Chinese Assets Are Soaring; How to Choose Investment Targets

Starting from September 24th, with the People's Bank of China releasing favorable policies, Chinese assets have seen a significant increase. The Hang Seng Index $Hang Seng Index (800000.HK)$ has risen by more than 14% within a week, and the Shanghai Composite $SSE Composite Index (000001.SH)$ Index has increased by over 13%. How should we view the frenzied trend of Chinese assets? How can we keep up with such opportunities?

So, what Chinese assets can we choose? We can start with Chinese companies listed on the US stock market, where many Chinese companies are also listed, such as $Alibaba (BABA.US)$ , $PDD Holdings (PDD.US)$ , $JD.com (JD.US)$ , and other internet-related companies. With the recovery of Chinese consumption, economic recovery, and policy stimulus, their performance is expected to be directly promoted. Of course, we can also consider related ETFs, such as the $KraneShares CSI China Internet ETF (KWEB.US)$ to buy a basket of internet-related company stocks, or leveraged ETFs such as the $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ to amplify the gains of the rise. Meanwhile, if you think the rise is unsustainable and will be accompanied by a sharp decline, you can consider using inverse ETFs, such as the $Direxion Daily FTSE China Bear 3X Shares ETF (YANG.US)$ to hedge potential market decline risks.

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We can directly participate in the investment and purchase of Chinese assets in the Hong Kong and A-share markets, such as Tencent $TENCENT (00700.HK)$ , or Chinese bank stocks such as Bank of China $BANK OF CHINA (03988.HK)$ , Industrial and Commercial Bank of China $ICBC (01398.HK)$ . For a complete guide to Hong Kong stock investment. Click here to learn more!