China - should I be worried

[Arborbridge]

Interesting to note that my far eastern ITs - JEMI, SOI, JAGI contain big chunks of both China and Taiwan. I particular around 8% in the well known Taiwan Semiconductor Manufacturing Company. Indeed, it's a bit of a favourite with MYI having 4% .

Not sure how worried I should be, but perhaps no more topups in those ITs for the time being.


Arb.

[Lootman]

Interesting to note that my far eastern ITs - JEMI, SOI, JAGI contain big chunks of both China and Taiwan. I particular around 8% in the well known Taiwan Semiconductor Manufacturing Company. Indeed, it's a bit of a favourite with MYI having 4% .

Not sure how worried I should be, but perhaps no more topups in those ITs for the time being.

It has certainly been a valid criticism of emerging markets trackers that they have been harmed by having to take a market weighting in China. The Chinese market is down 25% in the last year, and down 28% in the last 5 years.

For active funds the question might be more about the risk of being under-weight in China when it eventually rebounds. Then again if you believe that China is determined to throw its weight about in that region then you'd probably also avoid Hong Kong, South Korea or even Japan.

[Arborbridge]

I know my question was almost rhetorical, but I thought it might be a field for discussion....

[EthicsGradient]

That company is a huge part of the emerging markets indexes:

5.6% of MSCI Emerging Markets: https://www.hl.co.uk/shares/shares-sear ... arkets-imi
6.3% of FTSE Emerging Index: https://www.trustnet.com/factsheets/o/g ... y-index-uk

or 4.7% of the MSCI Asia Index: https://www.msci.com/documents/10199/a6 ... 695a29b9d7

So 8% is a little overweight, but not much. Hard to avoid in that region.

[absolutezero]

China
You own the companies. Until Xi decides you don't.

I have no direct exposure to China beyond what (was?) is in my Foreign and Colonial holding and my indirect is via FTSE 100 / S&P 500 constituents.

Happy to keep it that way. But would be happier with none at all.

[Lootman]

I seem to recall Simon Edelston of the Mid Wynd Investment Trust has decided China to be uninvestable.

Of course some of us might regard people regarding China as being uninvestable as a buy signal.

Certainly a few years ago when everyone loved China it turned out to be a sell signal.

[TUK020]

China
You own the companies. Until Xi decides you don't.

I have no direct exposure to China beyond what (was?) is in my Foreign and Colonial holding and my indirect is via FTSE 100 / S&P 500 constituents.

Happy to keep it that way. But would be happier with none at all.

What I am worried about is:
Taiwan, you own the companies, until Xi decides he is going to take them by force....

[scrumpyjack]

I seem to recall Simon Edelston of the Mid Wynd Investment Trust has decided China to be uninvestable.

Of course some of us might regard people regarding China as being uninvestable as a buy signal.

Certainly a few years ago when everyone loved China it turned out to be a sell signal.

No doubt. Although I think it wise to read the detail of Edelston’s reasoning. Ultimately any asset (Chinese or otherwise) could have a place in one’s portfolio but surely only if the risk is understood — and I suspect Edelson likely has different levels of acceptable risk compared to the average DIY retail investor.

The problem is that with China, I think it is impossible to quantify the risks!

[richfool]

I have been cautious about exposure to China for a while now (and to Taiwan).

As a precaution I reduced my exposure to China earlier in the year by selling HFEL, and more recently JAGI, (leaving me with just AAIF in the Asia Pacific sector). Instead I have increased my exposure to the global growth and growth & income sectors, thus, reducing exposure to China and Asia Pacific and instead leaving the decision to the trust managers in respect of the resultant much smaller exposure the global trusts have to China and Asia Pacific.

I too hold Mid Wynd managed by Simon Edelston.

[absolutezero]

China
You own the companies. Until Xi decides you don't.

I have no direct exposure to China beyond what (was?) is in my Foreign and Colonial holding and my indirect is via FTSE 100 / S&P 500 constituents.

Happy to keep it that way. But would be happier with none at all.

What I am worried about is:
Taiwan, you own the companies, until Xi decides he is going to take them by force....

That too. Same idea. You own Taiwan Semiconductor. Until Xi decides you don't.

China. Hong Kong. Taiwan.
All far too risky.

[Steveam]

There are other views …

https://moneyweek.com/economy/global-ec ... g-economic

From China I would imagine the (self selected negative) news about the west is that we’re in a state of collapse.

I, in my usual idle manner, will probably do nothing.

Best wishes,

Steve

[Arborbridge]

There are other views …

https://moneyweek.com/economy/global-ec ... g-economic

From China I would imagine the (self selected negative) news about the west is that we’re in a state of collapse.

I, in my usual idle manner, will probably do nothing.

Best wishes,

Steve

I don't think the question for me is whether China will crash - more whether teh China holdings in my ITs will crash. The TSMC holding, could be set to zero, for example. Most managers seem fairly sanguine about it, but they are known for knowing nowt about owt and not reacting until the curve has passed.

I certainly won't be bolstering my IT holdings which have biggish China content, but the likes of MYI (China holding but lower), HINT JGGI seem safer for now.

Arb.