companies have capex and its depreciated over the years to allow companies to report positive earnings, while software companies dont really have capex and instead everything goes to R&D and SG*A, but accounting rules require them to deduct all their investments at once, so that why all these companies have negative or minimal PE ratio. I am just thinking as well that we had 10 years of QE and all stock market in general had a nice run, so either the autor is genius, either FED just pumped everything up by doing QE

[@Value-Investing]

:-)) Well, the second statement is 100% true, about the first, we will see!

[@pb6481]

Be careful about using search results to measure noise. The result may vary per account and region as well…

[@Value-Investing]

thanks for sharing!

[@IdealPerspectiveVision]

Sven why you did buy ETF and not individual companies?

[@Value-Investing]

just to discuss the strategy :-) I won't be going into individual Chinese companies here on KZbin!

[@rangouel]

Maybe comes the time to revisit KWEB

[@Value-Investing]

the time will come

[@austinluepkes5484]

What a ride it’s been

[@Value-Investing]

oh yeah! not finished yet!

[@MrGottaQuestion]

I'd love to see a video specifically on alibaba an tencent.

[@khuo0219]

The GDP breakdown and estimated size chart should be updated in light of recent developments. It is without question that zero-covid has taken a significant toll on the Chinese economy. The third quarter GDP figures were also deliberately delayed.

[@Value-Investing]

yes, but the long-term trend is still there, so just noise!

[@khuo0219]

@@Value-Investing Maybe, but the long term trends basically follow the stated policies of the leader, so you go from Deng, to Jiang, to Hu, to Xi. GDP growth has slowed, population growth has slowed, real estate market has collapse. One can say short term noise, but in China, the man at the top matters. We cannot assume it has no effect. Now we don't know what an unrestrained Xi will actually do, but uncertainly is not noise. Noise eventually regresses to zero net effect, where the uncertainty can become a significant effect in one direction.

[@OpenDoorEnglish]

KWEB and FXI are very interesting ETF prospects. Could be great or absolutely horrific!

[@Value-Investing]

:-)

[@BeefNoodleDry]

Finally some sense about China. Thank you Sven for that. Had enough of Anti China propaganda without any logic behind it.

[@tylerbaisden1308]

Alibaba BYD Canaan and Tencent are a few I like

[@Value-Investing]

thanks for sharing!

[@tieme1700]

Sorry my question might be a bit ignorant as I never studied finance nor business. But I'm curious to know in what scenario would Chinese stocks go to zero? I mean even in the case of an invasion into Taiwan I don't see how all Chinese companies would just go bankrupt?

[@Value-Investing]

no, but if you are a foreigner your assets can get freezed - thus zero!

[@Kaloyan.Dimitrov]

which ETF is the best for Chinese stocks ?

[@Value-Investing]

I don't know

[@emanuele1503]

Would you recommend an ETF on China or just investing in the Chinese stock market?

[@Value-Investing]

Depends on what you prefer, but I don't recommend anything!

[@emanuele1503]

@@Value-Investingvery diplomatic :) fair enough

[@jabberwockytdi8901]

It will take a while but I'm sure the global supply chain has woken up to how over reliant we are on Chinese manufacturing and there will be a significant rebalancing. Add the fact that Chinese GDP is certainly way below the official statistics and the ongoing effect of zero covid policies it's clear the Chinese economy is struggling even more than is generally thought. Maybe the real opportunity is in other Asian economies that have been dragged down with China , but which are likely to bounce back more quickly.

[@Value-Investing]

yes, woken up, but then it is about the customer really wanting to pay 20 bucks more for something, time will tell!

[@manut22]

What about the structure of the shares? Their legal certanty?

[@Value-Investing]

kzbin.info/www/bejne/b5-rZKSDa7iig8k