kaksin
liked
I was watching a recent interview with a famous hedge fund manager recently where he essentially said you have to be invested in the Chinese stock market because that is where the economic growth is taking place at a rapid pace. We certainly all have the feeling that rapid growth = higher stock returns. So, lets put that to the test, shall we?
There is a thing called the MSCI China index which has been around since at least 1992. It has a wonderful website which I encourage you to visit, go look them up! According to the website, “The MSCI China Index captures large and mid cap representation across China A shares, H shares, B shares, Red chips, P chips and foreign listings (e.g. ADRs). With 730 constituents, the index covers about 85% of this China equity universe. Currently, the index includes Large Cap A and Mid Cap A shares represented at 20% of their free float adjusted market capitalization.”
So if rapid growth = higher stock returns, what would you guess the annualized return would be on the MSCI China index measured in US dollars since 1992? Should be way over 10%, right? Maybe 15 or 20? Well, the website very conveniently tells you what the annualized return is……A whopping 2.2%. Yep, thats it, just 2.2%! Compare that to the MSCI Emerging Markets index which over the same time span returned 7.75%.
I don’t know how to explain this or why it is, but facts are facts. While China’s economy has no doubt been a world beater, it’s stock market has been a dud. Anyone have any ideas why?
$Amazon (AMZN.US)$ $AMC Entertainment (AMC.US)$ $EVERG SERVICES (06666.HK)$ $Alibaba (BABA.US)$ $TENCENT (00700.HK)$ $Futu Holdings Ltd (FUTU.US)$ $NTES-S (09999.HK)$
There is a thing called the MSCI China index which has been around since at least 1992. It has a wonderful website which I encourage you to visit, go look them up! According to the website, “The MSCI China Index captures large and mid cap representation across China A shares, H shares, B shares, Red chips, P chips and foreign listings (e.g. ADRs). With 730 constituents, the index covers about 85% of this China equity universe. Currently, the index includes Large Cap A and Mid Cap A shares represented at 20% of their free float adjusted market capitalization.”
So if rapid growth = higher stock returns, what would you guess the annualized return would be on the MSCI China index measured in US dollars since 1992? Should be way over 10%, right? Maybe 15 or 20? Well, the website very conveniently tells you what the annualized return is……A whopping 2.2%. Yep, thats it, just 2.2%! Compare that to the MSCI Emerging Markets index which over the same time span returned 7.75%.
I don’t know how to explain this or why it is, but facts are facts. While China’s economy has no doubt been a world beater, it’s stock market has been a dud. Anyone have any ideas why?
$Amazon (AMZN.US)$ $AMC Entertainment (AMC.US)$ $EVERG SERVICES (06666.HK)$ $Alibaba (BABA.US)$ $TENCENT (00700.HK)$ $Futu Holdings Ltd (FUTU.US)$ $NTES-S (09999.HK)$
7
5
kaksin
liked and commented on
For beginners, placing an order sometimes can be a difficult task.
In this video, we will guide you on how to place a market/limit order.
Follow us for more tutorials.
For more guides, please refer to moomoo courses at https://live.moomoo.com/college
Have fun with your financial journey on moomoo!
$AMC Entertainment (AMC.US)$ $Tesla (TSLA.US)$ $S&P 500 Index (.SPX.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Nasdaq Composite Index (.IXIC.US)$
In this video, we will guide you on how to place a market/limit order.
Follow us for more tutorials.
For more guides, please refer to moomoo courses at https://live.moomoo.com/college
$AMC Entertainment (AMC.US)$ $Tesla (TSLA.US)$ $S&P 500 Index (.SPX.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Nasdaq Composite Index (.IXIC.US)$
![[Video Tutorial] How to place an order on moomoo?](https://ussnsimg.moomoo.com/202106170000078178e2dd5e936.jpg/thumb)
6131
6909