Want to Invest in China? Stick to Stocks Listed in Hong Kong

Looking to invest in China? Look no further than Chinese companies listed in Hong Kong, which are 50 percent cheaper than stocks listed in mainland China. 'I think China's A-shares are a bit expensive at the moment,' said Raymond Chan, chief investment officer, equity Asia-Pacific at Allianz Global Investors, based in Hong Kong. 'If you want to look at Chinese stocks, you should look at China's H-Shares - these are Chinese companies listed in Hong Kong, which trade at a 50 percent discount to A-shares, [listed in mainland China].' As for sectors, Chan is interested in the insurance space and companies in the industrial automation space. 'The Chinese labor market is expensive and companies have to spend more on automation,' he added. As for the disappointing export data out of China, Chan says weak trade isn't just a problem specific to China, but also the region, including Taiwan and Korea. Exports in China fell 5.5 percent in August, following an 8.3 percent decline in July. TheStreet's Scott Gamm reports from New York.