Mutual Fund Investing
Go-Slow Approach to Fast-Growing China
02/06/08 - 11:55 AM EST
This article was written by Richard Widows and Sam Patel of TheStreet.com Ratings. The Chinese New Year is likely to burst in with a bit more flair than usual this week, as China prepares to welcome the world to this summer's Olympic Games, but the country's financial markets might not show the same sparkle going forward, at least in the near term. China and Hong Kong have been profitable destinations for investments over the past several years, and the Chinese economy has been on a tear. But recent weakness indicates that these hot markets have gotten ahead of themselves. Also, some economists wonder about the sustainability of China's growth rate, which zoomed to more that 11% annually for the past two years For one thing, China's infrastructure might be unable to cope with the ever-increasing demand placed upon it. Economists wonder if electricity production can be sustained at a level that will meet growing consumption. (Consumption of electricity, the magnitude and rate of expansion of which is commonly used a proxy for growth of an emerging economy, has been estimated as growing in China at 15% annually.)
China Watch: Sohu? So What? |
| CHINA & HONG KONG: KINGPINS OF ASIA | ||||||
| REAL GDP GROWTH | INFLATION RATE | FEDERAL BUDGET SURPLUS /DEFICIT AS % OF GDP | CURRENT ACC'T TRADE AS % OF GDP | JOBLESS RATE | ||
| China | 11.20% | 6.50% | -1.30% | 7.20% | 4.00% | |
| Hong Kong | 6.20% | 3.80% | 1.00% | 11.40% | 3.40% | |
| India | 8.90% | 5.50% | -4.20% | -1.50% | n/a | |
| Indonesia | 6.50% | 7.40% | n/a | 0.30% | 9.80% | |
| Malaysia | 6.70% | 2.40% | n/a | 15.20% | 3.10% | |
| New Zealand | 3.30% | 3.20% | 4.80% | -8.90% | 3.50% | |
| Philippines | 7.40% | 3.90% | n/a | 2.40% | 6.30% | |
| Singapore | 6.00% | 4.40% | 6.00% | 28.50% | 1.60% | |
| S.Korea | 5.50% | 3.90% | 2.10% | 2.10% | 3.10% | |
| Taiwan | 6.90% | 3.30% | -2.40% | 4.70% | 3.80% | |
| Thailand | 4.90% | 4.30% | n/a | -2.10% | 0.80% | |
| U.S. FUNDS AT LEAST 75% INVESTED IN CHINA-DOMICILED & HONG KONG-LISTED INVESTMENTS | ||||||
| NAME, TICKER & TheStreet.com RATINGS GRADE | NO. OF CHINESE HOLDINGS * | PCT. OF HOLDINGS IN CHINA * | AMT. IN CHINA ($BIL.) * | 3-MO. TOTAL RET'N (%) | 12-MO. TOTAL RET'N (%) | |
| OPEN-END FUNDS | ||||||
| Guinness Atkinson China & HK Fund (ICHKX) A- | 27 | 92.7 | 271.6 | -27.66 | 40.35 | |
| Matthews China Fund (MCHFX) A- | 38 | 94.6 | 2,208.9 | -28.02 | 37.34 | |
| Oppenheimer Baring China Fund A (OBCAX) U | 37 | 80.3 | 85.9 | -35.55 | 32.00 | |
| Templeton China World A (TCWAX) A | 38 | 76.8 | 659.7 | -28.12 | 23.20 | |
| Dreyfus Premier Greater China A (DPCAX) C+ | 40 | 87.9 | 755.1 | -30.73 | 29.34 | |
| Old Mutual Clay Finlay China A (OMNAX) U | 35 | 88.2 | 72.3 | -30.68 | 22.86 | |
| Columbia Greater China A (NGCAX) B+ | 36 | 95.1 | 371.8 | -32.48 | 34.57 | |
| ING Greater China Fund A (IFCAX) U | 29 | 75.2 | 59.4 | -25.57 | 24.63 | |
| AllianceBern Greater China 97 A (GCHAX) A- | 25 | 85.1 | 134.5 | -26.73 | 22.93 | |
| Nationwide China Opport A (GOPAX) C | 32 | 91.1 | 108.4 | -31.26 | 38.11 | |
| AIM China Fund A (AACFX) U | 50 | 85.6 | 382.6 | -33.48 | 43.97 | |
| Eaton Vance Greater China A (EVCGX) C+ | 26 | 85.5 | 416.4 | -31.25 | 28.00 | |
| Buffalo Jayhawk China Fund (BUFCX) U | 28 | 86.5 | 35.5 | -17.83 | 20.11 | |
| EXCHANGE-TRADED FUNDS | ||||||
| iShares FTSE/Xinhua China 25 Index Fund (FXI) A- | 28 | 98.7 | 7,053.1 | -33.30 | 40.39 | |
| SPDR S&P China ETF (GXC) U | 80 | 97.9 | 188.9 | -34.00 | N/A | |
| iShares MSCI Hong Kong Index Fund (EWH) A- | 27 | 96.2 | 2,491.6 | -15.00 | 24.11 | |
| PowerShares Golden Dragon China Port. (PGJ) B+ | 18 | 92.6 | 693.6 | -28.77 | 31.66 | |
| CLOSED-END FUNDS | ||||||
| Morgan Stanley China A Share Fund (CAF) C+ | 27 | 99.4 | 888.6 | -21.45 | 69.96 | |
| Greater China Fund, Inc. (GCH) C | 28 | 91.4 | 420.4 | -28.45 | 20.42 | |
| * Includes China-domiciled and Honk Kong-listed investments. Source: TheStreet.com Ratings - Data as of 1/31/2008. |
||||||
| LARGEST CHINA & HONG KONG HOLDINGS OF U.S. FUNDS | ||||||
| COMPANY | OPEN-END MUTUAL FUNDS | EXCHANGE-TRADED FUNDS | CLOSED-END FUNDS | VAL. HELD BY U.S. FUNDS ($MIL) | ||
| China Mobile Limited | 314 | 16 | 15 | 10,438.5 | ||
| Cheung Kong (Holdings) Limited | 128 | 15 | 12 | 4,532.4 | ||
| China Petroleum & Chemical Corp | 138 | 8 | 4 | 3,993.8 | ||
| Petrochina Company Ltd. (Sinopec) | 136 | 12 | 14 | 3,945.9 | ||
| Sun Hung Kai Properties Ltd | 148 | 15 | 7 | 3,577.4 | ||
| CNOOC Limited | 121 | 20 | 6 | 3,181.9 | ||
| China Life Insur Co Limited | 93 | 12 | 4 | 2,942.3 | ||
| Industrial&Commercial Bk China | 113 | 12 | 6 | 2,523.1 | ||
| Hutchison Whampoa Limited | 134 | 11 | 6 | 2,482.4 | ||
| China Shenhua Energy Co Ltd | 105 | 7 | 7 | 2,423.1 | ||
| Hong Kong Exchanges&Clearing L | 107 | 12 | 4 | 2,261.0 | ||
| China Unicom | 65 | 13 | 6 | 2,024.5 | ||
| China Construction Bank | 105 | 8 | 6 | 1,824.2 | ||
| Swire Pacific | 120 | 13 | 1 | 1,731.1 | ||
| Ping An Ins (Grp) Co China Ltd | 62 | 7 | 3 | 1,555.7 | ||
| China Telecom Corp Limited | 59 | 9 | 2 | 1,523.2 | ||
| Boc Hong Kong (Hldgs) Limited | 68 | 16 | 2 | 1,522.1 | ||
| China Merchants Holdings Intl | 70 | 12 | 2 | 1,508.3 | ||
| China Coal Energy Co Limited | 58 | 3 | 8 | 1,482.7 | ||
| Hang Seng Bank Limited | 61 | 17 | 4 | 1,479.7 | ||
| Hang Lung Properties | 110 | 12 | 8 | 1,426.8 | ||
| China Merchants Bk Co Limited | 89 | 5 | 7 | 1,323.0 | ||
| Henderson Land Development Co | 78 | 11 | 5 | 1,320.7 | ||
| Hong Kong Electric Holdings | 76 | 16 | 3 | 1,086.9 | ||
| China Overseas Land & Invts | 62 | 11 | 2 | 1,028.4 | ||
| Source: TheStreet.com Ratings | ||||||
Chartered Semiconductor, RF Micro Devices, Hologic, Verisign downgraded; coverage initiated on Nymex.
The era of importing cheap goods from China might be over.
Dollar Financial, Morningstar upgraded; Amylin, Tesoro, Uranium Resources downgraded.
Funds open to new investors outperform closed rivals.
These stocks, sorted for their low P/E and PEG ratios, offer exposure to Brazil, Russia, India and China.
The 'Foreign Opportunities' fund picks winners in India, China, Mexico and Europe.
But stay on your guard, because some are highly illiquid.
Here's a look at China's microcredit scene and why foreign investors are so interested in it.
David Rubenstein, co-founder and managing director of the Carlyle Group, discusses China, private equity and venture capital.
Apple and AT&T were among the most searched stocks on TheStreet.com Friday. Here's what Cramer had to say about them recently.
Catch up on his thinking on the hottest topics of the past week.
Investors will have to deal with a Fed meeting and another flood of earnings and economic data.
Looking for deep value with Defiance Asset Management, polling big investors about where the market's headed, plus much more.
See who made what calls.
3 Stocks I Saw On TVDan Fitzpatrick examines three stocks viewed on Fast Money and Mad Money Today's stocks include Deere & Co., Petrobras and MBIA
TheStreet.com Ratings checks in on First Community Bancorp and First Niagara Financial Group two months after recommending the stock.
Take-Two's latest hit receives a perfect score from industry reviewers.
- Top Rocket Stocks for Week: Walter
- Cramer on Top Searched Stocks: Citi
- Credit vs. Debit Cards: Weighing the Options
- Power Stock Rankings: Energy
- Top Dividend Stocks of the Week: Pepsi
- Let the 3G-Phone War Begin
- IndyMac Sputters to Loss
- Report: Icahn Zeroes in on Yahoo!
- Tuesday's Analysts' Upgrades, Downgrades
- TSC Ratings' Upgrades, Downgrades
- Cramer's 'Mad Money' Recap: Mad Money's Rally Playbook
- The Polycarbonate Price Cut
- CalPERS Pushes for Clean House at Standard Pacific
- Investing in China: What You Need to Know
- Coming Week: 'Glimmer of Hope'
- Top Stocks With Insider Buying, Buybacks
- New Solar ETF Helps Spread Sector's Risk
- Feuerstein's Biotech-Stock Mailbag
- Need to Own Energy? Here's How to Do It
- My Company Doesn't Provide Health Insurance (Gulp!)
Sponsored by:

BEAT THE STREET GAME:



