Investing in China with your Canadian Dollars

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Investing in China with your Canadian Dollars

“The Chinese use two brush strokes to write the word 'crisis.' One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger--but recognize the opportunity.”

- John F. Kennedy

The stock market in China has been one heck of a roller-coaster ride to say the least over the past few months. With that said, many investors remain optimistic of its future and are looking for ways to add some exposure to that market in their portfolios. My opinion is that with the high level of risk associated with this asset class, you will want to invest in a manager who knows the market, rather than investing within an exchange traded fund (ETF) or company directly. I realize that investing through a mutual fund comes at a higher cost, but for something so specific and volatile, I think it is well warranted.

Below is a list of mutual funds and exchange traded funds that will offer you exposure to both the developed market of Hong Kong, and the developing market of mainland China, all in Canadian Dollars.

Mutual Funds:

Fidelity China Fund
Manulife China Class
AGF China Focus Class
Excel China Fund

ETFs:

iShares China Index ETF (XCH)
BMO China Equity Index ETF (ZCH)
Horizons China High Dividend Yield Index ETF (*Launching January 12th)

These investment options are not for everyone. Investing in any of the funds included in this message may not be suitable for all investors as there are always unique characteristics and risks for each of them that can include illiquidity, volatility, entry price, foreign currency, foreign markets, foreign companies and/or commodity prices, between others. Should you have an inquiry related to any of these funds or be interested to learn how they could add value to your portfolio, feel free to connect with me directly: ludovic.siouffi@canaccord.com

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